Trade News as of 1/30/19

Brexit: On March 29, 2019, the UK is expected to leave the European Union as a result of the 2016 UK public referendum – recent developments can be found here. Brexit is expected to directly impact U.S. exports, as the UK acts as a US doorway to the European Union.

CPTPP: The Comprehensive and Progressive Agreement for Trans-Pacific Partnership came into effect on December 30, 2018. This deal is a result of 11 nations implementing the promises of the original Trans-Pacific Partnership that the US left in 2017. Four more countries- Brunei, Chile, Malaysia and Peru- are pursuing government ratification for the deal.

Reciprocal Trade Act: Congress is reviewing draft legislation to give the President unilateral authority to increase U.S. tariffs on imports from any foreign country without congressional oversight. A bipartisan group of House and Senate lawmakers is simultaneously preparing legislation to limit the president’s ability to impose tariffs for national security reasons.

USMCA: The trilateral deal is still pending congressional ratification from the three parties involved- Canada, Mexico and the USA.

• Pharmaceuticals: Aspects of the bill relating to the pharmaceutical industry have been getting attention, because a section of the agreement contains language extending the time a drug can be protected from generic competition.
• Indiana: USTR released a factsheet that details the connection of USMCA to local Indiana production, businesses and workers.

US Trade-China: Trade negotiations are set for January 30, as the continuing trade conflict between the US and China continues. In late January, Chinese representatives met with officials from the World Trade Organization in an attempt to block U.S. tariffs on Chinese imports.

World Economic Forum: Amidst the US government shutdown, President Trump cancelled the US delegation’s trip to Davos for the January 22-25 World Economic Forum. Globalization, populism, and Brexit were among the key topics discussed over the weekend conference.