China and U.S. agreed to lift tariffs in stages as they progress in trade talks, China’s Ministry of Commerce said during a Nov. 7 press conference. “If the two parties reach the first phase agreement, they should cancel the tariffs that have been imposed according to the content of the agreement,” a Ministry of Commerce spokesperson said, according to an unofficial translation. “The trade war starts with the addition of tariffs and should also be terminated by the elimination of tariffs.” The Office of the U.S. Trade Representative did not comment.
Companies and trade groups are concerned about the consequences of the Commerce Department’s efforts to restrict sales of emerging technologies and are growing impatient with a delay that has stretched several months, stakeholders said in interviews. Nearly a year after Commerce issued advance notice that they planned to review the technologies, some companies are confused about the delay and fear the controls won’t be fully coordinated with U.S. allies, causing their customers to simply seek foreign sellers.
NEW YORK -- A former WTO appellate body panelist criticized the administration's trade policies as chaotic and ineffective and former U.S. Trade Representative General Counsel Stephen Vaughn defended them, while a top WTO official tried to see the good in both arguments. They were all speaking on the state of world trade at an International Trade Symposium co-sponsored by Finastra and The Economist on Nov. 6.
The U.S. and Brazil cannot achieve a traditional free trade agreement, because Brazil is a party to Mercosur, a regional customs union -- even if the long-term participation in Mercosur is in question. But Renata Vasconcellos, senior policy director Brazil-U.S. Business Council, said her group “fully supports" what she called a "non-traditional trade agreement." Vasconcellos was one of many panelists speaking at American University Nov. 5 at an International Trade Symposium focused on Brazilian issues. "I’m concerned about the closing of this window. Let’s take what we can get now," she said.
The Commerce Department will issue Huawei-related export licenses “very shortly,” Secretary Wilbur Ross said, adding that the agency has received more than 260 applications. “Those will be forthcoming very shortly,” Ross told Bloomberg on Nov. 3, declining to give a more specific time frame. Ross said in July that Commerce planned to release the licenses “within the next few weeks” (see 1907240030).
Notable international barriers to U.S. exports include Chinese food restrictions and inconsistent standardization laws, Brazil’s strict telecommunications requirements, Thailand’s discriminatory customs procedures and Europe’s value-added tax system, trade groups said in comments to the Office of the U.S. Trade Representative. The comments, due Oct. 31, were in response to USTR’s request for input for its upcoming National Trade Estimate Report on Foreign Trade Barriers.
A variety of export subsidies, which allowed certain industries to avoid paying sales taxes, customs duties, or reduce income tax liability have been ruled illegal by a World Trade Organization panel. The ruling was released Oct. 31. India, unless it appeals the ruling, has 90, 120 or 180 days to stop the programs at issue.
A former top Commerce and trade official said the U.S.’s recent efforts to reform export controls and foreign investment screening are some of the most consequential developments the trade industry has seen in years. “The passage of [the Export Control Reform Act] and [the Foreign Investment Risk Review Modernization Act] together represents one of the biggest changes in trade compliance probably in at least a generation,” said Chris Padilla, former undersecretary for international trade and former assistant U.S. trade representative.
The House is scheduled to mark up a bill on Oct. 29 that would reauthorize the Export-Import Bank until 2029, increase the bank’s lending authority and introduces a “temporary board” in a situation where the bank lacks a quorum in the future. The bill, introduced by House Financial Services Committee Chairwoman Maxine Waters, D-Calif., would also rename the bank the Export Finance Agency. Among the most notable portions of the bill is a provision that would increase the bank’s lending power gradually over several years, from $145 billion in 2020 to $175 billion in 2026.
President Donald Trump said the U.S. is “ahead of schedule” in signing the first phase of a U.S.-China trade deal.