U.S. Trade Representative Robert Lighthizer on Aug. 17 met with and expressed concerns to Japanese Foreign Minister Taro Kono regarding Japanese safeguard duties on U.S. beef exports assessed last month (see 1707280033), the Office of the U.S. Trade Representative announced. They also discussed combating unfair trade practices by third countries, a “priority work area” under the U.S.-Japan Economic Dialogue, as well as other “topics of common concern,” during their meeting in Washington, USTR said. Lighthizer and Kono also agreed to “accelerating discussions” on “specific bilateral trade issues.”
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.
The U.S. and Colombia reached an agreement for the South American nation to accept more exports of U.S. paddy rice, U.S. Trade Representative Robert Lighthizer and Agriculture Secretary Sonny Perdue announced Aug. 17. The agreement lifts “costly and unnecessary fumigation and processing requirements” set in a 2012 deal that enabled U.S. exports of paddy rice to Colombia, the Office of the U.S. Trade Representative said. The updated agreement also expands access beyond the single Colombian port of Barranquilla. USTR noted Colombia has moved from the 26th to 12th largest importer of U.S. food and agricultural products between 2011 and 2016, after the U.S.-Colombia Trade Promotion Agreement entered into force in 2012, as exports totaled more than $2.4 billion in 2016. U.S. paddy rice exports to Colombia totaled $15 million last year.
Subsidies and “persistent trade imbalances” in North America will be among the issues addressed during the first round of NAFTA renegotiations set for Aug. 16-20, but the working text will remain classified, an Office of the U.S. Trade Representative official told reporters Aug. 15. “The text itself that will be exchanged among the governments is classified text, so that is not released,” the official said during a briefing that generally summarized the areas USTR plans to cover throughout negotiations. “But we do conduct an extremely transparent and collaborative effort … in developing our objectives, and then consulting with Congress and our stakeholders in this ninety-day period and beyond.” Trade Promotion Authority legislation of 2015 requires a 90-day consultation period between the executive and legislative branches before any administration can start formally negotiating a trade deal.
The Canadian government is approaching the first round of NAFTA renegotiation Aug. 16-20 with the intent of maintaining the Chapter 19 binational antidumping and countervailing duty dispute settlement process, Canadian Foreign Affairs Minister Chrystia Freeland said on Aug. 14, teeing up a potential clash with U.S. negotiators as talks start. During a speech in Ottawa, Freeland reminisced on when Canada’s chief negotiator of the U.S.-Canada Free Trade Agreement “walked out” over the binational AD/CV duty panel process in 1987. “Our government will be equally resolute,” Freeland said. “Just as good fences make good neighbors, strong dispute settlement systems make good trading partners.” The Office of the U.S. Trade Representative didn’t comment.
U.S. and Cambodian officials met Aug. 8 under the bilateral Trade and Investment Framework Agreement to discuss ways to expand trade and investment, the Office of the U.S. Trade Representative announced Aug. 9. Trump administration officials updated Cambodia on U.S. trade priorities related to enforcement, lowering the trade deficit and opening new markets, USTR said. The U.S. had a $2.5 billion trade in goods deficit with Cambodia in 2016, and two-way trade totaled $3.2 billion. The U.S. and Cambodia “agreed to work together to address outstanding bilateral trade issues,” including on labor, intellectual property protection, and financial services, USTR said. The two nations agreed to establish working groups on labor, IP, digital and services trade, and trade facilitation, USTR said. They also discussed sanitary/phytosanitary standards and reviewed Cambodia’s implementation of the World Trade Organization Trade Facilitation Agreement and its participation in the WTO Information Technology Agreement.
A mix of “creative cases” is needed to remedy trade violations created by Chinese industrial overcapacity, including Section 301 investigations and self-initiating antidumping and countervailing duty cases, Gilbert Kaplan, President Donald Trump’s nominee to be under secretary of Commerce for international trade, told the Senate Finance Committee Aug. 3. “I think it’s time maybe to dust off … Section 301,” he said. Section 301 of the Trade Act of 1974 allows the president to take all "appropriate and feasible steps" to eliminate “unreasonable restrictions” of countries found to “burden or restrict” U.S. commerce. The statute authorizes the executive branch to retaliate against these restrictions as well as anti-competitive subsidies through duties, other import restrictions and withholding trade agreement benefits.
Senate Democrats released a trade policy initiative that includes creating an “independent trade prosecutor” position in the International Trade Commission and more transparency for Office of U.S. Trade Representative advisory committees. According to a blueprint on the policy, the ITC trade prosecutor would be responsible for evaluating potential trade violations under “strict timelines,” and could bring cases related to labor, the environment, subsidies causing overcapacity, agricultural trade barriers and cyber espionage used for stealing intellectual property. Violating foreign countries that don’t agree to change course would face potential restrictions to U.S. market access “in proportion with a U.S. company’s losses or the foreign company’s unfair advantage, without authorization” by the World Trade Organization, the blueprint, “A Better Deal on Trade and Jobs,” reads.
Several Senate Finance Committee members in a July 24 letter (here) to U.S. Trade Representative Robert Lighthizer and Commerce Secretary Wilbur Ross reiterated their hopes for concluding a new softwood lumber agreement with Canada that meets domestic industry needs. Six of the seven members signing the letter, led by committee ranking member Ron Wyden, D-Ore., and Sen. Mike Crapo, R-Idaho, had also signed onto an October letter to former President Barack Obama calling for his administration to conclude a new deal (see 1610240034).
U.S. and Malaysian officials met July 17 in Kuala Lumpur under their Trade and Investment Framework Agreement, and discussed ways to further strengthen trade relations and promote “free, fair and balanced” bilateral trade, the Office of the U.S. Trade Representative announced (here). The two nations during the meeting agreed to work together on outstanding issues, including by establishing working groups related to goods, labor, the environment, intellectual property and financial services, USTR said. The U.S. delegation included USTR and Commerce and State department officials. USTR’s announcement highlighted the U.S.’s nearly $25 billion of goods trade deficit with Malaysia in 2016.
U.S. and Philippine officials met on July 10 in Manila under their Trade and Investment Framework Agreement, having “constructive discussions” on customs, agriculture and intellectual property protection, among other issues, the Office of the U.S. Trade Representative said (here). Officials also discussed the Philippines’ progress in implementing the World Trade Organization Trade Facilitation Agreement and WTO Information Technology Agreement Expansion, USTR said. The agency’s statement also noted the U.S. had a $1.8 billion trade deficit with the Philippines in 2016, and said that bilateral officials agreed to work to foster “free, fair, and balanced trade,” including by promoting increased trade and eliminating trade barriers. Assistant U.S. Trade Representative Barbara Weisel and Philippine Under Secretary of Trade Ceferino Rodolfo chaired the meeting.