In a Joe Biden administration, some tariffs can be unilaterally withdrawn, but others would require complex negotiations to sort out, said Peterson Institute for International Economics nonresident senior fellow Anabel Gonzalez. She asked PIIE Senior Fellow Chad Bown and former U.S. Trade Representative Michael Froman where they think the new administration's energies should be directed, during a Nov. 18 webinar.
The European Council approved a tariff package that would eliminate customs duties on U.S. lobster imports in exchange for reduced U.S. duties on several European Union products, including prepared meals, crystal glassware, surface preparations, propellant powders and lighters (see 2008210028). The package, which the European Union said would be the first EU-U.S. tariff reduction in two decades, could increase market access for both EU and U.S. traders by about $240 million per year, the council said in a Nov. 18 news release. The package needs European Parliament approval. If enacted, it would take effect retroactively from Aug. 1 for five years.
The Joe Biden transition teams have been announced. The team that is communicating with the Office of the U.S. Trade Representative, the International Trade Commission and the U.S. Trade and Development Agency includes Democratic alumni; experts on trade, industrial policy and currency flows; and union critics of past free trade policy. The teams “are responsible for understanding the operations of each agency, ensuring a smooth transfer of power, and preparing for President-elect Biden and Vice President-elect [Kamala] Harris and their [C]abinet to hit the ground running on Day One,” the announcement said.
U.S. Fashion Industry Association counsel David Spooner told attendees at the USFIA industry virtual conference Nov. 10 that while he thinks it's unlikely that the current administration would add new tariffs on China before leaving office in two months, it's possible that President Donald Trump could increase the tariff rate on list 4A, or put tariffs on list 4B, as a way of “venting his frustration with China.” Spooner, who is at law firm Barnes and Thornburg, said it's also possible that the administration will retaliate against European Union tariffs authorized by the World Trade Organization for past Boeing subsidies.
The United Kingdom on Nov. 9 published a guidance on the country’s free trade agreement with Ukraine after the U.K. leaves the European Union. The guidance includes information on the trade relationship between the two countries, including tariff rates, rules of origin provisions and intellectual property provisions. The trade agreement is scheduled to take effect Jan. 1, 2021.
The United Kingdom on Nov. 4 updated guidance and provided more information on its recently signed trade deal with Japan (see 2010260007). The new documents include explainers on agriculture and food trade, rules of origin and geographical indications.
The United Kingdom and Kenya on Nov. 3 concluded negotiations on a free trade deal, ensuring duty-free trade after the U.K. leaves the European Union Jan. 1, 2021. The U.K. said it accounts for 43% of Kenya’s total vegetable exports. It said the agreement will be “formally signed shortly once it has been subject to checks.”
The European Union wants to impose duties on $4 billion worth of U.S. imports in retaliation for illegal Boeing subsidies on Nov. 10, a recent Bloomberg report said. Member countries have until Nov. 3 to say which products should be retained on the list. The unnamed official who spoke to Bloomberg reporters said the plan to hike duties one week after the election would happen no matter which candidate wins the election.
The U.S. and the United Kingdom recently completed their most “intensive” round of free trade agreement trade talks and said almost all negotiations are in advanced stages, the U.K. said Nov. 2. The most recent round -- held Oct. 19 to Oct. 30 -- included discussions on market access, product-specific rules of origin and customs. The two sides said they agreed to a “programme for continued talks at official level for the weeks following the U.S. election.” The Office of the U.S Trade Representative did not comment.
China doesn’t comment on U.S. internal affairs such as its presidential election, a Foreign Affairs Ministry spokesperson said Oct. 30 when asked about comments by a Joe Biden aide that the Democratic Party nominee would consult with allies on what to do about the Section 301 tariffs on Chinese imports if he's elected president. “China's policy on the United States remains highly stable and consistent,” the spokesperson said, according to a transcript of a news conference. “We are committed to developing a China-U.S. relationship featuring non-conflict, non-confrontation, mutual respect and win-win cooperation.” Biden would seek “collective leverage” against China by bonding with allies to curb Beijing's allegedly unfair trade practices, foreign policy adviser Jeffrey Prescott told Reuters Oct. 28. “The failure of the Trump administration has been to go it alone.” Biden won’t “lock into any premature position before we see exactly what we’re inheriting,” Prescott said when asked if Biden would lift the tariffs unilaterally if elected. “Consulting with allies is going to be a central part of that.”