Trade negotiations will resume with China ahead of a meeting between President Donald Trump and President Xi Jinping, Trump tweeted June 18. He said he and Xi "will be having an extended meeting next week at the G-20 in Japan." The White House said the two leaders talked on that morning about "structural barriers to trade with China and achieving meaningful reforms that are enforceable and verifiable."
Most of the questions to U.S. Trade Representative Robert Lighthizer about the Section 301 tariff actions focused on the pain to U.S. consumers and the difficulties faced by importers of products that are subject to 25 percent tariffs. But Sen. John Thune, R-S.D., told the nation's top trade negotiator that even a local meat locker has been hurt by the trade war. Thune, who was questioning Lighthizer during his appearance June 18 in front of the Senate Finance Committee, said the meat locker employee told him that before the trade war began, someone would buy cow hides for $150 each. China imports a lot of animal skins to support its furniture and shoemaking industries. "Now I have to pay 600 a head to haul it away," Thune said the man told him, which is a cost of $40,000 a year. For a business that size, that could be the entire profit margin, Thune said.
A bipartisan group of 23 lawmakers from Arizona, California and Texas objected to the possible inclusion of "seasonality" provisions within the implementing legislation for the U.S.-Mexico-Canada Agreement in a June 14 letter to U.S. Trade Representative Robert Lighthizer. "Seasonality, whereby certain agricultural products could be subjected to numerous seasonal and regional dumping duties at various times throughout the year, runs counter to the spirit of a free trade agreement intended to tear down both tariffs and non-tariff barriers to trade," the lawmakers said. "Using USMCA as a vehicle for pursuing seasonal agriculture trade remedies risks pitting different regions of the country against each other."
Canada will try to "move in tandem" with Mexico and the U.S. as legislatures in the three countries work to ratify the replacement for NAFTA, Foreign Minister Chrystia Freeland told reporters June 13. Freeland, who was in Washington to talk about ratification of the trade pact, said: "We think of it as a kind of Goldilocks approach, not too hot, not too cold, we’re not going to go too fast, we’re not going to go too slow. It does mean we are going to be spending a lot of time talking with our American counterparts to get that pacing right, and I do want to say, our excellent ambassador is here, David MacNaughton. The embassy is working extremely hard on this issue and spending a lot of time on the Hill, meeting with Democrats, with Republicans both to help people understand here how the Canadian legislative process works and also to get a better understanding of where the U.S. is and where individual members of Congress and senators are."
President Donald Trump may institute tariffs on goods from Mexico after withdrawing them if the Mexican legislature doesn't approve a part of the deal between the two countries, he said in June 10 tweets. "We have fully signed and documented another very important part of the Immigration and Security deal with Mexico, one that the U.S. has been asking about getting for many years. It will be revealed in the not too distant future and will need a vote by Mexico’s Legislative body!" he said. "We do not anticipate a problem with the vote but, if for any reason the approval is not forthcoming, Tariffs will be reinstated!" The two sides reached a deal on June 7 to avoid the tariffs (see 1906070081) with Mexico agreeing to play a bigger role in handling of migrants from Central America who seek asylum in the U.S., the two countries said in a June 7 joint statement.
The U.S. Department of Agriculture' Foreign Agricultural Service on June 6 issued a guidance for the exclusion process for Chinese tariffs on U.S. exports, including an unofficial translation on the Chinese Ministry of Finance's exclusion application instructions. Among a list of directives, the guidance encourages industry associations to apply for exclusion on their members’ behalf. While USDA said China’s window for accepting applications for its published list of products will end July 5, it said China is planning to publish an additional list of goods eligible for tariff exclusions with an application window from Sept. 2 through Oct. 18.
Big agriculture purchases may be part of a deal with Mexico to stop tariffs from going in place as scheduled for June 10, President Donald Trump said in a June 7 tweet. "If we are able to make the deal with Mexico, & there is a good chance that we will, they will begin purchasing Farm & Agricultural products at very high levels, starting immediately," he said. "If we are unable to make the deal, Mexico will begin paying Tariffs at the 5% level on Monday."
U.S. Trade Representative Robert Lighthizer will not attend the G-20 meeting in Japan, where he would have the opportunity for brief bilateral meetings with Chinese, Japanese, Mexican and European counterparts. Deputy USTR Dennis Shea will lead the U.S. delegation June 8 and 9.
The New Democrats caucus, which includes the most pro-free-trade members in the party in the House of Representatives, has released a lengthy list of things they want to see in exchange for their votes for the new NAFTA ratification.
Although the Speaker of the House said the administration's decision to send over its Statement of Administrative Action and legal text of the U.S.-Canada-Mexico Agreement was "not a positive step," some NAFTA watchers said this should not be seen as a sign that the administration is trying to force the speaker's hand and demand a vote before the August congressional recess.