The Office of the U.S. Trade Representative suggested it could consider reaccepting Swaziland and the Democratic Republic of the Congo as beneficiaries under the African Growth and Opportunity Act (AGOA) if the countries make certain political reforms. Congo’s eligibility will largely depend on whether its 2016 presidential election is “free and fair,” while the U.S. is withholding benefits from Swaziland pending satisfaction of U.S. calls to protect freedom of speech and amend anti-terrorism legislation that currently functions to suppress political dissent, USTR indicated in its first biennial report of AGOA implementation required by the Trade Preferences Extension Act of 2015 (here). Notably, the report did not say how the nine other sub-Saharan countries ineligible for AGOA might regain tariff preferences.
Office of the U.S. Trade Representative Deputy Permanent Representative to the World Trade Organization Christopher Wilson commended Zambia for its reform efforts and its 6.6 percent rate of economic growth since 2009, but urged the country to better utilize its benefits under the African Growth and Opportunity Act during WTO’s Trade Policy Review of Zambia, USTR said (here).
“Significant differences” remain between the U.S. and Canada on how to solve the Softwood Lumber Agreement, after the deal expired Oct. 12, but the tension during ongoing negotiations has helped the countries find common ground and "explore options" for "several key components" of any new lumber deal, U.S. Trade Representative Michael Froman and Canada's Minister of International Trade Chrystia Freeland said in a joint statement (here). "The United States and Canada are committed to continuing negotiations in an effort to achieve a durable and equitable solution for North American softwood lumber producers, downstream industries and consumers," the statement says. U.S. and Canadian officials have had government-to-government sessions, as well as meetings with stakeholders, members of the countries' legislatures, and state and provincial governments, to try to resolve the issue. On March 10, the White House announced that President Barack Obama and Canadian Prime Minister Justin Trudeau tasked their countries' trade ministers with exploring potential paths forward for any softwood lumber agreement, and to report back to them within 100 days on their findings (see 1603300040).
Elimination of tariffs as high as 32 percent for orange exports to Japan and as high as 40 percent for exports of “key categories” of cheese to the country, along with Japanese commitments to improve tariff-rate quota management, will help U.S. agriculture exports to grow significantly under the Trans-Pacific Partnership, U.S. Trade Representative Michael Froman said during the National Council of Farmer Cooperatives Washington Conference (here). The U.S. and Japan are the two largest economies in TPP, and the agreement cannot enter into force unless both sign it. Under TPP, agricultural product tariffs will “either go away completely or be greatly reduced in areas of priorities,” Froman said. “As you go up to Capitol Hill today, I want you to keep this choice in mind and make it clear to the people you’re talking to,” Froman said. “Do we want to help shape an Asia Pacific market based on a rules-based trading system that reflects our interests and ou[r] values, or are we going to cede that role to others and find ourselves excluded from large and some of the fastest growing markets in the world, facing a set of rules that do not necessarily play to our advantages?”
Officials from Australia, Canada, the European Union, Japan, South Korea, New Zealand and the U.S. met in Paris on June 2, and reiterated their commitment to a “high-standard, ambitious” Environmental Goods Agreement (EGA) to eliminate tariffs on a wide range of environmental goods before the G20 Summit in Hangzhou, China, in September, the Office of the U.S. Trade Representative said in a statement (here). The officials pledged to find common ground on the World Trade Organization-sponsored agreement in order to boost global trade of environmental goods, thereby improving environmental protection, promoting economic growth and creating green jobs, and they encouraged other WTO members “with a similar level of ambition and interest” to join. There have been 13 EGA negotiating rounds so far.
U.S. Trade Representative Michael Froman and Deputy U.S. Trade Representative Michael Punke are meeting in Stockholm to discuss the Transatlantic Trade and Investment Partnership with Swedish Minister of Trade Ann Linde and EU Trade Commissioner Cecilia Malmstrom, the Office of the U.S. Trade Representative said (here). Froman and Punke will travel to France June 1-2 for a meeting of the Organization for Economic Cooperation and Development's Ministerial Council.
The International Trade Commission on May 27 released the public version of its report to the Office of the U.S. Trade Representative on potential changes to the Generalized System of Preferences (GSP) program for 2015/2016, it said in a press release (here). The 253-page report (here), 207 pages longer than last year's, includes data related to potential additions of products for all GSP beneficiary countries under subheadings 2204.21.20 (effervescent wine), 3301.13.00 (essential oil of lemon), and 7202.11.50 (ferromanganese containing by weight more than 4 percent of carbon). For potential addition of products under least-developed beneficiary developing countries and African Growth and Opportunity Act (AGOA) countries, the report includes data on the 29 subheadings for certain handbags and travel goods products under heading 4202. The report will inform USTR’s 2015/2016 GSP Review. The advice contained in the report is confidential.
The U.S. Trade Representative (USTR) announced country-by-country allocations of additional fiscal 2016 in-quota quantities of the tariff-rate quotas for imported raw cane sugar, specialty sugar and sugar-containing products (here). These TRQs are effective May 27:
The U.S. Trade Representative (USTR) announced country-by-country allocations of fiscal year (FY) 2017 in-quota quantity of the tariff-rate quotas for imported raw cane sugar, refined sugar, specialty sugar and sugar-containing products (here). The TRQs are effective Oct. 1, and imports will be allowed in five tranches. The following allocations are the same as fiscal 2016 (see 1507140016), and are based on historical shipment statistics:
The U.S. will waive discriminatory purchasing requirements for certain products and suppliers of Ukraine after the World Trade Organization’s Agreement on Government Procurement (GPA) enters into force for the country on May 18, the Office of the U.S. Trade Representative said in a determination (here). The waiver will apply to goods covered by the GPA for procurement by the U.S.