The U.S. is prepared to negotiate terms of future lumber trade with Canada following the recent expiration of the Softwood Lumber Agreement, a spokesman for the Office of the U.S. Trade Representative said on Oct. 15. “The United States is in close contact with domestic stakeholders and stands ready to engage with Canada to ensure fair and stable conditions for trade in softwood lumber that reflect current market realities," said the spokesman. The SLA lapsed on Oct. 12. The U.S. Lumber Coalition lashed into Canada’s alleged refusal to negotiate a renewal of the agreement (see 1510130010). A Canadian government official, also in recent days, criticized alleged U.S. reluctance to hold talks, according to Canadian media (here). The lapse of the SLA could pave the way for antidumping and countervailing duties on Canadian softwood lumber.
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 Office of the U.S. Trade Representative released a nearly 50-page summary of U.S. negotiating objectives in the Trans-Pacific Partnership on Sept. 23. The summary, coupled with a recent round-up of the state of play in the talks (see 1509080024), falls in line with new USTR transparency obligations put in place by Trade Promotion Authority.
Australia continues to push hard to carve out a larger chunk of sugar access into the U.S. market through the Trans-Pacific Partnership, said Australian producers and the Sweetener User Association in a recent conference call. Those on the call insisted Australian expanded access, under the right conditions, won’t undermine the complex supply and price management mechanisms in the U.S. sugar program.
U.S. agricultural producers urged the Office of the U.S. Trade Representative to pressure South Africa to remove unnecessary trade barriers on U.S. exports in comments submitted as part of USTR’s out-of-cycle of the country under the African Growth and Opportunity Act (here). USTR is convening a hearing on South Africa’s AGOA beneficiary status on Aug. 7, and the window for comments closed on Aug. 5 (see 1507200019). A range of U.S. agriculture companies and associations were set to testify at the hearing.
The Senate’s voluntary country-of-origin labeling bill would likely bring the U.S. into compliance with global trade rules, with Canada and Mexico risking a violation of those same rules if the countries were to go through with retaliatory tariffs after the legislation becomes law, said Sen. John Hoeven, R-N.D., in an Aug. 3 interview. Hoeven, the primary sponsor of the legislation, S-1844 (here), included the full repeal measure passed by the House. Both bills would cut COOL requirements for beef, pork and chicken, but would keep them in place for lamb and venison. The latter two meats aren’t part of the long-standing World Trade Organization dispute over COOL.
The U.S. and its Information Technology Agreement partners struck a deal to open “the door for swift conclusion” of an ITA expansion deal in Geneva, said the Office of the U.S. Trade Representative in recent days. A finalized expansion would mark the first time World Trade Organization parties locked down a “major” accord to cut tariffs in nearly 20 years, said USTR (here). Many details remain unclear, but the accord will eliminate tariffs on roughly 200 products, said the WTO in a statement (here). Eighty countries are party to the ITA, including the European Union bloc.
U.S. chicken exporters will have access to new markets following South African concessions to U.S. demands for removal of antidumping duties on bone-in U.S. poultry, said Sens. Johnny Isakson, R-Ga., and Chris Coons, D-Del., on June 5. The South African Poultry Association and the U.S. Poultry and Egg Export Council brokered the deal to give way to more U.S. access, said the two lawmakers in a release (here).
A World Trade Organization appellate body agreed on June 4 with a recent panel decision to fault India for import bans on U.S. poultry, live eggs and other agricultural products. The bans “arbitrarily and unjustifiably” discriminate against U.S. imports, and represent a “disguised restriction on international trade,” said the WTO in its original panel report in October 2014 (see 1410140106). India argued the bans are necessary to safeguard the country from avian influenza (AI), also known as bird flu. India appealed the panel report in January (see 1501280014). The appellate body reiterated those criticisms of the Indian bans on June 4. The restrictions are “not based on a risk assessment,” said the appellate report (here).
The Senate will likely again take up an amendment withdrawn in committee to terminate South Africa from the African Growth and Opportunity Act after three years, said Sen. Chris Coons, D-Del., at a Foreign Relations subcommittee hearing on April 23. The amendment had been withdrawn in favor of another amendment approved requiring the U.S. Trade Representative conduct an AGOA out-of-cycle review of South Africa. However, the Senate will still consider the three-year removal of South Africa once the Finance Committee-approved preference package hits the Senate floor, said Coons.
The Office of the U.S. Trade Representative is asking for stakeholder comment on Indonesia’s challenge at the World Trade Organization to U.S. trade remedies on coated paper (here). Comments must be submitted by May 11, via www.regulations.gov, docket number USTR-2015-0005. Indonesia began consultations, the step before an adjudication panel, with the U.S. in March (see 1503130069).