Trade News as of 03/21/2019

Too much trade news, not enough time to keep up? Here is a primer on recent developments:

USMCA approval process: The U.S.-Mexico-Canada Agreement, updated from NAFTA, faces an uncertain future as it makes its way through the US Congress. Discussion on lifting tariffs on steel and aluminum from Canada and Mexico have been a part of recent conversations.

Brexit: With Britain's exit from the EU scheduled for March 29, U.K. Prime Minister Theresa May and the U.K. parliament have continued debating how to proceed. After failing two times to pass the PM’s Brexit deal through Parliament, here’s what may happen next. Looking for an overall primer on Brexit? Click here.

EU-US trade talks: Following the July 2018 agreement between President Trump and European Commission President Jean-Claude Juncker to start trade negotiations, the two sides do not yet agree on the issues to negotiate. The US is highly interested in negotiating agriculture, while the EU is focused on lowering trans-Atlantic trade barriers on industrial goods. Yet, the European Commission’s Vice President Jyrki Katainen emphasized that it’s too soon to assume failed negotiations.

US-China: The Wall Street Journal reports that trade talks between the two nations are in the final stages, with a target deal set for the end of April. However, some U.S. officials are concerned that China may reverse course on certain commitments.

US-Brazil: Trade negotiations have opened between the US and Brazil to discuss the trade of meat, sugar and ethanol. Brazilian Agriculture Minister Tereza Cristina Dias will discuss expectations and the prospects of reopening the U.S. market for Brazil’s fresh beef exports.

India, Turkey, and the Generalized System of Preferences: On 03/04/2019, the US terminated India and Turkey’s designations as beneficiaries of developing countries under the GSP program. In retaliation, the Indian government is still considering tariffs on $10.6 billion worth of American-made products

Section 232: The U.S. Department of Commerce has initiated an investigation into titanium sponges. These sponges are a primary form of titanium metal used in a wide range of defense applications- helicopter blades to fighter jet airframes.