The U.S. Chamber of Commerce gave advice to Congress in July and August on how to shape legislation that Congress is calling a "polluter import fee," which most call a carbon border adjustment tax. On Sept. 2, it published its reaction to one bill on the table, the Coons-Peters bill, although Senate Finance Committee Chairman Ron Wyden, D-Ore., has not said that the Coons bill will be the starting point for legislation he wishes to advance as part of the "soft infrastructure package" Congress is trying to write this fall (see 2108100031). Just before leaving for the August recess, Wyden said that the Senate was far from a concrete proposal, and that any proposal must get the support of Sen. Joe Manchin, D-W.Va. Manchin represents a state where coal mining is the third-largest industry.
Dawn Shackleford, the assistant U.S. trade representative for the World Trade Organization and multilateral affairs, has been chosen to be assistant USTR for Southeast Asia and the Pacific, which covers Australia, New Zealand and the Pacific islands, in addition to Southeast Asia. "Dawn has demonstrated great skill and expertise across multiple positions at USTR,” USTR Katherine Tai said. “Her diplomatic experience and judgement will be invaluable as we engage our trading partners and resume our work to enhance U.S. economic cooperation in Southeast Asia and across the Pacific.” Shackleford was the lead negotiator on the WTO Trade Facilitation Agreement and the lead negotiator for customs and trade facilitation in European trade talks that faltered. She joined USTR in 2004, after working at the Pentagon. Kent Shigetomi will serve as acting assistant USTR for WTO and multilateral affairs.
The U.S. is now facing formal complaints from both Mexico and Canada over how it's calculating regional value content in the auto rules of origin under USMCA. Canada formally joined Mexico's call for consultations, it announced Aug. 26. Canada says that, like Mexico, it does not agree "with the interpretation of the United States of the relationship between the core parts and vehicle regional value content calculations."
In an unusual move, China has been granted its request for a compliance panel at the World Trade Organization for the dispute between it and the U.S. over how China administers its wheat, rice and corn tariff rate quotas (see 2107160054 and 1904180020).
John Porcari, a Transportation Department deputy secretary and chief operating officer during the Obama administration, has been named port envoy to the Biden administration's Supply Chain Disruptions Task Force. Porcari, who was Maryland's transportation secretary and chairman of the Maryland Port Commission before joining the federal government, has been working in the private sector in recent years, including leading the U.S. division of an Israeli company that sells artificial intelligence solutions for traffic congestion.
Sen. Chuck Grassley, R-Iowa, told reporters on a press call that his constituents are saying they're concerned there is a "lack of a trade agenda in this administration." He said that in the months since Katherine Tai was confirmed as U.S. trade representative, "I haven't seen any movement on trade agreements."
The White House announced that Vietnam has decided to either eliminate or reduce its tariffs on corn, wheat and pork. It did not specify which goods will be imported with no tariffs or how much the tariffs would be reduced. U.S. agricultural producers suffered competitively because the U.S. chose not to join the Trans-Pacific Partnership. Vietnam is a member, and lowered tariffs for other TPP members.
A proposal to use a carbon border adjustment tax as a pay-for in legislation Congress hopes to pass this fall faces many obstacles, both political and technical. Politically, it must get support from all 50 Democrats in the Senate, including Sen. Joe Manchin, whose home state of West Virginia exports about a third of its coal; in some recent years, coal was about half of all exports from the state.
After Mexico asked it for consultations (see 2108230041), arguing that the NAFTA approach to roll-up should be continued under USCMA, the Office of the U.S. Trade Representative said the request is under review. USTR spokesman Adam Hodge said that U.S. government officials "remain committed to fully implementing the USMCA, including the strong auto regional content requirements to which we all agreed.”
After the sudden death of Richard Trumka, Liz Shuler was elected president of the AFL-CIO, the federation of unions announced Aug. 20. Shuler is the first woman to lead the AFL-CIO. Shuler started as an organizer at Electrical Workers (IBEW), and worked at that union's political/legislative affairs department in Washington, D.C., before becoming secretary-treasurer of the AFL-CIO.