Although many American liquor exports received a reprieve with the lifting of Boeing tariffs in Europe, bourbon and other American whiskeys continue to face a 25% punitive tariff in the European Union and the United Kingdom because of Section 232 tariffs on those countries' steel and aluminum exports. At the time the tariffs were imposed, Sen. Mitch McConnell, R-Ky., was majority leader, so the product choice was considered to create additional pressure on the administration to reverse the action.
Export Compliance Daily is providing readers with the top stories for March 29-April 2 in case you missed them. You can find any article by searching on the title or by clicking on the hyperlinked reference number.
U.S. Trade Representative Katherine Tai, in a video call April 1 with Vietnam's trade minister, Tran Tuan Anh, “highlighted the Biden Administration’s concerns about currency practices covered in the ongoing Section 301 investigation,” according to a readout of the call. In a tweet after the call, Tai said, “I ... urged Vietnam to address U.S. concerns on currency practices covered in the Section 301 investigation.” Tai said the two committed to increased collaboration, and plan to hold a meeting later this year under the Trade and Investment Framework Agreement “to assess progress made in strengthening the trade relationship and in resolving outstanding bilateral issues,” which also include agricultural market access, digital trade and illegal timber trafficking.
U.S. Trade Representative Katherine Tai and Kenya's trade minister, Betty Maina, talked about the bilateral negotiations conducted during the previous administration, according to a readout of the April 1 call. “Ambassador Tai highlighted her ongoing review of the negotiations to ensure that any agreement aligns with the Biden-Harris administration’s Build Back Better agenda,” the summary said. Maina tweeted, “It was a great pleasure to meet with @AmbassadorTai the United States Trade Representative to take stock of our strategic relationship and trade. I welcome the invitation to work together on shaping mutually beneficial trade relations between Africa and the US post [African Growth and Opportunity Act (AGOA)].”
Four intellectual property industry groups, in a letter to U.S. Trade Representative Katherine Tai, voiced their support for the U.S.'s opposition to the TRIPS waiver at the World Trade Organization. The American Intellectual Property Law Association, Intellectual Property Owners Association, the Licensing Executives Society (USA and Canada) Inc. and the New York Intellectual Property Law Association said they wrote to protect the IP rights of their members that have incentivized the innovations that “allowed us to combat COVID-19 and continues to do so.” The TRIPS waiver would waive IP rights relating to the “prevention, containment or treatment” of the novel coronavirus for a limited period of time. The industry groups argue that it has been IP itself that has allowed for life-saving innovations and facilitated the sharing of technical information with appropriate protections. They also suggest that they know of no data that shows IP rights are restricting vaccine development.
Boeing this week urged the U.S. to separate trade disputes and human rights issues when dealing with China, saying more trade restrictions could cause the plane maker to cede Chinese market share to European competitors. “We cannot afford to be locked out of that market,” CEO Dave Calhoun told the U.S. Chamber of Commerce Aviation Summit March 31, Reuters reported. “Our competitor will jump right in.”
U.S. Trade Representative Katherine Tai held a video call with Turkey's trade minister, Ruhsar Pekcan. Pekcan apparently brought up Section 232 tariffs on Turkish steel, and according to the U.S. readout, Tai and Pekcan talked about ways to coordinate on “the global overcapacity of steel and aluminum.” Tai also discussed with Pekcan how to coordinate on digital services taxation, and opportunities to increase market access for U.S goods in Turkey and vice versa.
Trade ministers from the G-7 countries told World Trade Organization Director-General Dr. Ngozi Okonjo-Iweala that they will provide political momentum to the WTO reform debate, during an online meeting March 31. “The multilateral trading system can be a force for good. It has increased competition and economic growth, helped raise living standards, and lifted millions out of poverty. It must serve the needs of all its members and provide the basis for free and fair trade. G7 Trade Ministers recognised that global trade should work for democratic and open-market systems and that these should not be undermined by unfair trade,” the joint statement of the trade ministers said. The United Kingdom hosted the call. The ministers agreed that the WTO needs to strengthen transparency, change the approach to special and differential treatment for developing countries, and reform dispute settlement.
The Office of the U.S. Trade Representative released the 2021 National Trade Estimate Report on Foreign Trade Barriers, detailing foreign market access barriers faced by U.S. exporters. The 574-page report examines 65 U.S. trading partners and country groups, including any import policies, tariffs, customs, procedures and phytosanitary measures that are restricting U.S. goods.
U.S. Trade Representative Katherine Tai held a video call with South Africa's Trade Minister Ebrahim Patel on March 30, during which they discussed their interest in improving the World Trade Organization. They talked about how South Africa “has benefited tremendously from its” African Growth and Opportunity Act (AGOA) preferential treatment, and how they should find ways to enhance their trading relationship “to better serve both countries over the long-run,” according to a readout of the call.