After the Senate Parliamentarian ruled that six other committees besides Finance need to consider the U.S.-Mexico-Canada Agreement, five of those committees have scheduled hearings or meetings to deal with the implementing bill next week. The Budget and the Environment committees will take it up Jan. 14; the Health, Education, Labor and Pensions and the Commerce committees will take it up Jan. 15; and the Foreign Relations Committee will take it up Jan. 16. If the Appropriations Committee were to also have a hearing next week, a vote could come the following week, but Appropriations has not scheduled a hearing.
The U.S. Chamber of Commerce laid out its priorities for trade in 2020, and most of them were well-known in 2019: getting USMCA passed; ending steel and aluminum tariffs; negotiating comprehensive trade agreements with Japan, the European Union and the United Kingdom. But lesser-known priorities are: ensuring that new regulations on foreign ownership of American firms are focused on national security issues, and arguing for a balanced approach in the regulations from the Export Control Reform Act of 2018 that protect “national security without unduly hindering legitimate commerce.” The Chamber also said Jan. 9 that it wants Congress to approve “permanent normal trade relations with Kazakhstan and its graduation from the Jackson-Vanik amendment to the Trade Act of 1974.”
Senate Finance Committee Chairman Chuck Grassley, R-Iowa, said he's been told it's going to take three or four days for six other Senate committees to clear the U.S.-Mexico-Canada Agreement so that it can go to the floor for a vote. Whether it can come up the week of Jan. 21 will depend on whether the articles of impeachment have arrived by then, he noted.
The panel deciding which French products should face Section 301 tariffs was intrigued by a point made by the Cheese Importers Association of America -- who could pay more on 21 Harmonized Tariff Schedule headings if all the proposed tariffs are included.
The Senate Finance Committee has recommended the U.S.-Mexico-Canada Agreement come up for a vote in the Senate as a whole, voting 25-3 Jan. 7 to advance the deal. Committee Chairman Chuck Grassley, R-Iowa, told reporters that the USMCA implementing bill also has to get buy-in from the Budget, Environment and Commerce committees, though they don't have to hold mark-up hearings, as the Finance Committee did. He predicted that if the articles of impeachment aren't sent over to the Senate yet, “by next week, for sure,” there would be a floor vote, but if the articles arrive, he said, it could be the end of January before a vote.
President Donald Trump tweeted that he will sign “our very large and comprehensive Phase One Trade Deal with China on January 15” at the White House. "High level representatives of China will be present" and Trump is planning to go to Beijing "at a later date" to begin talks around Phase Two, he said. An administration official previously said the signing would be done between the U.S. trade representative and China's vice premier, and would happen in the first week of January (see 1912130035).
The U.S. delegation to the World Trade Organization rejected a proposal from countries on how to reform the appellate body (see 1912090031), saying that without understanding how the appellate body's overreach problem developed, there's no reason to believe that restating the constraints on the appellate body's authority will work. In December, when the appellate body ceased to exist because of U.S. refusal to allow new appointees, the National Foreign Trade Council hired Tailwinds Global Strategy's Bruce Hirsh to put forward ideas of how to resolve the impasse
President Donald Trump signed the bills funding the federal government through Sept. 30, along with a tax extenders package, before leaving Washington for Florida the evening of Dec. 20. The tax extenders included a provision that will continue the alcohol excise tax break in the Craft Beverage Modernization Act through the end of 2020 (see 1912170067). The Beer Institute hailed the extension with a press release that quoted Dan Kopman, CEO of Heavy Seas Beer in Baltimore, Maryland. “Excise tax relief has given brewers and beer importers of all sizes across the nation the ability to expand and grow, and I urge members of Congress to work together in the new year to make the excise tax rates in the Craft Beverage Modernization and Tax Reform Act permanent.”
Sen. Pat Toomey, R-Pa., the strongest free trade advocate in the Senate, said he doesn't know if Republicans will return to their traditional position as pro-free trade. In response to a question from the audience at the American Enterprise Institute Dec. 19, he said it depends on whether President Donald Trump is re-elected in 2020.
A bipartisan group of 161 House members are asking U.S. Trade Representative Robert Lighthizer to open negotiations for a free trade deal with Taiwan. The letter, sent Dec. 19, was led by Rep. Steve Chabot, R-Ohio, Rep. Albio Sires, D-N.J., Rep. Mario Diaz-Balart, R-Fla., and Rep. Gerry Connolly, D-Va. “Taiwan is a longstanding ally and a like-minded partner in the Indo-Pacific region that upholds and shares our values. Taiwan is our 11th largest trading partner worldwide, the 8th largest export market for U.S. agricultural products, a major purchaser of U.S. LNG exports, and the supplier of a significant amount of the semiconductors used by our manufacturers in their finished goods,” they said. “As the trade and investment relationship with Taiwan already supports an estimated 373,000 U.S. jobs, working toward the negotiation of a high-standard and comprehensive U.S.-Taiwan bilateral trade agreement would further enhance our shared goal of enhancing the global competitiveness of U.S. industries while spurring American job creation.”