| | | | |  | | By Gavin Bade | | | With help from Steven Overly and Meredith Lee
| | | — The White House will announce a new economic framework with Latin American nations this week, but details are scant and expectations that it will be anything more than a messaging exercise are low. — Before heading to the summit, U.S. Trade Representative Katherine Tai will address the LatAm pact, Indo-Pacific Economic Forum and Taiwan economic deal in an appearance at the Washington International Trade Association today. — And Russia's proposal to ease its blockade of Ukrainian grain in return for sanction relief is complicating talks at the United Nations aimed at averting global food shortages. It's Monday, June 6. Welcome to Morning Trade. After a heartbreaking end to the season, your host's taste for soccer was restored a bit this weekend with reports that Liverpool is interested in signing U.S. international Christian Pulisic if our forward Sadio Mane departs Anfield this summer. He's just one of many options but seeing Captain America in red next year could help send us over the top! Send us your trade news, whether soccer related or not: soverly@politico.com, gbade@politico.com and dpalmer@politico.com.
| | | | A message from PhRMA: COVID-19 vaccine manufacturers have produced a global vaccine surplus with more than 13 billion doses to date. As many experts acknowledge, intellectual property protections enabled this progress and are not impeding global vaccination efforts. Last-mile distribution, trade barriers and vaccine hesitancy – not the TRIPS agreement – are the real challenges to increasing COVID-19 vaccinations abroad. The world needs leaders committed to tackling actual problems with evidence-based solutions. Learn more here. | | | | | | TRADE WORLD SNIFFS AT LATAM ECONOMIC SUMMIT: Even if the Biden administration avoids a major embarrassment at its Summit of the Americas this week in Los Angeles, expectations that the meeting will yield anything other than symbolism are low. Biden's team has been scrambling for weeks to confirm attendees to the meeting amid boycott threats from Mexican President Andrés Manuel López Obrador and others over the White House's decision to exclude Cuba, Nicaragua and Venezuela. AMLO's attendance was still in question over the weekend. Though the White House has not released information on its official guest list, the Chamber of Commerce, which is hosting a parallel CEO summit, told your host on Sunday that AMLO was confirmed as one of the speakers, along with the heads of state from nearly a dozen other nations, including Argentina, Colombia and Ecuador. Tai in attendance : Biden is expected to attend the meeting from Wednesday to Saturday, with the U.S. also represented at the Summit by USTR Katherine Tai, Climate Envoy John Kerry, HHS Secretary Xavier Becerra, and Deputy Commerce Secretary Don Graves. (For those watching the ongoing tug-o-war between USTR and Commerce over the direction of U.S. trade policy, the fact that Graves is going — and not Secretary Gina Raimondo — is notable in itself.) Econ framework, at some point: At some point during the week, the U.S. is expected to announce a Latin American economic framework, similar to the Indo-Pacific Economic Framework it unveiled last month with Asian nations. That's likely coming Wednesday, said a source familiar with the planning, when the summit will focus on economic issues. But even that isn't nailed down yet. Four pillars : The National Security Council briefed select congressional offices on their economic agenda for the summit on Thursday, though an aide described the meeting to Morning Trade last week as very light on details. The administration is pursuing an agreement that includes four pillars covering trade, climate, equity and social issues, the aide said. Hill peeved: White House reps also told Hill offices that conversations with some trading partners had already begun — eliciting frustration from those in attendance that Congress had not been consulted prior to those talks, the aide said. Where's the beef? Back in Washington, trade circles are greeting the Latin American framework with a yawn. One K Streeter, a former U.S. trade official, admitted to not paying much attention in the run-up to the meeting. "It's a messaging exercise," said the official, who spoke anonymously because of ongoing work with the government. "That's why I haven't paid much attention to it, to be honest."
| | | | STEP INSIDE THE WEST WING: What's really happening in West Wing offices? Find out who's up, who's down, and who really has the president's ear in our West Wing Playbook newsletter, the insider's guide to the Biden White House and Cabinet. For buzzy nuggets and details that you won't find anywhere else, subscribe today. | | | | | Want to receive this newsletter every weekday? Subscribe to POLITICO Pro. You'll also receive daily policy news and other intelligence you need to act on the day's biggest stories. TAI TO TALK IPEF TODAY: Before jetting off to the City of Angels on Tuesday, Tai will address the Latin American framework and IPEF in comments before the Washington International Trade Association this morning. Grab the popcorn: Tai won't have any opening remarks for the event, a USTR spox said, but instead will just launch into a Q&A session with WITA attendees. That could get interesting, as many of the group's members hew to a more free-trading line than Tai, and will likely press her on IPEF, the parallel Taiwan economic agreement, the Latin American pact, and broader U.S. trade policy. Short trip: Tai will only be in California for a day, after which she will travel to Paris on Wednesday for the Meeting of the OECD Council at the Ministerial Level. RACE TO UNLOCK RUSSIA'S UKRAINE BLOCKADE: Hanging over U.N. talks to try to free millions of tons of grain from Ukraine: Russian President Vladimir Putin and Russian officials' proposals to lift the Russian blockade on Ukraine's ports for grain exports in exchange for ending the West's economic sanctions on Moscow, The Ag Team's Meredith Lee reports. Details: That proposal is "complicating" the "fragile" negotiations, a U.N. official told POLITICO, shortly before the U.N.'s top humanitarian official wrapped up two days of talks on the blockade in Moscow on Friday. One U.S. official described Moscow's pitch as "extortion diplomacy" and said the U.S. wouldn't agree to a deal that lifted any economic pressure on the Kremlin. "It's hard to view the Russian offers in good faith considering how they are actively and intentionally destroying food products in Ukraine and exacerbating global food insecurity," a U.S. official said. Republicans on Capitol Hill have bristled at the Russian calls for sanctions relief as well, with some calling it "blackmail." "Putin is waging war on other innocent people across the world by holding Ukrainian food and related exports hostage," said Sen. Jim Risch of Idaho, the top Republican on the Foreign Relations Committee. Time crunch: Any deal to allow Ukraine to export grain ahead of the summer wheat harvest would be a major breakthrough, and U.S. officials and global businesses are closely watching Russia's talks with the U.N., as well as separate negotiations with Turkey, about allowing safe passage for Ukrainian grain to world markets. Trade fallout: The blockade has upended global trade routes while threatening to financially strangle Ukraine and deepen hunger crises around the world. U.N. Secretary General Antonio Guterres is trying to strike a deal that would ensure both Ukrainian and Russian food and fertilizer exports can safely reach foreign markets. U.N. leads: Martin Griffiths, one of the U.N. officials leading the talks, met with Russian officials from the ministries of defense and foreign affairs about Russia's blockade of Ukraine's Black Sea ports during his visit to Moscow, according to a second U.N. official. The U.N. has declined to say whether Griffiths or Rebeca Grynspan, the other U.N. official leading the talks, have broached Russia's calls for sanctions relief during their discussions.
| | | | DON'T MISS DIGITAL FUTURE DAILY - OUR TECHNOLOGY NEWSLETTER, RE-IMAGINED: Technology is always evolving, and our new tech-obsessed newsletter is too! Digital Future Daily unlocks the most important stories determining the future of technology, from Washington to Silicon Valley and innovation power centers around the world. Readers get an in-depth look at how the next wave of tech will reshape civic and political life, including activism, fundraising, lobbying and legislating. Go inside the minds of the biggest tech players, policymakers and regulators to learn how their decisions affect our lives. Don't miss out, subscribe today. | | | | | RAIMONDO REIGNITES TARIFF DEBATE: The Commerce Secretary revisited the tariff debate in a Sunday appearance on CNN, reiterating that the Biden administration is considering tariff relief on some consumer products to combat inflation. Some tariffs, like those on steel and aluminum, may need to stay in place to protect national security, Raimondo said on "State of the Union." But others may be on the chopping block. "I will say it depends on what we're talking about and what kinds of products," Raimondo said. "There are other products, you know, household goods, bicycles, et cetera, and it may make sense. And I know the president is looking at that." That comment repeats an argument that NSC officials have made since spring, when economic hand Daleep Singh said tariffs on consumer goods serve no strategic purpose. But it's still unclear if or when Biden will actually act to lift tariffs. Tai is against the action, which she and other China hawks fear would reward Beijing and cost America leverage. USTR has its own review of the tariffs going this summer, but that could take months, and it's unclear whether Raimondo and Singh's comments reflect the USTR review or a broader reassessment of China policies. So, in essence, we're in the same place we have been for a few months.
| | | | A message from PhRMA:   | | | | | | — Farm groups are pressing the Biden administration to reject India's demands at the upcoming WTO meetings, POLITICO reports. — France is in talks with the UAE for potential alternatives to Russian oil, POLITICO reports. — A California labor dispute outlines the future of supply chains as shippers push for more automation, the Los Angeles Times reports. — Biden's team is scrambling to avoid embarrassment at the Summit of Americas, the Associated Press reports. 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 soverly@politico.com. Follow us @POLITICOPro and @Morning_Trade.
| | | | A message from PhRMA: Facts don't lie: we have a global COVID-19 vaccine surplus with enough vaccines to inoculate the world. But last-mile distribution and vaccine hesitancy challenges continue. Solutions must support innovation, strengthen trade and protect American intellectual property. As world leaders convene at the 12th WTO Ministerial Conference, they should advance a robust trade and health agenda and abandon misguided proposals to waive TRIPS commitments. Responsible world leaders should focus instead on distributing the existing surplus of safe and effective COVID-19 vaccines. Learn more here. | | | | | | | Follow us on Twitter | | | | Follow us | | | | |
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