Mara Lee

The auto industry is launching a media blitz this week with TV and print ads, and a "drive-in" press event of American workers from German, Japanese and other foreign-owned auto plants. The TV ad, paid for by the Association of Global Automakers, uses the kind of imagery often used in political ads -- a barn in a field of grain -- and a deep-voiced narrator noting that foreign automakers have plants in Indiana, Kentucky, Alabama, Georgia, Tennessee, Mississippi and Ohio. Every one of those states voted for Trump in 2016.

Agriculture Secretary Sonny Perdue said he thinks negotiators "are very close to getting agreement with Mexico and Canada" on NAFTA. Perdue, who spoke July 17 at an event hosted in Washington by Axios. "As you know, Canada has finally acknowledged their Class 7 milk [policy], keeping our dairy products out of Canada, is not a free trade effort like NAFTA," he said. But a few hours later, Canada's Deputy Ambassador to the U.S. Kirsten Hillman denied Canada prevents sales of U.S. milk in her country.

Senate Finance Committee Chairman Orrin Hatch, R-Utah, called the White House's approach to tariffs "misguided and reckless," and said if the Trump administration "continues forward" with tariffs as a way to protect U.S. manufacturing, "I will work to advance trade legislation to curtail presidential trade authority." He said during a speech on the Senate floor July 17 that he is sympathetic to the effort (see 1807120023) from Sen. Bob Corker, R-Tenn., to rescind steel and aluminum tariffs and prevent tariffs on autos and auto parts, and he is discussing legislative options with his colleagues.

The Invasive Fish and Wildlife Prevention Act, which would change how the U.S. Fish and Wildlife Service is able to designate injurious species, and thereby prevent their importation, was reintroduced July 12. The bill, H.R. 6362, was introduced in the Senate by Kirsten Gillibrand, D-N.Y., and in the House of Representatives by Elise Stefanik, R-N.Y. The same bill had been sponsored in the House by Rep. Louise Slaughter, D-N.Y., in a previous session (see 1607110067). Slaughter died in office this year.

The retaliatory tariffs from the European Union, China, Canada, Mexico and Turkey in response to U.S. steel and aluminum tariffs are being challenged at the World Trade Organization by the Office of the U.S. Trade Representative. "The U.S. steel and aluminum duties imposed by President Trump earlier this year are justified under international agreements the United States and its trading partners have approved," the USTR said in a July 16 news release. "However, retaliatory duties on U.S. exports imposed by China, the EU, Canada, Mexico and Turkey are completely without justification under international rules.

Sen. Rob Portman will become the latest Republican to try to address the way the administration has wielded Section 232 tariffs, quotas and threats of tariffs. Portman, who represents Ohio and is a former U.S. trade representative, is working on a bill that would change the statute that currently allows the president to take action on whether imports imperil national security while recognizing "the close relation of the economic welfare of the Nation to our national security." The law says that substantial unemployment, loss of skills or investment and declining tax revenues should be considered "in determining whether such weakening of our internal economy may impair the national security."

Over a two-day review at the World Trade Organization on China's trade policies, China insisted that intellectual property violations are no longer a major issue; that its support of state-owned enterprises is no different from Fannie Mae; and that its overcapacity in steel is not a problem for global steel prices, because China only exports 9 percent of its steel. Moreover, China's Commerce Vice Minister Wang Shouwen said, addressing overcapacity needs collective actions and China stands ready to join hands with other countries to tackle this problem together.

Mexico's President Elect Andres Manuel Lopez Obrador would prefer getting a new NAFTA concluded before he takes office December 1, observers said, but he has most of the same deal-breakers as the current Mexican negotiators. How Lopez Obrador's election will affect NAFTA was one of the focuses of an Atlantic Council panel that met July 12 in Washington. Paula Stern, a former chairwoman of the International Trade Commission, said while the ministers from Mexico and Canada are slated to meet with US Trade Representative Robert Lighthizer in late July, "I do not think there's going to be a lot of movement."

The three Republican lawmakers from South Dakota told President Donald Trump his trade policy could put many agriculture producers on the brink of collapse. While agriculture contributes only about 1 percent of GDP nationally, it's 10 percent of South Dakota's gross state product, according to South Dakota State University. "Recent market uncertainty has already cost South Dakota producers hundreds of millions of dollars, and the delegation hopes this letter serves as a reminder to the president that this industry cannot afford to be further entangled in global trade disputes," a press release on Sen. John Thune's website said. Thune is in the Republican Senate leadership. The three's letter to Trump, dated July 11, also said, "Although you have stated that the agriculture sector will be taken care of through some form of USDA assistance, please keep in mind that U.S. export market share is diminishing daily at an alarming rate, and history has proven that once lost, export markets can take years, even decades to recapture."

A House Ways and Means Trade Subcommittee hearing on the effects of tariffs on rural communities has been scheduled for July 18, subcommittee chairman Rep. Dave Reichert, R-Wash., announced. "Farmers, growers, and ranchers in my home state of Washington and around the country are significantly hurt because products that they are forced to import to stay competitive -- such as agriculture equipment, chemicals, steel, and aluminum -- are now prohibitively expensive," he said. "Adding insult to injury, these same farmers, growers, and ranchers are experiencing severe retaliation through prohibitive tariffs and other measures by their major customers including China, Canada, Mexico, and the EU." No witnesses have been announced. Democrats on House Ways and Means have been pressing for months for administration officials to testify on various trade strategies, including NAFTA renegotiations and China (see 1807110024).