Mara Lee

A corporate farmer, a farmers' lobbyist and a farm economics researcher discussed the politics and pocketbook effects of tariffs in the sector, and how much sway farmers will have in the outcome of trade policy. The trio -- along with former Agriculture Secretary Tom Vilsack -- spoke on a panel at the Council on Foreign Relations Dec. 13. "Farmers want to stay with President Trump. A lot of them supported Trump," said Brian Kuehl, executive director of Farmers for Free Trade. "But I think the trade war is biting. Even for farmers we talk with ... who support the president, that patience is starting to wear thin."

President Donald Trump, whose demands for more border wall funding have run aground in Congress, tweeted early on Dec. 13 that the revised NAFTA will save so much more money that it pays for the wall. He said: "Our new deal with Mexico (and Canada), the USMCA, is so much better than the old, very costly & anti-USA NAFTA deal, that just by the money we save, MEXICO IS PAYING FOR THE WALL!"

President Donald Trump predicted he'll make a "fantastic deal" with China, and, when asked by the TV interviewer how he could be so confident, said, "I know what I'm doing. It's business." He said during his "tremendous" four-hour meeting with Chinese President Xi Jinping in Argentina, "everything was agreed on. Now if we get it down on paper, that'll be another story, but I think we will." He said the meeting was so tremendous because he's levied 25 percent tariffs on $50 billion in Chinese imports and is willing to levy tariffs on all Chinese imports to get the concessions he wants. "That would be devastating for China. They have now agreed to go buy soybeans, tremendous amounts of soybeans. You see that already happening," he said.

Theft of intellectual property -- whether through computer intrusions, insider recruitment or forced tech transfer -- is the reason the administration levied tariffs on nearly $250 billion in Chinese goods. The trade war, and its possible resolution, hung over the Dec. 12 Senate Judiciary Committee hearing on Chinese industrial espionage.

Ten percent tariffs on imported aluminum has driven about 1,000 new jobs, and has not cost jobs among aluminum consumers, according to an Economic Policy Institute report released Dec. 11. One of the aluminum companies that sought Section 232 protection, Century Aluminum, funded the report, and participated in its rollout, through the American Primary Aluminum Association trade group. The report also noted that 22 projects, some expansions, some new, have been announced in rolled and extruded aluminum facilities. These facilities are downstream aluminum, and are not protected by Section 232, though some are protected by antidumping duties. These projects are expected employ more than 2,000 workers when they are open.

The two excluded sectors from planned Europe trade talks -- agriculture and autos -- both want to be included, according to comments filed with the Office of the U.S. Trade Representative ahead of the Dec. 14 public hearing on negotiation priorities. More than 150 organizations and individuals shared their views in the USTR docket ahead of the Dec. 10 deadline for comments.

China offered to drop its retaliatory tariffs on U.S. vehicles and grant its new, lower 15 percent most favored nation rate for the category, according to a report in The Wall Street Journal Dec. 11. The offer came in a phone call on Dec. 10, the report said. China's Commerce Ministry confirmed the call took place to Reuters and issued a short statement that said: "Both sides exchanged views on putting into effect the consensus reached by the two countries’ leaders at their meeting, and pushing forward the timetable and roadmap for the next stage of economic and trade consultations work." President Donald Trump tweeted shortly after 8 a.m. on Dec. 11, "Very productive conversations going on with China! Watch for some important announcements!" U.S. Trade Representative Robert Lighthizer was on the call, reports said. His office did not respond to a request for confirmation by press time.

Express Association of America, which represents DHL, FedEx and UPS, said Japan has not lived up to its postal privatization commitments, and asked the Office of the U.S. Trade Representative to make sure that Japan Post is no longer advantaged compared to private shippers. Michael Mullen, executive director of EAA, testified on Dec. 10 in front of a trade panel that's seeking public views on how to shape negotiations for a U.S.-Japan free trade agreement.

The U.S. Chamber of Commerce will support the new NAFTA, and will lobby for its passage, the group announced Dec. 10. CEO Thomas J. Donohue wrote that the group will be working to resolve a handful of outstanding issues, but only specifically mentioned the Section 232 tariffs on Mexican and Canadian steel and aluminum. He spent far more time scolding President Donald Trump for his intention to terminate NAFTA "in order to present the incoming Congress with a choice between the new agreement and no agreement. We disagree with this strategy." Donohue wrote, "Issuing this threat against a co-equal branch of government is neither necessary nor productive and could actually cost votes." A prominent free-trade Democrat in the House of Representatives made the same point on Dec. 10 (see 1812100024).

Agriculture interests, including meat, wheat and grape growers, told the Office of the U.S. Trade Representative that they will lose market share to competitors in Australia, Europe, Canada, Mexico and Chile as those countries begin to benefit from the Trans-Pacific Partnership and EU-Japan free trade agreement. As they testified Dec. 10 on negotiating a U.S.-Japan agreement, they said speed is of the essence.