Sen. Chuck Grassley, R-Iowa, a Senate Finance Committee member, said the Treasury Department secretary might be confirmed early next week, if not sooner, and he thinks it's more likely negotiations at the Organization for Economic Cooperation and Development on taxes could progress than will a settlement of the Airbus-Boeing dispute. Treasury leads on the digital services taxes (DST) front, while the U.S. trade representative, whose nomination will not come as quickly, leads on Airbus-Boeing.
Even though the Joe Biden administration will have a very different approach to trade than did the Trump administration, that will not mean a wholesale rejection of what its predecessors did, analysts said during a Center for Strategic and International Studies webinar Jan. 21.
President Joe Biden announced his acting agency leadership choices as he waits for the Senate to approve his nominees. María Pagan, deputy general counsel at the Office of the U.S. Trade Representative, will be acting head until Katherine Tai can be approved as the next U.S. trade representative. Pagán also served as acting USTR during the last transition (see 1701300020).
European Union Director General for Trade Sabine Weyand told an audience Jan. 15 that resolving punitive tariffs are “a prerequisite for creating a good atmosphere” so that the EU and the U.S. can coordinate on confronting China's trade abuses and creating a carbon border adjustment.
Alexandra Whittaker, a trade counsel on the House Ways and Means Committee, is being promoted to chief trade counsel, with the departure of Katherine Tai, the U.S. trade representative nominee. Before joining Ways and Means in 2019, Whittaker worked at the Office of the U.S. Trade Representative in both Washington and Geneva. She graduated from Spelman College and the Howard University School of Law.
U.S. Trade Representative Robert Lighthizer called others to join him in condemning of the Jan. 6 violence at the Capitol. Lighthizer, in a signed tweet Jan. 6, said: “All patriotic Americans should condemn the violence we saw at our Capitol today. This is inconsistent with our democracy and our most cherished values.”
With all nominations not confirmed during the past two years now expired, the White House has renominated Joseph Barloon, acting deputy U.S. trade representative, to be a judge on the Court of International Trade. If confirmed, he would replace Leo Gordon, who retired. The nomination was among those sent to the Senate Jan. 3.
The additional Section 301 tariffs on goods from the European Union announced late Dec. 30 (see 2012300062) will take effect “with respect to products that are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. Eastern Standard Time on January 12, 2021,” the Office of the U.S. Trade Representative said in a notice. USTR said in a Dec. 30 news release that it would increase the tariffs as part of the ongoing World Trade Organization dispute over Airbus subsidies. The announcement disrupts settlement talks and “exceeds the amount of retaliation authorised by the WTO,” a European Commission spokesperson emailed. “The Commission is analysing the data in detail and will look at all options available on how to respond.”
Wendy Cutler, the lead negotiator for the Trans Pacific Partnership, and James Green, who was the Office of the U.S. Trade Representative's senior official in China, are questioning whether a new European Union-China investment agreement will undercut the united front President-elect Joe Biden wants on Chinese economic abuses.
Witnesses overwhelmingly argued against tariffs on Vietnamese imports, during a virtual hearing Dec. 29 hosted by the Office of the U.S. Trade Representative, with numerous business representatives saying it was the choice not to sign the Trans-Pacific Partnership, not any kind of currency issue, that makes it harder for U.S. exports to penetrate Vietnam. Trade groups representing importers from Vietnam noted that their members moved sourcing from China to Vietnam precisely to avoid Section 301 tariffs, and some said putting comparable tariffs on Vietnamese imports would cause companies to relocate back to China.