President Donald Trump announced a "very substantial phase 1" deal in the Oval Office Oct. 11, saying the Chinese and American negotiators came to a deal on intellectual property, financial services and agricultural sales. The president said China will buy as much as $40 billion to $50 billion worth of American commodities. He also said good progress had been made on issues around technology transfer from American companies to Chinese partners.
U.S. Trade Representative (USTR)
The U.S. cabinet level position that oversees trade negotiations with other countries. USTR is part of the Executive Office of the President. It also administers Section 301 tariffs.
Business and labor leaders and government insider panelists agreed that the U.S.-China trade war will be difficult to unravel, but disagreed on how quickly Democrats could -- or should -- resolve outstanding issues on the NAFTA rewrite. The trade panel Oct. 10, hosted by Fiscal Note, included Clete Willems, former White House deputy assistant to the president for international economics, who said that although it pained him to say it, "The political conditions in both countries are just not conducive to the big deal."
The U.S. and Japan officially signed their initial trade deal during a brief signing ceremony at the White House on Oct. 7, setting up a potential Jan. 1 effective date. The text of the new deal is now posted to the Office of the U.S. Trade Representative's website. So is the text of a concurrent deal on digital trade.
Trade groups representing importers, retailers and producers largely reacted with dismay to the news that the U.S. would collect 25 percent tariffs on billions of dollars' worth of European goods, as an inducement for the European Union to stop subsidizing Airbus aircraft launches.
The U.S. and Japan signed a deal to open Japanese market access to more than $7 billion worth of U.S. agricultural exports, the White House said Sept. 25. The deal -- announced after President Donald Trump and Japan's Prime Minister Shinzo Abe met at the United Nations General Assembly in New York -- is an initial agreement as the two sides continue negotiating a comprehensive trade deal “in the months ahead,” the White House said.
House Democrat working group members -- those responsible for convincing the administration to edit the new NAFTA to suit Democrats -- are encouraged and said that there is a deal to be had, if the administration continues to compromise, multiple members said in Sept. 18 interviews. Trade Subcommittee Chairman Earl Blumenauer, D-Ore., told International Trade Today Sept. 18: "We were pleased to get an answer ... it's not there [yet], but it's encouraging. We're going to meet tomorrow, and next week, and we'll just keep plugging away, narrowing the gaps, and if people want a deal, we can make one."
A recently reached U.S.-Japan free trade deal makes up 90 percent of the losses farmers experienced because the U.S. dropped out of the Trans-Pacific Partnership, said Senate Finance Committee Chairman Chuck Grassley, R-Iowa, during a Sept. 17 call with reporters. "I haven’t seen anything on paper, but according to [the Office of the U.S. Trade Representative], it puts us on this level playing field with our trading partners," he said.
U.S. Chamber of Commerce CEO Tom Donohue said he doesn't believe that the Trump administration will declare victory if Chinese buyers return to buying pork, soybeans and corn. "I don't think it will be an agreement of any type until it's a matter of substance," he said.
Rep. Ron Kind, co-chairman of the New Democrats' trade task force, said U.S. Trade Representative Robert Lighthizer has done a good job on outreach, and sounding sympathetic to Democrats' complaints about enforceability, labor and other issues they want changed in the NAFTA rewrite. But Kind, who was speaking to reporters on a conference call from the Midwest on Sept. 4, said that "for some reason there's been a reluctance on sharing paper, putting words down" that would change the trade deal to satisfy these requests.
Ten comments documents filed by trade groups and companies that would be affected by a digital services tax imposed in France -- as well as one filing by a European think tank -- describe the problems with the tax and the discriminatory intent against U.S. companies. But three of the groups, and one company, told the Office of the U.S. Trade Representative that tariffs on French imports under Section 301 are not the way to fix the problem, while only two individuals called for tariffs as a way to get France to roll back the law.