The Office of the U.S. Trade Representative is seeking comments by Dec. 30 on its proposal to split one of the trade advisory committees into two committees -- one for critical minerals and nonferrous metals, and one for forest products and building materials.The office also intends to establish a committee of chairs of the trade advisory committees to "facilitate cross-sharing of information and provide a powerful tool to gather timely cross-cutting input across sectors." Comments may be made at docket number USTR-2021-2022 on regulations.gov.

A spokesman for the Office of the U.S. Trade Representative said the government "is concerned with Canada’s announcement that it will continue to pursue a unilateral Digital Service Tax." The spokesman said that Canada agreed at the G-20 to pause new digital services taxes until international tax laws change how countries can tax non-residential corporations that provide services. "Canada’s proposed DST would create the possibility of significant retroactive tax liabilities with immediate consequences for U.S. companies. If Canada adopts a DST, USTR would examine all options, including under our trade agreements and domestic statutes.”

The Office of the U.S. Trade Representative is seeking written comments on which countries' practices with intellectual property are harmful to U.S. stakeholders. The comments, which can be submitted at regulations.gov, docket number USTR-2021-0021, are due Jan. 31, 2022.

U.S. Trade Representative Katherine Tai took a victory lap at the U.S Chamber of Commerce's Transatlantic Business Works Summit, pointing to the removal of the digital services taxes on American firms, the agreement on steel and aluminum and the resolution of a 17-year fight on subsidies for Airbus and Boeing.

Maria Pagan, the nominee to lead the U.S. mission at the World Trade Organization, told Senate Finance Committee members that reforming the appellate body is a top priority because "Appellate Body overreaching has shielded China’s non-market practices and hurt the interest of U.S. workers and businesses." She said that appellate body rulings "undermined our ability to protect U.S. workers and businesses from those non-market practices."

U.S. Trade Representative Katherine Tai, Japan's trade minister and the European Union's trade commissioner said their staffs will be working to identify problems caused by non-market practices, to identify gaps in existing enforcement tools and to think about what work is needed to develop rules to address trade-distorting non-market practices. Japan, the EU and the U.S. will also discuss cooperating on using existing trade remedies. The three nations were supposed to have met on the sidelines of the World Trade Organization's 12th Ministerial Conference, but had to meet virtually because of its postponement (see 2111300028). Their joint statement also said that WTO reform is important.

Trade was barely touched on during the virtual meeting of President Joe Biden and Chinese President Xi Jinping, said Anna Ashton, vice president of government affairs for the U.S.-China Business Council. Ashton, who was speaking on a Nov. 23 Twitter panel hosted by Neysun Mahboubi, a research scholar at the University of Pennsylvania's Center for the Study of Contemporary China, said that follows a pattern in the administration. She said that "they are unabashedly reframing the relationship… as a competitive one," which makes her wonder where the commercial relationship fits in. The recent panel was reacting to the earlier video call (see 2111160004).

U.S. Trade Representative Katherine Tai said she hears frequently from stakeholders about "market access restrictions, high tariffs, unpredictable regulatory requirements, and restrictive digital trade measures" in India, and said those are issues "where we need to make progress."

U.S. Trade Representative Katherine Tai and Deputy USTR Sarah Bianchi stressed the importance of rapidly resolving trade concerns when they arise through the U.S.-Korea Free Trade Agreement, and talked about the president's vision for a new economic framework in the Indo-Pacific when they talked with Korea's trade minister, Yeo Han-koo. They agreed to communicate better to support trade facilitation, and to deal with supply chain challenges, emerging technologies and digital trade. According to the U.S. summary of the visit, Tai talked about the challenge posed by market-distorting excess capacity in steel and aluminum. According to the Korea Herald, quoting the Korean trade ministry, Korea asked for the chance to change the tariff rate quotas it earlier agreed to on steel. "We once again delivered our stance and concerns regarding the Section 232 rules, and demanded that the two sides begin negotiations at an early date," the ministry said in a statement. Tai and Yeo also heard from industry representatives on supply chain resiliency and how to foster more sustainable trade.

The top trade officials in Japan, the U.S. and the European Union announced that they are restarting the trilateral discussions on how to address the challenges "posed by non-market policies and practices of third countries," U.S. Trade Representative Katherine Tai said Nov. 17. They said they will meet on the margins of the World Trade Organization conference in Geneva. Former USTR Robert Lighthizer began these talks, which produced a statement (see 1901090063) that said they aimed to write text on disciplines for industrial subsidies to be considered at the WTO, and also that they were working on the outlines of new rules on forced technology transfers.