The Coalition for a Prosperous America, a nonprofit allied with President Donald Trump's views on trade, is arguing not to extend exclusions for Section 301 tariffs because companies have had “ample time” to move their supply chains out of China. “Any bemoaning from the import lobby that relies on China should have looked to home first. There are plenty of Americans and American businesses that can fulfill their supply chain needs,” CPA Chairman Dan DiMicco and CEO Michael Stumo wrote to U.S. Trade Representative Robert Lighthizer.
US Trade Representative (USTR)
A U.S. Cabinet level position which serves as the President's primary representative, negotiator, and spokesperson regarding U.S. trade policy. The USTR heads the Office of the United States Trade Representative which develops and coordinates U.S. policy for international trade, commodities, and direct investments, as well as overseeing trade negotiations with other countries.
A number of U.S. trade groups questioned the evidence behind the Office of the U.S. Trade Representative's assertions that Vietnam is importing illegal timber, and the assertion that those logs end up in exported products going to the U.S. The groups said in comments to the agency that the notice initiating the Section 301 investigation contained no citations for these claims. Both trade groups and companies asked for a virtual public hearing, and the right to rebut others' submissions.
The majority of comments from U.S. interests submitted on whether the U.S. should do anything to pressure Vietnam to stop manipulating its currency favor not putting tariffs on Vietnamese imports. Many comments filed in the docket express disagreement with the very premise of the investigation. HanesBrands, which manufacturers apparel in Vietnam that is exported to the U.S., Australia, Canada, the European Union and China, requested a public hearing on the investigation, and quoted the statute that requires such a hearing if requested by any interested person.
CBP has some qualms with the operational aspects of ending the de minimis exemption for goods subject to Section 301 tariffs, Executive Assistant Commissioner for International Trade Brenda Smith said while speaking on the virtual Coalition of New England Companies for Trade conference on Nov. 9. There's a CBP proposal for the change that's under Office of Management and Budget review (see 2009040026). “We do have some concerns,” she said.
The U.S. supports South Korea's Trade Minister Yoo Myung-hee rather than the Nigerian candidate for director-general, even though the latter has more support, because the World Trade Organization “must be led with someone with real, hands-on experience in the field,” the Office of the U.S. Trade Representative said in an Oct. 28 statement, saying “the WTO is badly in need of major reform,” and that Yoo is a “bona fide trade expert.”
Modifications to rules of origin related to the U.S.-Colombia Trade Promotion Agreement (USCTPA) announced by presidential proclamation in July will take effect Jan. 1, 2021, the Office of the U.S. Trade Representative said in a notice released Oct. 28. The changes, which are intended to continue the same tariff treatment under USCTPA despite revisions to the U.S. and Colombian tariff schedules, had been detailed in a report published by the International Trade Commission concurrently with the proclamation (see 2006300079) but awaited USTR’s announcement of an effective date prior to implementation.
U.S. Trade Representative Robert Lighthizer said that the trade facilitation agreement that the U.S. and Brazil signed Oct. 19 is very similar to the USMCA trade facilitation chapter, and that traders should expect more incremental progress in coming months. “There’s a lot more that needs to be done,” Lighthizer said during a U.S. Chamber of Commerce program Oct. 20. “We have ongoing negotiations on ethanol. Brazilians like to talk about sugar. There’s a variety of things in the agriculture area.”
The World Trade Organization announced that the European Union is entitled to hike tariffs on nearly $4 billion in U.S. goods due to the trade distorting effects of tax breaks for Boeing. The tariffs -- the levels of which have not been announced -- are not to go into effect immediately, but could affect civil aircraft, helicopters, tractors, chemicals, hazelnuts, wines, liquor, cotton and other products, according to a preliminary list of targets released last year.
The U.S.-Japan mini-deal is not consistent with World Trade Organization rules, a former White House trade negotiator said, so the two sides mentioned a future phase two deal to cover substantially all trade to convince Japan's parliament to pass the accord. Because of the way the deal was structured, with small tariff reductions for Japanese exporters, it did not require a vote in Congress, Clete Willems, speaking recently on a webinar for University of Nebraska students, said. In calling the mini-deal phase one, “I think both sides were playing it cute, to be honest,” Willems, now at Akin Gump, said. He said Japan was not interested in a comprehensive bilateral trade deal, because it still wants the U.S. to rejoin the Trans-Pacific Partnership.
The U.S. needs to increase engagement with China to convince it to limit restrictions on foreign companies and to end unfair government subsidies, former U.S. Trade Representative Michael Froman said. Although Froman said he is “hopeful” the U.S. can secure these concessions through more trade negotiations, he also said the U.S. may need to focus more on its own industrial policy to remain technologically competitive with China.