The U.S. and the European Union should be able to “come to a convergence” on seven planks of reform of the appellate body at the World Trade Organization, said Ignacio Garcia Bercero, European Union Visiting Fellow, Oxford University and a chief negotiator at the European Commission. Garcia Bercero, who noted he was not speaking on behalf of the European Commission, was a panelist on a WTO Reform webinar hosted by the Washington International Trade Association July 23.
Michael Nemelka, the nominee for deputy U.S. trade representative, said that the first case under USMCA could begin in the fall, if consultations with Canada or Mexico fail. Nemelka, who currently works as a special adviser to the USTR, said that they are reviewing complaints this month. After that, staff will consult with the congressional committees of jurisdiction about which complaints would make the best cases. Then a consultation process would begin.
House Ways and Means Committee ranking member Kevin Brady, R-Texas, one of the four players directing the shape of a USMCA technical corrections bill, said that the “language was a little different than the intent” when it came to the treatment of foreign-trade zones in USMCA's implementing bill. Brady and the leaders of the Ways and Means and Senate Finance committees see getting a technical corrections bill passed as “a high priority,” he said in a recent interview.
New appointees were named to the Agricultural Policy Advisory Committee and six Agricultural Technical Advisory Committees by the secretary of agriculture and the U.S. trade representative. The 25 appointees will serve until 2024.
Former U.S. trade representatives Carla Hills, Susan Schwab and Michael Froman said the next director-general of the World Trade Organization will have an uphill climb to achieve changes they all believe are needed at the institution. The three spoke during a Washington International Trade Association webinar July 16. Froman said the fundamental problem is “a lack of global consensus around trade. And there’s a lack of political will to get things done.”
The Senate Finance Committee will consider the nomination of Michael Nemelka to be a deputy U.S. trade representative for investment, services, labor, environment, Africa, China and the Western Hemisphere at a hearing July 21. Nemelka is currently a special adviser to USTR Robert Lighthizer.
Senate Finance Committee Chairman Chuck Grassley, R-Iowa, said during a conference call with reporters July 17 he doesn't know if the U.S. trade representative and Canada have resolved their differences over Canadian aluminum imports. The USTR has said that he was consulting with Canada about a surge of imports. Some news outlets reported three weeks ago that he would re-impose 10% tariffs on aluminum, but so far that has not happened (see 2006250048).
The House Appropriations Committee has approved a bill that would increase trade funding at the Office of the U.S. Trade Representative, the Bureau of Industry and Security and the International Trade Administration. The committee voted July 14, and now goes to the full House. The bill, which passed the committee only with Democrat votes, and so may not be tolerable to the Republicans who control the Senate, increases funding to BIS by $9.6 million, to $137.6 million. It increases funding to USTR by $1 million, to $55 million, and ups funding to the International Trade Administration by $21.4 million, to $542.4 million. Spending for CBP will be part of a Department of Homeland Security bill, and the amount has not been determined yet.
The U.S. and Japan expanded their organic trade arrangement to include livestock products, the Office of the U.S. Trade Representative said July 14. The move will reduce costs and streamline processes for U.S. exporters involved in organic livestock supply chains by requiring only one organic certification, the USTR said.
In testimony in Canada's House of Commons, former government chief negotiator Steve Verheul told politicians that there is no surge in Canadian aluminum exports to the U.S., so a return to 10% tariffs on Canadian exports is not warranted. He said the product mix shifted, but the total exports are not up.