Canada’s lumber industry wants paid back

With assist from Doug Palmer and Zi-Ann Lum

Editor’s Observe: Weekly Commerce is a weekly model of POLITICO Professional’s day by day Commerce coverage e-newsletter, Morning Commerce. POLITICO Professional is a coverage intelligence platform that mixes the information you want with instruments you should utilize to take motion on the day’s largest tales. Act on the information with POLITICO Professional.

Canada needs the U.S. to drop anti-dumping and countervailing duties on softwood lumber, and trade officers are in search of a significant refund as a part of the deal.

President Joe Biden’s picks for 2 deputy U.S. commerce consultant posts will start their affirmation proceedings within the Senate this week.

Mexico will probe whether or not staff at an auto components plant had been denied collective bargaining rights, the following step in a labor grievance course of initiated by unions in Might.

It’s Monday, June 21. Welcome to Weekly Commerce.

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CANADA TO THE U.S.: SHOW ME THE MONEY: Canada’s softwood lumber trade needs the Biden administration to refund billions of {dollars} that firms have paid since 2017 to cowl anti-dumping and countervailing duties.

“It’s our cash,” British Columbia Lumber Commerce Council President Susan Yurkovich advised POLITICO. Like different trade lobbyists, she contends the tariffs had been unwarranted and will by no means have been imposed.

However any reimbursement would probably come as a part of a broader settlement on softwood lumber between the U.S. and Canada. Canada has repeatedly requested the U.S. to return to the negotiating desk — most just lately throughout a G-7 summit confab between Canadian Prime Minister Justin Trudeau and Biden. However thus far, the Biden administration hasn’t given into such pleas.

“The US is open to resolving our variations with Canada over softwood lumber, however it could require addressing Canadian insurance policies that create an uneven taking part in area for the U.S. trade,” Adam Hodge, a spokesperson for the U.S. commerce consultant, advised POLITICO. “Sadly, to this point, Canada has not been prepared to adequately tackle these issues.”

The final windfall: There may be precedent for a giant U.S. reimbursement of duties. In a 2006 settlement to settle a previous lumber dispute, the George W. Bush administration agreed to present again $4.4 billion of the $5.4 billion in anti-dumping and countervailing duties the U.S. authorities collected on Canadian softwood lumber imports within the early 2000s.

From softwood to photo voltaic: Lumber will not be the one rating that Canada is seeking to settle. On Friday, Ottawa requested a dispute settlement panel underneath the United States-Mexico-Canada Settlement to deal with the 18 p.c tariff the U.S. has in place on the nation’s photo voltaic merchandise.

The tariffs, launched within the twilight of former President Donald Trump’s time period in workplace, have thus far been maintained by the Biden administration. “These tariffs are unwarranted and damaging to the worldwide competitiveness of our long-established, safe, and deeply built-in provide chains,” Canadian Commerce Minister Mary Ng mentioned in an announcement.

Border nonetheless blocked: The Division of Homeland Safety tweeted Sunday that land and ferry crossings to Canada and Mexico will stay closed to non-essential journey till no less than July 21.

TAI TRAVELS TO MICHIGAN: U.S. Commerce Consultant Katherine Tai will journey to Flint, Mich., right now for a pair of conferences on the invitation of Rep. Dan Kildee (D-Mich.). She’s going to first huddle with autoworkers to debate the Biden administration’s “worker-centered” commerce coverage after which focus on ongoing Covid-19 vaccination efforts with well being care suppliers.

DEPUTY USTR NOMINEES BEGIN CONFIRMATION HEARINGS: The Biden administration’s nominees for 2 deputy U.S. commerce consultant posts, Sarah Bianchi and Jayme White, will start their affirmation course of earlier than the Senate Finance Committee on Thursday.

A fast refresher: White shall be on acquainted turf. He has spent greater than 12 years working for the committee’s chairman, Sen. Ron Wyden (D-Ore.), first as legislative director after which as a chief adviser for worldwide competitiveness and innovation. His portfolio at USTR would come with the Western Hemisphere, Europe and the Center East, in addition to labor and setting points.

Bianchi was a senior managing director at funding agency Evercore previous to her nomination. She beforehand served as director of financial and home coverage for Biden through the Obama administration. If confirmed, her portfolio would come with Asia, Africa, funding and providers, amongst different disciplines.

WHAT’S OLD IS NEW, TPP EDITION : The Senate Finance commerce subcommittee meets Tuesday to look at whether or not the U.S. would profit from a multilateral method to commerce in Asia. Sound acquainted? Simply 5 years in the past, that query felt settled after the Obama administration brokered a commerce pact with key economies there to counter the financial rise of China.

However Trump subsequently pulled out of what was then the Trans-Pacific Partnership, a transfer that the subcommittee’s Chair Tom Carper (D-Del.) and Rating Member John Cornyn (R-Texas) argued was a mistake in a Washington Publish op-ed final week.

The subcommittee’s leaders now need the Biden administration to press its manner again into the commerce settlement earlier than China secures an invite of its personal, which Bloomberg experiences Beijing has been working behind the scenes to make occur. After all, TPP was deeply unpopular with the labor unions that Biden has been eager to please.

“We should work along with our allies and buying and selling companions to put in writing the worldwide guidelines of commerce, notably within the Asia Pacific, in a manner that protects labor rights and the setting and opens up markets for American producers, farmers and small companies,” Carper mentioned in an announcement. “However to take action, we first should get our seat again on the desk.”

MEXICO AGREES TO PROBE U.S. LABOR CONCERNS: Mexico’s Ministry of Economic system introduced Saturday that it’ll examine a U.S. authorities grievance that staff at an auto components plant within the state of Tamaulipas might have been denied collective bargaining rights. The Mexican authorities will reply with its findings no later than July 24.

Concerning the grievance: U.S. and Mexican labor teams filed a grievance in Might asserting that staff within the Tridonex manufacturing facility had been harassed and fired for making an attempt to arrange with an unbiased union quite than one aligned with their employer.

USTR and the Labor Division subsequently discovered “ample credible proof” to help the union’s accusations. USTR formally requested Mexico to probe the allegations on June 9, utilizing the speedy response mechanism constructed into the U.S.-Mexico-Canada Settlement.

APEC LEADERS’ MEETING WILL BE VIRTUAL: The November assembly bringing collectively high leaders from the Asia-Pacific Financial Cooperation nations will stay digital this yr “as a consequence of ongoing uncertainty surrounding the pandemic in numerous components of the area and the lead instances required to host a bodily leaders’ assembly,” spokesperson Sidah Russell advised POLITICO.

That the assembly shall be held nearly will not be solely shocking, even after leaders of the G-7 nations gathered in particular person earlier this month, given vaccination charges in lots of Asia-Pacific nations lag the U.S. and Europe. New Zealand, the host nation, has stored its an infection price low all through a lot of the pandemic, due partly to worldwide journey restrictions.

A digital APEC convention eliminates one key journey to Asia for Biden through the first yr of his presidency. Attending a bodily gathering would have opened the door to a face-to-face assembly with Chinese language President Xi Jinping as effectively. That assembly might occur on the G-20 assembly in Rome in October. And, after all, Biden might nonetheless determine to trek to Asia — a area that’s central to his overseas coverage agenda.

— The provision chain shortages which have stoked inflation issues might lengthen into subsequent yr, per The Wall Road Journal.

— Nationwide safety adviser Jake Sullivan tells Fox Information that China will face “isolation within the worldwide group” if it doesn’t enable investigations into the origins of Covid-19.

— Apple employed Doug Guthrie to assist develop its footprint in China, however quickly he started warning about dangers that will finally come to cross. The New York Occasions has extra.

— Western governments seeking to problem China’s stronghold on rare-earth minerals face numerous hurdles, WSJ writes.

— Australia will search to resolve its dispute with China over anti-dumping wine duties to the WTO, Bloomberg experiences.

— U.S. firms are struggling to criticize China for labor and environmental practices with out drawing Beijing’s ire. WSJ examines rigidity on the agency behind manufacturers just like the North Face and Vans.

THAT’S ALL FOR MORNING TRADE! See you once more quickly! Within the meantime, drop the workforce a line: [email protected]; [email protected]; [email protected]; [email protected] and [email protected]. Observe us @POLITICOPro and @Morning_Trade.

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