Trade

Mexico committed in writing this week to pursue the labor reforms included in the U.S.-Mexico-Canada Agreement (USMCA). Mexican President Andrés Manuel López Obrador wrote to House Ways and Means Committee Chairman Rep. Richard Neal, D-Mass., on Oct. 17, detailing steps Mexico is taking to implement its labor justice reform law. In the letter, Obrador vowed to continue reforms to increase the minimum wage and  “restore democracy” to trade unions. He also said the Mexican government will ensure the projects are sufficiently funded. “The labor reforms that are underway today…will ... Read More

After the White House announced a “phase one” trade agreement between the U.S. and China, Chinese officials this week said the United States must remove existing tariffs before the two countries can reach a final agreement. “China’s position, principle and goal for the China-U.S. trade negotiations has never changed,” said Chinese Ministry of Commerce spokesman Gao Feng during an Oct. 17 press conference. “Both sides’ ultimate goal for the negotiations is to end the trade war, cancel all additional tariffs. This is good for China, good for the U.S. and good for the world.” Under the ... Read More

The White House on Oct. 11 announced a “phase one” agreement in principle with China. Under the tentative agreement for the first phase of a trade deal, China allegedly will commit to purchase $40 billion to $50 billion annually worth of U.S. agricultural products, increasing gradually to that level over a two-year period.  Importantly, during a White House press conference, U.S. Trade Representative Robert Lighthizer also said that the agricultural agreement will “correct a variety of sanitary and phytosanitary and biotechnology issues,” although he provided no details on what had ... Read More

By Max Fisher, Director of Economics and Government Relations, and Sarah Gonzalez, Director of Communications and Digital Media, President Donald Trump on Oct. 7 signed the first stage of a U.S.-Japan Trade Agreement that will lower agricultural tariffs in Japan and industrial tariffs in the United States, as well as provide rules for digital trade. After Japan’s legislature ratifies the agreement, it is scheduled to take effect Jan. 1, 2020.  But the deal does not address autos, which have been a significant point of contention during negotiations, and the two countries still ... Read More

World Trade Organization (WTO) economists have downgraded their forecasts for trade growth in 2019 and 2020 given escalating trade tensions and a slowing global economy, according to an Oct. 1 WTO press release. Export and import growth slowed across all regions and at all levels of development in the first half of 2019, WTO said. World merchandise trade volumes now are expected to increase by only 1.2 percent in 2019, substantially slower than the 2.6 percent growth forecast in April. The projected increase in 2020 now is 2.7 percent, down from 3 percent previously. The economists said ... Read More

China is buying more U.S. agricultural commodities ahead of the next round of trade talks scheduled to begin Oct. 10 in Washington. Chinese buyers purchased more than 1.5 million metric tons of U.S. soybeans last week, according to data from the U.S. Department of Agriculture (USDA), and have purchased at least 716,000 tons this week. USDA also reported on Oct. 3 that China bought 130,000 metric tons of U.S. white wheat – the first large purchase of the grain since China implemented a 25 percent tariff on U.S. wheat last year. President Trump has planned tariff hikes on Chinese goods ... Read More

By Sarah Gonzalez, Director of Communications and Digital Media The Trump administration this week announced it will impose retaliatory tariffs on European agricultural products, among other items, starting this month. The decision comes after the World Trade Organization (WTO) on Oct. 2 granted the United States permission to tax as much as $7.5 billion of European exports annually to retaliate for European subsidies to the plane manufacturer Airbus. Starting Oct. 18, the United States will impose 25 percent duties on European dairy products, pork, wine, certain fruits and many other ... Read More

There were indications Oct. 4 that the drafting of the formal text of the agricultural trade agreement announced in principle late last month by President Trump and Japanese Prime Minister Shinzō Abe has been completed, and will be ready to be signed by the two countries very soon. The accord was presented for review to the Japanese Diet (its Parliament) on Oct. 4, whose approval is expected soon.  The agreement will not require ratification by the U.S. Congress, since it was crafted as a resolution to a Section 301 steel and aluminum national security trade proceeding brought by the ... Read More

By Sarah Gonzalez, Director of Communications and Digital Media; and Randy Gordon, President and CEO The United States and Japan announced this week a limited trade deal that includes Japan opening its markets to more than $7 billion in U.S. agricultural products. President Donald Trump and Japanese Prime Minister Shinzō Abe announced the agreement during a Sept. 25 meeting on the sidelines of the United Nations General Assembly meeting in New York. “Japanese tariffs will now be significantly lower or eliminated completely on beef, pork, wheat, cheese, corn, wine and so much more,” ... Read More