President Joe Biden spoke with Chinese President Xi Jinping for two hours, underscoring “his fundamental concerns about Beijing’s coercive and unfair economic practices,” as well as human rights abuses in Xinjiang, according to a White House readout of the Feb. 10 call. In comments to reporters Feb. 11, he said it was a “good conversation.”
American Association of Exporters and Importers CEO Marianne Rowden believes automation is going to replace a lot of tariff classification work over the coming years. “Will human beings be doing tariff classification in the next three to five years? I don't think so -- I think it’s all going to be done by machine,” Rowden told a National Association of Foreign-Trade Zones online conference Feb. 9. She also predicted that the moratorium on customs duties on digital transactions, such as downloads of games or movies, will end in the medium term. “Every two years there is a vote at the World Trade Organization on the moratorium on customs duties on digital transmissions,” she said. “I think we’re going to lose that vote probably within the next five to six years because governments, particularly developing countries, are so desperate for revenue.”
President Donald Trump didn't get China to agree to much in the way of structural changes, panelists said, but Asia Society Policy Institute Vice President Wendy Cutler said he put China front and center on the agenda, which was good. “He was really willing to take on the business community when it came to China,” she said. Cutler, who worked at the Office of the U.S. Trade Representative for more than 25 years, said that when she was at USTR, one of her frustrations in trying to negotiate with China was that U.S. “companies were pretty conflicted. They liked the … money they were making. They wanted us to be quote, unquote tough with China, but they didn’t want to be part of the get-tough strategy. Our hands were tied in a way.”
Rep. Brian Mast, R-Fla., and 12 co-sponsors introduced a bipartisan bill that would require the administration to send Congress a report identifying any foreign person or agency that “knowingly assists, sponsors, or provides significant financial or material support for, or financial or other services to” Hamas and Palestinian Islamic Jihad. The report should also identify senior members of those two groups. The bill would require a number of sanctions toward those people and groups, including no exports of controlled technologies, and says that the executive branch could block all financial transactions with the people and groups, if it chooses. The same language passed the House by voice vote in July 2019. Sen. Marco Rubio, R-Fla., introduced a companion bill in the Senate during that Congress.
The Biden administration announced a slew of appointments to the Office of the U.S. Trade Representative that do not require Senate confirmation, allowing the agency to get its agenda underway as U.S. trade representative nominee Katherine Tai awaits a hearing and a floor vote.
A panel of scholars and a former general consul in Hong Kong agreed that the Biden administration is likely to place more emphasis on export controls and industrial policy to support domestic semiconductor production, and less on the trade deficit and tariffs, even as the new president has to decide what to do about Section 301 tariffs at some point. They were speaking on a virtual panel about U.S.-China relations hosted by the Washington International Trade Association on Feb. 8.
Senate Finance Committee Chairman Ron Wyden, D-Ore., introduced the U.S.-Cuba Trade Act of 2021 to establish normal trade relations. “Our nation’s embargo on Cuba is an artifact from the 1960s. To continue this outdated, harmful policy of isolation would be a failure of American leadership,” he said in a Feb. 5 press release. The U.S.-Cuba Trade Act of 2021 would repeal the Helms-Burton Act and the Cuban Democracy Act, and other provisions that affect trade, investment and travel with Cuba. Sens. Patrick Leahy, D-Vt., Richard Durbin, D-Ill., and Jeff Merkley, D-Ore., are cosponsors of the bill. Members of Congress have been introducing bills to lift the embargo for more than 10 years.
A European Commission executive told webinar listeners that while politicians in the West are viewing trade differently, remaining open to free trade is vital for the European Union's prosperity. Margrethe Vestager, executive vice president of the European Commission for A Europe Fit for the Digital Age, spoke Feb. 4 at the World Trade Symposium hosted by The Economist. “We have retired the old idea of free trade at any price,” she said. In this decade, Europe will be looking at trade through the prism of human rights, workers' rights, best recycling practices, digitalization and climate change, she said.
Commerce secretary nominee Gina Raimondo was asked several times in written questions from senators after her hearing about how she would balance the need to prevent cutting edge technologies from being shared with adversaries but also allow U.S. semiconductor manufacturers to compete with foreign companies that don't have the same restrictions on selling chips.
House Foreign Affairs Committee Chairman Rep. Gregory Meeks, D-N.Y., joined by fellow committee members Rep. Karen Bass, D-Calif., and Rep. Jim Himes, D-Conn., asked the Biden administration to reinstate Magnitsky Sanctions against Dan Gertler, an Israeli businessman with mining operations in the Democratic Republic of the Congo.