The Biden administration announced a slew of appointments to the Office of the U.S. Trade Representative that do not require Senate confirmation, allowing the agency to get its agenda underway as U.S. trade representative nominee Katherine Tai awaits a hearing and a floor vote.
A panel of scholars and a former general consul in Hong Kong agreed that the Biden administration is likely to place more emphasis on export controls and industrial policy to support domestic semiconductor production, and less on the trade deficit and tariffs, even as the new president has to decide what to do about Section 301 tariffs at some point. They were speaking on a virtual panel about U.S.-China relations hosted by the Washington International Trade Association on Feb. 8.
Senate Finance Committee Chairman Ron Wyden, D-Ore., introduced the U.S.-Cuba Trade Act of 2021 to establish normal trade relations. “Our nation’s embargo on Cuba is an artifact from the 1960s. To continue this outdated, harmful policy of isolation would be a failure of American leadership,” he said in a Feb. 5 press release. The U.S.-Cuba Trade Act of 2021 would repeal the Helms-Burton Act and the Cuban Democracy Act, and other provisions that affect trade, investment and travel with Cuba. Sens. Patrick Leahy, D-Vt., Richard Durbin, D-Ill., and Jeff Merkley, D-Ore., are cosponsors of the bill. Members of Congress have been introducing bills to lift the embargo for more than 10 years.
A European Commission executive told webinar listeners that while politicians in the West are viewing trade differently, remaining open to free trade is vital for the European Union's prosperity. Margrethe Vestager, executive vice president of the European Commission for A Europe Fit for the Digital Age, spoke Feb. 4 at the World Trade Symposium hosted by The Economist. “We have retired the old idea of free trade at any price,” she said. In this decade, Europe will be looking at trade through the prism of human rights, workers' rights, best recycling practices, digitalization and climate change, she said.
Commerce secretary nominee Gina Raimondo was asked several times in written questions from senators after her hearing about how she would balance the need to prevent cutting edge technologies from being shared with adversaries but also allow U.S. semiconductor manufacturers to compete with foreign companies that don't have the same restrictions on selling chips.
House Foreign Affairs Committee Chairman Rep. Gregory Meeks, D-N.Y., joined by fellow committee members Rep. Karen Bass, D-Calif., and Rep. Jim Himes, D-Conn., asked the Biden administration to reinstate Magnitsky Sanctions against Dan Gertler, an Israeli businessman with mining operations in the Democratic Republic of the Congo.
The U.S. has not publicly released all the companies that have applied for an extended period to get their North American-made vehicles into compliance with the tighter rules of origin, but both Canada and Mexico have published the list of 12 companies that have been approved. Since all three countries must approve alternative staging regimes, it follows that these companies' transition plans are cleared by the U.S., as well. The press office of the Office of the U.S. Trade Representative is in transition with a change in administrations.
Sen. Chuck Grassley, R-Iowa, said he doesn't know when Katherine Tai, the U.S. trade representative nominee, might get a hearing in front of the Senate Finance Committee. He told reporters on a press call Feb. 2 that it's likely that Finance will question the Health and Human Services secretary nominee ahead of Tai. He also said he doesn't know how the impeachment trial for Donald Trump could affect the timing. Grassley said he supports President Joe Biden's approach of trying to get Europe, other countries in North America, South Korea and Japan “on the same wavelength with regard to China,” and when he has the opportunity to talk to Tai, he'll be asking about “how long they're going to wait to follow up on phase two” of trade talks with China. He said he doesn't expect the issue of Section 301 exclusions to be on his list of topics to bring up. “I just haven’t had a lot of contact in the last six months with these business interests [with expired exclusions], maybe my staff has,” he said.
Speakers for Navigating the New Normal, a keynote panel at a trade symposium convened by The Economist Feb. 2, discussed whether the political pressure to bring supply chains closer to home will overcome the fact that Vietnam's and China's economies weathered the pandemic better than Europe, with no conclusion, but also talked about what the future of the “special relationship” between the U.S. and the United Kingdom will be in trade.
Trade advocates and a trade scholar discussed how effective U.S.-Asia sectoral agreements could be, as well as the possible downsides of such agreements, during an Asia Society Policy Institute webinar Jan. 26. The Japan mini-deal was not exactly a sectoral deal because it lowered tariffs on a variety of products across different categories, but the agreement's digital trade plank is one that negotiators could consider as a template for a digital trade accord across more Asian countries.