BALTIMORE -- U.S. Trade Representative Katherine Tai continued to throw cold water on the idea of reviving negotiations for a free-trade agreement with the United Kingdom, saying, "A free trade agreement is a tool. It is a very 20th century tool. It has its place certainly in the toolbox," she said, but said that she wants these U.K.-U.S. economic dialogues to be "maximally responsive" to today's trade challenges. She said she wants to make sure "that we don’t spend years and spend a lot of blood, sweat and tears working on something that isn't going to be relevant to the needs of our people or our economies."
Private sector and government leaders from around the world talked about what their firms are doing and how the World Trade Organization could be a forum for creating smoother flowing supply chains.
The Senate Commerce Committee passed the Ocean Shipping Reform Act by a voice vote March 22. The bill would shift the burden of proof on unreasonable detention and demurrage to carriers and forbid them from unreasonably declining export shipments. A recent panel at the Capitol revealed that before the COVID-19 pandemic-related supply chain crunch, 20% of containers went back to Asia empty, and now it's 80% (see 2203180050).
The top trade official in the British government and U.S. Trade Representative Katherine Tai said they want to do even more trade and investment between the two countries, even as a free-trade agreement is not the end goal. Secretary of State for International Trade Anne-Marie Trevelyan had hoped that the Biden administration would continue the free trade negotiations started during the Trump administration, but that has not happened. Marjorie Chorlins, who leads the U.S.-U.K. Business Council at the U.S. Chamber of Commerce, also spoke at the March 21 plenary in Baltimore, saying the business community strongly supports more U.S.-U.K. economic cooperation.
The Russia and Belarus Financial Sanctions Act, clarifying that foreign subsidiaries of U.S. financial institutions must comply with American sanctions against Russia and Belarus, passed out of the House Financial Services Committee March 17 on a voice vote. The Nowhere to Hide Oligarchs' Assets Act, which gives the Financial Crimes Enforcement Network more access to records so that they can "detect Russian oligarchs who are participating in money laundering techniques to hide their money, avoid scrutiny, and evade our sanctions," passed out of the same committee on a 26-23 party-line vote.
Sen. Mike Braun, R-Ind., and other Republicans asked the administration to use all available tools to help the union that represents dock workers and the port authorities on the West Coast to reach contracts on time this summer. Braun and his colleagues wrote, "We have heard from a number of stakeholders with concerns that a breakdown in negotiations ... will lead to even more disruptions and shipping delays at a time in which our nation’s ports are reporting record backlogs. ... Any delays caused by failed negotiations will have a drastic cost and impact on our nation’s supply chain. This cost will be felt by not only retailers and others that rely on ports for their business, but also by millions of American workers, farmers, and ranchers, who may face short-term shutdowns at their factories or barriers to shipping their products to market.”
The Ocean Shipping Reform Act is part of the House China package, and a Senate version is going to have a markup next week. House co-sponsor Dusty Johnson, R-S.D., said the bill's advocates need senators "to be able to punch this into the end zone."
Even as the European Council agreed on the approach to a carbon border adjustment mechanism, a lawmaker in the EU Parliament said that the fact that CBAM did not make it out of the trade committee showed how thorny it will be to get a law passed to hike tariffs on imports that do not come from countries that are fighting climate change as strongly as the EU.
Republican senators criticized President Joe Biden's choices not to levy sanctions on Russia before last month's invasion of Ukraine, and questioned why the sanctions now aren't tougher, during a press conference March 16 at the Capitol.
Senators on the Finance Committee agreed that deepening trade ties with countries in Asia is important both for geopolitical and economic reasons, but they disagreed during a March 15 hearing on the Indo-Pacific Economic Framework about whether a traditional free-trade agreement is a better approach than the IPEF.