The U.S. and Brazil will initiate a mutual recognition agreement for trusted trader programs between the two countries at the instructions of President Donald Trump and President Jair Bolsonaro of Brazil, the White House said in a March 19 announcement. An MRA "will reduce costs for American and Brazilian companies," it said. Brazil will also "implement a tariff rate quota, allowing for the annual importation of 750 thousand tons of American wheat at zero rate," the White House said. The U.S. will also "expeditiously schedule a technical visit" by the Food Safety and Inspection Service "to audit Brazil’s raw beef inspection system, as soon as it is satisfied with Brazil’s food safety documentation," the White House said. "Commensurate with its status as a global leader, President Bolsonaro agreed that Brazil will begin to forgo special and differential treatment in World Trade Organization negotiations, in line with the United States proposal," the White House said.
Broad descriptions of the budget for trade-related operations show the administration would like to spend more on enforcement, and would like to collect more fees from travelers and traders. The submissions, released March 11, for fiscal year 2020, asked for $9 million more for the Bureau of Industry and Security -- slightly more than last year's requested increase. "The Budget increases resources to support the Department of Commerce's membership in the Committee on Foreign Investment in the United States (CFIUS), the summary said. "The Budget includes $16 million to support the President’s robust trade agenda," the summary said, including implementing the John S. McCain National Defense Authorization Act of 2019, which asked Commerce to identify emerging technologies that should be subject to export controls. The summary said the administration wants to establish "a new initiative within the International Trade Administration to counter the circumvention or evasion of U.S. trade actions aimed at those who engage in unfair and illegal trade practices."
The Congressional Research Service evaluated whether President Donald Trump can unilaterally withdraw from NAFTA, as he has threatened to do to force a vote on its replacement. Their assessment -- a 19-page report -- boils down to probably not. Mexico and Canada could not challenge such a move, the researchers said, because of the text's provisions about withdrawal. But whether U.S. law would allow it is ambiguous, they said, and any such proclamation would end up in court.
A deal is shaping up with China that would lift most of the Section 301 tariffs on Chinese imports, according to a report from The Wall Street Journal . The article cautioned it could still fall apart over enforcement, or over political pressures on either side that the deal is too favorable to the other country. President Donald Trump tweeted that "I have asked China to immediately remove all Tariffs on our agricultural products (including beef, pork, etc.) based on the fact that we are moving along nicely with Trade discussions.... and I did not increase their second traunch [sic] of Tariffs to 25% on March 1st. This is very important for our great farmers - and me!"
Deputy-level talks resumed Feb. 19 in Washington, and President Donald Trump, speaking to reporters at the White House that afternoon, again suggested that he won't raise tariffs on Chinese imports on March 2 if a deal isn't reached yet. "I can’t tell you exactly about timing, the date is not a magical date because a lot of things are happening," he said.
President Donald Trump told reporters in Washington Jan. 23 that "I like where we are right now" in terms of leverage with China in the trade war. "We're doing very well in our negotiation with China." The next day, Commerce Secretary Wilbur Ross said on CNBC that while about 30 Chinese negotiators will come to Washington Jan. 29-30, "we’re miles and miles from getting a resolution, and frankly that shouldn’t be too surprising. Trade is very complicated, there’s lots and lots of issues -- not just how many soybeans and how much LNG." He went on to say that "structural reforms that we really think are needed in the Chinese economy" must be addressed. "And then even more important than that, enforcement mechanisms and penalties for failure to adhere to whatever we agree to."
The White House has renominated Miller Baker and Timothy Reif (see 1901070044) to be judges on the Court of International Trade. Their nominations were not voted on by the Senate during the last Congress and were returned to the White House (see 1811270025).
The White House resubmitted the nomination of Jeffrey Nadaner for assistant secretary of Commerce, in charge of export enforcement. Nadaner was a deputy assistant secretary of Defense during the George W. Bush administration. Nadaner was first nominated in February 2018, but his nomination was not voted on during the last Congress, so it had to be resubmitted. Also resubmitted was the nomination of Randolph Stayin for the U.S. International Trade Commission. If his nomination is confirmed in the Senate, he would replace Meredith Broadbent, whose term has expired. He was first nominated in September 2017. He would serve a term that expires June 16, 2026.
The White House has renominated Amy Karpel to join the U.S. International Trade Commission, since her initial nomination, in February 2018, did not receive a vote in the Senate in the last Congress. Karpel is a former chief counsel for negotiations, legislation and administrative law in the Office of the U.S. Trade Representative. The commissioner she would replace left in 2017. She would serve the remainder of the term expiring June 16, 2020.
President Donald Trump told reporters that China's economy is suffering because of the U.S. tariffs on its exports to this country and that the U.S. economy is "doing better than any country anywhere in the world." He saidJan. 14 that "China wants to negotiate. ... I have a great relationship with [China's] President Xi [Jinping]. I think that we are going to be able to do a deal with China. I can tell you we are getting things, that before I became president you would've had no chance of getting. They would have laughed in your president’s face."