Biden hounds the Philippines on labor rights

Delivered every Monday by 10 a.m., Weekly Trade examines the latest news in global trade politics and policy.

Jul 01, 2024 View in browser   By Gavin Bade and Ari Hawkins With help from Doug Palmer QUICK FIX — The Biden administration has pressured the Philippine government to stop labeling labor activists and journalists as communists, a practice that has opened them up to harassment, arrest and even death. — The American Automotive Policy Council is pressing the White House to hold off on plans to impose a 25 percent tariff on Chinese graphite until 2027. — The United States and Chile exchanged letters confirming their interest in protecting U.S. market access for certain cheese and meat products. It’s Monday, July 1. Welcome to Morning Trade! The team presents to you — the ultimate antidote. Share trade tips and suggestions to ahawkins@politico.com, gbade@politico.com and dpalmer@politico.com. You can also follow us on X: @_AriHawkins, @GavinBade and @tradereporter. Driving the day The Biden administration has urged the Philippine government to stop labeling activists and journalists as communists in a practice known as “red-tagging." | Chip Somodevilla/Getty Images FIRST IN MORNING TRADE: For years, the Biden administration has talked about supporting workers’ rights overseas. But outside of this hemisphere, it had few tangible examples. Now we have another one, uncovered on a recent trip to the Philippines. The Biden administration, Morning Trade has learned, has pressed the Philippine government on its practice of “red-tagging” — or labeling activists and journalists as communists, opening them up to harassment, arrest and even murder. Labor pressure: Philippine union leaders raised concerns about the safety of labor and other activists during a meeting with National Security Adviser Jake Sullivan last December. The Biden administration subsequently raised the issue with a Philippine government representative in Washington. That’s according to Philippines Secretary of Labor Bienvenido Laguesma, who confirmed the pressure from the Biden administration during a press conference on the sidelines of a labor and employment conference in Manila. Laguesma said that the U.S. had raised the concern with “our labor attaché in Washington, and this item is actually under discussion.” But he denied that the current government, led by President Ferdinand Marcos Junior, harassed or threatened activists. The outreach from the U.S. on labor concerns is a subtle but significant action from the Biden administration to advance workers’ rights overseas — a central plank of the president’s so-called “worker-centered” trade policy. It comes after the administration’s zealous enforcement of anti-union busting rules in the U.S.-Mexico-Canada Agreement and some voluntary labor rules in the supply chain portion of its Indo-Pacific Economic Framework. The news also shows the administration’s willingness to bring up sensitive issues with a key ally on the front lines of the new Cold War with China. Both the White House and the Office of the U.S. Trade Representative declined to comment on the consultations. But USTR Katherine Tai appeared to confirm the pressure independently during a speech last week to the Communication Workers of America. There, she announced the launch of a labor working group with the Manila government and offered her condolences for the murder of a Filipino labor activist, Alex Dolorosa, saying it is “truly unacceptable that the Philippines labor movement has endured so much loss” since last spring when she visited the country. “We know the chilling effect that violence has on the labor movement,” she said. “And the United States, at all levels, has deep concerns about extra-judicial killings of labor organizers. Across our administration, we are asking for a formal government-to-government channel to discuss labor concerns with the Government of Philippines.” Labor activists we spoke to in Manila welcomed the Biden administration’s move, but they say they want to see more than just rhetoric from the U.S. to support labor rights in their country. Josua Mata, a union leader who met with Sullivan, said “several months have passed,” since that discussion, “yet the Philippine government seems to be dismissive of these grave concerns.” Gavin has more from his trip to the Philippines here.   Understand 2024’s big impacts with Pro’s extensive Campaign Races Dashboard, exclusive insights, and key coverage of federal- and state-level debates. Focus on policy. Learn more.     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. REGULATORY REVIEW AUTOMAKERS URGE TARIFF CHANGES: The American Automotive Policy Council — which represents Ford, GM and Stellantis — has asked the Biden administration to delay plans to impose a 25 percent tariff on Chinese graphite until Jan. 1, 2027, one year later than currently scheduled. In comments filed Friday with the Office of the U.S. Trade Representative, the AAPC said both natural and artificial graphite are essential for the lithium-ion batteries used in most electric vehicles, “but are currently unavailable in sufficient quantities outside of China.” A delay would allow more time for a transition and be consistent with recent Treasury Department guidance for EV battery tax credits provided by the Inflation Reduction Act, the group said. Magnets: The AAPC was also apprehensive about the Biden administration’s plan to impose a 25 percent tariff on imports of permanent magnets from China beginning in 2027. The group noted that the Commerce Department considered imposing national security tariffs on certain permanent magnets in 2022, but decided against that action in favor of other measures to stimulate domestic production and boost alternative supplies from allies. The AAPC asked USTR to “consider aligning the proposed [tariff] modification for permanent magnets with the findings in Commerce’s report.” Foreign-brand automakers: It’s not only the AAPC — a wide swath of companies is urging President Joe Biden to rethink his tariff plans. Autos Drive America, which represents many European- and Asian-brand automakers with production facilities in the United States, had a longer list of concerns beyond just graphite. It requested the administration delay its plan to impose a 25 percent tariff on EV batteries, battery parts and certain critical minerals beginning Aug. 1 “until at least 2027, when projected domestic battery production will be more fully developed.” “Tariff increases on batteries, modules, cells, and critical minerals, especially on both natural and synthetic graphite, at this nascent stage of the transition to EVs, will have a chilling effect on the U.S. production of batteries and EVs,” the group said in its comments. U.S. parts suppliers: MEMA, The Vehicle Supplier Association, took particular issue with Biden’s plans to raise tariffs on Chinese semiconductors to 50 percent beginning in January. That would double the 25 percent duty former President Donald Trump imposed on the chips as part of his 2018-2019 trade war. The group also raised concerns about proposed tariff increases on steel and aluminum products from China. Read more here. Around the World SECURE THE CHEESE: The United States and Chile traded letters confirming their interest in enabling U.S. cheese and meat producers to continue to export goods that use certain specialty names. “This agreement exemplifies the Biden-Harris Administration‘s dedication to protecting and expanding market access for U.S. agricultural producers and strengthening our mutually beneficial trading relationships with partners around the world,” a USTR spokesperson said in a statement to Morning Trade. EMERGING WORLD MOVES ON CHINA: Indonesia will impose up to a 200-percent import tariff on Chinese goods to mitigate the effects of the ongoing U.S.-China trade war, according to Antara News. “The United States can impose a 200-percent tariff on imported ceramics or clothes; we can do it as well to ensure our MSMEs and industries will survive and thrive,” said Indonesia's Trade Minister Zulkifli Hasan.   SUBSCRIBE TO GLOBAL PLAYBOOK: Don’t miss out on POLITICO’s Global Playbook, our newsletter taking you inside pivotal discussions at the most influential gatherings in the world. Suzanne Lynch delivers the world's elite and influential moments directly to you. Stay in the global loop. SUBSCRIBE NOW.     TRADE OVERNIGHT — The USMCA’s Commission for Environmental Cooperation is opening an investigation into Mexico’s enforcement of various laws aimed at protecting endangered vaquita porpoise, per a June 26 resolution. — Precious rare earth metals belong to the state, China declares, per POLITICO Europe. — Biden requests $4B to address Baltimore bridge, natural disasters, per POLITICO Pro. — Chinese golf carts surging into the U.S. prompt pleas for 100 percent tariff, 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 Ari Hawkins @_AriHawkins Doug Palmer @tradereporter Gavin Bade @GavinBade Adam Behsudi @ABehsudi Emily Cadei @emilycadei   Follow us

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