Momentum is moving China and the U.S. toward a trade deal, Myron Brilliant, head of international affairs for the U.S. Chamber of Commerce, said while speaking with reporters April 2. "We're getting into the end game phase" with China, he said. Brilliant said the negotiations with the Chinese delegation that will begin April 3 will be critical to reaching a resolution at the end of April, as both sides desire. But Brilliant emphasized that the business community is more interested in a comprehensive, durable deal that resolves long-standing complaints on discrimination against foreign companies operating in China and subsidies for Chinese firms than in reaching a quick deal.
The U.S. Chamber of Commerce said April 1 that closing the U.S.-Mexico border "would inflict severe economic harm" on the country, and that even threatening closure is damaging. March 29 marked the third time President Donald Trump has threatened to close the border. The first time, it was because of Central American migrants. The second time, it was because he was angry Democrats wouldn't fund a border wall (see 1812280006). This time, again, it's because of Central American migrants. He tweeted, "If Mexico doesn’t immediately stop ALL illegal immigration coming into the United States throug [sic] our Southern Border, I will be CLOSING..... ....the Border, or large sections of the Border, next week. This would be so easy for Mexico to do, but they just take our money and 'talk.' Besides, we lose so much money with them, especially when you add in drug trafficking etc.), that the Border closing would be a good thing!"
AFL-CIO President Richard Trumka said that unless Mexico, the U.S. and Canada go back to the bargaining table to change enforcement provisions, labor unions will oppose passage in Congress for the NAFTA rewrite. Labor unions are seeking the ability to self-initiate complaints under the labor chapter, and they want binding state-to-state disputes restored. Currently, any country can block a panel in that system.
The White House said the U.S. trade representative and the Treasury secretary made progress in talks with China's Vice Premier Liu He in Beijing this week, and that the administration looks forward to the Chinese delegation's arrival in Washington next week.
Tariffs levied in the name of national security, whether under Section 232 or other statutes, could only last 120 days without affirmative congressional approval under a proposed bill from Sen. Tim Kaine, D-Va., and Sen. Tom Carper, D-Del. This approach is similar to what's being considered in the Senate Finance Committee, but this bill, introduced March 27, also provides more information and consultation for Section 301 tariffs, such as those currently applied to Chinese goods. Under Section 301, the International Trade Commission would receive descriptions about what products will face tariffs, and at what rates, how long a tariff would last, and the ITC would produce a report on the impact on the economy. The bill would allow Congress to pass a joint resolution of disapproval of these tariffs, but that vote could be vetoed by the president. The bill is called the ‘‘Reclaiming Congressional Trade Authority Act of 2019.’’
The World Trade Organization ruled that the U.S. did not comply with a previous order to end a Washington state subsidy for Boeing manufacturing, which, the Appellate Body said, cost Airbus sales in 2008, 2011, 2013 and 2014, to Fly Dubai, Delta, Icelandair and Air Canada.
Sen. Pat Toomey, R-Pa., is leading the charge to roll back Section 232 tariffs and put Congress in the driver's seat for future 232 actions, but he doesn't know how close the consensus Senate Finance Committee bill will come to his vision for how to address what he called an antiquated law.
Two Ohio Democrats who voted against the original NAFTA -- Rep. Marcy Kaptur and Sen. Sherrod Brown -- have clearly not been won over by the efforts of U.S. Trade Representative Robert Lighthizer to satisfy union autoworkers that the revised deal will stop the flow of jobs to Mexico. According to the Ohio state government, auto parts, auto manufacturing, and RV, tire and trailer manufacturing jobs employed more than 107,000 workers in 2019 -- though that included 1,700 who just lost their jobs at GM's Lordstown plant. That closure follows more than 38,500 jobs lost in the industry in the state between 2007 and 2009.
Nine members of the New Democrats -- free-trade oriented members whose votes will be needed to ratify the new NAFTA -- wrote to President Donald Trump March 27 arguing that imported cars are not a security threat and noting his response during a TV interview that acknowledged that they are not a threat. In the interview, he immediately added that the trade deficit is a threat. The letter, led by Rep. Terri Sewell, whose Alabama district is home to both Hyundai and Mercedes car plants, said, "We are pleased to hear that we are in agreement that no national security threat exists. Therefore, we urge you to remove any threat of unilateral tariffs on automobiles and auto parts under Section 232 of the Trade Expansion Act as soon as possible. Imposing tariffs under Section 232 on autos and auto parts for reasons not related to national security concerns clearly oversteps the authority granted by Congress."
As momentum seems to build in the Senate to rein in Section 232 tariffs, steel company CEOs told a sympathetic group of Congress members that the tariffs are working to increase domestic producers' market share and increase profits as well as employment numbers and pay for steelworkers. "The U.S. steel industry is still vulnerable. Now is not the time to blink," U.S. Steel CEO David Burritt said. Section 232 tariffs or a hard quota "must continue to be applied to all steel-producing countries, especially the top import sources. If the Section 232 doesn't apply everywhere, it's nowhere as border leaks will continue from global excess capacity."