U.S. Trade Representative Robert Lighthizer filed a request for consultations at the World Trade Organization to “address China’s discriminatory technology licensing requirements,” his office said in a March 23 news release. President Donald Trump’s memorandum proposing Section 301 tariffs on about $60 billion worth of Chinese goods imported to the U.S. directed Lighthizer to address “China’s discriminatory technology licensing practices” through a WTO dispute proceeding (see 1803220034), of which the consultations request was the first step, Lighthizer's office said.
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.
The U.S. will request World Trade Organization consultations with India to resolve a trade dispute, as it contends that five Indian government programs provide $7 billion in illegal subsidies for exports. U.S. Trade Representative Robert Lighthizer made the announcement March 14, with a statement that said, in part, that “USTR will continue to hold our trading partners accountable by vigorously enforcing U.S. rights under our trade agreements and by promoting fair and reciprocal trade through all available tools, including the WTO.”
The U.S. under previous administrations passively stuck with "outdated and underperforming trade deals and allowed international bureaucracies to undermine U.S. interests," the Office of the U.S. Trade Representative said. But now, "countries that refuse to give us reciprocal treatment or who engage in other unfair trading practices will find that we know how to defend our interests," USTR said. In a 359-page report to Congress on the trade agreements program released late on Feb. 28, USTR laid out its priorities for the coming year, and defended the ongoing NAFTA negotiations. By law, Congress must renew fast-track trade authority by June 1, or NAFTA 2.0 will not be able to proceed.
House Ways and Means leaders said a visit from the U.S. trade representative Feb. 7 was a productive meeting about modernizing NAFTA. "I want to make sure we hold our trading partners accountable through strong, enforceable commitments with effective dispute settlement, including ISDS, because it creates U.S. jobs. People in my district and across the country are counting on us to get this right, which is why we all have to stay at the table. Congress has the Constitutional responsibility over trade and we’re committed to fulfilling our duty in close coordination with the Administration," Chairman Kevin Brady, R-Texas, said in a statement after the private meeting.
The U.S. and South Korea will meet Jan. 31 - Feb. 1 in Seoul to further discussions over possible changes to the U.S.-South Korea Free Trade Agreement, the Office of the U.S. Trade Representative said. The U.S. “will engage on priority areas with the goal of moving towards fair and reciprocal trade and resolving additional cross-cutting and sector-specific barriers impacting U.S. exports,” USTR said. Officials from the two countries last met formally on Jan. 5 in Washington (see 1801080027).
The U.S. and South Korea have “much work to do” in negotiations over an updated U.S.-South Korea Free Trade Agreement, U.S. Trade Representative Robert Lighthizer said in a statement following talks held Jan. 5 in Washington. At the meeting, U.S. and South Korean officials discussed “priority areas of interest and agreed to set the schedule for the next meeting in the near term,” according to a separate statement from the South Korean Ministry of Trade, Industry and Energy. The U.S. “discussed proposals to move towards fair and reciprocal trade in key industrial goods sectors, such as autos and auto parts, as well as to resolve additional cross-cutting and sector-specific barriers impacting U.S. exports,” the USTR statement said. “Both sides agreed to follow-up to discuss timing for the next meeting in the very near term,” USTR said.
Generalized System of Preferences renewal legislation is a priority for early 2018 congressional passage, House Ways and Means Committee Chairman Kevin Brady, R-Texas, told reporters Dec. 21, meaning that the tariff preference coverage will expire Dec. 31. He also suggested Senate Democrats, including Finance Committee ranking member Ron Wyden, D-Ore., haven’t OK’d such legislation to move forward. “We’re really waiting for a green light from Senate Democrats and from ranking member Wyden,” Brady said. “We’re hopeful that he can give us the green light so we can move forward early next year.” He added that he “had hoped” GSP renewal would be enacted prior to expiration, and that Congress “can move this thing fast” with congressional Democrats and Republicans “all on board.”
Mexico and Canada have proposed to expand the benefits of NAFTA tariff preference levels (TPLs) for textiles and apparel, responding to a U.S. proposal to remove TPLs, people familiar with negotiations said in recent interviews. Mexico has “come back with a proposal that is similarly aggressive [to the U.S.’s], but from the other side,” Akin Gump attorney Josh Teitelbaum said. “That’s kind of the tension where we’re at, the stalemate, so to speak,” on textile and apparel negotiations. A Mexican official confirmed in an email that his country proposed to expand the TPLs. Mexicans proposed a multiple of their existing TPLs for some products and an alignment with Canadian TPLs for other products, a cleared adviser said. “For equality’s sake, they looked at the Canadian TPLs and said, ‘OK, we’ll just pick that number so it’s the same across the board,’” the adviser said.
Disagreement on de minimis thresholds is the one obstacle to closing an updated NAFTA customs chapter, an area where talks have progressed significantly during the ongoing renegotiation of the pact, according to three sources with knowledge of discussions. Advancement on the de minimis issue principally depends on Canada’s level of willingness to increase its $15 (USD) threshold, after Canadian negotiators declined to engage on the issue following contentious U.S. proposals pitched during the fourth negotiating round in Arlington, Virginia, two of the sources said.
The U.S. called for "real policy changes" and said “much work remains” for addressing global steel overcapacity, in a pointed Nov. 30 statement at the conclusion of the Global Forum on Steel Excess Capacity in Berlin. “The Forum has not made meaningful progress yet on the root causes of steel excess capacity, and pointing to short-term developments and worn out promises will not cure the fundamental causes of the problem,” the statement from the Office of the U.S. Trade Representative said. “Addressing the ongoing steel excess capacity situation will require immediate and sustained concrete action by all steelmakers, including allowing markets to function, removing market-distorting subsidies and other forms of state support, and treating state-owned enterprises and private steelmakers equally.”