A bipartisan letter from 33 House members representing pecan-growing states asks U.S. Trade Representative Robert Lighthizer to argue for lower tariffs on U.S. pecans imported by India as part of an agreement to reinstate that country's participation in the Generalized System of Preferences benefits program. The Oct. 15 letter, led by Georgia Reps. Austin Scott (R) and Sanford Bishop (D), said the 36% tariff on pecans makes it difficult for American producers to compete in the market.
A task force led by Republican House members recommended more trade agreements, engagement at the World Trade Organization, and “a strategic plan for Phase Two negotiations” with China to address distorting subsidies, dominance of state-owned enterprises that dictate the terms of trade and data, and forced tech transfer and joint venture requirements. It also said the U.S. should be aggressive in enforcing the China phase one agreement, particularly on forced tech transfer, intellectual property and barriers to agriculture imports.
Market access negotiations needed to return India to the Generalized System of Preferences benefits program may be mostly “sorted out,” India's Economy Minister Piyush Goyal said in a speech to the U.S.-India Strategic Partnership Forum Sept. 1. His office summarized some points about the deal, which was described as foundational, in a series of tweets. U.S. Trade Representative Robert Lighthizer “and I agreed that we can look finalising before the election, but otherwise soon after the election,” he said. “The entire package is nearly ready and can be finalised at any time. India is open to signing tomorrow on what we have agreed on.”
After the first high-level review of the phase one trade deal, the principals talked about progress and ensuring the success of the U.S.-China trade agreement, but some believe the happy talk can't obscure that China and the U.S. are disentangling their mutual dependency in tech goods and services. “There is a re-alignment that is happening in real time,” Rideau Potomac Strategy Group President Eric Miller said in an Aug. 25 phone interview, the day after the call. U.S. and Chinese trade officials reemphasized their commitment to the phase one agreement during the Aug. 24 call, the Office of the U.S. Trade Representative said.
Any future Section 301 exclusion renewals will only last until the end of the year, U.S. Trade Representative Robert Lighthizer told the House Ways and Means Committee as he testified June 17 about the administration's trade agenda, adding that “they will decide what happens after that.”
The United Kingdom’s Department for International Trade corrected several errors in its guidance for trading with developing nations under the U.K.’s Generalized Scheme of Preferences, according to a May 1 notice. The corrections add Samoa and Tonga to the standard GSP listing and remove Jordan, Nicaragua and “Occupied Palestinian Territories.”
Certain Vietnamese companies exporting to the European Union, Switzerland or Norway under the Generalized System of Preferences benefits program have until June 30 to obtain authorization from Vietnam’s commerce and industry authority, according to an April 29 report from the Hong Kong Trade Development Council. Vietnamese companies exporting goods valued at more than $6,500 must obtain an EU Registered Exporter number, the report said, but lesser-value exporters will be allowed to “self-issue” their certificates of origin without a registered exporter number.
At a press event during President Donald Trump's visit to India, both he and Prime Minister Narendra Modi were vague on how trade tensions might be eased between the two countries. A senior administration official said before the trip that India's announcement of higher tariffs precluded a mini-deal that would have restored India to the Generalized System of Preferences benefits program (see 2002210041). Trump said he'd been talking with Modi about how to forge an economic relationship “that is fair and reciprocal. Our teams have made tremendous progress on a comprehensive trade agreement and I’m optimistic we can reach a deal that will be of great importance to both countries.” He said U.S. exports to India are up nearly 60 percent since he took office.
Senate Finance Committee Chairman Chuck Grassley, R-Iowa, said he doesn't expect the U.S. to negotiate over the tariffs it has put on European goods like Airbus planes, Scotch whiskey, French wine, and Spanish wine and olive oil until the World Trade Organization rules on Boeing subsidies. Currently, there are 10% tariffs on Airbus planes and 25% tariffs on the wine, liquor and food items; the aircraft tariff is set to climb to 15% on March 18. The Boeing ruling is not expected for several months.
While a small deal could be announced during President Donald Trump's trip early next week to India, senior White House officials say that will be purchase announcements, not a full or partial restoration of India to the Generalized System of Preferences benefits program. While they declined to go into specifics on what the sticking points have been in talks on improving market access, they noted that the complaints of U.S. exporters are well known.