The White House said April 25 it sent to the Senate President Donald Trump's nomination of House Judiciary Committee senior majority counsel Vishal Amin to be the White House’s intellectual property enforcement coordinator. The Senate Judiciary Committee will handle Amin's confirmation hearing.
President Donald Trump is considering signing an executive order proclaiming the U.S.’s intent to withdraw from NAFTA, but he hasn’t decided what course to take, according to a report by CNN (here). The order could bring about a renegotiation of the pact, not an outright U.S. withdrawal, CNN reported. Politico reported (here) that the White House may reveal the order late this week or early next week. That story also said that National Trade Council Director Peter Navarro and White House chief strategist Steve Bannon drafted the order, which was submitted this week to the White House staff secretary for final stages of review. The White House didn’t comment.
After congressional lawmakers and industry stakeholders requested that the White House work to loosen Canadian price constraints harming U.S. milk exports (see 1704130051), President Donald Trump highlighted the contentious situation during a speech in Kenosha, Wisconsin. “What's happened to [Wisconsin dairy farmers] is very, very unfair,” Trump said, according to remarks (here). “It's another typical one-sided deal against the United States. And it's not going to be happening for long.” During the address, Trump returned to some of his aggressive trade rhetoric used during the campaign, calling NAFTA a “complete and total disaster,” vowing “very big changes” during the renegotiation or else U.S. withdrawal.
President Donald Trump signed the “Buy American and Hire American” executive order (here) on April 18 (see 1704180021) , which prioritizes the selection of U.S.-made goods in federal procurements and financial assistance awards. The order directs every executive agency to “scrupulously” monitor, enforce and comply with Buy American laws and minimize the use of Buy American waivers immediately. Agency chiefs are required by Sept. 15 to evaluate monitoring, enforcement and implementation of Buy American compliance, examine waiver usage according to type and impact on domestic jobs and manufacturing, and propose policies to ensure maximization of Buy American awards and procurements, including for “manufactured products; components of manufactured products; and materials such as steel, iron, aluminum, and cement,” the order says.
Clarity on the United Kingdom's relationship with the EU will likely be necessary before the U.S. government and private sector can find a starting point for bilateral FTA negotiations, according to a Congressional Research Service report (here). Goods currently transit the EU tariff-free, and raising UK tariffs to post-Brexit levels akin to most-favored-nation EU tariff rates could have substantial impacts on deeply integrated European markets such as automobiles, according to the report. CRS pointed to a statement from the EU that the “UK cannot have a better trade relationship with the EU outside of the Single Market than within it.” As the UK faces the prospect of losing access to the EU Single Market, U.S. businesses that export from the UK to other parts of the EU face the specter of increased tariffs, the CRS said.
The Trump administration formally started its economic dialog with the government of Japan on April 18, which could lead to formal bilateral free trade agreement negotiations, Vice President Mike Pence said during a joint press conference alongside Japanese Deputy Prime Minister Taro Aso in Tokyo (here). “I’ll leave that to the future, but tell you that these discussions are very much a reflection of the President’s view that negotiating at arm’s length on a bilateral basis with nations is the best path forward for the United States, the best path forward for the nations with whom we enter into such agreements,” Pence said. Bilateral frameworks allow countries to better assess whether deals are “win-win,” he said. The dialog seeks to identify areas where the two nations can strengthen economic interaction, Pence said. During the press conference, Aso added that “free and fair rule-based trade and investment” is vital for bilateral and global growth, and said the U.S. and Japan should lead the trade rules in the Asia-Pacific region.
Total U.S.-South Korea trade in goods and services has grown by almost $20 billion since the U.S.-Korea Free Trade Agreement (KORUS) entered into force in 2012, but U.S. businesses face too many market access barriers, hurting U.S. workers and economic growth, Vice President Mike Pence said in an April 18 in Seoul (here). “President [Donald] Trump has made it clear that the United States will pursue an America first policy in trade and exchange,” Pence said. “We’ll pursue trade that is both free and fair, and that will be true in all of our trade relationships, including KORUS.” Pence added that the “most concerning” issue is that the U.S. trade deficit with South Korea has more than doubled since KORUS took effect. He noted that the U.S. is reviewing all trade agreements “to ensure that they benefit our economy as much as they benefit our trading partners.” Pence said he and Trump value the input of industry on the commercial issues it faces.
The National Customs Brokers & Forwarders Association of America endorsed President Donald Trump’s nominee for CBP commissioner, Kevin McAleenan, saying that he understands how to resolve ongoing challenges associated with e-commerce processing, the rollout of ACE and revision of customs broker Part 111 regulations, according to a letter the group sent to the Senate Finance Committee (here). In the letter addressed to committee Chairman Orrin Hatch, R-Utah, and ranking member Ron Wyden, D-Ore., NCBFAA President Geoffrey Powell added that McAleenan has demonstrated that CBP can work with its 49 partner government agencies in ensuring that imports meet requirements for health, safety, intellectual property, antidumping and countervailing duty enforcement, and “enlightened labor standards.” McAleenan "has demonstrated leadership within CBP that gives us confidence in the agency and should provide you assurance that it will meet its responsibilities in enforcement and in the facilitation of trade,” Powell said. “NCBFAA is strongly supportive of his nomination.” Powell urged the committee to hold a confirmation hearing “as soon as committee procedures and schedule permit.” Senate Finance didn't comment.
Vice President Mike Pence will look to establish a framework for free trade agreement negotiations with Japan during his trip to the nation April 18-20, a senior Trump administration official said during an April 14 press call (here). As part of an 11-day trip to the Pacific region, Pence will meet with Japanese Prime Minister Shinzo Abe and lead the inaugural U.S.-Japan Economic Dialogue with Japanese Deputy Prime Minister Taro Aso, and participate in a listening session and give remarks to members of the U.S. and Japanese business communities, according to a White House press release (here). “The President has made very clear that we are looking for free, balanced, and fair trade with all of our allies and partners,” the official said. “And that is in the spirit and faith that we are moving forward. We have a longtime relationship with Japan. It is the cornerstone of peace and prosperity in the Asia Pacific region, and so we’re going to work together in the mutual interests of both.” Pence will also discuss bilateral trade with Australian officials, including Prime Minister Malcolm Turnbull, during his visit to that country April 22-24, according to the White House.
The leaders of four high-powered dairy groups and four Minnesota congressional lawmakers urged President Donald Trump to take action to loosen Canadian price constraints harming U.S. milk exports. National Milk Producers Federation CEO Jim Mulhern, U.S. Dairy Export Council CEO Tom Vilsack, International Dairy Foods Association CEO Michael Dykes and National Association of State Departments of Agriculture CEO Barbara Glenn wrote a letter (here) to Trump urging him to use the “full range of tools” to persuade Canada to open its dairy market to U.S. exports, address the Canadian dairy market situation and its “chronic use of nontariff tools” early in NAFTA renegotiations, and urge Canadian Prime Minister Justin Trudeau to reopen his country's market to ultra-filtered milk imports from the U.S. Copied on the letter were several of Trump's advisers and Cabinet members, as well as several key members of Congress. If the suggested approaches don’t bring freer and fairer bilateral trade, the U.S. should bring Canada’s actions with regard to dairy to the attention of the World Trade Organization, the executives wrote.