Metal-using and other trade associations, including the U.S. Fashion Industry Association, the American Apparel and Footwear Association and the Footwear Distributors and Retailers of America, sent a letter June 9 to President Joe Biden asking him to expedite discussions with the European Union to address global steel and aluminum overcapacity so the Section 232 tariffs can be lifted as soon as possible. The 33 trade groups wrote, "These tariffs and quotas continue to hurt small, family-owned businesses and the communities in which they built their companies, while fracturing relations with overseas trading partners and spurring a frenzy of retaliatory trade measures against both related and unrelated industries."
A draft prepared in advance of the European Union-U.S. summit says the EU and the U.S. agree to work to find a way to roll back the Section 232 tariffs on European steel and aluminum by Dec. 1, Bloomberg reported June 8. The two sides previously said they were working on finding an effective way to counter Chinese overcapacity in metals by the end of the year, so the tariffs could be lifted. The EU has said it will immediately lift its retaliatory tariffs against American exports once the 232 tariffs are gone. The same draft also says the U.S. and the EU pledge to resolve the Airbus-Boeing dispute by July 11. That's when the temporary pause on tariffs on both sides is slated to end.
Israel and South Korea earlier this month signed a free trade agreement, marking the first trade deal between South Korea and a Middle Eastern country, the Hong Kong Trade Development Council reported May 21. The agreement will reduce tariffs and eliminate duties on certain manufactured goods and electronics, including cars, phones, machinery, chemicals and plastics. The report said that more than 95% of each country’s exports won’t be subject to tariffs, including shipments of semiconductor manufacturing equipment from Israel to South Korea.
The day before the first USMCA Free Trade Commission meeting, U.S. Trade Representative Katherine Tai and Canada's trade minister, Mary Ng, talked about how to strengthen North American supply chains, combat forced labor and climate change, and reform the World Trade Organization.
Dairy trade groups complained to U.S. Trade Representative Katherine Tai that consultations have gone on long enough, and said it's time to open a formal dispute with Canada over its implementation of tariff rate quotas for dairy products. “America’s dairy farmers appreciated USTR initiating consultations with Canada on its dairy TRQ allocation measures and the decision to hold USMCA Free Trade Commission discussions to pursue reforms,” National Milk Producers Federation CEO Jim Mulhern said in a May 16 news release. “But Canada has always been obstinate on dairy, and at this stage it is increasingly clear that further action is needed to ensure a fair and transparent enforcement of USMCA.” The 68 trade groups said the dispute must begin because the next TRQ year begins July 1, but a dispute panel would take longer than that to rule.
Agricultural trade groups recently wrote to President Joe Biden, asking him to quickly nominate someone for the job of chief agricultural negotiator at the Office of the U.S. Trade Representative. “The world is moving forward on trade agreements, and unjustified barriers to U.S. food and agricultural exports are growing,” the letter said, so the office needs an advocate for expanding agricultural market access for U.S. food, seafood and ag products.
Former Trans-Pacific Partnership negotiator Wendy Cutler told an audience for an Atlantic Council webinar that the U.S. cannot rejoin even a renegotiated TPP in the next two years, and maybe not during the next four. Cutler, a vice president of the Asia Society Policy Institute, said that the administration should try to ink mini-deals with TPP countries on digital trade, like it did with Japan, and said that maybe there can be coordination on supply chains or climate and trade. Cutler was also chief negotiator on the Korea free trade agreement.
Canadian and Australian trade officials met last week in the first of a “regular trade ministers dialogue” to strengthen the two countries’ trade relationship, Canada said May 14. The two sides discussed the importance of strengthening global supply chains to aid recovery from the COVID-19 pandemic and ways to “enhance bilateral collaboration” through multilateral trade deals and the World Trade Organization.
A free trade agreement between Serbia and the Eurasian Economic Union has been ratified and is expected to take effect in June, KPMG said in an April 27 post. The deal will provide preferential tariff quotas for certain types of cheese, alcohol and cigarettes, and liberalize certain Serbian imports of EAEU products, including “taps and valves for pipelines.” The agreement will also revise rules of origin procedures to allow certain customs duty exemptions to apply when trade intermediaries are involved. EAEU countries are Russia, Belarus, Kazakhstan, Kyrgyzstan and Armenia.
At a webinar on U.S.-Vietnam economic relations, Ambassador Ha Kim Ngoc said Vietnam is working to narrow the trade deficit with the U.S., whether by buying more American agricultural exports or encouraging Vietnamese businesses to open factories in the U.S. "I don’t think we can solve the problem overnight, with COVID-19 and the increased demand of the goods from Southeast Asia, and particularly Vietnam," he said April 27.