No Images? Click here Breakfast Series Session Attendees: Well, another exciting week has gone by with no positive movement on agreements of interest to all of us. Last Sunday, President Trump indicated that he would increase tariffs of goods from China already on the list and do this on Friday – today. He additionally said that he could place duties of the reminder of goods imported from China and not on any current lists. That would place duties on another $325 billion on imports, more or less. This morning, duties were raised on $200 billion of goods from 10% to 25%. So, apparently, the meetings between the negotiating team from China and USTR taking place yesterday did not come to a definite conclusion on an agreement that has already seen 11 rounds of discussions – and where a draft agreement has already been produced. China indicated that they would reciprocate but no details have been obtained. Another meeting is planned for today. Here is the Federal Register notice. Also this week, two events on USMCA. First, House Ways and Means Committee Chairman Neal and 20 Committee Democrats sent USTR Bob Lighthizer a letter indicating that the USMCA could affect the future of healthcare costs. No proposal regarding changes in language in the agreement were mentioned. This was a continuation of letters that the Committee has sent to Bob Lighthizer in the past month on labor and environmental concerns. The press release of the letter can be found here. Lastly, Speaker Nancy Pelosi, appearing at a Washington Post forum on Wednesday, said the House of Representatives is no closer to a vote on the USMCA and wouldn't be until the deal is renegotiated to include strong enforcement provisions. The key word appears to be “renegotiated” as neither Mexico nor Canada is in favor of re-opening the agreement itself to modifications. An article on her comments can be found here. More to come, but the word we have all been using, unfortunately, is “uncertainty.” The Congressional recess of 4-5 weeks is coming up and Canada has federal elections on Monday, October 21. What is needed in our process is a draft of implementing legislation. Not certain how close we are to that, but Sen. Chuck Grassley said that the first step is for the President to lift the 232 steel and aluminum tariffs on Mexico and Canada. We are still looking at a date for our next session. Thanks for your continued support. Have a great weekend! Ralph Biedermann |