Although it's not known what sort of electric vehicle purchase incentives might be included in Build Back Better legislation, Canada and Mexico are arguing to congressional leaders that offering larger tax credits for U.S.-assembled electric vehicles hurts both the integrated North American auto industry and undermines the USMCA.
Assistant U.S. Trade Representative for the Western Hemisphere Daniel Watson and Andrés Cárdenas Muñoz, Colombia's vice minister of foreign trade, directed their customs and trade facilitation teams to have another discussion on lessons learned and future plans "especially with regard to the digitalization of customs procedures," according to a USTR readout of the Oct. 22 meeting.
Rep. French Hill, R-Ark., opened up a discussion on a recent report on targeted decoupling based on risk, with a focus on artificial intelligence, at a virtual event at the Center for Strategic and International Studies Oct. 22. Hill said the discussion was "long overdue," and that China's direction is "squarely in conflict with the global order, balance of power in East Asia, and the continued open, market-based trading system."
The Tariff Reform Coalition, which includes trade associations representing major metal consumers such as automakers, boat manufacturers, the beer industry and machinists, as well as exporters hurt by retaliatory tariffs, sent a letter to senators asking them to support the Section 232 tariff reform bill re-introduced this month by Sens. Pat Toomey, R-Pa., and Mark Warner, D-Va. The Oct. 19 letter, signed by 27 trade groups, said that the bill (see 2110050040) would ensure "that all national interests are taken into account prior to the imposition of tariffs or quotas. These interests were not properly weighed in the case of steel and aluminum and our industries are still reeling from the effects of these tariffs.... Invoking national security as a justification to protect a few industries, to the detriment of countless others, sets a bad example for the rest of the world and opens the door for other countries to take similar actions." They noted that if the bill becomes law, and then if Congress does not approve the steel and aluminum tariffs within 75 days, they would be repealed.
Alan Wolff, a former deputy director-general at the World Trade Organization, called on China to join the WTO Pharmaceutical Agreement, play a constructive role in the fisheries negotiations, and lead in restarting the Environmental Goods Agreement.
China has retaliated against various countries for political stances, most recently, against Australian wine and barley, and members of Congress would like a more formal approach to reacting to that coercion. So a group of lawmakers introduced the Countering China Economic Coercion Act in the House of Representatives. Rep. Ami Bera, D-Calif., and Rep. Anne Wagner, R-Mo., are the lead co-sponsors, and were joined by two other Republicans and three Democrats. Bera said in an Oct. 15 press release that the bill would "create an interagency taskforce to streamline U.S. tools and mechanisms for deterring and addressing Beijing’s economic coercion and expand cooperation with the private sector as well as U.S. allies and partners on this important matter."
Rep. Byron Donalds, R-Fla., and six Republican co-sponsors introduced a bill in the House last week that would direct the U.S. to impose sanctions on anyone who provides support to someone in Cuba's military, security sector or intelligence sector. The administration could ask for a waiver for 180 days of these sanctions for national security reasons.
Farmers who produce several sorts of commodities continue to regret the U.S. retreat from the Trans-Pacific Partnership, and want the administration to prioritize opening markets for their goods in Southeast Asia, according to a Farmers for Free Trade panel held virtually.
U.S. Trade Representative Katherine Tai called on the World Trade Organization to conclude the fisheries subsidies agreement, and said that discussions in Geneva about how to revive the Appellate Body should instead focus on what could incentivize countries to reach an agreement before years and years of litigation.
Thirteen Republicans in the House of Representatives, led by Rep. Rick Crawford, R-Ark., wrote a letter asking U.S. Trade Representative Katherine Tai to increase trade engagement with countries like Uruguay, Paraguay, Guatemala, Ecuador and Colombia. The letter, sent Oct. 13, noted that while the U.S. is the biggest trading partner of Central American countries and Caribbean nations, China is the No. 1 trading partner off the continent for all but two countries in South America, and in many cases, such as Argentina, Chile and Brazil, their trade with China overshadows trade with their immediate neighbors. In South America, only Ecuador and Colombia buy and sell more to the U.S. than they do to China, and Colombia has a free trade agreement with the U.S.