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Friday, June 21, 2019

Lighthizer Sounds Consistent Themes in Two Days of Hill Testimony

U.S. Trade Representative Robert Lighthizer spent two days this week testifying on trade issues – before the Senate Finance Committee and the House Ways & Means Committee.
On U.S.-China trade prospects, he labeled it a “big if” on whether a trade deal can be struck. He and Treasury Secretary Steve Mnuchin will meet with Vice Premium Liu He in Osaka, Japan to lay the groundwork for meeting between President Donald Trump and Chinese President Xi Jinping.
Lighthizer will also talk with Liu yet this week, he noted. "When actual negotiations begin again, I cannot say at this point, but we are talking, we are going to meet," Lighthizer observed.
As for Japan, Lighthizer acknowledged to both chambers that U.S. agriculture is going to be “treated worse than our competitors” due to Japan’s trade deal with the European Union (EU) and the successor deal to the Trans-Pacific Partnership (TPP).
“We understand the nature of this problem and our farmers are going to lose that market,” he stated. He reiterated a hope of striking an ag-related deal with Japan in the “weeks and months ahead.”
On the U.S.-Mexico-Canada Agreement (USMCA), Lighthizer warned lawmakers it would be a “catastrophe” not to approve the deal. "If we are in a position where we literally cannot pass this agreement, what does that say about our resolve to have a fair-trading system?" he observed, noting China and others will be watching the issue closely.
As for new bilateral trade deals, the issue surfaced in particular on the House side. Lighthizer explained his basic views on such efforts. Asked about the potential for one with Switzerland or others, Lighthizer said,
“When I am asked about this, I always say to myself, ‘Tell me what more we are going to sell you, right?’ I want to know why this is going to make somebody, somewhere in America … a little bit richer. If it does not do that, it is probably not worth my time,” Lighthizer concluded.
President Donald Trump accelerated expectations for positive results of the now-scheduled meeting with Chinese President Xi Jinping at the G20 summit next week in Osaka, Japan.
Trump, who revealed he had a “long talk” with Xi on the phone Tuesday morning, said “China very much wants to discuss the future and so do we.”

Trump predicted a “very good chance” of working out a trade agreement and that some lower-level discussions would begin Wednesday. “I think China wants to make a deal. They do not like the tariffs. A lot of companies are leaving China in order to avoid the tariffs,” Trump said to reporters.