WEEK OF 2021.06.22

News, Views & Items of Interest Relevant to the Carolina Region
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In this issue of the CWTA International Trade & Commerce Advocacy Newsletter, we want to update you on critical American actions that affect the arena of international trade. President Biden's trip to the United Kingdom and to the G7 in Brussels has reclaimed the U.S alliance with NATO. His meetings with European leaders have addressed a number of topics and his meeting with Russia's Vladimir Putin in Geneva revealed new approaches to American security and to U.S. engagement around the globe. The printed selections and videos below will help you understand more about our changing world and the opportunities for your business activity.

Bipartisan Effort in U.S. Senate will Boost U.S. Tech Industry to Compete with China!

The U.S. Senate voted 68-32 on Tuesday to approve a sweeping package of legislation intended to boost the country's ability to compete with Chinese technology.

The desire for a hard line in dealings with China is one of the few bipartisan sentiments in the deeply divided U.S. Congress, which is narrowly controlled by President Joe Biden's fellow Democrats.

The measure authorizes about $190 billion for provisions to strengthen U.S. technology and research - and would separately approve spending $54 billion to increase U.S. production and research into semiconductors and telecommunications equipment, including $2 billion dedicated to chips used by automakers that have seen massive shortages and made significant production cuts. [Reuters]

What's At Stake Between U.S. and EU

US and EU to End Trump’s $18 Billion Tariff Fight

U.S. EU Trade
European Union leaders and President Joe Biden will commit to ending outstanding trade battles when they meet next week and promise to remove tariffs related to a steel and aluminum conflict before the end of the year.

That is according to a draft of the conclusions seen by Bloomberg News ahead of an EU-U.S. summit in Brussels on June 15.

It spells out that the allies will agree to resolve disagreements, including a nearly two-decade-old aircraft dispute next month that came to a head under the Trump administration and contributed to more than $18 billion in U.S. and EU exports subject to painful levies.

The Americans and Europeans will pledge to finding a solution to the aircraft issue—which involves illegal government aid provided to Boeing Co. and Airbus SE—before July 11, according to the draft, which is still subject to changes. The U.S. and EU had already agreed to suspend their aircraft tariffs until July to facilitate a settlement.

This version of the summit conclusions has been seen by both the EU and U.S. which means it’s more reflective of the final outcome than earlier drafts. [Bloomburg]
2018 GBE-Econographic-US-EU_Trade

U.S., EU Agree to Trade Deal That Stands Up to China

U.S. President Biden at European Union Leaders Summit
On his first overseas trip as president, Joe Biden’s plans for an international coalition that can stand up to Beijing are starting to come into focus.

The settlement on aircraft subsidies sealed Tuesday ahead of his talks with senior European Union officials in Brussels not only parks $11.5 billion of tariffs for the next five years, it also includes a commitment for the U.S. and the EU to tackle, together, “non-market practices of third parties” which could threaten Boeing Co. and its European rival Airbus SE.

That’s code for China. Officials in Washington and Brussels say that Beijing has exploited the gaps in the World Trade Organization’s rulebook to deploy as much as $500 billion of state aid giving its companies an unfair advantage in global trade. And Biden made clear that he aims for this to be just the start. “It’s a model we can build on for other challenges posed by China’s economic model,” the president said in an emailed statement after the deal.

U.S. Trade Representative Katherine Tai told reporters that the deal includes a commitment for “concrete joint collaboration to confront squarely the threats that we experience and will experience from China’s ambition to build an aircraft sector on non-market practices.”

The EU signed up to the deal despite its reluctance to match Washington’s assertive line on China. The bloc’s approach to China has been hardening since the spring when a tit-for-tat sanctions fight with Beijing over its alleged human-rights abuses in Xinjiang left their landmark investment deal in limbo. The EU also agreed to a deal with Canada on Wednesday to secure supply chains for critical raw materials that don’t rely on China.

In an interview with Bloomberg Television, EU trade chief Valdis Dombrovskis listed a whole series of flaws in the global trading system that the U.S. and the EU want to attack together, including opaque subsidy regimes, unfair competition from state-owned companies and “forced technology transfers.”

“Many of those elements stem from the structural model of China,” he said. “The EU is definitely very much willing to discuss and cooperate with the U.S. specifically on China — that’s not an issue here.”

The aircraft truce comes as U.S. and European officials recognize that China’s state-sponsored aerospace manufacturer Commercial Aircraft Corp. of China, or Comac, is on track to become a serious rival to Boeing and Airbus by the end of the decade. [supplychainbrain.com]

The Time Is Now for a Trade Deal With Taiwan

“A comprehensive U.S.-Taiwan trade agreement would benefit U.S. companies, bolster Taiwan’s economic security, and underscore Washington’s interest…”
Taiwan Trade1
U.S. Secretary of State Antony Blinken made headlines when he signaled during congressional testimony that the United States would be resuming its suspended trade dialogue with Taiwan. U.S. Trade Representative Katherine Tai followed up by meeting virtually with her Taiwanese counterpart last Thursday, where they agreed to convene the Trade and Investment Framework Agreement (TIFA) Council “in the coming weeks.”

This is a welcome and overdue development, but it is still not enough. Instead, the time is ripe for the United States to begin negotiations with Taiwan on a comprehensive bilateral trade agreement.

Taiwan is the United States’ ninth-largest trading partner and its seventh-largest destination for agricultural exports, with total trade in goods valued at $90 billion in 2020. Trade with Taiwan supports over two hundred thousand U.S. jobs. Taiwan also occupies a central position in global technology supply chains, in particular semiconductors. The United States trades more with Taiwan than it does with India, France, or Italy. Beyond trade, Taiwan is an important partner on regional and global issues, working with the United States on everything from climate change to global health, anticorruption, women’s empowerment, sustainable development, and counterterrorism.

U.S.-Taiwan trade agreement would increase the island’s economic and national security while further opening an important market for U.S. exports. It would signal support for an important partner and underscore the U.S. interest in cross-strait stability. The time is right for an ambitious U.S.-Taiwan trade agenda.

Carolina World Trade Association

Founded in 1964, CWTA is a chapter of the North Carolina World Trade Association (NCWTA), which promotes growth of trade between North Carolina and the world by providing education and networking opportunities for our global ecosystem.

As a business-driven non-profit organization, CWTA’s mission is to promote, foster and encourage international commerce success and expand economic growth in the Carolinas region. We do this by:
  • Advocating the interests of businesses engaged in international trade on local, regional, state, and federal levels;
  • Educating businesses and their employees to the resources, issues, policies, and practices within international trade;
  • Promoting regional assets and opportunities for expanding inbound and outbound international commerce; and
  • Celebrating the successes of international trade in the region.
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