World Trade Organization Director-General Ngozi Okonjo-Iweala said there is now political support to move forward on an agreement to curb subsidies that lead to overfishing. The draft text has been blessed by all the heads of delegations in Geneva, she said in a news conference July 15.
Supply chain resilience requires diversification with allies and away from China, witnesses said during a Senate Commerce Committee hearing, but they cautioned senators that improving resilience is complicated, and that government intervention can have unintended consequences. The committee was examining how Commerce Department implementation of the recent China package, once called Endless Frontier, could reduce supply chain failures in the future.
One of the obligations Canada and Mexico agreed to in the NAFTA rewrite is a ban on goods made with forced labor, but Baker McKenzie lawyers said it's not clear how much things are changing in that regard. Paul Burns, a Baker McKenzie partner in Toronto, said that while Canada has changed its law to ban the importation of goods made with forced labor, the Canadian customs agency does not disclose information about its enforcement. "We don’t know if there have been any detentions made," he said. "I expect there hasn't been."
The House Appropriations Committee released its draft proposals for funding the Commerce Department and the Office of the U.S. Trade Representative. It wants to spend $577.4 million on the Commerce Department's International Trade Administration, $36.4 million more than the current fiscal year's spending, a 6.7% increase. It wants to spend $143.4 million on the Bureau of Industry and Security, up $10.4 million from the current year, a 7.8% increase.
The British International Trade Secretary is meeting with U.S. Trade Representative Katherine Tai, and what she called "leading Democrats," before heading to meet with California businesses and investors to round out the five-day trip. Secretary Liz Truss said she will speak with Tai on how the U.S. and the United Kingdom can cooperate more closely to "combat market-distorting trade practices such as industrial subsidies and dumping, as well as [pursue] working together to defend workers and companies that play by the rules against unfair practices in the global trading system, by combating forced labour and strengthening supply-chain resilience."
A day before high-level trade talks with Taiwan (see 2106300009), Sens. Marco Rubio, R-Fla., and Mark Warner, D-Va., led a letter asking U.S. Trade Representative Katherine Tai to reconvene the Trade and Investment Framework Agreement (TIFA) meetings, and requested that she then “take steps to begin laying the groundwork for negotiation of a free trade agreement (FTA), or other preliminary agreement, with Taiwan.” Forty other senators signed.
Rep. Rick Larsen, a pro-trade Democrat from Washington state, told an audience at the Washington International Trade Association that Congress views China primarily as a strategic competitor, though members recognize there are areas of cooperation as well. He said that 10 years ago, the view from Washington was the reverse.
Rep. Jodey Arrington, a Republican on the Ways and Means Committee, was cool to fellow Texas delegation member Sen. John Cornyn's proposal to study the possibility of allowing goods made in foreign-trade zones to be considered originating under USMCA.
Reps. Jodey Arrington, R-Texas, and Jimmy Panetta, D-Calif., told President Joe Biden that 20% of farm income comes from exports, and said an agricultural negotiator at the Office of the U.S. Trade Representative would help expand those sales. “For several years, our producers have experienced price declines, retaliatory tariffs, severe weather, drought, and other hardships that have been out of their control,” they wrote in a June 29 letter. They said that fresh vegetable exports last year to Japan fell 35% and that the same exports to Taiwan fell 12%. “It is critical the Chief Agricultural Negotiator promotes American agriculture around the world and works vigorously to advance existing and future markets for our producers.” Twenty-six other members also signed.
Taiwan and the U.S. had their first official meeting under the Trade and Investment Framework Agreement since 2016, and Assistant U.S. Trade Representative Terry McCartin praised Taiwan for improving its enforcement of trade secrets protections, and its plan to change its medical device approval process.