| | | | |  | | By Ari Hawkins | | | — The United States and France vowed to coordinate on a response to China’s trade practices, ahead of a meeting of the Group of Seven advanced economies this week in Italy. — WTO economies could “absolutely” reach a phase-two agreement to curb harmful fisheries subsidies before the August break, said the chair of negotiations. — The United States welcomed Argentina’s interest in joining the Biden administration’s signature Latin American framework. It’s Monday, June 10. Welcome to Morning Trade! It's a shame that to date the world's most adorable author hasn’t even managed an audio-book version of his fine work. SMH. Send us your trade news. Reach us at: ahawkins@politico.com, gbade@politico.com and dpalmer@politico.com. You can also follow us on X: @_AriHawkins, @GavinBade and @tradereporter.
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| | |  President Joe Biden and French leader Emmanuel Macron agreed to coordinate on the issue of Chinese overcapacity. | Pool photo by Daniel Cole | 'OUR FIRST FRIEND': President Joe Biden and French leader Emmanuel Macron agreed to coordinate on the issue of Chinese overcapacity, a subject that has fueled tension between Washington and countries in Europe. The French president welcomed Biden with a state visit in Paris on Saturday, where they discussed shoring up ties between the world’s democracies. Going into the trip, Macron wanted to convince the U.S. to soften its America-first trade policies, while Biden was hoping to align France and the rest of the EU with the U.S. in boxing out Beijing from the global marketplace. “We are both concerned about China’s unfair trade practices, which bring about overcapacity. This is of such importance for the global economy that we have to act in a coordinated fashion,” Macron said on Saturday, according to a White House readout. Keep in mind: While European governments share U.S. concerns about Chinese overcapacity, they are reluctant to take any actions that could violate WTO rules, as China and some other countries contend Biden’s new tariffs do. Any alignment could also be harder to find after Sunday, when the French president suffered a stunning defeat at the hands of his country's far-right party in European elections, prompting him to dissolve the lower house of Parliament and call snap elections. Still, Macron’s verbal commitment marks the latest indication the European bloc is willing to engage with the Biden administration on action against China. That’s despite skepticism from Germany, which is Europe’s largest maker of electric cars. German ministers have scrutinized the European Union’s ongoing investigation into Chinese subsidies for electric vehicles, which could lead to new restrictions. What’s next? Biden is expected to press key Western democracies to follow the U.S. in confronting Chinese overcapacity when he attends the G7 meeting in Italy, later this week. Senior administration officials have underscored the need for Europe to step up on this front. More on the table: The G7 gathering from June 13 to 15 will give transatlantic allies another chance to hammer out disputes over a wide range of issues, from China’s trade practices to the Biden administration’s Inflation Reduction Act — which Macron and other leaders of allied nations have fiercely rebuked for discriminating against foreign countries. On a CMA… To address concerns about Biden's signature legislation, Brussels and Washington announced plans in March 2023 to negotiate a critical minerals agreement, which would make electric vehicle batteries made in the EU eligible for certain IRA tax breaks. But both sides have not finished talks more than one year later, and the issue appears to be on the backburner — at least until after America’s 2024 election.
| | JUST KEEP SWIMMING: The second phase of an agreement to curb harmful fisheries subsidies could “absolutely” be reached before officials at the WTO leave for August break, said the chair of the WTO’s fisheries subsidies negotiations and Iceland's ambassador, Einar Gunnarsson. “A second wave of negotiations are underway on some additional provisions to strengthen the agreement,” Gunnarsson said in a video for World Oceans Day on Friday with Director-General Ngozi Okonjo-Iweala. “WTO members say they want to conclude these negotiations as soon as possible. Many think we can do so before the summer break in August.” One step back: WTO economies adopted the Agreement on Fisheries Subsidies during the 12th Ministerial Conference in June 2022, prohibiting harmful fisheries subsidies and overfishing. Members hailed this as a major step forward for sustainability. But the beneficial effects of that agreement won't materialize in full until it enters into force — which means two-thirds of WTO economies (or 109 members) must formally accept the deal. Why it matters: The international body has remained tight-lipped about work in progress on the fisheries subsidies negotiations, after countries failed to secure a deal during the 13th Ministerial Conference in February. Work so far: “Over 75 members have ratified this agreement, and around 30 more are still needed for its entry into force. I urge you to do it now,” Okonjo-Iweala said.
| | APEP INTEREST GROWS: The Biden administration welcomed Argentina’s interest in joining the Americas Partnership for Economic Prosperity during talks last week on market access for select products, the office of the U.S. Trade Representative said Friday in a joint statement. A total of eight additional countries have asked to join the Biden administration’s signature regional initiative, special presidential adviser for the Americas Chris Dodd said. But the U.S. has not spelled out a formal process for the accession of new countries. During the fourth meeting of the Trade and Investment Council — which facilitates the U.S.-Argentina Trade and Investment Framework Agreement — the two countries “shared their ambition to deepen bilateral trade relations and noted the important role of bilateral engagement in diversifying regional supply chains for long-term, sustainable growth, including in key sectors such as critical minerals,” per the joint statement. On agriculture: Argentina and the U.S. “decided to continue discussing market access interests on both sides,” according to the statement. Both countries will convene at the technical level in the next quarter to review pending issues, according to the statement. The countries “decided to continue discussing market access interests on both sides.” BTW: Recent talks also covered the digital economy, artificial intelligence, cyber security and privacy, the statement said. TAI TO ASIA: USTR Katherine Tai is traveling this week to Uzbekistan and Kazakhstan as part of a broader push to expand investment and trade in the Central Asia region, a USTR spokesperson told Morning Trade on Friday. Tai will be in Uzbekistan tomorrow, where she will speak with President Shavkat Mirziyoyev and other government officials. She’ll also meet with members of a group called Uzbek Forum and International Labor Organization-trained labor monitors, USTR said. Then, on Thursday, Tai will be in Kazakhstan to co-chair the U.S.-Central Asia Trade and Investment Framework Agreement Council meeting. “The U.S. has significant expertise to share on connectivity, digitization and trade facilitation, and will continue providing that bilaterally and through the U.S.-Central Asia TIFA,” a USTR spokesperson said.
| | | | JOIN US ON 6/13 FOR A TALK ON THE FUTURE OF HEALTH CARE: As Congress and the White House work to strengthen health care affordability and access, innovative technologies and treatments are increasingly important for patient health and lower costs. What barriers are appearing as new tech emerges? Is the Medicare payment process keeping up with new technologies and procedures? Join us on June 13 as POLITICO convenes a panel of lawmakers, officials and experts to discuss what policy solutions could expand access to innovative therapies and tech. REGISTER HERE. | | | | | | | | | — US trade agency advances probe into solar products from Southeast Asia, POLITICO Pro reports. — US-Africa trade forum set for late July, per POLITICO Pro. — The next President’s Export Council meeting will take place on Tuesday to discuss a recent trip to Thailand and ways to boost commercial ties with the Indo-Pacific, the Commerce Department said. — G7 plans to warn small Chinese banks over Russia ties, per Reuters. — Macron joins Brazil’s Lula to tax billionaires — but is it all it’s made out to be?, per POLITICO Pro. — Costly U.S. sugar tariffs drive candy makers over the border to Canada, per Bloomberg. THAT’S ALL FOR MORNING TRADE! See you again soon! In the meantime, drop the team a line: dpalmer@politico.com, gbade@politico.com and ahawkins@politico.com. Follow us @POLITICOPro and @Morning_Trade. | | | | Follow us on Twitter | | | | Follow us | | | | |
