No progress has been made on any of the pending FTA agreements. Trade Promotion Authority (TPA), by which Congress grants authority to the Administration to negotiate trade agreements, expired on July 1, severely hampering any progress on new agreements. It remains unclear when Congress might extend TPA. While some in Congress are pushing to complete the UK FTA, there has been no progress given the expiration of TPA which would ensure the agreement is considered by Congress. Without that assurance, the UK continues to focus its attention on wrapping up other deals post-Brexit. On the UK side, the lead UK negotiator has now taken a new position. The UK seems to be turning its attention to joining the TPP. Some in Congress are asking the Administration for the US to enter the TPP, but again, that is made difficult without negotiating authority under TPA. The Administration has stated its priorities are review and enforcement of existing trade deals before gaining TPA or pursuing new agreements. In that regard, USTR recently completed a review of the implementation status of USMCA with Canada and Mexico, and on a positive note, progress has been made with the EU in settling the Air Bus – Boeing case. An agreement was reached to suspend for now the retaliation until a solution can be reached. The Administration is looking for ways to deal with China. This is getting careful attention. This is both on trade and military considerations as there is growing concern about China’s action in Hong Kong, Taiwan, and the South China Sea. This will continue to receive close attention and color any trade discussions. For example, the US has now begun trade discussions with Taiwan because of China’s actions. This is a first and will be found offensive by China and could trigger retaliation. Considerable attention is being given to climate change by the Administration. This has increased attention on carbon sequestration. USDA is working to find a way for this to be a new income crop for farmers. The Senate Agriculture Committee recently passed the Growing Climate Solutions Act, a bill to help farmers sell carbon credits. This bill will pass the full Senate and the House will pass a similar bill
later this summer. The chair of the relevant subcommittee, Conservation and Forestry, is the chief House sponsor of the bill. This proposal will become law in some form. The Competition Policy, Antitrust and Consumer Rights subcommittee of the Senate Judiciary Committee is scheduled to hold a hearing on agriculture in September. Given the allegations made by the Department of Justice regarding the exercise of market power by Dairy Farmers of America, a review of the limits of cooperatives’ protection under the Capper Volstead Act could be part of the hearing agenda. Both Democrat and Republican House members are concerned and watching closely how the new House Districts will be drawn as a result of the 2020 Census. For the first time in the history of the State, California will lose a House seat, which means Congressional Districts will change. Typically, the Census data is released by March 31, but due to delays in collecting the data during the COVID-19 pandemic, the Census Bureau has announced that it will release the redistricting data by September 30, compressing the State’s time to draw new districts. This needs to be watched closely. This fall will be busy as attention begins to focus on next November’s Congressional elections. By then all the aspiring Presidential candidates will be in full swing seeking to obtain the nomination. The Administration will be working hard to preserve the Democratic majority in both the House and Senate. As a result, it is foreseeable that both climate change, infrastructure and trade will receive increased attention.
Blue Diamond Advocate Julian Heron, Partner, Tuttle Taylor & Heron
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