A China Critic, Katherine Tai Confirmed as USTR Just Ahead of U.S, China Meetings
In a unanimous Senate vote on Wednesday, Katharine Tai was confirmed as the next U.S. Trade Representative. The trade expert was confirmed with a vote of 98-0.
Tai, who is the first Asian-American woman to hold the top USTR spot in the 60 years since the position was created, made it clear during her Senate confirmation hearing that she would be tough on China.
BREAKING: nomination of Katherine Tai for U.S. Trade Representative approved in unanimous vote in the Senate. — AgDay TV (@AgDayTV) March 17, 2021
Tai - whose nomination was supported by more than 100 ag groups- has experience when it comes to China. In 2007 and 2014 she had a couple big wins, as she successfully argued a U.S. case against China. During her Senate confirmation hearing in February, Tai vowed to stay tough on China.
“I know firsthand how critically important it is that we have a strategic and coherent plan for holding China accountable to its promises and effectively competing with its model of state directed economics,” she said during her February hearing. “I know the opportunities and the limitations in our existing toolbox. And I know how important it is to build what the President has termed ‘a united front of U.S. allies.’ We must recommit to working relentlessly with others to promote and defend our shared values of freedom, democracy, truth and opportunity in a just society.”
On behalf of U.S. #dairy farmers and their cooperatives, we commend the Senate’s bipartisan approval of Ms. Tai today and look forward to our continued work together in her new capacity as @USTradeRep. https://t.co/K7XgYzV7uI — National Milk Producers Federation (@nmpf) March 17, 2021
The unanimous vote was met with optimism on how Tai will tackle trade. Senate Finance Chairman Ron Wyden (D-Ore.) said, “Our country saw for the past four years that a strategy of sending mean tweets and acting on chaos does not create jobs. Under President Biden, and with Katherine Tai leading USTR, I’m confident our approach is going to be a lot more effective.”
While it’s not clear if Tai will attend the first meeting between the U.S. and China, taking place this week on U.S. soil, there are issues the new USTR will address.
Arlan Suderman of StoneX group says while agriculture has been kept separate from addressing other issues with China, he doesn’t think China is buying more agricultural goods from the U.S. because it is trying to live up to its Phase One promises.
“I've lost confidence that Phase One turned into anything more than buying what they needed anyway,” says Suderman. “One of the primary factors that we were proud of in Phase One was negotiating more transparency in their TRQ [Tariff Rate Quota] program, and they've become less transparent. They're not issuing public import permits for this corn. They're just doing it behind the scenes, so to speak, and their state green buying agency is moving in without any apparent TRQs to do so.”
China made two big purchases of corn this week ahead of the meeting between the countries. The two corn purchases equate to more than 90 million bushels and are scheduled for April delivery. Suderman thinks China is buying out of a need to rebuild stocks and waning confidence in South American production, not because officials are trying to play politics.
Related Sources:
