Outgoing U.S. Trade Representative Michael Froman on Jan. 10 made a final push for approval of the Trans-Pacific Partnership during his last scheduled keynote in his Obama administration post, saying not ratifying the deal would be the “biggest gift” the U.S. could give China, and that it would run afoul of a “get-tough-on-China” policy, which President-elect Donald Trump has espoused. During a speech at a Washington International Trade Association event, Froman said the administration’s fear that China would fill an Asia-Pacific leadership void left by the U.S.’s non-ratification “is coming true before our eyes,” as China negotiates the 16-party Regional Comprehensive Economic Partnership and continues “excursions” in the South China Sea, according to prepared remarks (here).

Interventionist policies and the predominance of state-owned enterprises present in China continue to distort and bring friction to its trade relations with the U.S., which composes part of a “complex” bilateral trade relationship despite some positive indications for future commerce, the Office of the U.S. Trade Representative said in its 2016 Report to Congress on China’s World Trade Organization Compliance (here). “The United States notes that China’s current leadership, in place since 2013, has highlighted the need to pursue further economic reform in China, but to date not much progress is evident,” the report says. “Economic reform in China is a win-win for the United States and China.” USTR is calling on China to remove preferences for “domestic national champions” and market access barriers, lest the nation’s economic challenges increase and become more difficult. Curtailing interventionist policies would allow for more U.S. exports to the nation and a more balanced trade relationship, USTR said.

U.S. Trade Representative Michael Froman highlighted the major actions of his agency through the eight years of the Barack Obama presidency, in his Jan. 5 exit memo (here). The Office of the U.S. Trade Representative under Obama focused on removing foreign barriers to U.S. exports, raising global trade standards and enforcing trade rights, Froman said. The memo spotlights the outgoing administration’s negotiation of “high-standard trade agreements” including the Trans-Pacific Partnership, its undefeated record of decided enforcement cases it has brought to the World Trade Organization and its trade preference programs. Froman cited “dramatically” dropping shipping costs, and changes to ways of doing business brought by internet expansion. Froman also said automation has changed how the world produces “almost every good and service,” but acknowledged that it has also “affected” jobs and wages growth. “The fundamental economic question of our time is not whether we can stop globalization, but whether we can use all the tools at our disposal to shape globalization in a way that helps the majority of Americans, and reflects not just our economic interests, but our values,” Froman wrote. “We need to continue to create good jobs, grow wages, and address income inequality. This has been the guiding principle of trade policy under President Obama, and I am proud of our record.”

The U.S. Trade Representative “will still obviously be the principal negotiator on trade deals,” transition spokesman Sean Spicer told reporters Dec. 28. Spicer will work as the press secretary in the administration of President-elect Donald Trump. In recent weeks, transition officials have talked about the significance of Commerce secretary nominee Wilbur Ross, with one saying Ross would “ultimately direct” the incoming administration’s trade policy (see 1612200018). Expect “a much greater team effort” on trade in the new administration, with Ross and others such as Peter Navarro, an adviser who Trump has appointed as director of trade and industrial policy, playing an “instrumental role” and addressing “an agenda and a policy” in this realm, Spicer said. Trump announced Dec. 27 that Jason Greenblatt will be special representative for international negotiations, but that’s a role that will be “bigger than just trade,” Spicer told reporters Dec. 28. Trump has not named an intended nominee for the USTR position.

The Office of the U.S. Trade Representative is requesting written submissions from the public by Feb. 9 concerning foreign countries that “deny adequate and effective protection of intellectual property rights” or deny fair market access to U.S. citizens who rely on intellectual property protection, USTR said (here). In advance of a Feb. 28 public hearing to be hosted by the interagency Special 301 Subcommittee, USTR is asking that the public identify actions that might implicate a particular trading partner as a priority foreign country. Foreign governments will have until Feb. 23 to submit written comments, notices of intent to testify at the hearing, and any prepared hearing statements. USTR plans to publish the National Trade Estimate, then the 2017 Special 301 Report, on or close to April 30.

The Office of the U.S. Trade Representative on Dec. 22 released its 2016 Report on the Implementation and Enforcement of Russia’s World Trade Organization Commitments (here). Russia acted as a responsible WTO member “in some areas” in 2016, but departed from core WTO tenets “on the whole,” USTR said. Russia adopted “inward-looking, import-substitution” economic policies in 2016, and maintains opaque customs regulations for import valuation, tedious import licensing requirements, and troublesome rules for imports of alcoholic products. Moreover, several Russian domestic products could be subject to export restrictions or prohibitions, the report says. But positive actions taken by Russia in 2016 include decreasing its bound tariffs by deadline, notifying appropriate WTO committees of new and draft measures, eliminating a safeguard measure on schedule, working to implement the Trade Facilitation Agreement, and participating in its first WTO trade policy review, according to USTR.

The Office of the U.S. Trade Representative released the results Dec. 21 of its 2016 Special 301 out-of-cycle review on IP infringement, which redesignated major Chinese e-commerce company Alibaba and its Taobao online shopping arm to its blacklist. The annual report included Alibaba/Taobao among 21 online markets, along with ExtraTorrent, The Pirate Bay, Putlocker and other websites that have repeatedly appeared in the USTR rankings. The report also included 19 physical markets engaged in selling counterfeit copyrighted materials, including six markets in China.

The Office of the U.S. Trade Representative announced eligibility for 2016 "trade surplus" tariff-rate quotas (TRQs) for calendar year 2017 (here). USTR found Colombia and five members of the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR) eligible for the TRQ. The agency found Panama, the Dominican Republic, Chile, Morocco and Peru do not qualify.

The Office of the U.S. Trade Representative is proposing to rewrite its 41-year-old Privacy Act rule, to update general policies for individuals requesting access to records, how the agency will respond to a Privacy Act request, individuals’ appeals, fees, exemptions, security of records, collection of Social Security numbers, and USTR employee responsibilities under the act, among other things, USTR said (here). USTR will accept comments through Jan. 21. In a separate proposed rule (here), USTR underscored plans to change its system of records. The agency will accept comments on that proposed rule until Jan. 21, and said it intends to implement the changes on Feb. 5, unless it "makes changes based on comments or otherwise."

The G-20 and outside steel-producing countries composing 90 percent of global steel production on Dec. 16 in Berlin launched the Global Forum on Steel Excess Capacity, Commerce Secretary Penny Pritzker and U.S. Trade Representative Michael Froman announced (here). The officials encouraged forum members to quickly exchange information and take “effective steps” to deal with root causes of excess capacity, including market-distorting support measures. The forum is expected to meet next in February. A communique from the G-20 nations after their September summit in Hangzhou, China, included a pledge to create the forum.