House Ways and Means Trade Subcommittee Chairman Earl Blumenauer, D-Ore., said after a June 25 hearing on Mexican labor reform that the Democrats asking for changes to the NAFTA rewrite are asking for changes that are "relatively narrow." "Our hope is we can move with dispatch, get our concerns resolved, strengthen the agreement and move forward," he said, adding that trade deal votes "never get easy, putting them off."
Export Compliance Daily is providing readers with some of the top stories for June 17-21 in case they were missed.
Senate Finance Committee Chairman Chuck Grassley, R-Iowa, who's been working for months on a compromise bill to address national security tariffs, said that an introduction won't happen until after the August recess. "We're trying to get a consensus on [Section] 232s, that isn't the easiest thing," he said. "But we're making some progress." He said, speaking to reporters on June 19, that he'd had meetings on the bill that day.
The day after President Donald Trump officially launched his re-election campaign, moderate Democrat Rep. Ron Kind warned the administration's top trade official that the China trade war is making voters in his home state of Wisconsin lose patience. Trump won Kind's district by 4 percentage points, and narrowly won Wisconsin in the Electoral College.
Most of the questions to U.S. Trade Representative Robert Lighthizer about the Section 301 tariff actions focused on the pain to U.S. consumers and the difficulties faced by importers of products that are subject to 25 percent tariffs. But Sen. John Thune, R-S.D., told the nation's top trade negotiator that even a local meat locker has been hurt by the trade war. Thune, who was questioning Lighthizer during his appearance June 18 in front of the Senate Finance Committee, said the meat locker employee told him that before the trade war began, someone would buy cow hides for $150 each. China imports a lot of animal skins to support its furniture and shoemaking industries. "Now I have to pay 600 a head to haul it away," Thune said the man told him, which is a cost of $40,000 a year. For a business that size, that could be the entire profit margin, Thune said.
Auto exporters will be “among the biggest beneficiaries” of a ratified U.S.-Mexico-Canada Agreement, U.S. Trade Representative Robert Lighthizer said during a June 18 Senate Finance Committee hearing, adding that he has “hope” the U.S. will reach a trade deal with Japan within the next “few months.”
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."
Two top Trump administration agricultural officials said “substantial and immediate purchases” of U.S. agricultural goods are hinging on several current trade deals, but said they haven’t been told of any plan by Mexico to “immediately” purchase large amounts of U.S. agricultural goods, as President Donald Trump alluded to in a June 8 tweet.
Senate Intelligence Committee Vice Chairman Mark Warner, D-Va., and Sen. Marco Rubio, R-Fla., urged President Donald Trump's administration on June 13 not to use U.S. restrictions on Huawei as a “bargaining chip in trade negotiations” with China. The Commerce Department's Bureau of Industry and Security issued a notice adding Huawei and affiliates to a list of entities subject to export administration regulations beginning May 16 (see 1905160072). BIS issued a general license temporarily allowing certain transactions by Huawei and the affected affiliates through Aug. 19. Trump later said sanctions against Huawei could be part of trade negotiations with China.
U.S. Trade Representative Robert Lighthizer will not attend the G-20 meeting in Japan, where he would have the opportunity for brief bilateral meetings with Chinese, Japanese, Mexican and European counterparts. Deputy USTR Dennis Shea will lead the U.S. delegation June 8 and 9.