The Trump administration has said it will focus on new trade agreements with the UK, the European Union and Kenya this year, while continuing to “aggressively” enforce US trade laws and advocating for further changes at the WTO.
In its 2020 Trade Policy Agenda and 2019 Annual Report to Congress, the US Trade Representative’s (USTR) office outlined the work completed over the last year, including a trade agreement with China, the replacement of NAFTA with “a more modern” trade agreement, and new agreements with Japan.
Over the coming year, the USTR says the administration will focus on new trade agreements “that benefit all Americans”, enforcing the nation’s trade laws to ensure its trading partners “play by the rules”, and updating the World Trade Organization (WTO).
Specifically, the USTR says as part of a trade agreement with the UK, the US seeks to eliminate certain tariff and non-tariff barriers and aims to achieve “a fairer and deeper” trade relationship with the UK.
With Kenya, the US says it is looking for a trade deal that will “complement Africa’s regional integration efforts”, including the “landmark” African Continental Free Trade Area (AfCFTA). The administration says it envisions a trade agreement with Kenya that can serve as a model for additional agreements in Africa, leading to “a network of agreements that contribute to Africa’s regional integration objectives and serve as an enduring foundation to expand US-Africa trade and investment across the continent”.
Meanwhile, the USTR says it hopes a recent change in administration in the EU, and the appointment of a new Trade Commissioner, will enable “more progress in the coming year than has been possible in prior years” on a new deal.
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By GlobalData“For many years, US businesses have been at a disadvantage in doing business in the EU,” the USTR says. “Both tariff and non-tariff barriers in the EU have led to increasing, and unsustainable, trade deficits with the EU. In particular, the goods trade deficit with the EU rose to US$179bn in 2019.”
In addition, negotiations will continue in reaching a ‘Phase Two’ deal with China, with a focus on overcapacity, subsidisation, disciplines on China’s state-owned enterprises, and cyber theft.
And at the WTO, the US says it will advocate for further changes and the exploration of “a broader reset”.
“A number of features at the WTO reflect out-of-date assumptions and do not reflect current realities,” the USTR says.”Members need to fundamentally rethink tariffs and their role, recognising that commitments on tariffs should reflect current economic conditions.”
The USTR says it will continue to push for a close review of the WTO’s budget, which it says “requires greater scrutiny”, and advocate for changes that allow for “additional and more effective plurilateral agreements”.
It concluded: “The Trump Administration will continue to aggressively enforce US trade laws to protect the interests of American businesses and workers. USTR will take strong actions to ensure our trading partners compliance with the terms of our trade agreements, including the WTO agreements.”
