A new World Trade Organization dispute settlement panel report said that the U.S. improperly applied Section 301 tariffs on goods from China. “It remains to be seen whether the US decides to appeal the ruling,” former WTO official Peter Ungphakorn said in a tweet. “Since the Appellate Body cannot function, this would be an 'appeal into the void.'” The WTO appeals court is mostly inoperable due to a U.S. hold on adding new members.
The 10% tariffs on Canadian non-alloyed unwrought aluminum will be refunded back to Sept. 1, and the tariffs won't return unless Canadian exporters exceed either 70,000 tons or 83,000 tons in that category (see 2009150040), the Office of the U.S. Trade Representative said on Sept. 15. The office said the limits start at 83,000 for the current month, then go to 70,000, then back to 83,000, then back to 70,000 for December. USTR did not say the tariffs would definitely return if Canadian exporters exceed these numbers by at least 5%, and suggested that if Canadian exporters reduced the next month's shipments by the same amount of the overage, that would satisfy USTR.
Brazil will keep its tariff rate quota on U.S. ethanol exports steady over the next 90 days, as the two countries negotiate how to “improve market access” for ethanol and sugar in the U.S. and in Brazil. They will also consider liberalizing corn imports in the two countries. The Office of the U.S. Trade Representative announced the negotiations after the close of business Sept. 11, and the 90-day timeline started Sept 14. The ethanol market has been hurt by the reduction in driving due to the COVID-19 pandemic.
Mayur Patel, chief international trade counsel for the Senate Finance Committee since Aug. 7, replaced Nasim Fussell, who returned to the private sector as a partner at Holland and Knight. Patel, who joined the committee staff in 2019, previously worked as a lawyer at the Office of the U.S. Trade Representative from 2011 to 2018, working on World Trade Organization disputes and on the chapter language for the NAFTA renegotiation and negotiations with Europe.
Market access negotiations needed to return India to the Generalized System of Preferences benefits program may be mostly “sorted out,” India's Economy Minister Piyush Goyal said in a speech to the U.S.-India Strategic Partnership Forum Sept. 1. His office summarized some points about the deal, which was described as foundational, in a series of tweets. U.S. Trade Representative Robert Lighthizer “and I agreed that we can look finalising before the election, but otherwise soon after the election,” he said. “The entire package is nearly ready and can be finalised at any time. India is open to signing tomorrow on what we have agreed on.”
Mexico is setting new permit requirements for some steel exports to monitor for transshipment amid a surge in its steel shipments to the U.S., it said in a notice in the Aug. 28 Diario Oficial. The monitoring system will cover exports of standard pipe, mechanical tubing and semi-finished products. It will take effect five days after publication of the notice, and remain in effect until the end of June 2021, the notice said. The Office of the U.S. Trade Representative agreed to keep in place its exemption for Mexico from Section 232 tariffs on steel products, USTR said in a press release.
U.S. Trade Representative Robert Lighthizer and Japan's Foreign Minister Toshimitsu Mogi talked about the necessity of dispute settlement reform at the World Trade Organization, Japan said in an Aug. 26 press release, according to an unofficial translation. The release emphasized that the U.S. initiated the call, and said the need for reform is becoming more urgent.
Twenty-three senators from both political parties urged U.S. Trade Representative Robert Lighthizer and Agriculture Secretary Sonny Perdue to press Canada to uphold its promises to give U.S. dairy exporters more market access. In a letter, released by Sen. Tina Smith, D-Minn., Aug. 26, they said that they agree with concerns about enforcement of USMCA dairy provisions expressed in a July letter sent by House members (see 2007020040), and that they are concerned that Canada's plans to fill its quotas are not consistent with those provisions. “Canada must not be permitted to effectively recreate the harmful impacts of Canada’s highly trade-distortive Classes 6 and 7 milk pricing programs,” the Aug. 25 letter said. “Canada must ... clearly establish prices for any new classes based on the end use of dairy products, and ensure that export surcharges for certain dairy products are implemented properly.”
After the first high-level review of the phase one trade deal, the principals talked about progress and ensuring the success of the U.S.-China trade agreement, but some believe the happy talk can't obscure that China and the U.S. are disentangling their mutual dependency in tech goods and services. “There is a re-alignment that is happening in real time,” Rideau Potomac Strategy Group President Eric Miller said in an Aug. 25 phone interview, the day after the call. U.S. and Chinese trade officials reemphasized their commitment to the phase one agreement during the Aug. 24 call, the Office of the U.S. Trade Representative said.
EU to Eliminate Tariffs on Lobster, US to Reduce Tariffs by 50% on Crystal, Cigarette Lighters, Etc.
The U.S. is reducing by 50% tariffs on certain prepared meals, certain crystal glassware, cigarette lighters and lighter parts, surface preparations and propellant powders, in exchange for the European Union ending tariffs on live and frozen lobster imports. Canada had been taking market share from Maine lobster exports since Canada and the EU signed a trade deal, and Canadian lobsters could enter duty free. The products from the EU have an “average annual trade value of $160 million,” while lobster exports to the EU topped $111 million in 2017, the Office of the U.S. Trade Representative said in a news release Aug. 21. All the tariff reductions are effective as of Aug. 1, 2020.