The Port of Oakland is opening a 25-acre off-terminal container yard that will move containers off chassis so they can be picked up for export. The new container yard is aimed at helping agricultural exporters. Oakland is the gateway for refrigerated proteins and much of California's exports, and before the import surge, its volume was half exports and half imports, the port said in a Jan. 3 news release.
U.S. Trade Representative Katherine Tai, in a year-end video, pointed to a number of settlements during 2021 that both bolstered America's relationships with its allies and promoted the fight against climate change. She pointed to the settlement of a Section 337 case between two South Korean battery makers that allowed for a Georgia plant to open (see 2104120004); the settlement of the 17-year dispute over subsidies to Airbus and Boeing (see 2106150021 and 2106170025); and the agreement between the European Union and the U.S. to replace Section 232 tariffs with a quota system (see 2111010039).
A Canadian practice of reserving at least 85% of dairy quotas for Canadian processors is counter to the USMCA, a panel ruled. The panel's decision was made public Jan. 4. Canada has until Feb. 3 to reform its tariff rate quota allocations. The Office of the U.S. Trade Representative noted that from January through October last year, the U.S. exported $478 million worth of dairy products to Canada.
Fourteen pro-trade House Democrats are asking Commerce Secretary Gina Raimondo and U.S. Trade Representative Katherine Tai to quickly advance discussions on how tariffs on Japanese and British steel and aluminum could be lifted. "[D]ownstream users continue to face astonishingly high prices in steel and aluminum," wrote the group, which is led by Rep. Suzan DelBene of Washington state.
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.