Grassley Says Progress on DST Negotiations More Likely Than on Airbus

Sen. Chuck Grassley, R-Iowa, a Senate Finance Committee member, said the Treasury Department secretary might be confirmed early next week, if not sooner, and he thinks it's more likely negotiations at the Organization for Economic Cooperation and Development on taxes could progress than will a settlement of the Airbus-Boeing dispute. Treasury leads on the digital services taxes (DST) front, while the U.S. trade representative, whose nomination will not come as quickly, leads on Airbus-Boeing.

Currently, there are tariffs on European goods over Airbus subsidies and tariffs on U.S. exports over Boeing subsidies, both authorized by the World Trade Organization. Although tariffs were threatened on French cosmetics and handbags over the French DST, they have not been levied. Grassley said, during a call with reporters Jan. 21, that his view that a settlement to avoid discriminatory DSTs is more achievable comes from the fact “the Boeing issue's been around at least 15 years.”

Grassley also spoke about what he'd like to learn from USTR nominee Katherine Tai when he interviews her ahead of a nomination hearing. He said he's “going to want to know where they’re following up with the United Kingdom, where Trump left off,” and how interested the new administration is in a trade deal with Kenya. He said he will ask if she will work for a broader trade agreement with Japan than the mini-deal closed in 2019. “I’ll be very interested in seeing if they’re going to negotiate with Taiwan,” he said. “I think that’s a sensitive thing.”