Thompson Hine trade attorney Dan Ujczo expects the only activity on trade in the first eight months of Joe Biden's presidency will be on issues either so small that they don't make a splash -- such as the Miscellaneous Tariff Bill and the Generalized System of Preferences benefits program -- or on issues that have an immediate need for action.
The U.S. Chamber of Commerce has warmly endorsed Katherine Tai to be U.S. trade representative. In a letter sent Feb. 23, Executive Vice President Myron Brilliant said her experience at the Office of the U.S. Trade Representative and as chief trade counsel for the House Ways and Means Committee, is invaluable. “She combines policy acumen, negotiating experience, and political savvy,” he wrote. “While one important aspect of USTR’s mission is to address unfair trading practices, the previous Administration’s dramatic expansion in the application of tariffs contributed directly to a manufacturing and agriculture recession well in advance of the [COVID-19] pandemic, and this experience illustrates the perils of an excessive reliance on tariffs. The next USTR must avoid the use of tariffs as a blunt instrument, and must avoid inaction on trade agreements as well,” he said, adding that Tai understands that.
Senate Finance Committee Chairman Ron Wyden, D-Ore., said the U.S. trade representative nominee has “really extraordinary skill in bringing people together,” and that it's critical to confirm her, deputy Treasury secretary nominee Wally Adeyemo, and the Health and Human Services secretary, so they can get to work. Wyden, who spoke with reporters Feb. 22, didn't spend much time on trade issues, but he said he thinks Katherine Tai is “going to do a first-rate job” heading the Office of the U.S. Trade Representative.
The Senate Finance Committee scheduled a hearing to consider Katherine Tai to be the next U.S. trade representative. They will interview her Feb. 25 at 10 a.m.
Bob Zoellick, a U.S. trade representative during the George W. Bush administrations, said that a successful way of completing a free trade agreement with the United Kingdom would be to connect the North American agenda to the U.K. “It gives you more weight,” he said during a Carnegie Endowment for International Peace webinar Feb. 17. “It helps you with North American integration.” He suggested that the FTA could look at carbon emissions, as well as labor, and he believes it could get bipartisan support for extending trade promotion authority, so it could get done.
Iowa Republican Sen. Chuck Grassley, a member of the Senate Finance Committee, said he doesn't expect U.S. trade representative nominee Katherine Tai to have a hearing before mid-March. Because there's nothing controversial about her, he said, if she does get a hearing before Congress takes its Easter break, he thinks the full vote can also be done within days. Grassley told reporters on a Feb. 16 phone call that when he spoke with Tai recently, he told her that “I appreciated this administration's approach to China, working to get Japan, South Korea, Europe, Canada, and the United States on the same page with China.” He said he also told her the United Kingdom free trade negotiations “ought to have priority.”
Twenty-two of Florida's 27-member House delegation, led by Democrat Rep. Darren Soto and Republican Rep. Bill Posey, told acting U.S. Trade Representative Maria Pagan that the European Union's 25% tariffs on grapefruit has hurt their constituents. “With the addition of a twenty-five percent retaliatory tariff on top of the existing 1.5 percent tariff, grapefruit exports from Florida have shrunk significantly,” their Feb. 5 letter said. Forty percent of Florida's fresh grapefruit production typically goes to the EU, the representatives said. Soto announced the letter in a news release Feb. 10. “As a result of the COVID-19 pandemic, Florida growers have already been struggling to maintain their livelihoods. If immediate action is not taken and the United States loses the fresh grapefruit market in the EU, they could face even harsher consequences,” the letter said. EU officials have said they would be willing to lift the tariffs in the Boeing dispute for six months while the U.S. and the EU try to reach a settlement on aircraft subsidies.
President Donald Trump didn't get China to agree to much in the way of structural changes, panelists said, but Asia Society Policy Institute Vice President Wendy Cutler said he put China front and center on the agenda, which was good. “He was really willing to take on the business community when it came to China,” she said. Cutler, who worked at the Office of the U.S. Trade Representative for more than 25 years, said that when she was at USTR, one of her frustrations in trying to negotiate with China was that U.S. “companies were pretty conflicted. They liked the … money they were making. They wanted us to be quote, unquote tough with China, but they didn’t want to be part of the get-tough strategy. Our hands were tied in a way.”
While the World Trade Organization faces multiple crises, including COVID-19 vaccine export control threats and massive trade wars, the institution's Deputy Director-General Alan Wolff delivered a 10-item agenda for moving forward. Speaking Feb. 9 at a Washington International Trade Association conference, Wolff said the WTO will be judged by “how well it deals with the crises of our time,” saying it must “demonstrate soon and visibly that it can deliver on subjects relevant to all those who engage in international trade or are affected by it ... pretty much everyone.”
Ambassadors from the United Kingdom, Brazil, the European Union and Australia discussed on a Feb. 8 panel how to improve trading relationships with the U.S. and deal with the challenge China poses to the international trading system but had no insights into how to make breakthroughs on either.