Sen. Todd Young, R-Ind., complained this week that Brazil is not in the Americas Partnership for Economic Prosperity, and that APEP, once its negotiations are completed, is unlikely to increase U.S. agricultural exports to member countries. Young, speaking at a Senate Foreign Relations Committee hearing on the future of U.S.-Brazil relations, said farmers in his state rely on market access-opening trade deals, and said the U.S. should try to convince Brazil to lower its tariff barriers on corn, soybeans and ethanol.
Three trade groups thanked U.S. Trade Representative Katherine Tai for starting consultations with Mexico over what they call "discriminatory policies" in the energy sector, but warned: "It appears that the administration of Mexican President Andrés Manuel López Obrador will not change the course of his country’s energy policy without continued, direct and forceful pressure from the U.S. government."
The U.S. government, dissatisfied with the narrowing of a Mexican ban on genetically modified corn (see 2302150026), has asked for technical consultations under the USMCA's sanitary and phytosanitary (SPS) chapter. A formal dispute can't be initiated without first taking this step.
U.S. Trade Representative Katherine Tai said the future economic relationship with China has to be navigated in the context of the U.S. needing "a thriving economy that is based on market competition principles. How do we accomplish this, given that the second-largest economy in the world operates on a very, very different system ... and makes its own decisions?"
The Indo-Pacific Economic Framework for Prosperity needs strong commitments on labor rights, the environment and on digital trade, among other items, a coalition of organizations and unions told the Biden administration.
A trade group for the Mexican steel industry, CANACERO, warned that Mexico likely will retaliate against U.S. steel exports if the U.S. reimposes 25% tariffs on Mexican steel -- and the U.S. exports much more steel to Mexico than vice versa.
House Ways and Means Committee Trade Subcommittee Chairman Adrian Smith, R-Neb., said the Biden administration is leaving an opportunity on the table by not continuing negotiations for a comprehensive trade agreement with the U.K.
The muted response of the agriculture secretary to Mexico's concessions on genetically modified corn was not enough, according to Rep. Jason Smith, R-Mo., chairman of the House Ways and Means Committee. Smith sent a letter Feb. 15 to USDA Secretary Tom Vilsack and U.S. Trade Representative Katherine Tai arguing that it is time to initiate a formal dispute over the non-tariff-barriers.
The top Republican on the Senate Finance Committee said renewing the Generalized System of Preferences benefits program and the Miscellaneous Tariff Bill didn't happen last year because Democrats pushed "social policy and environmental policy in MTB and GSP."
Former Sen. Rob Portman, R-Ohio, has joined the American Enterprise Institute as a visiting fellow, the think tank announced. He will focus on expanding free trade, U.S.-China relations, U.S.-Russia relations and the war in Ukraine, as well as some domestic issues. Before serving in the Senate, Portman was a U.S. trade representative during the George W. Bush administration, and headed the Office of Management and Budget during that administration, as well.