The World Trade Organization posted a trade policy review of Canada by the WTO Secretariat. The review is dated April 17 but was recently publicly released by the WTO. The review includes a broad look at many ongoing efforts on trade, including an update to NAFTA. "Canada is now following its domestic processes towards the timely ratification and implementation of the Agreement with a view to strengthening our commercial relationship with the United States and Mexico and providing important stability and predictability for Canadian businesses and workers," Canada said in its policy statement that accompanies the WTO review.

China has resumed accepting imports of beef from Brazil, after having suspended them on June 3 after a case of bovine spongiform encephalopathy turned up in the Brazilian state of Mato Grasso (see 1906040066), according to a June 13 press release from the Brazilian Ministry of Agriculture. China is the only one of Brazil’s trading partners that has a policy of suspending imports when cases of atypical BSE are found, and Brazil’s Agriculture Minister said she will continue negotiating a new protocol with China, the press release said.

A spokeswoman for China’s National Development and Reform Commission on June 17 gave the clearest indication yet that China may seek to impose restrictions on rare earths exports to retaliate for U.S. tariffs. In response to a question during a regularly scheduled press conference on potential export restrictions, the spokeswoman said China is “resolutely opposed” to “anyone who attempts to use China’s rare earth resources to manufacture products” that are used to “contain and suppress China’s development,” according to an unofficial translation. The spokeswoman also mentioned the possibility of export controls and traceability requirements for Chinese rare earths.

President Donald Trump issued an executive order directing all federal departments and agencies to eliminate one-third of their current Federal Advisory Committee Act-authorized committees by Sept. 30. The order limits the total government-wide number of advisory committees to 350. Eliminated committees should include those found to deal with subject matters that have “become obsolete,” have accomplished their stated objectives, have primary functions “that have been assumed by another entity” or that the agency finds have a “cost of operation [that’s] excessive in relation” to their “benefits to the Federal Government.” Agencies can count committees already eliminated since Trump entered office in January 2017 toward their quota. Agency heads can seek a waiver of the requirement if OMB concludes “it is necessary for the delivery of essential services, for effective program delivery, or because it is otherwise warranted by the public interest.” All agency heads will need to submit recommendations by Aug. 1 to OMB for eliminating committees. OMB will recommend which committees to eliminate by Sept. 1.

A bipartisan group of 23 lawmakers from Arizona, California and Texas objected to the possible inclusion of "seasonality" provisions within the implementing legislation for the U.S.-Mexico-Canada Agreement in a June 14 letter to U.S. Trade Representative Robert Lighthizer. "Seasonality, whereby certain agricultural products could be subjected to numerous seasonal and regional dumping duties at various times throughout the year, runs counter to the spirit of a free trade agreement intended to tear down both tariffs and non-tariff barriers to trade," the lawmakers said. "Using USMCA as a vehicle for pursuing seasonal agriculture trade remedies risks pitting different regions of the country against each other."

The European Union Council revoked its sanctions regime on the Maldives because of the country’s improving political situation, the council said in a June 17 press release. The sanctions were created in July 2018 to target people or entities that contributed to human rights violations and the “deterioration of the political situation” in the country, but “no persons or entities were listed under this sanctions regime,” the press release said. The council made the decision to revoke the regime after the country held “peaceful and democratic parliamentary elections” in April and committed to “ensure good governance, and promote respect for human rights” during a March policy meeting with the EU.

The U.S. Chamber of Commerce expects the U.S.-Mexico-Canada Agreement to pass before Congress’ August recess, two Chamber of Commerce officials said, saying Democrats’ issues with the bill are “bridgeable.” “We do think that we can see USMCA move forward before the August break,” said John Murphy, the Chamber’s senior vice president for international policy. “We want to get on with it. We need the certainty that USMCA will provide.”

India’s decision to impose retaliatory tariffs on U.S. goods was expected by most of the U.S. business community, which has been preparing for the announcement for months, said Amy Hariani, vice president of the U.S.-India Business Council at the U.S. Chamber of Commerce.

Broadcom expects its semiconductor business to take a $2 billion revenue hit from the U.S.-China trade war, including the Trump administration's "Huawei export ban,” CEO Hock Tan said on a fiscal Q2 call June 13. The trade frictions are “creating economic and political uncertainty and reducing visibility for our global OEM customers,” he said. “Demand volatility has increased and our customers are actively reducing inventory levels to manage risks.” The $17.5 billion in semiconductor revenue Broadcom now expects in the fiscal year ending in February will translate into a year-over-year decline in the high single-digits, Tan said. Huawei generated about $900 million of revenue for Broadcom last year, but the market softness that prompted the company to shave $2 billion off its semiconductor revenue forecast “obviously extends beyond just one particular customer,” Tan said. “We're talking about uncertainty in our marketplace,” and that’s causing “compression” in the supply chain that’s reducing orders, he said. “It's broad-based.” With the revised forecast, “we tried to capture everything” in the business “environment,” including the impact of the proposed List 4 tariffs on Chinese goods, Tan said. The environment “is very, very nervous, and that's why we see a very, very sharp and rapid contraction of the supply chain and orders out there from our customers,” he said.

The World Trade Organization case that the U.S. opened against China on intellectual property (see 1804090020) has been suspended. The announcement, published June 14 by the WTO, gave no indication as to why the U.S. asked the dispute panel to pause in its consideration of the case. Under WTO rules, a case can be suspended for 12 months.