U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin traveled to Shanghai for July 30 and 31 talks on a comprehensive U.S.-China trade deal, the White House said July 30. Vice Premier Liu He and Commerce Minister Zhong Shan led the Chinese delegation, it said. “The two sides discussed topics such as forced technology transfer, intellectual property rights, services, non-tariff barriers, and agriculture.” The Chinese “confirmed their commitment to increase purchases” of U.S. agricultural exports, it said. “The meetings were constructive, and we expect negotiations on an enforceable trade deal to continue” in Washington in early September, it said. The Shanghai meetings were the 12th round of negotiations that started in December, and were the first face-to-face talks between the sides since the negotiations broke down in May over Trump administration allegations that the Chinese reneged on previously agreed-to commitments. Overhanging the talks is the threat that the administration could put the List 4 Section 301 tariffs into effect at any time on virtually all Chinese goods not previously dutied.
President Donald Trump told a Brazilian reporter July 30 that the U.S. will work on a free trade agreement with Brazil. Trump, who spoke about Brazilian trade talks at gaggles both before and after his trip to Jamestown, Va., said, "Brazil is a big trading partner. They charge us a lot of tariffs, but other than that we love the relationship." He said he's sure they'll be successful at trade talks. "I have a fantastic relationship with your president," he told the Brazilian reporter. "And he's a great gentleman. He was here, as you know. In fact, they say the 'Trump of Brazil.' I like that. That’s a compliment."
U.S. Trade Representative Robert Lighthizer told Sen Pat Roberts, R-Kan., that the U.S and Europe are at an impasse on trade talks, because the EU is not willing to talk about its barriers to U.S. agriculture exports.
The footnote in the U.S.-Mexico-Canada Agreement that says that the U.S. could change its de minimis level to match Canada's and Mexico's levels was roundly rejected by the Senate Finance Committee on July 30, when the topic was one of the most-discussed aspects of the deal. Paula Barnett, owner of Paula Elaine Barnett jewelry, was the first witness who testified, and she told the committee that she does not want U.S. de minimis levels lowered, because she doesn't have to pay tariffs when goods are returned from outside the country, and because she purchases opals from Mexico, and those purchases are under the $800 threshold.
In the July 29 edition of the Official Journal of the European Union the following trade-related notices were posted:
Chinese importers have recently been upping purchases of U.S. agricultural products, according to a report from China’s state run Xinhua news service. “Since July 19, some Chinese firms have inquired with U.S. suppliers about the new purchases of U.S. farm produce including soybeans, cotton, pork and sorghum. Currently, a batch of deals have been made in line with market conditions,” Xinhua said. “The Chinese enterprises involved have applied for the lifting of additional tariffs on some of the U.S. farm produce, and the Customs Tariff Commission of the State Council will handle their applications according to stipulated procedures.” So far, millions of tons of U.S. soybeans have been shipped to China, the report said, tying the recent activity to talks held between President Donald Trump and China’s President Xi Jinping in June.
China is unlikely to reach agreement with U.S. trade negotiators, President Donald Trump said, as it prefers to wait and see if the next president takes a different approach. He was speaking to reporters at a press conference July 26 announcing an asylum policy with Guatemala. "I think China would probably say, 'Let’s wait. Let’s wait. Maybe Trump will lose and we can deal with another dope or another stiff,' like the people that allowed these deals to happen, this horrible thing to happen to our country," he said, according to a transcript released by the White House. Trump said that after he wins a second term, China and other countries "almost immediately" are going to sign "phenomenal deals."
The Canada Border Services Agency recently updated its list of tariff classification verification priorities. "All goods on the list for a verification of tariff classification have been on previous verification lists," according to a July 26 blog post from Farrow. "However, for Parts of Machines and Mechanical Appliances and Other Chemical Products, the verification priority was released in December 2018 and results are not yet available."
Five years of data exclusivity for biologics, an end to panel blocking and undefined "mechanisms and resources" to monitor and enforce labor and environmental laws in Mexico are the core of what the House Democrats have asked the Trump administration to change in its NAFTA rewrite. The House Democrats' working group revealed more of what it is asking for in a report sent to the Speaker's office and released publicly July 26. In that report, they wrote, "It is time for the administration to present its proposals and to show its commitment to passing the new NAFTA... ."
U.S.-China trade talks broke down over disagreements about the deal’s enforcement mechanism, said Michael Pillsbury, the director for Chinese strategy at the Hudson Institute. And as negotiations are expected to restart, Pillsbury said there is no guarantee a deal will be struck.