Trump administration faces crunch week on trade
WASHINGTON: President Donald Trump’s trade team faces a crunch week as they juggle talks on multiple sensitive issues representing hundreds of billions in trade amid pressing deadlines.
High-stakes negotiations will take place with China, the European Union and Washington’s two North American Free Trade Agreement partners.
And while the talks have been going on for weeks and months, key deadlines are fast approaching – critically for NAFTA.
Officials have been working furiously to update the 24-yearold trade pact that Trump called “a horrible, horrible disaster for this country.”
Trump spoke to Canadian Prime Minister Justin Trudeau on Monday and discussed bringing the talks to quick conclusion, officials from both countries said.
But outgoing House Speaker Paul Ryan said last week he would need a written agreement for the US Congress to approve a revamped trade pact this year, while Republicans still control the legislature – something that could change in November’s midterm elections.
The talks are hung up on Washington’s demands to increase the US-made components in vehicles that receive duty-free status in NAFTA and the clock is running out.
US Commerce Secretary Wilbur Ross said those and other issues remained a ‘work in progress’ but the trade ministers from Canada and Mexico who were in Washington last week stressed they would not be pressured to reach a deal.
The NAFTA revision is vital for another reason: the exemptions for Canada and Mexico from the steep US tariffs on steel imports expire June 1.
Unless officials agree on terms covering steel and aluminum, the tariffs would take effect.
Ross said the tariffs decision would depend on how the talks progressed but added this was “unforecastable at the moment.”
The EU also faces the same June 1 deadline when the tariff exemptions expire.
Ross said he would speak with EU Trade Commissioner Cecilia Malmstroem on Tuesday.
“I hope to get a reasonable conclusion,” Ross said, but “if not they will go into effect.”
He said other countries, like South Korea, had agreed to export quotas that would have the same effect as tariffs but so far European officials “haven’t agreed to anything.” — AFP