Total U.S.-South Korea trade in goods and services has grown by almost $20 billion since the U.S.-Korea Free Trade Agreement (KORUS) entered into force in 2012, but U.S. businesses face too many market access barriers, hurting U.S. workers and economic growth, Vice President Mike Pence said in an April 18 in Seoul (here). “President [Donald] Trump has made it clear that the United States will pursue an America first policy in trade and exchange,” Pence said. “We’ll pursue trade that is both free and fair, and that will be true in all of our trade relationships, including KORUS.” Pence added that the “most concerning” issue is that the U.S. trade deficit with South Korea has more than doubled since KORUS took effect. He noted that the U.S. is reviewing all trade agreements “to ensure that they benefit our economy as much as they benefit our trading partners.” Pence said he and Trump value the input of industry on the commercial issues it faces.

Clarity on the United Kingdom's relationship with the EU will likely be necessary before the U.S. government and private sector can find a starting point for bilateral FTA negotiations, according to a Congressional Research Service report (here). Goods currently transit the EU tariff-free, and raising UK tariffs to post-Brexit levels akin to most-favored-nation EU tariff rates could have substantial impacts on deeply integrated European markets such as automobiles, according to the report. CRS pointed to a statement from the EU that the “UK cannot have a better trade relationship with the EU outside of the Single Market than within it.” As the UK faces the prospect of losing access to the EU Single Market, U.S. businesses that export from the UK to other parts of the EU face the specter of increased tariffs, the CRS said.

The National Customs Brokers & Forwarders Association of America endorsed President Donald Trump’s nominee for CBP commissioner, Kevin McAleenan, saying that he understands how to resolve ongoing challenges associated with e-commerce processing, the rollout of ACE and revision of customs broker Part 111 regulations, according to a letter the group sent to the Senate Finance Committee (here). In the letter addressed to committee Chairman Orrin Hatch, R-Utah, and ranking member Ron Wyden, D-Ore., NCBFAA President Geoffrey Powell added that McAleenan has demonstrated that CBP can work with its 49 partner government agencies in ensuring that imports meet requirements for health, safety, intellectual property, antidumping and countervailing duty enforcement, and “enlightened labor standards.” McAleenan "has demonstrated leadership within CBP that gives us confidence in the agency and should provide you assurance that it will meet its responsibilities in enforcement and in the facilitation of trade,” Powell said. “NCBFAA is strongly supportive of his nomination.” Powell urged the committee to hold a confirmation hearing “as soon as committee procedures and schedule permit.” Senate Finance didn't comment.

Vice President Mike Pence will look to establish a framework for free trade agreement negotiations with Japan during his trip to the nation April 18-20, a senior Trump administration official said during an April 14 press call (here). As part of an 11-day trip to the Pacific region, Pence will meet with Japanese Prime Minister Shinzo Abe and lead the inaugural U.S.-Japan Economic Dialogue with Japanese Deputy Prime Minister Taro Aso, and participate in a listening session and give remarks to members of the U.S. and Japanese business communities, according to a White House press release (here). “The President has made very clear that we are looking for free, balanced, and fair trade with all of our allies and partners,” the official said. “And that is in the spirit and faith that we are moving forward. We have a longtime relationship with Japan. It is the cornerstone of peace and prosperity in the Asia Pacific region, and so we’re going to work together in the mutual interests of both.” Pence will also discuss bilateral trade with Australian officials, including Prime Minister Malcolm Turnbull, during his visit to that country April 22-24, according to the White House.

The leaders of four high-powered dairy groups and four Minnesota congressional lawmakers urged President Donald Trump to take action to loosen Canadian price constraints harming U.S. milk exports. National Milk Producers Federation CEO Jim Mulhern, U.S. Dairy Export Council CEO Tom Vilsack, International Dairy Foods Association CEO Michael Dykes and National Association of State Departments of Agriculture CEO Barbara Glenn wrote a letter (here) to Trump urging him to use the “full range of tools” to persuade Canada to open its dairy market to U.S. exports, address the Canadian dairy market situation and its “chronic use of nontariff tools” early in NAFTA renegotiations, and urge Canadian Prime Minister Justin Trudeau to reopen his country's market to ultra-filtered milk imports from the U.S. Copied on the letter were several of Trump's advisers and Cabinet members, as well as several key members of Congress. If the suggested approaches don’t bring freer and fairer bilateral trade, the U.S. should bring Canada’s actions with regard to dairy to the attention of the World Trade Organization, the executives wrote.

His administration could either omit or include trade elements -- the “border adjustment” aspects -- in its tax reform plan expected to roll out later this year, President Donald Trump said during an interview on Fox Business (here), according to a transcript (here). “We ... could keep trade and we could keep certain things separate,” Trump said. “We may put it in the tax code or we may keep it separate. We have a lot of different things.” Trump also expressed opposition to the term “border adjustment,” saying it means “we lose,” and suggested rebranding the term as an “import tax,” “reciprocal tax,” “matching tax” or “mirror tax.” “When you say reciprocal, nobody fights you,” Trump said. “When you say I'm going to charge a 10 percent or a 20 percent border tax, everyone goes crazy, because they like free trade,” Trump said. “Well, they don't say that the other countries are charging you much more than that.”

The Trump administration won’t label China a currency manipulator in an annual Treasury report on currency manipulation due this week, President Donald Trump told The Wall Street Journal (here). Trump said China hasn’t manipulated its currency for months and labeling China a currency manipulator now could threaten U.S.-China cooperation on confronting the North Korean threat, according to the April 12 article. “I think our dollar is getting too strong, and partially that’s my fault because people have confidence in me," he said. Trump listed naming China as a currency manipulator among his priorities during the presidential campaign. The White House didn’t comment.

President Donald Trump plans to nominate Gilbert Kaplan to serve as under secretary of commerce for international trade, the White House said (here). Kaplan is currently an attorney in King & Spalding’s International Trade Group. At the firm, he filed the first-ever successful U.S. anti-subsidy case against China and before that served as deputy assistant secretary and acting assistant secretary of commerce for import administration, it said.

Trade expansion will be among the topics of discussion when President Donald Trump hosts Argentina's President Mauricio Macri April 27, the White House said in a statement (here). “President Trump and President Macri will discuss ways to deepen the close partnership between the United States and Argentina,” the White House said. “The two leaders will exchange views on a range of bilateral and regional issues, including the expansion of trade, security sector collaboration, and the deteriorating situation in Venezuela.”

The Trump administration will start the formal NAFTA renegotiation process after the Senate confirms U.S. trade representative nominee Robert Lighthizer, White House Press Secretary Sean Spicer said April 10 (here). “USTR drives that,” Spicer said. “And so our focus is getting that done, and then we'll be ready to go.” A more detailed work plan for renegotiating NAFTA -- including submittal of the required 90-day notice to Congress before international negotiations can begin in earnest -- will likely materialize after Lighthizer’s prospective confirmation, Spicer said. “But as of right now, that's not there.” Speaking to a group of CEOs April 11, President Donald Trump said renegotiating NAFTA will bring "some very pleasant surprises," according to a report from the White House press pool. The Senate Finance Committee postponed its consideration of Lighthizer until after the Senate’s spring break. Senators are expected to return to Capitol Hill on April 24.