Jacob Kopnick

U.S. Trade Representative Michael Froman and Commerce Secretary Penny Pritzker reiterated support for Trade Promotion Authority and the Trans-Pacific Partnership in remarks on April 9, which coincided with the release of a new report on state-by-state trade data. The cabinet officials touted U.S. export gains as critical for U.S. economy growth, according to a USTR statement (here). Texas is the leading U.S. exporting state, with California, Washington state and New York trailing in that order, the report shows (here). The U.S. exported more than $700 billion worth of goods to TPP negotiating partners in 2014, as part of a record-breaking export year for the country, the report says. Some observers expect the Senate Finance Committee to mark up a TPA-led package before the end of April (see 1503310017). That legislation is widely viewed as necessary for TPP implementation.

U.S. trade negotiators likely won’t wrap up textile origin and tariff negotiations in the Trans-Pacific Partnership until the final stage of talks, said National Council of Textile Organizations President Auggie Tantillo in a March 25 briefing with reporters. The U.S. textile industry is continuing to fight to keep the yarn forward rule of origin for apparel “robust,” said Tantillo. NCTO will remain neutral on TPP until USTR releases the text, but is “positioning” to support Trade Promotion Authority, so long as the final package surrounding the bill doesn’t threaten the U.S. textile industry, he said.

The Office of the U.S. Trade Representative took a number of steps to expand Trans-Pacific Partnership transparency on March 18, first pledging several new ways to show TPP text to lawmakers and then holding a classified briefing with House Democrats on labor rules in the talks. USTR said it will now give congressional members full access to TPP text at a secure location in the Capitol, as well as “plain English” round-ups on TPP chapters. The agency also vowed to preview U.S. proposals with congressional committees before taking them to high-level TPP talks.

U.S. and Pakistani senior officials reviewed progress on the Joint Action Plan for implementation of the bilateral trade and investment partnership (TIFA) on March 12, the Office of the U.S. Trade Representative said in a statement (here). The U.S. and Pakistan have made headway in facilitating Pakistani mango exports to the U.S. and U.S. live cattle exports to Pakistan, said USTR. The two sides announced the action plan nearly a year ago, and at the time vowed to use that forum to sharpen intellectual property rights protections and implement the World Trade Organization Trade Facilitation Agreement, among other goals (see 14051326). The March 12 meeting came between TIFA formal sessions, said USTR. The March 12 summit also followed a March 9-12 trade trip by the Commerce Secretary and 140 representatives from U.S. companies, across a wide range of sectors. USTR called that trip a "success."

The fresh start in Transatlantic Trade and Investment Partnership talks is "not only well on its way but is in fact already happening," said European Trade Commissioner Cecilia Malstrom in a March 12 speech (here). The European Union is making particular headway through increased transparency, said Malstrom.

The text of the Trans-Pacific Partnership remains shielded behind closed doors, but U.S. compliance professionals are preparing for the sharp rise in trade flows and increased filing hurdles that are expected to accompany future implementation of the pact, several brokers and compliance consultants said in recent days. TPP chief negotiators are meeting in Hawaii this week, and speculation is rising over a conclusion to the deal. U.S. Trade Representative Michael Froman recently predicted a wrap-up of the talks at some point in 2015 (see 1502050058), but the U.S. has failed to meet deadlines set in the past by Froman and other TPP officials.

U.S. and Chinese negotiators have “basically completed” negotiations on the bilateral investment treaty text, the Chinese Commerce Minister said in recent days (here). The two sides are “advancing toward a period of exchanging the negative lists,” said a March 7 government press release that summarized Minister Gao Hucheng’s comments. President Barack Obama and Chinese President Xi Jinping months ago called for that exchange in early 2015 (see 1412190033). The negative lists include investment areas that won’t be subject to the investment treaty. “Given the US and China, the world’s biggest and second biggest economies, have different development levels, national conditions and growth modes, the negative lists exchange would be a challenge to each side,” said the release. Deputy U.S. Trade Representative Robert Holleyman traveled to Beijing on March 9, but USTR didn't disclose the details of his visit.

The Obama administration is challenging Chinese export subsidies across a wide-range of industries at the World Trade Organization, said U.S. Trade Representative Michael Froman and several lawmakers on Feb. 11. The U.S. asked China for WTO consultations over the subsidies, which are being provided to producers and exporters in the textile and shrimp export industries, among others, said lawmakers on Feb. 11 (here). If those talks fail, the U.S. may pursue a dispute settlement panel.

The Guatemalan government challenged the credibility of U.S. claims in an ongoing bilateral labor dispute under the Central American Free Trade Agreement, in a legal briefing made public by the Office of the U.S. Trade Representative in recent days (here). The Obama administration resumed litigation in the case in September 2014, and USTR recently asked for industry comments on the dispute (see 1501230021). The briefing argues the U.S. failed to make a compelling case, due to questionable testimony and otherwise poor substantiation. The U.S. says Guatemala is falling short of CAFTA-mandated labor protections, notably freedom of association and worker’s conditions, in the shipping, apparel, steel and agriculture sectors, (see 1411050013).

President Barack Obama’s fiscal year 2016 budget proposal revives a previously-floated but unapproved plan to consolidate some federal trade agencies into one agency, and the two largest food safety agencies into one shop as well, the White House said in its budget release on Feb. 2 (here). The budget proposal asks Congress to give the White House more power to unilaterally make consolidations and cuts. Obama has asked for that consolidation authority several times over recent years (see 12021417).