More progress has been made on China’s agricultural commitments under the U.S.-China phase one trade deal, including an agreement relating to poultry exports and an updated list of U.S. facilities eligible to export beef and grain to China, the Office of the U.S. Trade Representative said March 24. The progress shows China is “moving in the right direction” to fulfill its purchase agreements, Agriculture Secretary Sonny Perdue said in a statement. USTR Robert Lighthizer released an update on Chinese agricultural commitments earlier this year (see 2002250055).
The Office of the U.S. Trade Representative scheduled a hearing for businesses to testify about their priorities for negotiations for a U.S.-Kenya free trade agreement. USTR notified Congress March 17 of its intent to enter into negotiations with Kenya (see 2003170061). The deadline to submit written comments and to notify of an intent to testify is April 15. The public hearing will be April 28 in Washington. The office recommended giving feedback on barriers to trade; costs or benefits to reducing tariffs in the U.S. on Kenyan imports; customs and facilitation issues, including those related to pre-shipment inspection; and whatever else companies think needs to be addressed.
The language of the U.S.-Mexico-Canada Agreement says that in order for the treaty to take effect on June 1 -- as U.S. officials have told Congress they want -- the countries would have to agree that they're ready 12 days from now. Kenneth Smith Ramos, a former top negotiator of the NAFTA rewrite, said the three countries cannot say they've completed their internal procedures by then. “#NotHappening,” he wrote in English at the end of a tweet in Spanish.
Applications to become a panelist on a state-to-state dispute settlement panel for the U.S.-Mexico-Canada Agreement, or on a specialized labor panel, will be due by April 20, the Office of the U.S. Trade Representative said in a notice.
The U.S. Trade Representative notified Congress March 17 that it will be negotiating a trade agreement with Kenya. Negotiations cannot begin for at least 90 days. “Under President Trump’s leadership, we look forward to negotiating and concluding a comprehensive, high-standard agreement with Kenya that can serve as a model for additional trade agreements across Africa. Kenya is an important regional leader, a strategic partner of the United States, and a commercial hub that can provide substantial opportunities for U.S. trade and investment,” USTR Robert Lighthizer said in a statement.
Export Compliance Daily is providing readers with some of the top stories for March 9-13 in case you missed them.
The auto industry publicly asked the Trump administration not to rush into certifying readiness for the U.S.-Mexico-Canada Agreement's entry into force, given the fact that “a global pandemic is significantly disrupting our supply chains, and the industry is throwing all available resources into managing production through this crisis for our employees and for the broader U.S. economy.”
The U.S. trade representative has had “no conversations” with China about possible delays in agricultural purchase commitments due to the coronavirus pandemic, according to coronavirus guidance issued by the U.S. Department of Agriculture. The guidance, which includes a series of frequently asked questions to address virus-related concerns for traders and others who have been impacted, said no delays under the U.S-China phase one deal are expected. “We expect that the Chinese will meet their commitments under the agreement,” the USDA said.
Canada's House of Commons approved the U.S.-Mexico-Canada Agreement -- called CUSMA in Canada -- by unanimous consent March 13, before adjourning until April 20 due to the coronavirus pandemic. The Canadian Senate passed it less than an hour later. Royal Assent, the equivalent of a presidential signature in the U.S., followed shortly, and the Senate adjourned as well. Now, all three countries must continue to work on uniform regulations so that they can certify the treaty is ready to enter into force. Efforts to slow the spread of the coronavirus disease COVID-19 may slow that process, because the countries also have to evaluate the progress toward fulfilling commitments, such as setting up labor courts in Mexico and getting new rules of origin processes in place. Once that certification is issued, NAFTA will be replaced on the first day of the third month after the announcement.
Senate Finance Committee Chairman Sen. Chuck Grassley, R-Iowa, told reporters that the coronavirus outbreak's impact on China's factories has shown policymakers that the U.S. is too dependent on China for imports. “There ought to be more manufacturing in the United States, but that isn't just on pharmaceuticals, but that could be on anything you're having these supply chains are being interfered with,” he said March 11 in his office at the Capitol.