Wally Adeyemo was confirmed as deputy treasury secretary on a voice vote March 25. Adeyemo, whose nomination hearing was held a month ago, said there would be a comprehensive review of sanctions under the new administration (see 2102230047). Even though there was no recorded opposition to his nomination, Republicans required the cloture process to go forward, which delayed the vote by a week.
Mara Lee
Mara Lee, Senior Editor, is a reporter for International Trade Today and its sister publications Export Compliance Daily and Trade Law Daily. She joined the Warren Communications News staff in early 2018, after covering health policy, Midwestern Congressional delegations, and the Connecticut economy, insurance and manufacturing sectors for the Hartford Courant, the nation’s oldest continuously published newspaper (established 1674). Before arriving in Washington D.C. to cover Congress in 2005, she worked in Ohio, where she witnessed fervent presidential campaigning every four years.
A readout of U.S. Trade Representative Katherine Tai's call with India's Commerce and Industry Minister Piyush Goyal made no mention of the Generalized System of Preferences benefits program, where India was the largest beneficiary before it was barred over U.S. medical device and dairy exporters' complaints. The Indian government did not release a press release summarizing its view of the call. Tai's office said that they “agreed to work constructively to resolve key outstanding bilateral trade issues and to take a comprehensive look at ways to expand the trade relationship.”
The Magnitsky Act is set to sunset in 2022, and the bipartisan authors of the original sanctions bill asked civil society representatives in the U.S. and Africa how the renewal should be shaped.
Brazil's Economy Minister Lucas Ferraz said that two years ago, Brazil proposed to the other three countries in the Mercosur trade bloc that they should reduce the average tariff by half. It's currently 11.5%, and he said the Brazilian government believes it should be 6% to 7%.
U.S.Trade Representative Katherine Tai talked with Japan's Trade Minister Kajiyama Hiroshi about how they're concerned about unfair trading practices from non-market economies such as China, but did not mention that topic coming up with the South Korean trade minister. South Korean Trade Minister Yoo Myung-hee and Tai talked about how the U.S.-Korea free trade agreement strengthened economic ties, and discussed World Trade Organization reform, the call summary said. The Korean press emphasized agreement on writing digital trade rules. Tai also spoke with Mexican Economy Secretary Tatiana Clouthier, and they talked about fully implementing USMCA and Mexico's labor reform. “Tai also stressed the critical importance of cooperation on climate and environmental issues, as well as reform at the World Trade Organization and the mutual benefits of robust bi-lateral agricultural trade,” a readout of the talk said. Clouthier tweeted her thanks for such a productive meeting.
The American Farm Bureau Federation, along with meat, dairy, corn, soybean and other exporters from 27 organizations in all are telling Agriculture Secretary Tom Vilsack and U.S. Trade Representative Katherine Tai that the agriculture trade relationship with Mexico “has declined markedly, a trend USMCA’s implementation has not reversed.” They said in a March 22 letter that they're particularly concerned about the glyphosate ban and the ban on genetically modified corn for human consumption; mandatory Conformity Assessment Procedures for cheeses; and the requirement for organic foods to be certified under Mexican standards by June. “This is an extraordinarily short timeline for implementation. If this policy is enforced, U.S organic producers will experience significant trade disruptions as certification can take a year or more for organic companies to become certified to a new organic standard,” they wrote.
U.S. Trade Representative Katherine Tai opened her first full week on the job with a series of video calls with major allies and trading partners -- Canada, the United Kingdom, the European Union -- and diplomatic summaries of the calls from both sides mostly echoed each other, suggesting there was a good deal of agreement.
A top European Commission trade official said that it's not reasonable to expect that countries can agree on reforms to dispute settlement that would satisfy the U.S. by November this year. So, Ignacio Garcia Bercero said, countries will need to set a goal of restoring the binding dispute settlement system for the 2023 ministerial meeting of the World Trade Organization. “The WTO without binding dispute settlement is not the WTO,” Garcia Bercero said during a presentation online at the Peterson Institute for International Economics on March 19. “The continued escalation of conflicts if we don’t have a functioning dispute settlement system should be something we should all be worried about.”
A former World Trade Organization appellate body member and a longtime U.S. trade representative's environment advisory committee member agree that an attempt to create a carbon adjustment mechanism by the European Union is likely to violate trade law and support protectionist aims.
House Ways and Means Committee chief trade counsel Katherine Tai was confirmed by the Senate as U.S. trade representative on March 17, by a 98-0 vote. Politicians from both parties, trade skeptics and export-focused trade associations all hailed her promotion to the Biden administration Cabinet. She is the first woman of color to be USTR.