If any of the countries under review in the Generalized Systems of Preferences are going to lose access to the program, India is the most likely, according to a trade advocate who works on GSP. The advocate spoke to International Trade Today after speaking with staff who handle GSP at the Office of the U.S. Trade Representative, and said he does not know if India will have some products removed, be suspended, or, like Russia, "graduate" from the program because the U.S. says it has developed enough.
Senators across the political spectrum -- from Sen. Dianne Feinstein, D-Calif., to Sen. Roger Wicker, R-Miss. -- see levying national security tariffs on imported automobiles as "a step too far," Ohio Republican Sen. Robert Portman said, and he believes his bill, S.B. 365 on Section 232 tariffs could pass Congress and avoid a presidential veto.
Senate Finance Committee Chairman Chuck Grassley, R-Iowa, said that neither Mexican nor Canadian politicians will ratify the new NAFTA as long as those two countries are subject to U.S. Section 232 steel and aluminum tariffs. Grassley, who was speaking to reporters on a conference call Feb. 12, has said in the past that Canadian and Mexican retaliatory tariffs reacting to those tariffs have to be lifted in order to get the new NAFTA through Congress (see 1901090041).
President Donald Trump told reporters at the White House Feb. 12 that he might not stick to a March 1 deadline for deciding whether to raise 10 percent tariffs on about $200 billion in China imports to 25 percent. "We have $267 billion that we were very nice about and we're not taxing," he said. "The 10 percent on $200 billion goes up to 25 percent on March 1st. And so far, I've said don’t do that. Now, if we're close to a deal where we think we can make a real deal, and it's going to get done, I could see myself letting that slide for a little while. But generally speaking, I'm not inclined to do that."
Seven years after the U.S. imposed antidumping and countervailing duties on South Korean large residential washers, the World Trade Organization has given South Korea the go-ahead to retaliate on American exports up to $84.81 million, just over a tenth of what the country had sought.
The two senators from New Mexico -- Democrats Martin Heinrich and Tom Udall -- on Feb. 7 introduced the Trade Facilitation and Security Enhancement Act, S.B. 414, which would require the 10 busiest land ports of entry on the U.S.-Mexico border to be open to commercial vehicles 16 hours a day Monday through Friday and at least eight hours per weekend. The extended hours would need to be put in place no later than six months after the bill's passage. They said spending the money to modernize ports and extend hours would "increase international trade and bolster economic development in border communities."
Republican senators have been saying they don't know how the new NAFTA can be approved (see 1901310038) and the House Trade Subcommittee chairman tweeted that there's a lot of work needed before his committee would vote for it or it could pass the house. One observer said it would be a "lovely miracle" if the deal were ratified this year (see 1901290028).
Four trade lawyers from White & Case say that 2019 could have even more trade tumult than did 2018, especially if the Trump administration levies tariffs on auto imports from Europe or Japan. Their alert, published Feb. 6 and with Scott Lincicome as the lead author, talks about prospects for a China trade deal, ratification of the new NAFTA, a continuing truce with Japan and Europe, and other trade developments expected this year.
The extended period of exclusivity for biologic drugs contained in the new NAFTA language continues to draw fire from Democrats in the House of Representatives, including from the new Trade Subcommittee chairman, Rep. Earl Blumenauer, D-Ore. Although advocates believe Mexico and Canada would welcome a change to this provision (see 1811210021), Canada's foreign minister threw cold water on that idea on Feb. 6.
Tariffs on allies make it harder to convince China to change its abuses, senators said, as members from both parties held a press conference to criticize Trump administration tariff policies. They were kicking off a lobbying effort from business owners and farmers around the country called Tariffs Hurt the Heartland, which began Feb. 6.