House Democrats and the administration have gotten close enough on what the edits to the new NAFTA should be that they have narrowed differences to three, “maybe two and a half," the Ways and Means Committee chairman said Nov. 21. Chairman Richard Neal, D-Mass., had just exited a meeting with U.S. Trade Representative Robert Lighthizer and House Speaker Nancy Pelosi, and Neal said that at the beginning of the meeting, there were five issues separating them.
U.S. Trade Representative (USTR)
The U.S. cabinet level position that oversees trade negotiations with other countries. USTR is part of the Executive Office of the President. It also administers Section 301 tariffs.
The U.S. and South Korea reached a deal that will allow for $110 million worth of annual U.S. rice exports to South Korea, the Office of the U.S. Trade Representative said Nov. 19. The agreement will give access to more than 130,000 tons of U.S. rice exports each year and will ensure South Korea is transparent and predictable “around the tendering and auctioning” for U.S. rice. The deal gives the U.S. the “largest volume of guaranteed market access for rice” that it has ever had in South Korea, USTR Robert Lighthizer said. “It will prove enormously beneficial for American producers and their customers in Korea.”
The trade war that President Donald Trump began with China 16 months ago is creating pain for businesses, but there's a deeper strategic mistake to consider, said Matthew Goodman, senior vice president for Asian economics at the Center for Strategic and International Studies. Goodman, who was speaking during the first session in a Congressional Trade Series on Nov. 19, said, “I still don't know what the basic strategic goal is here." He said he didn't know whether the administration wants to get structural changes to China's economy, as it claims, or whether it wants to reduce the bilateral trade deficit, or to contain China's rise.
House Ways and Means Committee Chairman Richard Neal, D-Mass., who leads the working group negotiating with the U.S. trade representative over the U.S.-Mexico-Canada Agreement, said he anticipates that USTR Robert Lighthizer will send over text of the changes to the agreement next week. Neal said he spoke with Lighthizer Nov. 14, to tell him he'd be forwarding “a series of, we think, could be make-or-break issues, and that we hoped that he would digest them and then respond to us, fast."
The Trump administration applauded Brazil’s commitment to implement an annual duty-free tariff rate quota of 750,000 metric tons of wheat imports, saying the move signals a desire to deepen trade ties with the U.S. In a Nov. 14 statement, U.S. Trade Representative Robert Lighthizer said the TRQ will benefit U.S. wheat exporters. It “will allow our wheat exporters to compete on a level playing field,” Lighthizer said. “We look forward to increased exports of American wheat to Brazil.”
Notable international barriers to U.S. exports include Chinese food restrictions and inconsistent standardization laws, Brazil’s strict telecommunications requirements, Thailand’s discriminatory customs procedures and Europe’s value-added tax system, trade groups said in comments to the Office of the U.S. Trade Representative. The comments, due Oct. 31, were in response to USTR’s request for input for its upcoming National Trade Estimate Report on Foreign Trade Barriers.
President Donald Trump said the U.S. is “ahead of schedule” in signing the first phase of a U.S.-China trade deal.
President Donald Trump announced a "very substantial phase 1" deal in the Oval Office Oct. 11, saying the Chinese and American negotiators came to a deal on intellectual property, financial services and agricultural sales. The president said China will buy as much as $40 billion to $50 billion worth of American commodities. He also said good progress had been made on issues around technology transfer from American companies to Chinese partners.
Business and labor leaders and government insider panelists agreed that the U.S.-China trade war will be difficult to unravel, but disagreed on how quickly Democrats could -- or should -- resolve outstanding issues on the NAFTA rewrite. The trade panel Oct. 10, hosted by Fiscal Note, included Clete Willems, former White House deputy assistant to the president for international economics, who said that although it pained him to say it, "The political conditions in both countries are just not conducive to the big deal."
The U.S. and Japan officially signed their initial trade deal during a brief signing ceremony at the White House on Oct. 7, setting up a potential Jan. 1 effective date. The text of the new deal is now posted to the Office of the U.S. Trade Representative's website. So is the text of a concurrent deal on digital trade.