The director of research for the People's Bank of China criticized the U.S.’s decision to list China as a currency manipulator, saying the U.S. has deviated from its own standards and insisting that China does not use its exchange rate as a “tool to deal with trade disputes.” “The US has unreasonably labeled China as a ‘currency manipulator,’ triggering financial market turmoil, and will greatly hinder international trade and global economic recovery, and ultimately will suffer from its own consequences,” research director Wang Xin said during an Aug. 6 Chinese State Council press conference, according to an unofficial translation.

The U.S., China and 44 countries signed the United Nations Convention on International Settlement Agreements Resulting from Mediation, a “cross-border enforcement mechanism” for settlement agreements on trade disputes that arise from a mediation process, the U.N. Information Service said in an Aug. 7 press release. The UNIS said the agreement promotes “sustainable” international trade relationships and will foster the use of mediation.

The U.S.-China Business Council urged the Trump administration to reconsider his threat of a 10 percent tariff on $300 billion worth of Chinese goods, saying the threats will hurt the reputation and businesses of U.S. exporters, in an Aug. 1 press release.

President Donald Trump held a press conference Aug. 2 at the White House with European officials and U.S. Trade Representative Robert Lighthizer to announce an increase in tariff-free access to U.S. hormone-free beef in the European Union. The changes to the EU's tariff rate quotas will go into effect after the European Parliament approves hem, which is expected in the fall. It was originally announced by the EU in June (see 1906140026).

A new provision in the U.S.-Mexico-Canada Agreement’s rules of origin for automobiles should prevent automobile manufacturers from having to segregate parts on the production line and also make origin calculations less burdensome, U.S. Trade Representative Robert Lighthizer told the Senate Finance Committee in one of a series of written answers to questions the committee posed to him at a June 18 hearing. Under the renegotiated NAFTA, called USMCA, certain “core parts” listed in Column 1 of Table A.2 must be originating for a vehicle to be originating, but Article 3.9 permits producers to bundle the parts under Column 1 together as a “super core” part when calculating the value of non-originating material (VNM) for origin purposes. “Many vehicle producers do not segregate core parts when producing vehicles, but use or bundle them within different modules along the production line,” USTR said. “The ‘super core’ calculation allows such producers to meet the core parts requirement without having to segregate each of the parts and do separate, burdensome calculations. The super core calculation incentivizes U.S. producers to use more originating content and maintains their competitiveness without accruing any possible efficiency losses from having to segregate core parts,” the agency said.

U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin traveled to Shanghai for July 30 and 31 talks on a comprehensive U.S.-China trade deal, the White House said July 30. Vice Premier Liu He and Commerce Minister Zhong Shan led the Chinese delegation, it said. “The two sides discussed topics such as forced technology transfer, intellectual property rights, services, non-tariff barriers, and agriculture.” The Chinese “confirmed their commitment to increase purchases” of U.S. agricultural exports, it said. “The meetings were constructive, and we expect negotiations on an enforceable trade deal to continue” in Washington in early September, it said. The Shanghai meetings were the 12th round of negotiations that started in December, and were the first face-to-face talks between the sides since the negotiations broke down in May over Trump administration allegations that the Chinese reneged on previously agreed-to commitments. Overhanging the talks is the threat that the administration could put the List 4 Section 301 tariffs into effect at any time on virtually all Chinese goods not previously dutied.

President Donald Trump told a Brazilian reporter July 30 that the U.S. will work on a free trade agreement with Brazil. Trump, who spoke about Brazilian trade talks at gaggles both before and after his trip to Jamestown, Va., said, "Brazil is a big trading partner. They charge us a lot of tariffs, but other than that we love the relationship." He said he's sure they'll be successful at trade talks. "I have a fantastic relationship with your president," he told the Brazilian reporter. "And he's a great gentleman. He was here, as you know. In fact, they say the 'Trump of Brazil.' I like that. That’s a compliment."

China is unlikely to reach agreement with U.S. trade negotiators, President Donald Trump said, as it prefers to wait and see if the next president takes a different approach. He was speaking to reporters at a press conference July 26 announcing an asylum policy with Guatemala. "I think China would probably say, 'Let’s wait. Let’s wait. Maybe Trump will lose and we can deal with another dope or another stiff,' like the people that allowed these deals to happen, this horrible thing to happen to our country," he said, according to a transcript released by the White House. Trump said that after he wins a second term, China and other countries "almost immediately" are going to sign "phenomenal deals."

Five years of data exclusivity for biologics, an end to panel blocking and undefined "mechanisms and resources" to monitor and enforce labor and environmental laws in Mexico are the core of what the House Democrats have asked the Trump administration to change in its NAFTA rewrite. The House Democrats' working group revealed more of what it is asking for in a report sent to the Speaker's office and released publicly July 26. In that report, they wrote, "It is time for the administration to present its proposals and to show its commitment to passing the new NAFTA... ."

The European Commission released a progress report on the EU-U.S. trade talks, saying “concrete actions” have been taken that take the two sides’ “relationship to the next level,” the commission said in a July 25 press release. Since talks officially began one year ago on July 25, the commission said, the EU has “significantly increased” imports of U.S. “liquefied natural gas” and soya beans but also mentioned some roadblocks in negotiations. The commission said it wants to begin negotiations on “eliminating” U.S. tariffs on industrial goods, but “it was not yet possible to launch negotiations in this area due to diverging objectives on the two sides. The commission also said the EU “continues to make the case for ending U.S. tariffs on steel and aluminium,” which would lead the EU to “remove the rebalancing tariffs on U.S.exports.”