Senate Finance Committee Chairman Chuck Grassley, R-Iowa, hopes that a free trade agreement with the United Kingdom -- for which negotiations started May 5 -- would be more favorable to American agriculture than European Union policies have been. Grassley, who was speaking to reporters on a conference call May 5, said the EU restrictions that irritate him the most are on the use of feed additives for cattle, geographical indications, and “that we can’t get [genetically modified organisms] into Europe.”
The U.S. officially announced the launch of the first round of trade negotiations with the United Kingdom (see 2005040034) on May 5, saying nearly 30 negotiating groups will discuss trade terms over the next two weeks. The first round of virtual talks will be followed by more rounds every six weeks until international travel is safe, the U.K.’s Department for International Trade said. Both sides said they are seeking an “ambitious agreement” and plan to negotiate quickly. “We will undertake negotiations at an accelerated pace,” U.S. Trade Representative Robert Lighthizer said in a statement.
Jamieson Greer, chief of staff at the Office of the U.S. Trade Representative from May 2017, is joining King & Spalding as a partner in its international trade practice. The law firm said that Greer was involved in negotiations for the phase one deal with China and the U.S.-Mexico-Canada Agreement. “He also played a key role for USTR in the legislative reform of U.S. foreign investment reviews and implementation of the Foreign Investment Risk Review Modernization Act by [the Committee on Foreign Investment in the U.S.],” the firm said. Last year, King & Spalding hired Steven Vaughn, the general counsel at USTR.
President Donald Trump suggested China may not meet its purchase commitments under the phase one trade deal and threatened to terminate the agreement if the commitments are not met. “We're going to have to see what's going on,” Trump said during a May 3 Fox News town hall event. “They have to buy. And if they don't buy, we terminate the deal. Very simple.”
The U.S. and United Kingdom will begin virtually negotiating a trade deal this week, U.K. Trade Secretary Elizabeth Truss said. The talks, which have been expected for months (see 2002190021, 2003020061 and 2001280042), will start through video conferences, the Office of the U.S. Trade Representative told Politico May 3, and will be held remotely until international travel resumes. In a May 3 tweet, Truss said the U.K. will “be working to bring benefits to all parts of [the U.K.] and boost our economies during #coronavirus recovery.” The USTR did not comment.
Eight House Republicans have joined to introduce a bill that would require the U.S. trade representative to submit a report to Congress on how World Trade Organization agreements will be fully implemented. In a press release announcing the bill's introduction on April 24, Rep. Ted Yoho, R-Fla., said: “For too long the United States, and the world, has turned a blind eye to much of China’s unfair practices in business and trade, and it has been the American producer and consumer who has paid the price. It’s time the United States and the global community assert their rights under WTO rules to hold China accountable for its behavior on the world stage and ensure a level playing field for all.” He said his bill would prevent China and other high-income nations from receiving special and differential treatment as developing nations. However, under current WTO rules, countries must willingly give up developing nation status; there is no way to force them to leave that status.
Although the auto industry appears to have lost the fight to delay a switchover from NAFTA to the U.S.-Mexico-Canada Agreement, an executive at the organization that represents parts suppliers said they now hope that with give-and-take on the implementing rules and perhaps some flexibility, the industry will be able to make a July 1 entry into force date work.
Sharon Bomer Lauritsen, assistant U.S. trade representative for Agricultural Affairs and Commodity Policy, has told industry representatives in her sector that she's retiring. Corn Refiners Association CEO John Bode said farmers, ranchers and agribusiness companies are grateful for her public service. The Office of the U.S. Trade Representative didn't comment
U.S. Trade Representative Robert Lighthizer notified Congress April 24 that the United States–Mexico–Canada Agreement will enter into force on July 1, 2020. Following that notification to Congress, the U.S. certified to Mexico and Canada that it's ready for the NAFTA replacement to take effect.
Although the hearing scheduled for input on a Kenya Free Trade deal was canceled, comments continue to come in for what the U.S. trade representative's priorities should be.