U.S. Trade Representative Katherine Tai talked with the 13 countries that have signed up for the Indo-Pacific Economic Framework during a trip to Paris for an event at the Organization for Economic Cooperation and Development, and issued a statement that said she shared her vision for the trade pillar. Tai "explained her hope that the United States and IPEF partners that choose to join the trade pillar will seek to build high-standard, inclusive, free, and fair trade commitments and develop new and creative approaches in trade and technology policy that advance a broad set of objectives related to: labor; environment; the digital economy; agriculture; transparency and good regulatory practices; competition policy; and trade facilitation."
The Office of the U.S. Trade Representative announced June 10 that it and the Dominican Republic have formed a working group to improve labor law enforcement in the sugar growing sector in the DR. "The group will be composed of representatives from both countries' responsible trade, labor, and foreign affairs ministries, with other agencies involved as needed. This joint endeavor takes into account the commitment of the two countries to enforce labor laws, including those regarding forced labor, improve labor conditions under the CAFTA-DR and in accordance with international standards, and continue their long-standing partnership on addressing these issues," the joint statement said.
A week before U.S. Trade Representative Katherine Tai heads to Geneva for the World Trade Organization's ministerial conference, she said she's excited for what the meeting could bring, though she avoided predicting that either an intellectual property waiver for COVID-19 vaccines would be approved, or that the 20-year fisheries negotiations would be closed.
The U.S. has brought another rapid response request, this time over an alleged violation of worker rights at the Teksid Hierro de Mexico plant in Frontera, Mexico. According to the parent company's website, the plant makes iron castings used in heavy trucks made by Volvo, Cummins, Mack Trucks and others. The owner of the company is Stellantis, the conglomerate that owns the Chrysler brand.
U.S. Trade Representative Katherine Tai hailed a new contract between General Motors and the union workers chose in Silao, Mexico, saying it will raise wages. "Because of the ground-breaking labor protections in the USMCA, we’ve seen that workers no longer have to tolerate contracts negotiated behind their backs and have the right to vote on an agreement after it's negotiated," she said in a statement. "The USMCA’s Rapid Response Labor Mechanism helped workers get to this vote, and the United States will continue to work with Mexico to protect worker rights.”
Requests for action from the Office of the U.S. Trade Representative should go beyond asking USTR to go and fix a problem via the World Trade Organization, USMCA or other dispute settlement system, said Daniel Stirk, senior associate general counsel at the agency. Speaking on a panel at the Georgetown International Trade Update, Stirk said that instead, trust that the office is already aware of the issue and is taking steps to solve it, and if you still decide to approach USTR, come with thoughtful solutions.
A few days after the majority of senators said they want Taiwan to be included in the Indo-Pacific Economic Framework (see 2205180034), U.S. Trade Representative Katherine Tai issued a readout of a May 20 meeting with a top Taiwanese official that made no mention of IPEF. Tai said she met with Taiwan’s Minister-Without-Portfolio John Deng, and said that they discussed "opportunities to deepen the economic relationship, advance mutual trade priorities based on shared values, and promote innovation and inclusive economic growth for their workers and businesses." It said they also discussed how Taiwan and the U.S. both want to fight forced labor, and how important supply chain traceability is.
The Office of the U.S. Trade Representative is accepting comments through June 23 on which countries should be given trade preferences under the African Growth and Opportunity Act. The agency released its notice of the annual AGOA eligibility review May 10, and said no in-person hearing will be held because of the COVID-19 pandemic. The AGOA review subcommittee will send questions to commenters, with replies, further questions and responses continuing through the summer. Comments may be submitted at Regulations.gov, in docket USTR–2022-0004.
Sidley lawyer Ted Murphy says he doesn't expect a review of Section 301 tariffs to lead to a policy change on the tariffs, which cover about $300 billion worth of Chinese imports annually. He said that even though a review of the tariffs has to evaluate how effective the actions have been, and has to analyze how the tariffs have affected consumers, "if it ultimately concludes that the additional duties have been only mildly effective and/or have had a negative impact on U.S. interests (businesses and/or consumers), there is no requirement that the USTR take any action. As a result, we do not think that this effort is likely to present a meaningful opportunity for change." Murphy wrote those sentences in bold, for emphasis. Still, he said it is possible, given the messages from some corners of the administration that goods such as bicycles or apparel should not be facing higher tariffs, that "additional duties on certain non-strategic consumer goods may be lifted."
At a joint press conference in Ottawa, U.S. Trade Representative Katherine Tai and Canadian trade minister Mary Ng did not reveal any agreements on trade irritants, but emphasized that they can work out their differences with the trust they share and the strong relationship between the neighboring countries. It was Tai's first trip to Canada since becoming USTR, and she had a full schedule planned, meeting with small businesses, labor groups, and touring a General Motors facility in Markham, Ontario.