Issue 96 | July 20, 2018
U.S. Delegation and Mexico's Next President Aim To Rest Relations

A U.S. delegation led by Secretary of State Mike Pompeo and including officials associated with the American-Mexican issues met with President-elect Andrés Manuel López Obrador and others, signaling a possible shift in the eroded relationship between the two countries. Incoming Mexican Foreign Minister Marcelo Ebrard, who was present at the meeting, has stated that his country will continue to look for common ground, with a focus on economic development in Central America. He also acknowledged that the relationship between the countries has been tense as of recent. A possible decline of the conflict between the two countries could pave the way for renegotiation of NAFTA, investment in areas of Central America and Southern Mexico, and an agreement between the U.S. and Mexico regarding Central American asylum seekers.
Read more
 
EU Mulls Changes To WTO Rules To Appease U.S. as Trade War Looms 

The European Commission recently circulated a memo to its 28 member states, offering several ideas to fix the WTO dispute system. This comes after the U.S. made it clear that it harbors reservations over the functioning of the panel by blocking nominees to the WTO's appellate body, prohibiting the panel from continuing its work. The commission has made several suggestions to work toward fixing criticisms leveled at the WTO by both the Trump and Obama administrations.
Read more
 
Trump's Criticism of May's Brexit Plan Zeroes In On Trade Reality 
 
Many in the U.K. were upset at President Trump's comment that Prime Minister Theresa May's plan to keep product regulations, which are in line with the EU, would prohibit a free trade agreement between the two countries. While Trump later took a less aggressive stance, his initial analysis is supported by trade experts. Experts argued that U.K. tariffs would mirror EU tariffs for a substantial amount of time after their EU exit and that U.S. farm products would be banned from the U.K. market. Both Congress and U.S. trade negotiators would be very hesitant to put their support behind a deal which would exclude important tariff cuts.
Read more
 
Steel, Aluminum Plants Resurrected, But At What Cost?
While the steel industry has recently seen an economic uptick due to the tariffs imposed on many U.S. trading partners, those industries that rely on steel will likely be burdened with tougher economic conditions due to the higher prices at which steel will sell. The plants that are able to reopen or expand may provide an initial boost to the industry, but are not viewed as viable in the long term. Steel companies have faced troubling layoffs in recent years, and have voiced their support for measures that move toward a fairer environment, but urge against tariffs that hurt U.S. allies. There is conflict over whether the tariffs will provide a benefit to national security, and some cite the tariffs placed on steel under President Bush as an example of why tariffs don't succeed. While there is a difference of opinion regarding the effects of the tariffs, most economists do not see tariffs as a good long-term solution.
Read more
 
Some U.S. Industries Could Thrive Amid Trade Tensions: Cowen 

U.S. financial services firm Cowen and Company has found that there are several industries which may maintain or even increase revenue as a result of the ongoing trade tensions between the U.S. and several of its trade allies. Luxury retailers will likely benefit from China's tariff revisions, which actually lower tariffs for the industry. Banks are largely immune from changes in export and import, with an economic slowdown being the primary risk. The same can be said for restaurants, specifically large fast food chains. Along with discount retailers, those fast food chains that span the country could see increased revenue from citizens looking to save money.
Read more
 
Commerce Lifts Ban On U.S. Suppliers Selling To Chinese Firm ZTE
The Commerce department has concluded that ZTE has met the conditions imposed by President Trump in a deal to save the company, and that it can once again attend to business with American suppliers. This somewhat surprising result comes after a back-and-forth that included the U.S.'s initial ban on the company being swapped with the new, lighter penalty after President Trump and Chinese President Xi Jinping worked to make a deal, according to President Trump. A sizable bipartisan group of Congress is hoping to bring back the initial strict penalties, citing national security as the primary reason. It remains to be seen if the group can work together to pass legislation on the matter over President Trump's likely veto.
Read more
How to Identify and Compete Effectively For World Bank-Financed Contracts: A New Conversation On the New Procurement Framework
August 15, 2018
 
Join the Global Initiatives Council to hear from Enzo de Laurentiis, chief procurement officer at The World Bank, for a closer look at the bank's new procurement approach designed to foster private sector participation. RSVP here.
 
Compiled by Center for Global Trade & Foreign Investment intern Nicholas Collins.

For more information, contact Jasmin Sakai-Gonzalez, 213.580.7569.