Two former government officials, one a leader at a think tank, the other a lawyer at Akin Gump, acknowledge that even as businesses continue to believe quitting the Trans-Pacific Partnership was a tactical error, "there is no conceivable scenario in which the United States could sign onto the [Comprehensive and Progressive Agreement for] TPP as it exists today. Strong opposition from both sides of the political spectrum to key elements of the deal would prevent congressional approval."
More than half of the House Ways and Means Committee members, including all three of the Republicans vying to be its chairman in the next Congress, are asking U.S. Trade Representative Katherine Tai to initiate formal dispute resolution consultations with Mexico over Mexico's barriers to U.S. crops that are genetically modified or use other biotechnology.
A proposal by the U.S. to the EU on how to structure trade preferences for clean, fairly traded steel and aluminum says that members of a global climate club would agree that when they exported steel or aluminum to other member countries, if their plants were at or below the importer's plant emission standards, they would enter with no tariffs, but if their plants were above the standards, they would have to pay a carbon tax.
The U.S. is looking to make progress on trade facilitation, agriculture, and regulatory practices at the upcoming Indo-Pacific Economic Framework (IPEF) meeting in Brisbane on Dec. 10, senior administration officials said during a Dec. 7 call with reporters. Brisbane will be the first of several negotiation rounds conducted in-person.
A readout of a Dec. 1 meeting between U.S. Trade Representative Katherine Tai and Mexican Economy Secretary Raquel Buenrostro, a new appointee, said Tai "reiterated the importance" of Mexico imposing a ban on the import of goods made with forced labor. Tai also said it's urgent consultations over what the U.S. sees as discriminatory investment policies in Mexico's energy sector make "meaningful progress."
The Sierra Club and the Trade Justice Fund say that the EU and the U.S. should agree on a Climate Peace Cause, because otherwise, trade disputes could slow the progress of reducing carbon emissions. The two groups, in a white paper published Dec. 1, noted that Japan and the EU successfully challenged a Canadian program that supported renewable energy, and the U.S. and India each successfully challenged buy local rules for solar energy. "Trade scholars are already questioning the trade legality of the EU’s Carbon Border Adjustment Mechanism and ... [t]he European Union and South Korea, among other countries, have threatened a trade case against the tax credit for electric vehicles and other measures included in the United States’ Inflation Reduction Act," the paper said.
A trade deal between Australia and India will officially take effect Dec. 29 after India’s government this week “completed its domestic requirements” to enact the agreement, Australia said. Beginning later this month, the Australia-India Economic Cooperation and Trade Agreement will remove tariffs on 85% of Australian exports to India, while high tariffs on another 5% of goods will be phased down over time. Australia also said its importers will “save around $500 million in tariffs on imports of finished goods, and inputs to our manufacturing sector.” USDA warned earlier this year that the trade deal could pose challenges for U.S. trade, including for prospects of American food and agricultural products in the Indian market (see 2205060032).
Prime Minister Justin Trudeau told a conference that Canada had to talk the U.S. out of structuring its Inflation Reduction Act electric vehicle incentives so that they were tied solely to U.S. production.
Stakeholders that wish to speak to officials in the Office of the U.S. Trade Representative and Commerce Department about their negotiating priorities for the Indo-Pacific Economic Framework must email IPEF@ustr.eop.gov by Dec. 2 if they wish to speak in Brisbane, Australia, on Dec. 13, and by Dec. 5 if they want to speak Dec. 6 in Washington. Email subject lines should say "USTR/Department of Commerce Listening Session" for the domestic event and "Brisbane Stakeholder Event" to get an opportunity to speak on the sidelines of the negotiating round. The Dec. 6 event will run from 9:30 a.m. to 11:30 a.m.; the Brisbane event, from 9:30 a.m. to 11:30 a.m. local time.
Japan’s Diet gave its final approval for a new beef safeguard trigger under the U.S-Japan Trade Agreement (see 2206030006), the Office of the U.S. Trade Representative said last week. Both the U.S. and Japan are now working to complete all remaining “domestic procedures” to officially implement the new trigger, which could reduce the possibility that U.S. beef exporters face higher tariffs when shipping to Japan (see 2203240020). “The Protocol will ensure our farmers and ranchers continue to have access to one of the world’s most dynamic markets,” USTR Katherine Tai said.