The biggest danger to President-elect Donald Trump’s agenda might be trade protectionism and the incoming administration should build upon the U.S. trade manufacturing surpluses it currently holds over free trade agreement partners, former U.S. Trade Representative Robert Zoellick wrote in an opinion piece published by the Washington Post (here). “Whether the Trump administration negotiates country by country, or with groups, it must not ignore the economies of the Asia-Pacific and the potential of the Trans-Pacific Partnership,” Zoellick said. “In today’s competitive world economy, the United States cannot withdraw in a huff; retreat is defeat.”

President-elect Donald Trump renewed threats to slap heavy tariffs on U.S. auto manufacturers who move jobs overseas, in a Jan. 3 tweet (here) directed at General Motors and its production of the Chevrolet Cruze in Mexico. “General Motors is sending Mexican made model of Chevy Cruze to U.S. car dealers-tax free across border,” the tweet said. “Make in U.S.A. or pay big border tax!” A GM statement responding to Trump acknowledged that the company makes the Cruze hatchback in Mexico for global markets, “with a small number sold in the U.S.,” but noted that the company manufactures all Cruze sedans sold in the U.S. at GM’s assembly plant in Lordstown, Ohio. Trump had previously expressed intentions to raise tariffs to 35 percent on car companies that move jobs to Mexico upon export of cars to the U.S. (see 1611150035).

President Barack Obama issued a presidential proclamation (here) making certain imported products from Nepal eligible to receive preferential duty treatment through a program authorized by the Trade Facilitation and Trade Enforcement Act (TFTEA), and adding the Central African Republic as an African Growth and Opportunity Act (AGOA) beneficiary sub-Saharan African country, among other things. The Harmonized Tariff Schedule will need to be modified to implement duty-free treatment for the Nepal Preference Program in accordance with TFTEA, the proclamation said. The proclamation will also extend until Dec. 31, 2017, the U.S. provision of duty-free access for certain agricultural goods from Israel under the U.S.-Israel Free Trade Agreement. Changes related to implementing the Nepal duty preference program will take effect Dec. 30 and continue through Dec. 31, 2025, according to the proclamation. The U.S.-Israel FTA-related modifications will take effect Jan. 1. It is unclear when the Central African Republic’s AGOA beneficiary designation will enter into force.

The U.S. Court of Appeals for the Federal Circuit on Dec. 15 affirmed a lower court ruling ordering the government to cover attorney’s fees and costs paid by International Custom Products in one of several contentious cases involving a CBP ruling letter improperly revoked without notice and comment (here). The decision likely brings to a close a series of cases dating back to 2005 on a CBP notice of action reclassifying ICP’s white sauce (see 06030725), which led to a 2,400% duty increase and put the company out of business (see 12121239).

Global intellectual property theft is a serious threat​ to U.S. interests, the White House reported Monday. The Intellectual Property Enforcement Coordinator (IPEC) sent Congress a joint strategic plan (here) setting IP rights enforcement as a national priority for three years. It "represents a ‘call for action’ for all nations -- as well as international organizations, industry, educational institutions, and consumer protection and public interest groups -- to provide forward-thinking leadership and a collaborative approach to combatting illicit IP-based activities,” Coordinator Daniel Marti wrote.

President-elect Donald Trump will nominate Marine Gen. John Kelly as the next Homeland Security secretary, several media outlets, including the Washington Post (here), reported on Dec. 7. Most recently, Kelly served as chief of U.S. Southern Command from October 2012 to February 2016, according to his DOD bio (here). Kelly commanded Marines deployed to Iraq in 2008, after an earlier tour in Iraq as an assistant division commander from 2002 to 2004, and was legislative assistant to the Marine Corps Commandant from 2004 to 2007, according to the bio. In 1999, Kelly worked as the special assistant to the NATO Supreme Allied Commander. Kelly delivered testimony (here) to the Senate Armed Services Committee in 2015 that discussed concern over vulnerabilities on the U.S.-Mexico border, namely the threat of terrorists taking advantage of human smuggling routes. The testimony also highlighted the U.S. Southern Command's cooperation with DHS and CBP. Kelly is currently a member of the Homeland Security Advisory Council (here).

President Barack Obama is expected to sign H.R. 6297, the Iran Sanctions Extension Act (here), which the Senate on Dec. 1 unanimously voted to send to the White House (see 1612020018), a White House spokesperson said Dec. 2 (here). A State Department spokesperson said that Secretary of State John Kerry will continue to waive all relevant U.S. nuclear-related sanctions in adherence with the Joint Comprehensive Plan of Action (JCPOA) (here). Part of the reason expected for Obama's signature is due to the "clean" nature of the legislation, the State spokesperson said, as it merely extends for 10 years the U.S.'s current Iran primary sanctions with no changes. Those sanctions are currently set to expire at the end of this year, and the bill would ensure that the U.S. could bring back sanctions on Iran if the nation breaks its JCPOA obligations.

President Barack Obama on Dec. 1 issued a presidential proclamation modifying the tariff schedule (here). Changes include implementation of the 2017 Harmonized System tariff nomenclature adopted by the World Customs Organization (see 14073002 and 14073101), with specific changes and their effective date to be outlined in an as-yet-unreleased International Trade Commission report. Other modifications to the tariff schedule implement phased tariff cuts under the Information Technology Agreement (see 1607050018) and several bilateral free trade agreements. International Trade Today will provide further information as more details are released.

There isn't as much of a gap between President-elect Donald Trump’s and Vice President-elect Mike Pence’s trade stances as many expected, said Marty Obst, Pence’s inaugural director, during a Barnes & Thornburg event Nov. 30. People in the Indiana governor’s circle thought the two would be “miles apart” on trade because of Pence’s free trade views, he said. But during a campaign call between the leaders' allies exploring whether Pence would be a suitable running mate, Trump told Pence’s colleagues that he’s not against free trade, but he’s more in favor of bilateral, as opposed to multilateral, deals, which Pence jumped on board with. According to Obst, Trump said, “I just want bilateral deals that make sense for us, because we’ve made some bad deals. So I just want to re-examine all of them.” Trump provided “interesting insights” into how to fix the U.S. trade imbalance, and he and Pence will work to do that in an “earnest way,” while benefiting U.S. businesses, Obst added.

Steven Mnuchin and Wilbur Ross confirmed that President-elect Donald Trump selected them to serve as treasury secretary and commerce secretary, respectively, during a CNBC interview (here). After Trump’s campaign threats to raise tariffs on Chinese goods raised some uncertainty in the trade community, Ross indicated that tariffs would be a last resort in Trump administration trade negotiations. “The real trick is going to be [to] increase American exports,” Ross said. “Get rid of some of the tariff and nontariff barriers to American exports.” Mnuchin and Ross called the Trans-Pacific Partnership a bad deal, and Mnuchin emphasized the focus on bilateral, as opposed to multilateral, deals that the soon-to-be Trump administration will take. “The problem with regional trade agreements is you get picked apart by the first country,” Ross said. “Then you negotiate [with] . . . the second country. You get picked apart. And you go with the third one. You get picked apart again. What has to be put into perspective, we are the big market. We are the world's biggest importer. We need to treat the other countries as good suppliers, not as determining the whole show.”