Senate Finance Committee Chairman Chuck Grassley, R-Iowa, said he doesn't expect the U.S. to negotiate over the tariffs it has put on European goods like Airbus planes, Scotch whiskey, French wine, and Spanish wine and olive oil until the World Trade Organization rules on Boeing subsidies. Currently, there are 10% tariffs on Airbus planes and 25% tariffs on the wine, liquor and food items; the aircraft tariff is set to climb to 15% on March 18. The Boeing ruling is not expected for several months.
A pro-free trade think tank in Canada published an analysis of the new NAFTA, known as CUSMA in Canada, and finds it lacking. “CUSMA has little traditional tariff liberalization, introducing only minor changes to market access compared to the NAFTA, and limited improvements in trade facilitation, while at the same time introducing a number of features that promise to be more restrictive of trade,” wrote the authors of the C.D. Howe Institute paper.
While a small deal could be announced during President Donald Trump's trip early next week to India, senior White House officials say that will be purchase announcements, not a full or partial restoration of India to the Generalized System of Preferences benefits program. While they declined to go into specifics on what the sticking points have been in talks on improving market access, they noted that the complaints of U.S. exporters are well known.
A restoration of India to the Generalized System of Preferences benefits program that's been under negotiation for more than six months (see 1909060029) is unlikely to be announced during President Donald Trump's trip to India next week, the U.S.-India Business Council said Feb. 20. Nisha Biswal, president of the USIBC, said on a conference call with reporters, “It does look at this juncture that we may not have a trade agreement as part of the president’s visit … which is of course a disappointment to our members.”
A bipartisan group of 19 senators, led by Sen. Rob Portman, R-Ohio, and Sen. Chris Coons, D-Del., are asking the U.S. trade representative to get a deal done with the United Kingdom before the U.K. reaches its agreement with the European Union. The letter, made public Feb. 18, says the U.K. “has the greatest freedom of action now,” and getting a comprehensive agreement before the EU agreement will give the U.S. “the best possible chance of earning new access to U.K. markets.” They urged that the deal not be limited to a few sectors, and that he follow Congress's fast track negotiating objective.
The Canadian Parliament is moving the successor to NAFTA along, so that a March ratification vote is still looking likely, news from Canada says. While the U.S.-Mexico-Canada Agreement will be reviewed by the agriculture, natural resources and industry/science/technology committees, not just the trade committee, the other committees only have until Feb. 25 for that review, a report from ipolitics said.
Senate Finance Committee Chairman Chuck Grassley, R-Iowa, said he doesn't think the Trump administration will ever levy an additional 25% tax on imported autos, even as President Donald Trump continues to mention that threat in an effort to get European negotiators to open up to American agriculture exports. Grassley, who was responding to a reporter's question on how to get the European Union to bend during a conference call Feb. 18, said he doesn't think the EU will negotiate much on ag.
The House of Representatives passed a bill that would require CBP to develop a plan “to increase CBP’s non-intrusive-inspection scanning rates to 100% of commercial and passenger vehicles at all land ports of entry that includes incremental timeframes and estimated costs by port.” The bill, called the Securing America's Ports Act, passed on a voice vote Feb. 10. It does not have a Senate companion bill, and the Senate has been passing next to no legislation in this session, instead concentrating its energy on appointing judges.
Half the companies surveyed by the U.S.-China Business Council say that it's too soon to tell if the tariffs in the China trade war were worth it for the gains won at the negotiating table, even as 78 percent of respondents welcome the phase one deal. Companies see the phase one deal -- which takes effect Feb. 14 -- as something that will prevent more tariff hikes. Of those who are directly affected by the commitments in phase one -- 60 percent of the companies -- the purchase promises matter most, with 30 percent saying that's the most relevant plank. Protection of intellectual property was a close second, with 27 percent of companies saying that's most important.
Nine pro-free-trade Democrats sent a letter to the White House Feb. 13 demanding that the administration release its autos Section 232 report -- as required by law -- and abandon the idea of hiking tariffs on imported autos and auto parts. The letter says that despite the White House receiving the report a year ago, it's hidden from Congress and the public. Senate Finance Committee Chairman Chuck Grassley, R-Iowa, said earlier this week that he still wants the auto 232 report, despite the administration's claim it's protected by executive privilege (see 2002120023).