After a dinner in Florida attended by President Donald Trump and Brazilian President Jair Bolsanaro, the two issued a joint statement March 7 on how they would like to reach “a bilateral trade package this year.” Because Brazil is in Mercosur, a South American customs union, tariffs are unlikely to be part of such a deal. They also discussed expediting Brazil's participation in the Trusted Trader program, “to streamline commerce between both countries by ensuring the security and safety of imported goods, with a goal of program entry in 2021.”
The top Republican and Democrat on the Senate Finance Committee, Sen. Pat Toomey, R-Pa., and five other Republican senators signed on to a friend of the court brief pushing for the publication of the Commerce Department report on how imported autos and auto parts imperil national security. The brief, filed March 6, reminds the judge that Congress required the Commerce Department to release the report by Jan. 19 and that the original law that contains Section 232 requires publication of the report. The case the senators are joining is a Freedom of Information Act lawsuit by the Cause of Action Institute filed last month.
The last American to serve on the World Trade Organization's Appellate Body, Tom Graham, told the Georgetown Law International Trade Update conference that the body “is not coming back any time soon.” Graham, who largely agrees with the U.S. critique of Appellate Body overreach, added, “The new I have come to ... is that it's better this way.” Graham was the most prominent, but far from the only speaker at the March 5-6 conference to say that neither the Europeans nor the Americans are ready to have a meeting of the minds on how to reform the appellate function of the rules-based trading order.
A bill that calls on the administration to begin negotiations on a U.S.-Taiwan free trade agreement passed the House of Representatives unanimously March 4. While the bill -- the Taiwan Allies International Protection and Enhancement Initiative (TAIPEI) Act -- already passed the Senate, the Senate needs to vote again to send it to the president's desk because the bill language was not identical between the two chambers. “It is the sense of Congress that the United States should engage in bilateral trade negotiations with Taiwan, with the goal of entering into a free trade agreement that is of mutual economic benefit and that protects United States workers and benefits United States exporters,” the bill says.
The House Consumer Protection and Commerce Subcommittee chairwoman sees the $800 de minimis level as a significant driver of sales of counterfeit products online. Rep. Jan Schakowsky, D-Ill., said after a hearing on risks associated with online marketplaces: “This whole issue of de minimis ... absolutely has to be dealt with. I think that came through loud and clear.”
Rep. Jackie Walorski, an Indiana Republican who has homed in on Commerce Department oversight on Section 232 exclusions, wrote to the agency March 3 questioning the legality of expanding the enforcement action to steel and aluminum derivative articles. “A sudden announcement on a Friday evening is not befitting such a dramatic paradigm shift from tariffs only on raw materials to now include downstream products as well,” she wrote.
Senate Finance Committee Chairman Chuck Grassley, R-Iowa, told reporters March 3 that he still wants to advance legislation that would reform Section 232 -- and he suggested that a greater congressional role might be warranted for Section 301, as well. “I want to move 232 and a number of members of my Finance Committee have talked to me about doing it,” he said, immediately adding that the bill is not an attack on President Donald Trump. He said that while the president's use of tariffs has shown Congress the shortcomings of the laws that allowed national security tariffs on steel and massive tariffs on China, his interest is in reasserting some congressional prerogatives on trade.
A bill called Stopping Harmful Offers on Platforms by Screening Against Fakes in E-Commerce (SHOP SAFE) was introduced March 2 by the chairman and ranking member of the House Judiciary Committee. A press release from Rep. Doug Collins, R-Ga., and Rep. Martha Roby, R-Ala., the two Republicans on the bill, said the measure would require online platforms to vet sellers, remove counterfeit listings, and remove sellers who repeatedly sell counterfeits. It would establish trademark liability for companies that sell counterfeits that put at risk consumer health or safety. And it would expose online marketplaces to “contributory liability for their actions” if they don't prevent continued sale of counterfeits by third-party sellers. The American Apparel and Footwear Association lauded the bill. CEO Steve Lamar said, “While many online marketplaces are directing increased resources towards this issue, much more needs to be done to prevent counterfeit products from unknowingly entering the homes of American families.”
The United Kingdom government emphasized that its National Health Service will not pay more for drugs as a result of a U.S.-United Kingdom free trade deal, and that Britain “will not compromise on our high environmental protection, animal welfare and food standards.” The latter seems to be a reference to sanitary standards that frustrate U.S. exporters, such as a ban on anti-bacterial washes of chicken. The government issued its negotiating objectives and an analysis of the economic benefit to the U.K. of a free trade deal in the March 2 document.
The annual U.S. Trade Agenda puts more emphasis on heralding past “America First” victories than setting up this year's agenda, but there are tidbits throughout the more-than-300-page report that give hints to what might come in trade. The Office of the U.S. Trade Representative said it “is hopeful that [the U.S.] can make more progress in the coming year than has been possible in prior years” in trade negotiations with the European Union.