The trade war that President Donald Trump began with China 16 months ago is creating pain for businesses, but there's a deeper strategic mistake to consider, said Matthew Goodman, senior vice president for Asian economics at the Center for Strategic and International Studies. Goodman, who was speaking during the first session in a Congressional Trade Series on Nov. 19, said, “I still don't know what the basic strategic goal is here." He said he didn't know whether the administration wants to get structural changes to China's economy, as it claims, or whether it wants to reduce the bilateral trade deficit, or to contain China's rise.
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.
House Ways and Means Committee Chairman Richard Neal, D-Mass., who leads the working group negotiating with the U.S. trade representative over the U.S.-Mexico-Canada Agreement, said he anticipates that USTR Robert Lighthizer will send over text of the changes to the agreement next week. Neal said he spoke with Lighthizer Nov. 14, to tell him he'd be forwarding “a series of, we think, could be make-or-break issues, and that we hoped that he would digest them and then respond to us, fast."
Apple Can’t Find Sourcing Outside China, It Says in Each of Its 11 List 4A Tariff Exclusion Requests
Apple and SVS Sound were among the first tech companies to seek product exclusions from the 15 percent Section 301 List 4A tariffs when the Office of the U.S. Trade Representative began accepting exemption requests at noon on Oct. 31. Apple filed 11 requests, while Specialty Technologies, which does business as SVS, filed two applications, one each for the finished speakers and subwoofers it sources from China.
President Donald Trump said the U.S. is “ahead of schedule” in signing the first phase of a U.S.-China trade deal.
The Office of the U.S. Trade Representative, as part of a broader announcement on changes to the Generalized System of Preferences, announced late Oct. 25 that about a third of Thailand's GSP-covered trade will exit the preferences program April 25, 2020, because it does not allow its workers to participate in collective bargaining and other labor rights, despite six years of engagement. The USTR said all seafood products are being removed from the program because of abuses of workers in that industry and in shipping; other products were chosen because Thai imports are a small share of the U.S. imports, but the U.S. is relatively important for Thai exporters. In all, GSP imports from Thailand were $4.4 billion last year, USTR said; after India's exclusion from the program earlier this year, Thailand accounted for the highest volume of exports qualifying for GSP. Even with the reduction, it will still be the largest beneficiary. The Associated Press reported Oct. 28 that Thai officials will seek to talk about averting the eligibility changes.
President Donald Trump announced a "very substantial phase 1" deal in the Oval Office Oct. 11, saying the Chinese and American negotiators came to a deal on intellectual property, financial services and agricultural sales. The president said China will buy as much as $40 billion to $50 billion worth of American commodities. He also said good progress had been made on issues around technology transfer from American companies to Chinese partners.
Business and labor leaders and government insider panelists agreed that the U.S.-China trade war will be difficult to unravel, but disagreed on how quickly Democrats could -- or should -- resolve outstanding issues on the NAFTA rewrite. The trade panel Oct. 10, hosted by Fiscal Note, included Clete Willems, former White House deputy assistant to the president for international economics, who said that although it pained him to say it, "The political conditions in both countries are just not conducive to the big deal."
The U.S. and Japan officially signed their initial trade deal during a brief signing ceremony at the White House on Oct. 7, setting up a potential Jan. 1 effective date. The text of the new deal is now posted to the Office of the U.S. Trade Representative's website. So is the text of a concurrent deal on digital trade.
Trade groups representing importers, retailers and producers largely reacted with dismay to the news that the U.S. would collect 25 percent tariffs on billions of dollars' worth of European goods, as an inducement for the European Union to stop subsidizing Airbus aircraft launches.
The U.S. and Japan signed a deal to open Japanese market access to more than $7 billion worth of U.S. agricultural exports, the White House said Sept. 25. The deal -- announced after President Donald Trump and Japan's Prime Minister Shinzo Abe met at the United Nations General Assembly in New York -- is an initial agreement as the two sides continue negotiating a comprehensive trade deal “in the months ahead,” the White House said.