Sixteen months ago, Sen. Chuck Grassley, R-Iowa, cautioned that while the prospect of a free trade agreement with Taiwan was attractive, it could damage trade relations with China (see 2008170045). On a call with reporters Dec. 21, Grasley said he thinks "it would be a good move now to send a signal to China that Taiwan is important being independent of China," and negotiating a free trade deal with the island would do that. Taiwanese voters rejected a referendum that would have restored a ban on imported pork that ingested ractopamine, a feed additive. The earlier ban was a trade irritant for the U.S., as many U.S. pigs are raised with ractopamine. But, Grassley acknowledged, the administration has not been pursuing new free trade deals, or even continuing negotiations that were started during the Trump administration, so he thinks this will not begin soon.
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership, which has 11 member countries since the U.S. backed out in 2016, has attracted four applications this year, from the United Kingdom, Taiwan, China and, most recently, South Korea. The U.S., which took a leading role in negotiating the high-standard free trade agreement, is unlikely to ask to come back in the next two years, panelists on a Hudson Institute discussion agreed.
The House Foreign Affairs Committee endorsed a bill that would impose sanctions against individuals and entities "who actively undermine civilian-led democracy and human rights in Sudan," according to co-sponsor Rep. Young Kim, R-Calif. The bipartisan bill, also co-sponsored by Rep. Dean Phillips, D-Minn., was passed out of committee on Dec. 9. Sudan had a coup in October, and there was violence against civilians who protested the coup. Kim said in a press release, “The United States is a beacon of hope and opportunity and should support our allies in their pursuit of liberty and democracy. That is why I’m proud to lead the Sudan Democracy Act to help take concrete steps to show support for the brave people of Sudan as they peacefully protest for democracy and hold those responsible for undermining Sudan’s civilian-led democratic transition accountable." Sen. Chris Coons, D-Del., supports similar language in that chamber.
Despite repeated lobbying and threats of tariffs on U.S. exports from Canada and Mexico, the Senate Finance Committee is proposing that a purchase credit for electric vehicles remain more generous for union-made, U.S.-assembled cars and trucks through 2026, and be reserved only for U.S.-made vehicles starting in 2027.
Twenty years after China joined the World Trade Organization, the U.S. is focused on the market distortions and domestic consequences caused by China's export-led growth, even as exports are a smaller and smaller proportion of China's GDP.
Canada's finance and trade ministers said that an electric vehicle purchase tax credit that excludes Canadian batteries or Canadian-assembled cars abrogates the USMCA, and they asked senators to write the tax credit differently than the House approach. That House tax credit would only be allowed for American-built cars after 2027, and would be more generous for American-built cars from 2023 to 2026.
Commerce Secretary Gina Raimondo and the United Kingdom's Trade Secretary Anne-Marie Trevelyan said they want to consult on steel and aluminum early next year, "with a view to combating global excess capacity and addressing outstanding concerns on US tariffs and UK rebalancing measures," according to a U.K. readout of the visit Dec. 8. It said that Trevelyan invited Raimondo to London for those further talks in January.
U.S. Trade Representative Katherine Tai took a victory lap at the U.S Chamber of Commerce's Transatlantic Business Works Summit, pointing to the removal of the digital services taxes on American firms, the agreement on steel and aluminum and the resolution of a 17-year fight on subsidies for Airbus and Boeing.
The House of Representatives passed the Ocean Shipping Reform Act 364-60, though the text of the bill changed from its introduction in August. The bill prohibits ocean carriers from unreasonably reducing "shipper accessibility to equipment necessary for the loading or unloading of cargo," and tells them they must furnish containers needed and allocate "vessel space accommodations, in consideration of reasonably foreseeable import and export demands." They cannot "unreasonably decline export cargo bookings if such cargo can be loaded safely and timely, as determined by the Commandant of the Coast Guard, and carried on a vessel scheduled for the immediate destination of such cargo."
John Butler, CEO of the World Shipping Council, said ocean carriers are getting mixed messages from the White House, which is encouraging carriers and ports to rev up their leverage on buyers and freight forwarders so that they pick up their cargo promptly, and from Congress. The House of Representatives is expected to vote on an Ocean Shipping Reform Act that would give the Federal Maritime Commission more authority to punish players for unreasonable demurrage charges -- the same fees used as leverage.