Outsourcing wasn't about competitive advantage, U.S. Trade Representative Robert Lighthizer said during an interview with conservative lobbyist Matt Schlapp, in a video branded Conservative Political Action Conference/Live. He said that while the Trump administration believes in competitive advantage, classic economists “never thought of the notion they can create scale through economic nationalism and gain advantage over another country.”
The government is considering how quickly it can get through a legislative fix to U.S.-Mexico-Canada Agreement implementation provisions that allow for duty refunds on post-importation preference claims, but not a refund of merchandise processing fees, said Maya Kumar, director of textiles and trade agreements at CBP. She said on May 22 that CBP officials “do not think that was the intent of the law.” Kumar, who was speaking at the National Association of Foreign-Trade Zones virtual conference, said that if it's at all possible, CBP would like to see that fixed by Congress before USMCA's entry into force July 1. “We’re trying to work with [the office of the U.S. Trade Representative] as well as Congress and see how quickly they can do that,” she said.
The Office of the U.S. Trade Representative announced more progress on China’s commitments to purchase U.S. agricultural products under the phase one deal, saying the U.S. expects the commitments to be met. The update highlights China's efforts to allow imports of U.S. fruit, barley, beef, pork, dairy and other goods. “These are difficult times for both our countries,” the May 21 USTR notice said. “It is important that we each continue to work to make our agreement a success.” In a statement, USTR Robert Lighthizer said “we fully expect this agreement to be a success.”
The Trump administration is still considering sanctioning India over purchases of Russian missile defense systems, a top State Department official said. Alice Wells, principal deputy assistant secretary of state for South and Central Asia, said there remains widespread support both within the administration and in Congress for sanctioning buyers of Russian military goods, adding that India needs to choose either U.S. or Russian military equipment, but cannot have both.
Treasury Secretary Steven Mnuchin, who was testifying in front of the Senate Banking Committee May 19, was asked by Sen. Ben Sasse, R-Neb., why the government hasn't placed sanctions on Huawei. He said that Huawei and some other Chinese companies aren't really private-sector firms, and that they were built by stealing American intellectual property.
Export Compliance Daily is providing readers with some of the top stories for May 11-15 in case you missed them.
Top U.S. and United Kingdom officials will begin a second round of virtual trade negotiations June 15 as both sides continue to push for a quickly completed deal, the U.K. said May 18. The first round of talks, which ended last week, included discussions on customs procedures, rules of origin, trade remedies and small to medium-sized businesses. The U.K.’s Department for International Trade said both sides vowed to “quickly pursue” a stand-alone “Small and Medium Enterprise (SME) Chapter.” Negotiators from both sides will continue meeting virtually on a “rolling basis” until the second round begins, the U.K. added. “Both sides are hopeful that negotiations for a comprehensive trade agreement can proceed at an accelerated pace,” the DIT said. The Office of the U.S. Trade Representative did not comment.
Many details needed for the uniform regulations and the final implementing instructions for the U.S.-Mexico-Canada Agreement remain under discussion, agency officials said on May 14. Many specifics have not been agreed to, either between Mexico, Canada and the U.S., between the Office of the U.S. Trade Representative and the auto industry, or between CBP and USTR. “There's still even discussions with USTR and the [auto] industry on what constitutes a core part,” Maya Kumar, director for textiles and trade agreements, told members of the trade community on a conference call.
The director general of the World Trade Organization will resign in August, citing personal reasons and adding that the organization needs a new leader for “post-COVID realities.” Roberto Azevedo made the announcement during a virtual meeting with WTO members on May 14, saying he hopes the WTO continues its reform efforts. He also urged members to “promptly move ahead” to select the next director general. “I urge you not to treat the process of selecting the next DG as business as usual. This organization must start 2021 … ensuring that the multilateral trading system responds to new economic realities, above all the post-COVID recovery,” Azevedo said. “It cannot afford to be distracted by a protracted search for a new DG.” Azevedo will officially step down Aug. 31, one year before his term was set to end.
World Trade Organization members should do more to prevent export restrictions on medical goods and keep medical and food supply chains open, said Zhang Xiangchen, China’s ambassador to the WTO. Zhang also called on more cooperation between WTO members to combat the pandemic, which he said hasn’t materialized and has helped cripple the WTO. “The reason behind the poor performance [of the WTO] is not only due to the nature and the scale of the crisis,” Zhang said during a May 12 webinar hosted by the Asia Society, “but also the lack of leadership and the diminishing trust among members.”