Trade & Manufacturing - News of Note - September 2019

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U.S.-China Trade Relationship Begins to Thaw After a Period of Tension

Clint Long

On August 25, 2019, President Trump and Japan's Prime Minister Shinzo Abe announced that the United States and Japan had reached an agreement "in principle" relating to three trade issues: industrial tariffs, agriculture, and digital trade. U.S. Trade Representative Robert Lighthizer explained that the deal on industrial tariffs will result in tariff reductions on certain products, but that existing U.S. tariffs on Japanese automobiles and major automobile parts would not be reduced. President Trump and Prime Minister Abe announced the deal at the G7 summit in France, stating that they hoped to sign an agreement at the United Nations General Assembly this month.

Abe noted that the agreement resulted from “a series of intensive negotiations” between the countries and represented a “win-win” scenario for the two countries. He explained that the two countries had “successfully reached consensus with regard to the core elements related to agricultural and industrial trade,” but added that there is still “work that needs to be done” on the agreement.

The announcement received a position reception in the United States. For example, the Chamber of Commerce welcomed the news but encouraged the Trump administration to strike a more comprehensive agreement with Japan that covers other issues, such as services, regulatory barriers to trade, and intellectual property protection. “American companies and agriculture exporters are at a clear disadvantage to their Asia-Pacific and European counterparts in the absence of a comprehensive trade deal with Japan," the Chamber explained. The United States had entered into a comprehensive trade agreement with Japan as part of the 12-nation Trans-Pacific Partnership (“TPP”) but President Trump withdrew from the TPP at the beginning of his term.

Two New Commissioners Join the U.S. International Trade Commission

Pat Togni

Two new Commissioners have joined the United States International Trade Commission (“ITC” or the “Commission”). Commissioner Randolph J. Stayin, a Republican from Virginia, was sworn in as a member of the Commission on August 23, 2019, for a term expiring on June 16, 2026. Commissioner Amy A. Karpel, a Democrat from Washington State, was sworn in as a member of the Commission on August 26, 2019, for a term expiring on June 16, 2023.

Prior to joining the ITC, Commissioner Stayin worked on international trade matters for more than 40 years in private practice. He also served as Chief of Staff and Director of Legislation for Senator Robert Taft, Jr. (R-OH). Prior to joining the ITC, Commissioner Karpel spent more than a decade at the Office of the United States Trade Representative (“USTR”), serving as Chief Counsel for Negotiations, Legislation, and Administrative Law, among other things. Commissioner Karpel also worked in private practice on international trade matters.

Each Commissioner is nominated by the President and confirmed by the United States Senate. Federal law provides for a total of six Commissioners, with not more than three of the Commissioners being registered as a member of the same political party. The two new Commissioners replaced current Commissioner Irving Williamson and Commissioner Meredith Broadbent.

The Commission’s mission is to “investigate and make determinations in proceedings involving imports claimed to injure a domestic industry or violate U.S. intellectual property rights,” “provide independent analysis and information on tariffs, trade and competitiveness,” and “maintain the U.S. tariff schedule."

 

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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