The Information Technology Industry Council is asking U.S. Trade Representative Katherine Tai to push Indonesia to drop tariffs on technology products during Trade and Investment Framework Agreement meetings in February. Data center and networking equipment, printers, solid state drives and other products covered by the World Trade Organization's Information Technology Agreement are facing tariffs in Indonesia, the industry group said in a letter Jan. 27, even though Indonesia is a signatory to the ITA.
Iowa Republican senators Chuck Grassley and Joni Ernst are asking the Biden administration to complete free trade agreements in Asia, or rejoin the Trans-Pacific Partnership, as China expands its influence through the Regional Comprehensive Economic Partnership (RCEP). They wrote Jan. 25: "Initially, your administration stated they were content with focusing on your domestic agenda before they consider negotiating new free trade agreements. However, a year later, it is clear that your domestic agenda has been stalled while China is taking serious action to expand their foothold in the region."
All 14 of the Republicans on the Senate Finance Committee are telling colleagues in their chamber that providing a $12,500 incentive to purchase union-made, U.S.-assembled electric vehicles will spur foreign retaliation against American auto exports. The House version of Build Back Better offers a $7,500 refundable tax credit for any electric vehicle purchase -- the same amount as current law, but makes it refundable and does not phase it out for leading manufacturers. Currently, Tesla and General Motors vehicles are no longer eligible for the credits. But in order to receive $12,500, the car or truck would need to include a U.S.-assembled battery and be made by union workers in the United States.
A global look at foreign trade agreements discussed how many major economies are moving toward more liberalization while the U.S. stands still on previously launched FTA negotiations. Baker McKenzie lawyers shared their insights on the opportunities and compliance concerns under FTAs in a webinar Jan. 25. Adriana Ibarra-Fernandez, a Mexico City, Mexico attorney, talked about Latin American FTAs, and noted that even though negotiations concluded after 20 years between Mercosur, which represents Brazil, Argentina, Paraguay and Uruguay, and the European Union, the trade deal has not been approved in the various capitals, three years after the negotiations ended.
More than 25 House Republicans asked the administration to initiate a case at the World Trade Organization against India over that country's financial support for its wheat and rice growers. The letter, led by Rep. Tracey Mann, R-Kan., was sent Jan. 13. In the press release announcing the letter, the CEO of USA Rice said, "If left unchecked, the Indian export market will continue to grow at an uncontrollable rate and threaten the viability of rice and wheat producers throughout the world.” The press release also noted that some senators had earlier made the same request. "For too long, Indian government policies have cost U.S. wheat money and export opportunities. Those Indian policies cost U.S. wheat farmers more than $500 million annually,” said Kansas Association of Wheat Growers President Justin Knopf. “With India poised for near-record exports, time is of the utmost importance. We encourage the USTR to use the WTO to hold India accountable to their past commitments."
U.S. Chamber of Commerce officials that lead the group's international policy initiatives said again that the U.S. is wasting an opportunity by letting trade negotiations stall. The vice presidents in charge of Africa, Europe, the Western Hemisphere and Asia policy spoke on a Jan. 18 webinar that was a follow-up to the State of American Business program.
After the first USMCA deputies meeting, Mexico, Canada and the U.S. issued a joint statement saying that they are scrutinizing the implementation of the prohibition on importing goods made with forced labor. They also discussed environmental law enforcement cooperation, and training planned this year for small businesses so they can access the treaty's benefits. All said "though there have been challenges, progress continues to be made under the Agreement."
The top Republican on the Senate Finance Committee and that committee's chairman, as well as the top Republican on the House Ways and Means Committee, urged the deputy U.S. trade representative to press Mexico and Canada on market access issues for the energy and agricultural sectors, and the senators also complained about barriers for the telecom, pharmaceutical and television industries in either Mexico or Canada. Deputy USTR Jayme White is meeting with Canadian and Mexican counterparts this week.
Agricultural and energy market access in Mexico are of concern to Rep. Kevin Brady, R-Texas, as he talks about the need to enforce USMCA's provisions, but he dismissed Mexico's concern that the U.S. is not following the treaty's text as it lays out rules for imported automobiles and light trucks to enter the U.S. tariff-free.
U.S. Trade Representative Katherine Tai said that the U.S.-EU Trade and Technology Council should not be seen as a prelude to reentering talks for a comprehensive trade agreement, and she threw cold water on the idea of a free trade agreement with the United Kingdom as well.