U.S. Trade Representative Katherine Tai and Commerce Secretary Gina Raimondo announced that consultations have begun with Japan on Section 232 tariffs on Japanese steel and aluminum. They said that the solutions will be aimed at strengthening "our democratic alliance," and the statement says that Japan and the U.S. share "similar national security interests." Japan, Canada, the European Union and other longtime allies of the U.S. were insulted that the Section 232 tariffs, which purportedly are to protect national security, applied to their countries.
Ethiopia, the fifth-largest exporter of products covered by the African Growth and Opportunity Act, will be terminated from AGOA on Jan. 1, 2022, the administration announced, unless it takes "urgent action" to stop "gross violations" of human rights in the conflict in Northern Ethiopia.
Mexico, not satisfied with the results of consultations over U.S. interpretation of roll-up provisions under USMCA's auto rules of origin, is going to ask for a USMCA dispute panel to be formed, according to unnamed sources quoted by Reuters. The U.S. auto industry was taken by surprise by how rigidly the Office of the U.S. Trade Representative interpreted regional value in super-core auto parts (see 2106180027), and after lobbying Congress was fruitless, Mexico asked for consultations on the issue (see 2108230041) and Canada joined the complaint (see 2108300056).
Assistant U.S. Trade Representative for the Western Hemisphere Daniel Watson and Andrés Cárdenas Muñoz, Colombia's vice minister of foreign trade, directed their customs and trade facilitation teams to have another discussion on lessons learned and future plans "especially with regard to the digitalization of customs procedures," according to a USTR readout of the Oct. 22 meeting.
U.S. Trade Representative Katherine Tai, speaking at a virtual trade ministers meeting of African Growth and Opportunity Act participants, said that while AGOA improved the export competitiveness of many African products and fostered regional integration, its utilization of it has been limited. She said at the Oct. 20 meeting: "Despite these successes, only a handful of countries have taken significant advantage of AGOA.
U.S. Trade Representative Katherine Tai said when she met with Honduras’ Secretary for Economic Development, Maria Antonia Rivera, that they highlighted "the integral role" of the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR) in promoting prosperity in the region, and they committed to optimizing CAFTA's potential through facilitating trade and regional integration. Tai said they talked about "the importance of creating economic opportunities, combating corruption, and strengthening democracy in Central America." Improving conditions in the Northern Triangle countries is part of the administration's strategy to lower the number of families seeking asylum as they cross into Texas and Arizona.
U.S. Trade Representative Katherine Tai and Labor Secretary Marty Walsh held their first meeting with the Labor Advisory Committee for Trade Negotiations and Trade Policy, and, according to a summary provided of the meeting, held "robust discussions" on USMCA implementation, digital trade, and "how China’s non-market policies undermine American workers and domestic sectors. Ambassador Tai reiterated her commitment to re-aligning the U.S.-China bilateral trade relationship in a way that strengthens the American middle class and allows our workers and businesses to compete fairly."
The Office of the U.S. Trade Representative clarified that 80 products covered by COVID-19-related Section 301 exclusions (see 2109270031) are also part of the broader question of extending formerly granted Section 301 exclusions (see 2110070041). The office said that this review is based on different factors than the pandemic-related extension, "and may result in different effective dates. Accordingly, interested persons that commented on a product pursuant to the notice on extending exclusions for COVID-related products may also wish to submit comments for the product pursuant to the notice on possible reinstatement of China Section 301 exclusions."
U.S. Trade Representative Katherine Tai has asked the International Trade Commission to launch an investigation into the effects of goods and services trade on U.S. workers by skill, wage, gender, race and age, and not just through economic or sociological research, but also through roundtable discussions with disadvantaged community members, unions, minority-owned businesses, Historically Black Colleges and Universities, Hispanic Serving Institutions, Tribal Colleges and Universities, civil rights organizaitons and think tanks.
The U.S. Chamber of Commerce, framing the resolution of the Section 232 tariffs as being careful to guard against transshipment of Chinese steel and preventing import surges, is calling for an end to the tariffs on the European Union, Japan and Korea as quickly as possible. The organization put out a brief this week noting that the cost of steel in the U.S is spiking, and said, "a 'worker-centric' trade policy needs to take into account the U.S. workers employed in manufacturing industries that depend on steel as an input. These workers outnumber those in steel production by approximately 45-to-1, and these much larger industries are badly harmed by the higher costs and shortages imposed by tariffs."