The coronavirus epidemic continues to threaten global supply chains as governments increase prevention measures around the world, experts told the House Small Business Committee during a March 10 hearing. Yanzhong Huang, a senior fellow for global health at the Council on Foreign Relations, suggested that what he characterized as overreactions by governments led to discrimination by other countries on the original country's trade and travel. He cited “unjustified documentation” requested from Greek importers of Italian cheese, problems in Poland for Italian lettuce, Kuwait's resistance to Italian fruit, and Ukraine refusing Italian-grown apples.
The U.S. Trade Representative's annual report on China's compliance with World Trade Organization commitments details many of the same problems noted in previous years' reports, but they wrote that this year “we focus on the positive outcomes to date of the Administration’s new and more effective strategy for engaging China, which has led to the signing of an historic trade agreement with China,” while also talking about “the important issues that remain to be addressed in our trade relationship with China.”
An update to the Congressional Research Service's report on rules of origin notes that some in the trade community believe that more restrictive rules of origin, such as those that will be part of the NAFTA rewrite for autos, raise compliance costs for traders and may lead companies to avoid using the free trade agreement because the rules are so onerous. Because of those critiques, Congress may want to consider that in future FTAs, the report said.
After a dinner in Florida attended by President Donald Trump and Brazilian President Jair Bolsanaro, the two issued a joint statement March 7 on how they would like to reach “a bilateral trade package this year.” Because Brazil is in Mercosur, a South American customs union, tariffs are unlikely to be part of such a deal. They also discussed expediting Brazil's participation in the Trusted Trader program, “to streamline commerce between both countries by ensuring the security and safety of imported goods, with a goal of program entry in 2021.”
The top Republican and Democrat on the Senate Finance Committee, Sen. Pat Toomey, R-Pa., and five other Republican senators signed on to a friend of the court brief pushing for the publication of the Commerce Department report on how imported autos and auto parts imperil national security. The brief, filed March 6, reminds the judge that Congress required the Commerce Department to release the report by Jan. 19 and that the original law that contains Section 232 requires publication of the report. The case the senators are joining is a Freedom of Information Act lawsuit by the Cause of Action Institute filed last month.
The last American to serve on the World Trade Organization's Appellate Body, Tom Graham, told the Georgetown Law International Trade Update conference that the body “is not coming back any time soon.” Graham, who largely agrees with the U.S. critique of Appellate Body overreach, added, “The new I have come to ... is that it's better this way.” Graham was the most prominent, but far from the only speaker at the March 5-6 conference to say that neither the Europeans nor the Americans are ready to have a meeting of the minds on how to reform the appellate function of the rules-based trading order.
A bill that calls on the administration to begin negotiations on a U.S.-Taiwan free trade agreement passed the House of Representatives unanimously March 4. While the bill -- the Taiwan Allies International Protection and Enhancement Initiative (TAIPEI) Act -- already passed the Senate, the Senate needs to vote again to send it to the president's desk because the bill language was not identical between the two chambers. “It is the sense of Congress that the United States should engage in bilateral trade negotiations with Taiwan, with the goal of entering into a free trade agreement that is of mutual economic benefit and that protects United States workers and benefits United States exporters,” the bill says.
The House Consumer Protection and Commerce Subcommittee chairwoman sees the $800 de minimis level as a significant driver of sales of counterfeit products online. Rep. Jan Schakowsky, D-Ill., said after a hearing on risks associated with online marketplaces: “This whole issue of de minimis ... absolutely has to be dealt with. I think that came through loud and clear.”
Rep. Jackie Walorski, an Indiana Republican who has homed in on Commerce Department oversight on Section 232 exclusions, wrote to the agency March 3 questioning the legality of expanding the enforcement action to steel and aluminum derivative articles. “A sudden announcement on a Friday evening is not befitting such a dramatic paradigm shift from tariffs only on raw materials to now include downstream products as well,” she wrote.
Senate Finance Committee Chairman Chuck Grassley, R-Iowa, told reporters March 3 that he still wants to advance legislation that would reform Section 232 -- and he suggested that a greater congressional role might be warranted for Section 301, as well. “I want to move 232 and a number of members of my Finance Committee have talked to me about doing it,” he said, immediately adding that the bill is not an attack on President Donald Trump. He said that while the president's use of tariffs has shown Congress the shortcomings of the laws that allowed national security tariffs on steel and massive tariffs on China, his interest is in reasserting some congressional prerogatives on trade.