USTR Tells Congress Administration Will Begin Talks With EU, Japan and UK

U.S. Trade Representative Robert Lighthizer informed Congress on Oct. 16 that the Trump administration will begin trade negotiations with the European Union, Japan and the United Kingdom. "We are committed to concluding these negotiations with timely and substantive results for American workers, farmers, ranchers, and businesses," Lighthizer said. Negotiations cannot begin for 90 days, and no later than 30 days before they begin, the USTR must publish negotiating objectives. Lighthizer said that the negotiations may proceed in stages, if Congress blesses that approach.

The House Ways and Means Committee welcomed the notifications in a news release. "New, ambitious, and high-standard trade agreements with each of these economies would expand our ability to sell ‘made in America’ products around the globe and deepen our partnership with these close trading partners and vital allies," Chairman Kevin Brady, R-Texas, said. The notifications are required under Trade Promotion Authority and mean the trade talks can start after 90 days, "which allows for intensive consultation with Members of Congress and stakeholders regarding the negotiating objectives for the talks," the committee said.

Ways and Means ranking member Richard Neal, D-Mass., said, "With many sectors of the U.S. economy seized with anxiety over the impact of the President’s trade policies, perhaps these notices indicate that the Trump Administration will finally try to create new economic opportunities for U.S. workers and businesses through constructive engagement with important U.S. trading partners and allies." He and the lead Democrat on the Senate Finance Committee also said labor rights and environmental protection should be priorities.

Senate Finance Committee Chairman Orrin Hatch, R-Utah, is retiring, so he won't be leading the committee as it shapes the negotiating priorities, but he welcomed the news. Sen. Ron Wyden, D-Ore., the ranking member of the Senate Finance Committee, said he welcomes the choices of trading partners. He had previously criticized Lighthizer's interest in negotiating with the Philippines, but was silent about that in his statement. "However, the administration must take the time to tackle trade barriers comprehensively. ... A quick, partial deal that only addresses some problems risks leaving opportunities for Americans behind."

The EU has talked about agreeing to lowering tariffs on non-auto industrial goods, while excluding agriculture, and tackling regulatory harmonization first (see 1807260026).