Sanctions, rather than additional tariffs, are the most likely result of political pressure to not look soft on China, Bank of America analysts Ethan Harris and Aditya Bhave predicted. The two wrote in a Feb. 18 note that it's not surprising that China did not purchase the volume of U.S. exports it promised, but "what's unusual is the lack of follow-through from either side so far, other than empty rhetoric."
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Meetings between Deputy U.S. Trade Representative Jayme White and Ecuador's trade minister, Julio Jose Prado, focused on the U.S. desire for Ecuador to improve its agricultural import licensing system, and Ecuador's concern that the Generalized System of Preferences benefits program has lapsed. A joint statement from the two countries released Feb. 18 said they recognized Ecuador is improving efforts to battle illegal fishing, preserve forests and wildlife, fight climate change and marine debris, and end child labor. It said the U.S. discussed next steps to renew the GSP.
The Office of the U.S. Trade Representative laid out the externalities to other economies of China's state-led economy in a 72-page annual report to Congress. "Since last year’s report, our assessment of China’s record in terms of transitioning to a market economy has not changed," the report said. While the report's framing is about how China complies with World Trade Organization rules, the authors minimized the WTO's ability to constrain China and emphasized that countries must expand domestic trade remedies or develop other tools to deal with China's rise.
The House voted 222-210 last week to pass its China competition bill, which includes a variety of provisions that could expand U.S. export controls, sanctions and investment screening authorities. Although the America Competes Act faced objections from Republicans who argued it wasn’t tough enough on China and didn’t include strong enough export control measures (see 2202020039), several provisions could lead to more China sanctions and further restrict exports of critical American technologies.
The deputy U.S. trade representative whose portfolio covers Asia and Africa acknowledged that it may be more challenging to get buy-in from countries for the Indo-Pacific Economic Framework without the carrot of lower U.S. tariffs, but she said corporate support will help negotiators get agreement.
The National Foreign Trade Council named Tiffany Smith vice president for global trade policy. Most recently, she was a senior policy adviser in Mayer Brown's international trade and government relations practice. Before joining the law firm, she worked for 16 years in the federal government, including as a Senate staffer, and at the Commerce Department and the Office of the U.S. Trade Representative.
The Information Technology Industry Council is asking U.S. Trade Representative Katherine Tai to push Indonesia to drop tariffs on technology products during Trade and Investment Framework Agreement meetings in February. Data center and networking equipment, printers, solid state drives and other products covered by the World Trade Organization's Information Technology Agreement are facing tariffs in Indonesia, the industry group said in a letter Jan. 27, even though Indonesia is a signatory to the ITA.
The International Trade Commission is seeking submissions for the foreign-trade zones investigation it is doing, which includes a question on whether firms manufacturing in American FTZs are at a disadvantage to firms operating in similar zones in Canada and Mexico. A notice in the Federal Register gives details about a public hearing in connection with the ITC investigation that will be held May 17. Requests to testify must be submitted by May 3. The report will be complete and sent to the Office of the U.S. Trade Representative by April 14, 2023, the agency said.
A readout of U.S. Trade Representative Katherine Tai's meeting with South Korea's Trade Minister Yeo Han-koo said Tai noted "strong concerns" among U.S. steel producers, and said the U.S. is not ready to expand "conversations to develop a global arrangement that addresses the carbon intensity of steel and aluminum trade." She said she emphasized the challenges of global overcapacity driven by non-market practices. Tai said she updated Yeo on the Indo-Pacific Economic Framework, and discussed the need to cooperate in addressing global supply chain issues. They agreed to work together to promote resilient supply chains.