The U.S. and European Union are ending the longest trade dispute in the history of the World Trade Organization, and are moving from litigation to cooperation, the European Commission said in a news release. The White House said the tariffs are suspended for five years, which is a "fresh start," but allows the U.S. "to reapply tariffs if we’re no longer competing on a level playing field." Should the EU "cross a red line and U.S. producers are not able to compete fairly and on a level playing field, the United States retains the flexibility to reactivate the tariffs that are being suspended," said U.S. Trade Representative Katherine Tai during a call with reporters.
Seven senators, including Senate Foreign Relations Committee ranking member Jim Risch, R-Idaho, are asking the administration to consider removing Nicaragua from the free trade agreement with Central American countries if political conditions in that country continue to deteriorate. Risch was joined on the June 10 letter by Sens. Patrick Leahy, D-Vt., Dick Durbin, D-Ill., Marco Rubio, R-Fla., John Cornyn, R-Texas, Todd Young, R-Ind. and Bill Cassidy, R-La.
Senate Finance Committee ranking member Mike Crapo and Sen. Pat Toomey, R-Pa., announced June 14 that they sent a letter to the commerce secretary reminding her that by law, reports on the conclusions of Section 232 investigations are to be made public. The letter directs Commerce Secretary Gina Raimondo to send copies of reports on autos and auto parts, uranium, electric transformers and cores, vanadium, and titatanium sponges to the Senate by June 25 and to publish reports, minus business confidential information, as soon as possible.
The leaders of Japan, Germany, the United Kingdom, France, Canada, the U.S. and Italy agreed to work collectively toward eradicating the use of all forms of forced labor in global supply chains, and said they want concrete suggestions ready before the G-7 trade ministers' meeting in October.
European and U.S. former government officials said they think the U.S. and European countries will find much common ground in efforts to make trade work for working people, but that getting on the same page with China will be a challenge.
Florida's two U.S. senators are complaining that the Department of Agriculture decision to allow the importation of five varieties of citrus fruits from China is too risky. They said the pest risk assessment identified "15 pest species of mites, fruit flies, and moths and two pathogens, including those that cause citrus canker and citrus black spot diseases, which could ‘cause unacceptable impacts’ if they enter the U.S. via imports of these Chinese citrus products. Risking the introduction of invasive species and diseases into the U.S. is irresponsible, especially given our knowledge of how citrus greening previously entered our country by imported citrus and is spread by an invasive pest species, the Asian citrus psyllid.”
Rep. Kevin Brady of Texas, the top Republican on the House Ways and Means Committee, has expressed optimism that the House can pass a renewal of the Generalized System of Preferences benefits program and the Miscellaneous Tariff Bill that will match the amendment passed in the Senate as part of its China package. However, when asked by International Trade Today on June 11 if the House would include the anti-counterfeiting measures and the request to the Office of the U.S. Trade Representative to re-open Section 301 exclusions, Brady said he didn't know. He said there's always been bipartisan support for fighting counterfeits, and with regard to the exclusions, "there’s a very strong interest for both chambers and both sides of the aisle," he said.
During a wide-ranging interview on trade with International Trade Today, Rep. Jackie Walorski, R-Ind., said she would like to advance Section 232 reform in the House, get the Generalized System of Preferences benefits program and the Miscellaneous Tariff Bill back in place, and, if warranted, weigh in with the U.S. trade representative on USMCA.
Dan Ikenson, who spent decades in trade policy at the libertarian Cato Institute, said he defended China's behavior for years after it joined the World Trade Organization. "I was in favor of welcoming China into the trading system," he said. But now, Ikenson said during a June 9 webinar hosted by the R Street Institute, he has come to see that China's last 15 years of state-directed capitalism produced enormous externalities. He said some of those externalities include the rise of populism, the political rejection of free trade, and even, in part, the presidency of Donald Trump.
U.S. Trade Representative Katherine Tai told union members that steelworkers have faced unfair competition due to overcapacity, and that she'll be talking to her counterparts in Europe next week about how to create "new standards to combat the harmful industrial policies of China and other countries that undermine our ability to compete."