The following article is excerpted from the 18 February 2010 edition of “WorldTrade Interactive”.
Trade issues, relatively neglected in 2009 as a new president and a strengthened Democratic majority in Congress focused on other issues, are set to take on a larger profile in 2010 as policymakers look to trade to help boost domestic employment. The Obama administration is expected to focus on negotiating two multilateral agreements and strengthening enforcement of existing pacts.
Congress, meanwhile, will consider issues such as trade preference reform and food safety as well as a customs reauthorization bill&hellip.
Pending FTAs. In recent weeks administration officials have repeatedly signaled an interest in advancing the free trade agreements the U.S. has already negotiated with Colombia, Panama and South Korea. These FTAs have languished for several years due to congressional concerns about labor rights in Colombia, Panama’s status as a tax haven and limited access to Korea’s auto and beef markets. …
New FTAs. Although the Doha Round negotiations are unlikely to see much if any progress this year, the Obama administration is pursuing only one new FTA, a regional agreement dubbed the Trans-Pacific Partnership that currently encompasses Singapore, Chile, Brunei, New Zealand, Australia, Peru and Vietnam. This choice appears to signal a focus on more commercially significant FTAs that would provide meaningful export opportunities, which could be easier for Congress to accept…
China. Until recently, neither the Obama administration nor Congress had much interest in pushing China on trade irritants for fear of jeopardizing economic recovery efforts, among other things. That may well change in 2010. The administration is making a major effort to double exports over the next five years as part of an effort to increase domestic employment, and observers say further opening China’s market will be vital to that initiative. …
Customs Reauthorization. Prompted in large part by trade community concerns that U.S. Customs and Border Protection needs to restore the balance between its trade facilitation and trade enforcement efforts, a wide-ranging customs reauthorization bill was introduced in the Senate last August, received a hearing by the Senate Finance Committee in October, and could be marked up this April or May. A similar bill is currently being drafted in the House.
Prospects for this legislation are unclear. Progress could be slowed if jurisdictional issues arise among the congressional committees that oversee trade and homeland security. In addition, the trade community is expected to seek the removal or revision of certain provisions, including one that would allow import data collected for national security reasons to be used for commercial enforcement efforts&hellip.
Mexican Trucks. In March 2009, Mexico imposed tariffs of 10% to 45% on $2.4 billion worth of U.S. exports in retaliation for the termination of a U.S. pilot project that allowed up to 100 Mexico-domiciled motor carriers to operate beyond the border commercial zones and the same number of U.S. carriers to operate in Mexico. Affected products include Christmas trees; certain fruits, vegetables, juices and nuts; health and beauty items; tableware, kitchenware and glassware; manmade fiber yarn; carpets; jewelry; home appliances; sunglasses; and pens and pencils.
Despite pleas for action by affected U.S. industries, the Obama administration had done little to address this issue. That changed recently when USTR Ron Kirk visited Mexico City and said there is “a sense of urgency” to find a solution.
