Budget favors restricting imports over promoting exports

 
Issue 84 | May 26, 2017
Budget favors restricting imports over promoting exports
 
President Donald Trump's proposed budget would shift funding away from the government's role in promoting exports and more toward U.S. trade cases that often result in tariffs on imports. Trump's budget would eliminate the U.S. Trade and Development Agency which aids the export of U.S. goods and services to high-profile development projects in developing economies and instead strengthen the International Trade Administration's trade enforcement and compliance functions. Read more.
 
White House's NAFTA renegotiation letter to Congress is surprisingly rational
 
U.S. Trade Representative Robert Lighthizer notified Congress last Thursday of the Trump administration's intention to renegotiate the North American Free Trade Agreement (NAFTA). In the letter, Lighthizer's remarks were surprisingly sensible and included none of the hostility that President Trump has recently directed at America's NAFTA partners, Canada and Mexico. The letter spoke of the importance of addressing intellectual property rights and digital trade, which didn't exist in 1993 when the deal was first signed. Read more.
 
Mexico and Canada say NAFTA should be re-negotiated trilaterally 
 
Mexico's Luis Videgaray and Canada's Chrystia Freeland presented a unified front in stating the NAFTA agreement should be re-negotiated with all three nations at the table. Just earlier this month, Trump had expressed that trade with Canada only needed a "tweak" whereas trade with Mexico needed a heaver revision. Videgaray, however, believes that Mexico's relationship with the U.S. runs deeper than Trump's "damaging" rhetoric and that both nations could resolve their issues in a constructive way. Read more.
 
NAFTA renegotiation: Dispute resolution emerges as sticking point
 
Under the U.S. Trade Promotion Authority, the U.S. is currently undergoing a 90-day domestic consultation regarding the country's objectives to re-negotiating NAFTA. Among the objectives, the idea to scrap or modify Chapter 19 of NAFTA, which deals with dispute settlement, is emerging as one of the most controversial aspects of the agenda. Chapter 19 states that in the case of a trade dispute, an independent binational panel must be formed to evaluate the situation and come up with a solution. U.S. industries that have been negatively affected by the open market argue that this chapter denies US industries their constitutionally protected rights of due process and judicial review. Read more.
 
Germany's trade surplus with the U.S. is ''win-win'' situation: economy minister 
 
German Economy Minister Brigitte Zypries addresses the trade surplus that Germany has over the United States, stating it is a win-win for the United States and Germany. In the first quarter, German surplus swelled to nearly 14 billion euros, which is the largest bilateral surplus Germany has with any other country, but Zypries points out most of the surplus comes from machinery and plants that Americans buy in order to build their economy to manufacture products. She indicated that trade surplus is reversed in service sectors where Americans have significant surplus over Germany. Read more
 
Trump to meet Vietnam's prime minister in White House next week
 
Trump will meet with Prime Minister Nguyen Xuan Phuc on May 31. This meeting comes several months after Trump withdrew from the Trans Pacific Partnership, a regional trade deal that included Vietnam. Trump, an advocate of bilateral trade agreements is expected to discuss trade with the Prime Minister of Vietnam. Read more.
 
 Regional Impact of the Renegotiation of the North American Free Trade Agreement (NAFTA)
June 21, 2017

Join the Global Initiatives Council as Joel Backaler, Managing Director of Global Marketing for Frontier Strategy Group provides an update on the potential regional implications of the NAFTA renegotiation. RSVP HERE.
Compiled by Global Coordinator Michelle Dong.

For more information, contact Jasmin Sakai-Gonzalez, 213.580.7569.
Los Angeles Area Chamber of Commerce, 350, Los Angeles, CA 90017
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