Ambassadors to the World Trade Organization said they're hoping the new Joe Biden administration will line up behind Ngozi Okonjo-Iweala for director-general, and will get serious about finding a way to resuscitate the Appellate Body, though they acknowledged the latter may have to wait for the COVID-19 crisis in America to subside. Ambassadors from Canada, Japan, Singapore, Australia and Switzerland spoke on a webinar Dec. 11 hosted by the Washington International Trade Association.
House Ways and Means Committee Chairman Richard Neal, D-Mass., says that the new administration should prioritize a free trade deal with the European Union following the template of USMCA, saying President Donald Trump's abandonment of serious trade talks with Europe was a “particularly detrimental blunder.”
Chemicals are not among the top imports under the Generalized System of Preferences benefits program -- travel goods, jewelry, car parts, and lamps are -- but chemical distributors are still anxious that the program be renewed before it expires. Eric Byer, CEO of the National Association of Chemical Distributors, said in a phone interview that about 50% of his 250 members benefit from GSP tariff breaks. He said last time GSP expired, it took a couple of months to get reimbursed even after GSP was restored. He gave an example of a small company near Philadelphia that had to pay $250,000 in additional tariffs during the expiration, for a company that only had about 25 employees. Byer said citric acid is imported by many of his members, and if GSP expires, a 6% tariff will be applied to that citric acid coming from Thailand. Erin Getz, coordinator of governmental affairs for NACD, said 110 million pounds annually is imported from Thailand.
President-elect Joe Biden announced Dec. 10 that he's selecting House Ways and Means Committee Chief Trade Counsel Katherine Tai to be the next U.S. trade representative, saying that her deep experience will allow the administration to “harness the power of our trading relationships to help the U.S. dig out of the COVID-induced economic crisis and pursue the President-elect’s vision of a pro-American worker trade strategy.”
Sen. Josh Hawley, a populist Republican from Missouri, has introduced a Generalized System of Preferences bill that would only allow the tariff benefits to be granted when unemployment is below 4% in the U.S. The unemployment rate has been below 4% less than two years of the last 20. This version of GSP would also bar any country that the Department of Labor identifies as a country where there's a problem with forced labor or the worst forms of child labor.
U.S. Trade Representative Robert Lighthizer Dec. 9 announced that he'll be seeking consultations with Mary Ng, his Canadian counterpart, over the way that Canada allocated tariff rate quotas. Canadian processors are guaranteed a percentage of those import quotas, and the U.S. says that undermines American producers' access to Canada. “President [Donald] Trump successfully renegotiated the USMCA to replace the failed NAFTA, and a key improvement was to give U.S. dairy producers fairer access to Canada’s highly protected dairy market,” he said. “We are disappointed that Canada’s policies have made this first ever enforcement action under the USMCA necessary to ensure compliance with the agreement.”
The National Defense Authorization Act, which passed the House of Representatives with a veto-proof majority of 335-78, would end anonymity at shell companies, in an attempt to prevent money laundering. Companies, whether corporations or limited liability companies, would have to file the information with the Financial Crimes Enforcement Network (FinCEN). If the regulations are not obeyed, or if the information is false, there could be criminal penalties, not just fines.
The National Council of Textile Organizations is asking the incoming Joe Biden administration to create a stable market for domestic production of medical gloves, gowns, masks and face shields, both by requirements and supporting demand. The Berry Amendment, which covers military uniforms, should apply to federal purchases of medical protective gear purchases, CEO Kim Glas said Dec. 3 in a news release. She also said the federal government should sign long-term federal contracts for personal protective equipment, or PPE.
Rep. Kevin Brady, R-Texas, criticized the Democratic approach to the Generalized System of Preferences benefits program renewal after Ways and Means Trade Subcommittee Chairman Earl Blumenauer, D-Ore., introduced a six-month extension that would change eligibility requirements (see 2012080049). “This is a surprise, and not a welcome one, at this point in the negotiations,” Brady said the evening of Dec. 8. “While I respect the view of Democrats that changes are needed to the program, I support a clean extension that allows us to consider changes under regular order.” Senate Finance Committee Chairman Chuck Grassley, R-Iowa, introduced an 16-month clean GSP renewal, but Democrats in the Senate do not support it, as they prefer an approach that requires higher standards from beneficiary countries.
Democrats and at least one Republican in the House have objected to products included in the next Miscellaneous Tariff Bill, a lobbyist interested in MTB told International Trade Today, complaining about both inputs and consumer goods. Many of the petitions that drew objections were in textiles and apparel, he said. He said he's seen “a couple dozen” items that members want removed, but said he doesn't know if there are more objections.