The Canadian Parliament is moving the successor to NAFTA along, so that a March ratification vote is still looking likely, news from Canada says. While the U.S.-Mexico-Canada Agreement will be reviewed by the agriculture, natural resources and industry/science/technology committees, not just the trade committee, the other committees only have until Feb. 25 for that review, a report from ipolitics said.
Senate Finance Committee Chairman Chuck Grassley, R-Iowa, said he doesn't think the Trump administration will ever levy an additional 25% tax on imported autos, even as President Donald Trump continues to mention that threat in an effort to get European negotiators to open up to American agriculture exports. Grassley, who was responding to a reporter's question on how to get the European Union to bend during a conference call Feb. 18, said he doesn't think the EU will negotiate much on ag.
The House of Representatives passed a bill that would require CBP to develop a plan “to increase CBP’s non-intrusive-inspection scanning rates to 100% of commercial and passenger vehicles at all land ports of entry that includes incremental timeframes and estimated costs by port.” The bill, called the Securing America's Ports Act, passed on a voice vote Feb. 10. It does not have a Senate companion bill, and the Senate has been passing next to no legislation in this session, instead concentrating its energy on appointing judges.
Half the companies surveyed by the U.S.-China Business Council say that it's too soon to tell if the tariffs in the China trade war were worth it for the gains won at the negotiating table, even as 78 percent of respondents welcome the phase one deal. Companies see the phase one deal -- which takes effect Feb. 14 -- as something that will prevent more tariff hikes. Of those who are directly affected by the commitments in phase one -- 60 percent of the companies -- the purchase promises matter most, with 30 percent saying that's the most relevant plank. Protection of intellectual property was a close second, with 27 percent of companies saying that's most important.
Nine pro-free-trade Democrats sent a letter to the White House Feb. 13 demanding that the administration release its autos Section 232 report -- as required by law -- and abandon the idea of hiking tariffs on imported autos and auto parts. The letter says that despite the White House receiving the report a year ago, it's hidden from Congress and the public. Senate Finance Committee Chairman Chuck Grassley, R-Iowa, said earlier this week that he still wants the auto 232 report, despite the administration's claim it's protected by executive privilege (see 2002120023).
A bipartisan group of lawmakers, led by Rep. Bill Pascrell, D-N.J., and Rep. Jodey Arrington, R-Texas, introduced a bill Feb. 13 that would allow importers of European goods hit by the Airbus tariffs to receive refunds for goods that were on the water at the time the tariff hikes were announced. They are calling the bill “For Accurate Import Relief To Aid Retailers and Importers of Foreign Freights” (FAIR TARIFF) Act. The Cheese Importers Association of America previously voiced its support for the bill (see 2001290043).
Senate Finance Committee Chairman Chuck Grassley, R-Iowa, said that while he has not discussed the idea of raising the U.S. bound tariff rate at the World Trade Organization, the administration better not be thinking of bypassing Congress on this strategy. Grassley, who was responding to a reporter's question at a press roundtable Feb. 13, said flatly, “They can't do it without Congress's approval.” A report from Bloomberg said the administration is considering changes to the bound rate.
House Ways and Means Committee ranking member Kevin Brady, R-Texas, said he hopes India's eligibility for the Generalized System of Preferences benefits program is restored, but cautioned that India is hard to pin down on opening market access -- which is the administration's requirement for even partial restoration. Brady touched on tariffs, negotiations and implementation of the U.S.-Mexico-Canada Agreement as he took questions from reporters late Feb. 12 at the Capitol.
Treasury Secretary Steven Mnuchin, testifying on the president's budget at a hearing Feb. 12, was asked repeatedly about what the Organization for Economic Cooperation and Development might do on taxing digital companies, precluding France's digital services tax.
The Office of the U.S. Trade Representative released an extensive critique of the appellate body at the World Trade Organization. But the administration offered no proposals for what other countries could do to satisfy it so that it would allow the appellate body to be rejuvenated. Currently, there is no quorum for the body, so it cannot hear appeals. Many of the complaints are about how the WTO has ruled on antidumping and countervailing duty cases in the U.S. -- the report mentions “zeroing,” a method used in antidumping, nearly 100 times. The report said, “The United States is publishing this Report -- the first comprehensive study of the Appellate Body’s failure to comply with WTO rules and interpret WTO agreements as written -- to examine and explain the problem, not dictate solutions.”