Trade & Manufacturing - News of Note - April 2017

King & Spalding
Contact

United States and Japan May Discuss Trade Agreement
Saud Aldawsari

Japanese Finance Minister Taro Aso has expressed a desire that ongoing economic dialogue between the United States and Japan include discussions on free trade and investment. An agreement on a framework for consideration of these issues was reached after the first official summit between Japanese Prime Minister Shinzo Abe and President Trump in the United States. As part of this agreement, a new platform for economic dialogue will be chaired by Minister Aso and U.S. Vice President Mike Pence. The framework will serve as the primary forum for bilateral economic discussion on free trade and investment following withdrawal from the Trans-Pacific Partnership by the United States. Japan reported that Vice President Pence will visit Tokyo next month and that the U.S. and Japan will hold the first round of bilateral talks on April 18. The White House has yet to make an official announcement.

Senate Finance Committee Holds Confirmation Hearing for U.S. Trade Representative Nominee Robert Lighthizer
Quinn Bailey and Ben Bay

United States Trade Representative (USTR) nominee, Robert Lighthizer, received a warm bipartisan welcome at his March 14 confirmation hearing.

Lighthizer, who previously served as deputy USTR during the Reagan administration, has spent the majority of his career in private practice. His confirmation hearing focused on the ways in which he would use his expertise in trade litigation to fulfill the campaign promises made by Donald Trump.

Among the topics examined were the merits of the North American Free Trade Agreement, the future of trade agreements in the wake of the failed Trans-Pacific Partnership, and the usefulness of governing trade bodies such as the World Trade Organization (WTO) in resolving disputes. Lighthizer walked a fine line, speaking more generally than specifically, both discussing the potential for utilizing the WTO in resolving disputes, but also admitting he didn’t “believe the WTO is set up to deal effectively with a country like China and their industrial policy.” He also downplayed the necessity of reducing the trade deficit, instead focusing on the importance of market efficiency and “breaking down trade barriers.”

Lighthizer’s nomination has drawn praise from both sides of the aisle for his extensive experience in an area of policy that has already been a key focus of this administration. His nomination, however, remains pending in the Senate as part of ongoing negotiations regarding extension of the Miners Protection Act.

China Sets 2017 Goal to Cut Steel and Coal Capacity
Lingna Yan

On March 5, China’s Premier Li Keqiang vowed to cut another 50 million tons of steel capacity and 150 million tons of coal capacity this year, when delivering the government’s annual working report to the National People’s Congress. The Chinese central government has struggled with eliminating backward and excessive steel and coal capacities for more than a decade. In 2016, China had cut more than 65 million tons of steel capacity and 290 million tons of coal capacity. On March 9, sixteen Chinese central government agencies published new guidelines to promote eliminating backward capacities via multiple means including providing government grants and using differential electricity and financing policies. The guidelines give priorities to five industries including the steel industry and the coal industry.

 

 

 

 

 

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.

© King & Spalding | Attorney Advertising

Written by:

King & Spalding
Contact
more
less

King & Spalding on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide