Tomas Baert, head of trade and agriculture at the European delegation in Washington, said the European Union is looking for a “strong and united front with the United States” on trade as the region and the world recover from the fallout of the COVID-19 pandemic. Baert, who was speaking on a webinar Dec. 15 hosted by the European American Chamber of Commerce, said that while the Trump era was marked with “turbulence and tension” in trade, Europe feels like it escaped mostly unharmed, since there were not “massive tariffs” imposed on exported cars, trucks and auto parts, as was threatened.
A new report summarizing town halls convened by Farmers for Free Trade says the elimination of the steel and aluminum tariffs on Canada and Mexico “went a long way toward stabilizing these export markets,” and that grain prices have recovered, but that more free trade deals are critical to support farmers and rural economies. The report, released Dec. 15, was highlighted in a webinar.
House Ways and Means Committee Chairman Richard Neal, D-Mass., says that the new administration should prioritize a free trade deal with the European Union following the template of USMCA, saying President Donald Trump's abandonment of serious trade talks with Europe was a “particularly detrimental blunder.”
President-elect Joe Biden announced Dec. 10 that he's selecting House Ways and Means Committee Chief Trade Counsel Katherine Tai to be the next U.S. trade representative, saying that her deep experience will allow the administration to “harness the power of our trading relationships to help the U.S. dig out of the COVID-induced economic crisis and pursue the President-elect’s vision of a pro-American worker trade strategy.”
U.S. Trade Representative Robert Lighthizer Dec. 9 announced that he'll be seeking consultations with Mary Ng, his Canadian counterpart, over the way that Canada allocated tariff rate quotas. Canadian processors are guaranteed a percentage of those import quotas, and the U.S. says that undermines American producers' access to Canada. “President [Donald] Trump successfully renegotiated the USMCA to replace the failed NAFTA, and a key improvement was to give U.S. dairy producers fairer access to Canada’s highly protected dairy market,” he said. “We are disappointed that Canada’s policies have made this first ever enforcement action under the USMCA necessary to ensure compliance with the agreement.”
The United Kingdom will stop collecting 15% punitive tariffs on U.S. aircraft; 25% tariffs on more than 100 products, notably agricultural, food and beverage items, including chocolate, ketchup, rum, vodka, frozen orange juice and cotton; and 25% tariffs on equipment, such as tractors, firetrucks and exercise equipment.
Claims that a ban on single-use plastics is a trade restriction prohibited in the USMCA are wrong, seven Democratic senators, led by Sen. Dianne Feinstein, D-Calif., wrote to U.S. Trade Representative Robert Lighthizer and Canada Trade Minister Mary Ng. The senators' Dec. 7 letter said the industry groups incorrectly argue the ban “would not be based on sound science. In fact, the science clearly shows the detrimental impact of single-use plastics. An estimated 11 million metric tons of plastic waste enters the oceans each year.”
The U.S. and Ecuador signed a phase one trade agreement that goes beyond the World Trade Organization's Trade Facilitation Agreement with requirements for online publication of customs information and customs brokers requirements; duties and fees; electronic submission of customs declaration and phytosanitary certificates; a single window for import and export; and advanced rulings that cover classification, valuation, origin, and application of quotas. Ecuador also agreed to no penalties on minor errors, unless they're part of a consistent pattern, and a procedure to correct errors without penalties.
Following reports that President-Elect Joe Biden will be nominating House Ways and Means Chief Trade Counsel Katherine Tai for U.S. Trade Representative, Trade Subcommittee Chairman Earl Blumenauer hailed the decision.“This is a fantastic pick from President-elect Biden. Katherine Tai has played an invaluable role leading the Ways and Means staff while working with members and outside groups on the renegotiated NAFTA and other critical trade issues," said Blumenauer. "She’s knowledgeable, patient, creative, and will be the first woman of color to hold this important job."
The Justice Department plans to announce more indictments involving cases of Chinese technology theft before the Joe Biden administration takes over in January, top U.S. security officials said. Under the agency’s China initiative (see 2008130036), the U.S. has targeted and arrested Chinese nationals for trying to steal export-controlled technology, an effort that has resulted in more than 1,000 Chinese researchers leaving the country since July, said John Demers, the U.S. assistant attorney general for national security.