Canadian Prime Minister Justin Trudeau told reporters in Canada on Sept. 4 that Canada will not sign a free trade deal that would allow American firms to buy Canadian newspapers or TV stations, and that NAFTA Chapter 19's dispute mechanism also is a must. "We will not sign a deal that is bad for Canadians and, quite frankly, not having a Chapter 19 to ensure that the rules are followed would be bad for Canadians," he said.
Mara Lee
Mara Lee, Senior Editor, is a reporter for International Trade Today and its sister publications Export Compliance Daily and Trade Law Daily. She joined the Warren Communications News staff in early 2018, after covering health policy, Midwestern Congressional delegations, and the Connecticut economy, insurance and manufacturing sectors for the Hartford Courant, the nation’s oldest continuously published newspaper (established 1674). Before arriving in Washington D.C. to cover Congress in 2005, she worked in Ohio, where she witnessed fervent presidential campaigning every four years.
The Miscellaneous Tariff Bill, which will lower tariffs on nearly 1,700 items, will restore a program that ended in 2012 -- as long as the president doesn't veto it. This version differed slightly from a bill previously passed by the House and was already approved by the Senate (see 1807270003). President Donald Trump is expected to sign the bill, though one Trump ally made another call for a veto of the legislation following its passage in the House Sept. 4.
The Office of the U.S. Trade Representative should reconsider negotiating a free-trade agreement with the Philippines, six House Democrats said in a Sept. 4 letter. The group, led by House Ways and Means Trade Subcommittee ranking member Bill Pascrell, D-N.J., wrote in response to testimony USTR Robert Lighthizer gave in the Senate in July, in which he said that the Philippines would be a good place to start for a new trade agreement. "Philippines President Rodrigo Duterte’s rule has so far been marked by shocking human rights abuses" and child labor "remains a persistent and serious problem in the country," the group wrote.
President Donald Trump tweeted over the weekend that Canada doesn't need to be in a new NAFTA. "There is no political necessity to keep Canada in the new NAFTA deal. If we don’t make a fair deal for the U.S. after decades of abuse, Canada will be out. Congress should not interfere w/ these negotiations or I will simply terminate NAFTA entirely & we will be far better off..." Trump's leaked boasts about Canada only being able to rejoin NAFTA on his terms may have momentarily derailed negotiations (see 1808310030).
The "agreed outcomes" to the U.S.-Korea Free Trade Agreement were published by the U.S. Trade Representative on Labor Day, and they lay out the language changes put in place to protect the U.S. light truck market from Korean imports for another 20 years. In the original KORUS, agreed to in 2011, the 25 percent tariff on light trucks would last until 2021. In the renegotiated KORUS, they last through 2041. "The publication of the text of the agreed outcomes follows the completion in mid-August of U.S. domestic consultation procedures," said the USTR in a news release. "Korea will now initiate the next step in its own domestic procedures, which is to open for public comment the provisional Korean translations of the outcomes to amend the KORUS Agreement."
President Donald Trump notified Congress of plans to sign a free trade agreement with Mexico, the White House said. The agreement will also include Canada, “if it is willing.”
The White House on Aug. 29 issued proclamations expanding company-specific exclusions from Section 232 tariffs and quotas on steel and aluminum. The proclamations make exclusions from Section 232 tariffs retroactive to the date the exclusion request was "accepted," rather than the date of posting, by the Commerce Department. They also authorize Commerce to grant exclusions for products from countries constrained by Section 232 quotas on steel and aluminum (currently Argentina for steel and aluminum, and South Korea and Brazil just for steel).
Canadian Foreign Minister Chrystia Freeland said her team is optimistic about the progress the U.S. and Canada can make in NAFTA negotiations this week, before the U.S. plans to start the fast-track clock in Congress. "A lot has been accomplished," she said, though she said there's still a "huge amount of work to do this week."
The Office of the U.S. Trade Representative is forming a U.S.-Kenya Trade and Investment Working Group, with the aim of deepening the trade relationship between the two countries. Kenyan Cabinet Secretary for Industry, Trade and Cooperatives Peter Munya said that although Kenya has increased its exports to the U.S. through the African Growth and Opportunity Act, "its utilization has been suboptimal. Through implementation of the recently launched National AGOA strategy and action plan, Kenya seeks greater US support in order to optimize available opportunities in the remaining seven years of AGOA." According to USTR, there's $1 billion of trade annually between Kenya and the U.S., and more than 70 percent of Kenyan exports to the U.S. are covered by AGOA preferences.
Senators and House members from both parties reacted to the outline of a bilateral deal between Mexico and the U.S. with a variety of views, ranging from celebration to skepticism. The deal aims to steer more auto manufacturing to the U.S. -- and maybe to Canada, if that country comes on board (see 1808270032).