The director of the White House's Council of Economic Advisors, Larry Kudlow, said "a lot of headway" is being made in trade negotiations with China, and that there's discussion of another trip to continue in-person negotiations. "We're not there yet, but we've made a heck of a lot of progress," he said at a National Press Club luncheon April 23. "I don't want to make a prediction or a forecast" on reaching a resolution, he said. "Will we succeed? I don't know. We're a heck of a lot closer than we were. Sometimes it goes hot and cold."
Americans for Free Trade -- along with 150 national and regional trade groups -- sent a letter to the White House April 22 saying that all tariffs should end with a China trade deal, and that the enforcement of that deal should "avoid any enforcement mechanism that would trigger future tariffs and result in long-term economic uncertainty." The letter also said that the exclusion process for Section 301 imports should continue, even if those tariffs end at the signing of the agreement. The groups, which include the National Customs Brokers & Forwarders Association of America, said, "American businesses and farmers bearing the burden of the trade war have been told repeatedly by your Administration that they must endure 'short-term pain for long-term gain.' They were promised that tariffs were merely a means to an end, and that all this damage would be worth it. A deal that fails to lift tariffs would represent a broken promise to these hardworking Americans. "
Mexican Ambassador to the U.S. Martha Barcena, speaking April 22 at the Georgetown Law School conference on U.S. ratification of the new NAFTA, implored: "We need USMCA not to be taken as a political hostage. We need USMCA to be taken in its own merits." She also said, "We should not let politics stand in the way of free trade that has yielded benefits for both of our societies."
Liberal activists who opposed the Trans-Pacific Partnership -- and some that have been active since they opposed NAFTA -- will work to pressure lawmakers to sign a letter demanding that a 10-year exclusivity provision for biologic drugs be removed from the new NAFTA. They are organizing events around the country for April 24, with buttons that say "NAFTA 2.0: Pharma Rigged It, Will Congress Fix It?"
Industry groups and unions continued to react to the International Trade Commission's analysis of the new NAFTA the day after the report was released, with most saying the report confirmed what they already knew.
The Office of the U.S. Trade Representative, arguing that the International Trade Commission's econometric models are better suited for tariff changes than changes in rules of origin, has produced its own report on how the auto rules of origin will affect domestic employment.
The International Trade Commission estimated that by the sixth year after the new NAFTA's ratification, the U.S. economy would have 176,000 more jobs than it would have without the new revised trade deal. That's a 0.12 percent increase compared to the status quo.
The International Trade Commission released its estimate of the economic effect of revisions to NAFTA, one of the steps necessary for a vote in Congress under Trade Promotion Authority. Because there are few tariff changes in the U.S.-Mexico-Canada Agreement, economists focused on the advances in digital trade and job growth due to tighter auto rules of origin. Across the economy, the ITC estimated that ratifying USMCA would lead to an additional 176,000 jobs, a 0.12 percent increase.
After two days of talks with Japan, the Office of the U.S. Trade Representative said the "very large trade deficit" was a topic of discussion. The two sides talked about trade in goods, "including agriculture, as well as the need to establish high standards in the area of digital trade. In addition, the United States raised its very large trade deficit with Japan -- $67.6 billion in goods in 2018," the office said. Reuters reported that U.S. Trade Representative Robert Lighthizer and Japan's Economy Minister Toshimitsu Motegi will meet again in Washington next week.
In the second of a series of letters outlining specific criticisms of the new NAFTA (see 1904110062), House Ways and Means Democrats said they have questions on "whether the new Agreement will lead to meaningful improvements in standards of environmental protection, particularly in Mexico." Trade Subcommittee Chairman Earl Blumenauer, D-Ore., has made environmental protection a top priority in his career in Congress.