The World Trade Organization found that China exceeded its agreed-on limits for government subsidies on multiple crops.
Politico notes that U.S. Trade Representative Robert Lighthizer says the case could indeed become part of the negotiations and hoped-for trade deal with China. Lighthizer says there’s another WTO challenge in process that targets how China administers its import quotas on multiple agricultural products.
Lighthizer told the House Ways and Means Committee last week that they’re trying to resolve those issues with China within the context of a potential agreement.
White House Chief Economic Adviser Larry Kudlow told CNBC that the outlook for a deal with China is “very positive.” That’s a different outlook than the one Lighthizer had during testimony to the Ways and Means Committee in which he said, “there’s still substantial work that needs to be done.”
President Trump did say last week that they’ve made “major progress” in talks with China but also acknowledged the possibility things could still collapse. During a press conference in Vietnam, Trump said, “I’m never afraid to walk away from a deal. I would do that with China, too, if it didn’t work out.”
Also, on the trade front, the Trump Administration published its key objectives for a potential agreement with the United Kingdom, the first step in the process of beginning trade negotiations.