President Trump Issues Two Additional Trade-Related Executive Orders
Marina Lleonart Calvo and Clint Long
On April 29, 2017, President Donald Trump signed two executive orders (EOs) on issues related to international trade: (1) a Presidential Executive Order Addressing Trade Agreement Violations and Abuses (EO 13796); and (2) a Presidential Executive Order on Establishment of Office of Trade and Manufacturing Policy (EO 13797).
EO 13796 directs the Secretary of Commerce and USTR, in consultation with other heads of executive departments and agencies, to conduct an investigation focusing on the “violations or abuses” afflicting U.S. free trade and investment agreements — including the rules of the WTO. The Secretary of Commerce and USTR are to deliver a status report on the country’s trade agreements within 180 days of the date of the EO (April 29). EO 13797 establishes the Office of Trade and Manufacturing Policy (OTMP). The OTMP is an extension of President Trump’s “hands on” approach to trade, and its goal is “to defend and serve American workers and domestic manufacturers while advising the President on policies to increase economic growth, decrease the trade deficit, and strengthen the United States manufacturing and defense industrial bases.”
Both EOs form part of the administration’s comprehensive review and reformation of U.S. trade policy, which, as reported in previous alerts, has thus far addressed the trade deficit, “Buy American” legislation, pipeline and infrastructure projects, and other significant trade and manufacturing issues.
Comments Submitted To Commerce Regarding China’s Nonmarket Economy Status
Richard Lutz and Quinn Bailey
On May 10, 2017, a wide range of parties submitted comments to Commerce regarding whether China should continue to be treated as a non-market (NME) economy under the antidumping and countervailing duty laws. NME treatment refers to the use surrogate value information in antidumping proceedings in lieu of Chinese price and cost information. Proponents of continuing China’s NME status assert that the country has not met the necessary criteria for graduating to market economy status. Factors considered by Commerce in making this determination include convertibility of currency, the extent of free bargaining wage rates, the extent to which foreign investment is permitted, the extent of government ownership over the means of production, the extent of government control over the allocation of resources and over price and output decisions of enterprises, and other relevant factors. China claims that it is entitled to automatic market economy status as part of its Protocol of Accession to the WTO, and characterized Commerce’s NME review in a short, non-substantive response to the agency’s request for information as “irrelevant.” Commerce plans to issue its final determination on the review of China’s NME status prior to the preliminary determination in the Aluminum Foil Less-Than-Fair Value investigation, which is currently scheduled for August 15, 2017.
Global Safeguard Petition Filed On Crystalline Silicon Photovoltaic Cells And Modules
Alexandra Carr and Liz Owerbach
On April 26, 2017, a U.S.-based solar manufacturer, Suniva, Inc., filed a petition with the ITC for global safeguards under Section 201-202 of the Trade Act of 1974. Suniva’s petition attributes injury faced by U.S. solar manufacturers to an increase of foreign imports. In Section 201 investigations, also known as Safeguards Investigations, if the ITC issues an affirmative injury determination, the agency recommends a remedy which will ultimately be decided by the President. Unlike antidumping and countervailing duty investigations which are limited to one or several specified countries, a Safeguards case is a global investigation of U.S. imports regardless of origin.
On May 23, the ITC announced that it would institute the Safeguards Investigation, which will cover “CSPV [crystalline silicon photovoltaic] cells, whether or not partially or fully assembled into other products, including, but not limited to, modules, laminates, panels, and building-integrated materials.” The first hearing is scheduled for August 15, 2017.
