The United Kingdom and Japan officially opened trade negotiations June 9, the U.K. said in a notice. The U.K. said a free trade agreement with Japan would be an “important milestone towards the UK’s accession” to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. Both countries “believe that the right response to the unprecedented economic challenge posed by coronavirus [COVID-19] is to make international trade easier and fairer,” U.K. Secretary of State-International Trade Liz Truss said in a statement.
The U.S. may add new tariffs on cars from the European Union unless the EU ends tariffs on U.S. lobsters, President Donald Trump said while speaking in Maine June 5. “European Union charges us a tariff; they don’t charge Canada a tariff,” Trump said. “This is for the press: So Canada doesn’t pay a tariff for the same exact lobster in the same waters, but we pay a tariff. If European Union doesn’t drop that tariff immediately, we’re going to put a tariff on their cars, which will be equivalent -- coming in -- come in for nothing, which is ridiculous.” Trump said White House adviser Peter Navarro would be in “charge of that one.” Navarro will “be the lobster king now,” Trump joked.
Brazil's top diplomat in Washington said talks with U.S. officials are advancing, and Nestor Forster said they've made “concrete progress toward achieving the vision that our presidents set at Mar-a-Lago in having a meaningful trade and economic package by the end of this year.” The package will not include any changes to quotas or tariffs, as Brazil is part of Mercosur, a customs union in South America. Forster, the chargé d'affaires at Brazil’s embassy in Washington, was speaking at an Atlantic Council online event June 4.
Mexico's Economy Minister Luz de la Mora said that the uniform regulations that pertain to issues outside the auto industry will be ready by July 1 -- but strongly suggested that the uniform regulations will not be ready by the date of entry into force of the U.S.‐Mexico‐Canada Agreement. “There has been great progress on non-auto URs, and they will be ready by July 1, as for the auto rules of origin, we expect to advance substantially in coming weeks,” she said during a Cato Institute interview May 27. She said that Mexico wants “to make sure the transition to the new regime is effective, efficient.”
The Office of the U.S. Trade Representative said its negotiators will seek to make things easier for express shippers in Kenya, will seek to get Kenya to agree to basing its phytosanitary rules on science, and “secure comprehensive duty-free market access for U.S. industrial goods” as it works towards a free-trade agreement with that country.
Outsourcing wasn't about competitive advantage, U.S. Trade Representative Robert Lighthizer said during an interview with conservative lobbyist Matt Schlapp, in a video branded Conservative Political Action Conference/Live. He said that while the Trump administration believes in competitive advantage, classic economists “never thought of the notion they can create scale through economic nationalism and gain advantage over another country.”
The Office of the U.S. Trade Representative announced more progress on China’s commitments to purchase U.S. agricultural products under the phase one deal, saying the U.S. expects the commitments to be met. The update highlights China's efforts to allow imports of U.S. fruit, barley, beef, pork, dairy and other goods. “These are difficult times for both our countries,” the May 21 USTR notice said. “It is important that we each continue to work to make our agreement a success.” In a statement, USTR Robert Lighthizer said “we fully expect this agreement to be a success.”
Top U.S. and United Kingdom officials will begin a second round of virtual trade negotiations June 15 as both sides continue to push for a quickly completed deal, the U.K. said May 18. The first round of talks, which ended last week, included discussions on customs procedures, rules of origin, trade remedies and small to medium-sized businesses. The U.K.’s Department for International Trade said both sides vowed to “quickly pursue” a stand-alone “Small and Medium Enterprise (SME) Chapter.” Negotiators from both sides will continue meeting virtually on a “rolling basis” until the second round begins, the U.K. added. “Both sides are hopeful that negotiations for a comprehensive trade agreement can proceed at an accelerated pace,” the DIT said. The Office of the U.S. Trade Representative did not comment.
Many details needed for the uniform regulations and the final implementing instructions for the U.S.-Mexico-Canada Agreement remain under discussion, agency officials said on May 14. Many specifics have not been agreed to, either between Mexico, Canada and the U.S., between the Office of the U.S. Trade Representative and the auto industry, or between CBP and USTR. “There's still even discussions with USTR and the [auto] industry on what constitutes a core part,” Maya Kumar, director for textiles and trade agreements, told members of the trade community on a conference call.
New Zealand, Australia, Canada and South Korea recently agreed to maintain “unrestricted trade” with Singapore during the COVID-19 pandemic, including quick customs clearances and limited export restrictions on essential goods, according to a May 15 report from the Hong Kong Trade Development Council. The countries said they will make more use of electronic customs clearance to “fast-track” shipments and agreed to maintain “effective” land, air and sea freight logistics services.