The text of the Trans-Pacific Partnership remains shielded behind closed doors, but U.S. compliance professionals are preparing for the sharp rise in trade flows and increased filing hurdles that are expected to accompany future implementation of the pact, several brokers and compliance consultants said in recent days. TPP chief negotiators are meeting in Hawaii this week, and speculation is rising over a conclusion to the deal. U.S. Trade Representative Michael Froman recently predicted a wrap-up of the talks at some point in 2015 (see 1502050058), but the U.S. has failed to meet deadlines set in the past by Froman and other TPP officials.
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.
U.S. and Chinese negotiators have “basically completed” negotiations on the bilateral investment treaty text, the Chinese Commerce Minister said in recent days (here). The two sides are “advancing toward a period of exchanging the negative lists,” said a March 7 government press release that summarized Minister Gao Hucheng’s comments. President Barack Obama and Chinese President Xi Jinping months ago called for that exchange in early 2015 (see 1412190033). The negative lists include investment areas that won’t be subject to the investment treaty. “Given the US and China, the world’s biggest and second biggest economies, have different development levels, national conditions and growth modes, the negative lists exchange would be a challenge to each side,” said the release. Deputy U.S. Trade Representative Robert Holleyman traveled to Beijing on March 9, but USTR didn't disclose the details of his visit.
The Obama administration is challenging Chinese export subsidies across a wide-range of industries at the World Trade Organization, said U.S. Trade Representative Michael Froman and several lawmakers on Feb. 11. The U.S. asked China for WTO consultations over the subsidies, which are being provided to producers and exporters in the textile and shrimp export industries, among others, said lawmakers on Feb. 11 (here). If those talks fail, the U.S. may pursue a dispute settlement panel.
The Guatemalan government challenged the credibility of U.S. claims in an ongoing bilateral labor dispute under the Central American Free Trade Agreement, in a legal briefing made public by the Office of the U.S. Trade Representative in recent days (here). The Obama administration resumed litigation in the case in September 2014, and USTR recently asked for industry comments on the dispute (see 1501230021). The briefing argues the U.S. failed to make a compelling case, due to questionable testimony and otherwise poor substantiation. The U.S. says Guatemala is falling short of CAFTA-mandated labor protections, notably freedom of association and worker’s conditions, in the shipping, apparel, steel and agriculture sectors, (see 1411050013).
President Barack Obama’s fiscal year 2016 budget proposal revives a previously-floated but unapproved plan to consolidate some federal trade agencies into one agency, and the two largest food safety agencies into one shop as well, the White House said in its budget release on Feb. 2 (here). The budget proposal asks Congress to give the White House more power to unilaterally make consolidations and cuts. Obama has asked for that consolidation authority several times over recent years (see 12021417).
The skyrocketing Asian population and regional economic gains will open the door for huge amounts of U.S. agricultural exports in the coming years, and the Trans-Pacific Partnership will be critical in ensuring U.S. companies have fair access to those markets, said U.S. Trade Representative Michael Froman in a speech to the National Association of State Departments of Agriculture in Washington on Feb. 2, according to prepared remarks released by USTR. “With the contours of a final TPP agreement coming into focus and strong expressions of bipartisan support for increasing ‘Made-in-America’ exports, it’s looking like some of that excitement will emerge from our trade policy,” Froman said, adding that there will be roughly 3.2 billion middle-class consumers in Asia by 2030.
Despite renewed vigor to tackle Trade Promotion Authority in the 114th Congress, Senate lawmakers continue to negotiate whether to add a number of expired or expiring trade bills to an initial TPA package, senators and lobbyists said over recent days. Senate Finance Chairman Orrin Hatch, R-Utah, may still opt to introduce a standalone TPA bill, said those interviewed. Either way, many lawmakers, but primarily Democrats, are poised to muscle a number of amendments onto the bill at some point in the legislative process.
The U.S. ratified the World Trade Organization Trade Facilitation Agreement on Jan. 23, the Office of the U.S. Trade Representative said on Jan. 23 (here). Froman gave WTO Director General Roberto Azevêdo the U.S. “letter of acceptance” for the TFA while in Davos, Switzerland for the World Economic Forum, USTR said. The U.S. commitment marks the final step in agreeing to enter the agreement into force. The U.S. is only the third country, out of 161 WTO members, to ratify the TFA, said USTR. Hong Kong and Singapore have also ratified the deal, and the U.S. is working with other countries to help ensure implementation, said USTR. The WTO will move ahead with implementation of the deal after two-thirds of members ratify it (see 1411280027). The National Foreign Trade Council praised the U.S. move in a statement (here). "We hope that other countries recognize the importance of this agreement as a way to modernize trade rules, and we call on them to follow suit and ratify TFA without delay,” said NFTC Vice President for Global Trade Issues Jake Colvin.
The Office of the U.S. Trade Representative scheduled a number of events for Jan. 6 and Jan. 10 in Washington, all of which are closed to the press, said USTR in an email. USTR Michael Froman will participate in the U.S.-Mexico High Level Economic Dialogue with Vice President Joe Biden. Froman will then meet with Mexican Secretary of Economy Ildefonso Guajardo Villarreal, and later in the day, will speak with members of the National Governors Association. Then on Jan. 10, Deputy USTR Robert Holleyman will meet with trade staff at the National Association of Manufacturers.
The Office of the U.S. Trade Representative published a notice on sugar, syrup goods and sugar-containing product trade surpluses for Chile, Morocco, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, Peru, Colombia, and Panama (here).