It's uncertain how long it would take the International Trade Commission to report on the economic impact of an updated NAFTA, as required under Trade Promotion Authority, ITC Chairman David Johanson said during an Appropriations subcommittee hearing on Sept. 6. Commerce Subcommittee Chairman Jerry Moran, R-Kan., asked Johanson if the ITC's evaluation could be started before a deal signing and inquired on how long it might take. Johanson said he could not say how long it would take, but acknowledged they cannot even start without the text, and they do not have the text yet for the U.S.-Mexico agreement that was announced in late August. The ITC has 105 days from signing to finish, and if it took that long, a vote would likely come no sooner than the middle of next year, because Congress also has 45 session days to write the implementing legislation.
The Office of the U.S. Trade Representative should reconsider negotiating a free-trade agreement with the Philippines, six House Democrats said in a Sept. 4 letter. The group, led by House Ways and Means Trade Subcommittee ranking member Bill Pascrell, D-N.J., wrote in response to testimony USTR Robert Lighthizer gave in the Senate in July, in which he said that the Philippines would be a good place to start for a new trade agreement. "Philippines President Rodrigo Duterte’s rule has so far been marked by shocking human rights abuses" and child labor "remains a persistent and serious problem in the country," the group wrote.
Usually tariff issues are taken up in the Senate Finance Committee, but the Senate Labor Committee examined recent trade policies during a Sept. 5 hearing. Labor ranking member Patty Murray, D-Wash., noted the committee has an interest because of the effect on workers. "[President Donald] Trump is playing a dangerous game right now, and workers are paying the price," she said.
The Miscellaneous Tariff Bill, which will lower tariffs on nearly 1,700 items, will restore a program that ended in 2012 -- as long as the president doesn't veto it. This version differed slightly from a bill previously passed by the House and was already approved by the Senate (see 1807270003). President Donald Trump is expected to sign the bill, though one Trump ally made another call for a veto of the legislation following its passage in the House Sept. 4.
Canadian Prime Minister Justin Trudeau told reporters in Canada on Sept. 4 that Canada will not sign a free trade deal that would allow American firms to buy Canadian newspapers or TV stations, and that NAFTA Chapter 19's dispute mechanism also is a must. "We will not sign a deal that is bad for Canadians and, quite frankly, not having a Chapter 19 to ensure that the rules are followed would be bad for Canadians," he said.
The "agreed outcomes" to the U.S.-Korea Free Trade Agreement were published by the U.S. Trade Representative on Labor Day, and they lay out the language changes put in place to protect the U.S. light truck market from Korean imports for another 20 years. In the original KORUS, agreed to in 2011, the 25 percent tariff on light trucks would last until 2021. In the renegotiated KORUS, they last through 2041. "The publication of the text of the agreed outcomes follows the completion in mid-August of U.S. domestic consultation procedures," said the USTR in a news release. "Korea will now initiate the next step in its own domestic procedures, which is to open for public comment the provisional Korean translations of the outcomes to amend the KORUS Agreement."
President Donald Trump tweeted over the weekend that Canada doesn't need to be in a new NAFTA. "There is no political necessity to keep Canada in the new NAFTA deal. If we don’t make a fair deal for the U.S. after decades of abuse, Canada will be out. Congress should not interfere w/ these negotiations or I will simply terminate NAFTA entirely & we will be far better off..." Trump's leaked boasts about Canada only being able to rejoin NAFTA on his terms may have momentarily derailed negotiations (see 1808310030).
President Donald Trump notified Congress of plans to sign a free trade agreement with Mexico, the White House said. The agreement will also include Canada, “if it is willing.”
The White House on Aug. 29 issued proclamations expanding company-specific exclusions from Section 232 tariffs and quotas on steel and aluminum. The proclamations make exclusions from Section 232 tariffs retroactive to the date the exclusion request was "accepted," rather than the date of posting, by the Commerce Department. They also authorize Commerce to grant exclusions for products from countries constrained by Section 232 quotas on steel and aluminum (currently Argentina for steel and aluminum, and South Korea and Brazil just for steel).
Canadian Foreign Minister Chrystia Freeland said her team is optimistic about the progress the U.S. and Canada can make in NAFTA negotiations this week, before the U.S. plans to start the fast-track clock in Congress. "A lot has been accomplished," she said, though she said there's still a "huge amount of work to do this week."