The Federal Railroad Administration is going to spend $368 million across 46 projects, some of which are aimed at strengthening supply chains, it said. "Americans deserve a world-class rail system that allows people and goods to get where they need to go more quickly and affordably, while reducing traffic and pollution on our roads," Transportation Secretary Pete Buttigieg said. "We're proud to award these grants to improve passenger rail for riders and strengthen the freight rail that makes our supply chains and our economy work."
Mexico announced that it will examine whether the Panasonic Automotive Systems plant in Reynosa violated the rights of its workers (see 2205180061) under the provisions of the USMCA.
The U.S. announced it is starting negotiations with Taiwan on trade facilitation, sanitary and photosanitary regulations for agricultural imports, digital trade, and coordinating to confront non-market practices. The U.S.-Taiwan Initiative on 21st-Century Trade is similar to the Indo-Pacific Economic Framework in its scope, but Taiwan was not invited to join IPEF negotiations.
Former Sen. Max Baucus, D-Mont., who also is a former ambassador to China, said that while the Indo-Pacific Economic Framework is weak compared with the Trans-Pacific Partnership, "but it’s a beginning and we have to work with it." Baucus said he continues to believe the U.S. should have joined the TPP, which has been rebranded as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, or CPTPP, but said that when he flew back from China to lobby on its behalf, "It was pretty clear this is toxic -- this was going nowhere."
An aggressive timeline that aims to file a conference report by June 21 for the House and Senate China packages has lobbyists speculating that none of the proposals in the trade titles will be in the final bill because the two chambers are too far apart. The two chambers have relatively similar renewals of the Generalized System of Preferences benefits program and a big difference in their renewals of the Miscellaneous Tariff Bill. Each chamber has proposals the other doesn't, such as directing the administration to reopen Section 301 exclusions (Senate only); changing antidumping and countervailing duty laws (House only); removing China's eligibility for de minimis benefits (House only); and renewing and expanding Trade Adjustment Assistance (House only).
Almost 40 agricultural trade groups, along with two port and perishable logistics trade groups, asked the U.S. trade representative to reduce, lift or suspend tariffs so that China would lift its retaliatory tariffs on U.S. crops. “Tariff relief could not come at a more important time,” the trade groups said in a letter. “Rural America and small businesses are facing significant challenges due to the lingering impacts of the COVID-19 pandemic, logistical and supply chain disruptions, record levels of inflation, and the increasing impacts of Russia’s war on Ukraine. "
The U.S. asked for formal dispute consultations with Canada, as it believes that the federal notice that Canada issued about changes in how it administers dairy tariff rate quotas do not comply with the dispute panel's criticisms.
Senators called on the Surface Transportation Board to intervene with freight railroads, because manufacturers and agricultural producers are not getting reliable service. "If these problems persist into summer and fall, significant portions of the world's breadbasket could be cut off from assisting those most in need...," said a letter, led by Sen. Kevin Cramer, R-N.D., and Sen. Tammy Baldwin, D-Wis., and signed by 19 other senators from both parties. They said some grain producers cannot contract to get a freight car, causing flour mills to shut down. They said that shipping vessels have waited to leave because of delays of rail arrivals of grain. The May 23 letter is supported by the National Grain and Feed Association, the National Mining Association, the American Chemistry Council and the ethanol trade association Growth Energy.
A half-dozen countries that negotiated the Trans-Pacific Partnership -- including two that never ratified it -- and Korea, the Philippines, Indonesia, Thailand and India agreed to start negotiating agreements with the United States on trade, supply chains, digital standards, anti-corruption, and tax and investment from the U.S. for decarbonization and infrastructure.
A few days after the majority of senators said they want Taiwan to be included in the Indo-Pacific Economic Framework (see 2205180034), U.S. Trade Representative Katherine Tai issued a readout of a May 20 meeting with a top Taiwanese official that made no mention of IPEF. Tai said she met with Taiwan’s Minister-Without-Portfolio John Deng, and said that they discussed "opportunities to deepen the economic relationship, advance mutual trade priorities based on shared values, and promote innovation and inclusive economic growth for their workers and businesses." It said they also discussed how Taiwan and the U.S. both want to fight forced labor, and how important supply chain traceability is.