Several federal government agencies issued guidance for doing business in Myanmar Jan. 26. The advisory issued by the departments of State, the Treasury, Commerce, Labor and Homeland Security and the Office of the U.S. Trade Representative warns of "heightened risks associated with doing business in the country, and in particular with the military regime." The advisory document warns that businesses and individuals with ties to the military regime may face significant risks, including violations of U.S. anti-money laundering laws and sanctions. The warning strongly suggests that the business community should further review and update their risk assessments associated with continuing to do business with Burma’s state-owned enterprises.
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U.S. Trade Representative Katherine Tai said countries need to find "pragmatic solutions to increase vaccine production," during a Jan. 21 video call with 30 other trade ministers from the European Union, China, India, South Africa, Nigeria, Jamaica, the United Kingdom and other countries. The World Trade Organization has been struggling to agree on how trade laws could be eased to increase distribution of COVID-19 vaccines and treatments to developing countries. Tai's readout of the call also said there's an opportunity to reach a conclusion to the fisheries subsidies negotiations, but she wants there to be "an ambitious agreement that improves the status quo." She also said the WTO needs to tackle agriculture issues.
At a virtual World Economic Forum, U.S. Trade Representative Katherine Tai, the director-general of the World Trade Organization and CEOs in manufacturing and shipping said traders will change the ways they manage supply chains because of lessons from the COVID-19 pandemic. Tai said "the pandemic in particular has laid bare vulnerabilities in this version of globalization that we have and existing supply chains that we all feel strongly that we need to address."
Former U.S. Trade Representative Robert Zoellick, who also led the World Bank, told an Atlantic Council audience that he doesn't think sanctions on Russia if it invades Ukraine is a particularly useful approach. "Sanctions have a mixed history," he said. "They tend to be most effective as a tool when they’re narrowly focused," such as with export controls. "To be blunt, people often apply them because they’re not sure what else they’re ready to do … but they want to signal their displeasure," he said during the Jan. 19 webinar. He suggested that if the U.S., Canada and Europe offered to invest in Ukraine with an eye to improving its economy and as a carrot to improve its governance, that could be more effective.
More than 25 House Republicans asked the administration to initiate a case at the World Trade Organization against India over that country's financial support for its wheat and rice growers. The letter, led by Rep. Tracey Mann, R-Kan., was sent Jan. 13. In the press release announcing the letter, the CEO of USA Rice said, "If left unchecked, the Indian export market will continue to grow at an uncontrollable rate and threaten the viability of rice and wheat producers throughout the world.” The press release also noted that some senators had earlier made the same request. "For too long, Indian government policies have cost U.S. wheat money and export opportunities. Those Indian policies cost U.S. wheat farmers more than $500 million annually,” said Kansas Association of Wheat Growers President Justin Knopf. “With India poised for near-record exports, time is of the utmost importance. We encourage the USTR to use the WTO to hold India accountable to their past commitments."
The top Republican on the Senate Finance Committee and that committee's chairman, as well as the top Republican on the House Ways and Means Committee, urged the deputy U.S. trade representative to press Mexico and Canada on market access issues for the energy and agricultural sectors, and the senators also complained about barriers for the telecom, pharmaceutical and television industries in either Mexico or Canada. Deputy USTR Jayme White is meeting with Canadian and Mexican counterparts this week.
Agricultural and energy market access in Mexico are of concern to Rep. Kevin Brady, R-Texas, as he talks about the need to enforce USMCA's provisions, but he dismissed Mexico's concern that the U.S. is not following the treaty's text as it lays out rules for imported automobiles and light trucks to enter the U.S. tariff-free.
U.S. Trade Representative Katherine Tai said that the U.S.-EU Trade and Technology Council should not be seen as a prelude to reentering talks for a comprehensive trade agreement, and she threw cold water on the idea of a free trade agreement with the United Kingdom as well.
The Office of the United States Trade Representative is seeking applicants for the Trade Advisory Committee on Africa for the four-year term that begins in March. Applicants should have knowledge on U.S-Africa trade, including under the African Growth and Opportunity Act; the government is interested in hearing from people with expertise in trade facilitation; sanitary and phyto-sanitary measures and technical barriers to trade; trade capacity building; constraints to trade; investment treaty negotiations; and implementation of World Trade Organization agreements. Applicants can be from industry or services businesses, organized labor, agriculture, non-profit development organizations or academia. Members who are selected will advise USTR on negotiating objectives, the impact of trade agreements, and fulfilling the objectives of AGOA. USTR is seeking to have a diverse committee, not just by demographics, but also by region of the country, the size of the organization the member represents, sectors and points of view.