Evening Standard:
https://apple.news/AeBM3bFe9QOS8eE9aBFJESg
Also Reuters:
https://apple.news/At6cTe9JARfydzYoTxgClAA
Standard snip:
The White House and Republican representatives have reached an agreement on raising the US debt ceiling after weeks of negotiations.
President Joe Biden said the agreement represents “a compromise” between the Democrats and Republicans but hailed it as “good news for the American people” as failure to agree would have resulted in an unprecedented US government default.
The US Treasury Department had warned the federal government could be unable to pay all its bills by as soon as 1 June – just under a week away – and any deal must pass through a divided Congress before it can take affect.
The Republicans hold a majority in the House of Representatives while the Democrats narrowly control the Senate.
CBS reports that non-defence government spending would be kept flat for two years and then rise by 1 per cent in 2025. Medicaid health insurance is not believed to have been impacted.
CarrZee:
By Mathew Carr
May 27-28, 2023.
This limited increase in the ceiling will probably provide the US with cover to ration money for climate catastrophes and emission-cutting projects, both at home and overseas.
I hope I’m wrong, but this deal seems designed to keep US voters in the dark about the acuteness of the climate crisis.
By kicking the can down the road until after the 2024 presidential election, the US can avoid coming clean on the obligations it has to the rest of the world to help deal with climate change during the campaign.
What both sides of US politics should do is seek to win a mandate to help solve the climate crisis by helping to insert more-rational market structure around the world via the World Trade Organisation, the UNFCCC and multilateral development banks of all shapes and stripes…and campaign on that basis between now and the leadership vote in November next year.
US voters are grown up enough to choose the political party with the best policy — whether that is Democrat or Republican.
Better relations between China and the US will help global climate protection.
The fact that Biden’s trade representative Katherine Tai met with Chinese commerce minister Wang Wentao in Detroit provides some hope that more rational trade and climate geopolitics will prevail.
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Source docs:
1.
Minister of Commerce Wang Wentao Chairs a Meeting with US Companies
China: On May 22, Minister of Commerce Wang Wentao chaired a meeting with US companies in Shanghai to learn about their operations in China and comments and recommendations for further improving China’s business environment. The American Chamber of Commerce in Shanghai and representatives of US companies, including Johnson & Johnson, 3M, Dow, Merck and Honeywell, attended the meeting.
Wang Wentao pointed out that committed to high-level opening up, China is stepping up efforts to foster the new development paradigm, prioritizing attracting foreign investment and steadily expanding institutional opening up on rules, regulations, management and standards. China’s rebounding and upbeat economic momentum and continually unleashed market potentials will bring more opportunities for foreign investors in China, including US companies. MOFCOM will continue to service foreign-invested enterprises and projects accurately and efficiently, protect foreign investors’ investment interests according to law, and build a market-oriented, law-based and international business environment, so that companies from across the world can share in the dividends of China’s massive market and open development.
Wang Wentao emphasized that the Chinese and US economies are deeply intertwined. Bilateral economic and trade cooperation based on mutual trust and mutual benefit is in the fundamental interest of both countries and peoples and also good for the world. US companies are welcome, as always, to do business in China for win-win cooperation.
US business representatives expressed their appreciation for the service of MOFCOM, especially the task force for key foreign-invested projects, optimism for the Chinese market and desire to further cultivate the market.
2.
US Readout of Ambassador Katherine Tai’s Meeting with Minister of Commerce of the People’s Republic of China Wang Wentao
May 26, 2023
DETROIT – United States Trade Representative Katherine Tai met today with Minister of Commerce of the People’s Republic of China, Wang Wentao, on the margins of the APEC Ministers Responsible for Trade Meeting.
During the meeting, Ambassador Tai shared her views on the progress made to date by APEC members and outlined the priorities of the United States for the remainder of its APEC host year. Ambassador Tai also discussed the importance of the U.S.-China trade relationship in the global economy and the need for both sides to continue engaging with one another.
Ambassador Tai highlighted the need to address the critical imbalances caused by China’s state-led, non-market approach to the economy and trade policy. She also raised concerns about PRC actions taken against U.S. companies operating there. Ambassador Tai emphasized the importance of maintaining open lines of communication between the United States and China and building on the engagement between President Biden and President Xi in Bali, Indonesia, in November 2022.
3.
This G20 roadmap also seems helpful, and matches less fractious statements from the G7 more than a week ago:
Second G20 TIWG Meeting Concludes In Bengaluru, India
MAY 25, 2023
G20: The second G20 Trade and Investment Working Group (TIWG) Meeting concluded in Bengaluru today a collaborative roadmap to make global trade inclusive and progressive
Bengaluru: Deliberations during the conference included WTO Reforms, the 5th Priority Issue under India’s G20 Presidency. Discussions also revolved around the agreed conclusions from the 1st TIWG meeting held in Mumbai early this year.
Briefing media persons Shri Sunil Barthwal, Secretary, Department of Commerce said that the Indian Presidency recognizes the critical role of WTO in promoting economic growth and sustainable development. He added that the purpose of this working group meeting is to collaboratively work towards transparent, inclusive and development-oriented reforms that safeguard the interests of all members, particularly those of developing and least developed countries.
Continuing the discussions from the first TIWG meeting held in Mumbai, five technical sessions were organized during the three-day event. These included High-Level Principles of Digitalization of Trade Documents ; Action Plan to Create Meta Information Portal for MSMEs; Framework for Mapping GVCs; Compendium of Best Practices on Mutual Recognition Agreements and G20 Regulatory Dialogue.
On High-Level Principles on Digitalization of Trade Documents, a joint presentation on bringing forth the potential benefit of paperless systems was made by the Indian Institute of Foreign Trade, UNESCAP and OECD.
Shri Barthwal informed that:
The G20 members, invitee countries and international organizations broadly agreed on some of these benefits that included cost reduction, increased efficiency and improved transparency. Several member countries also extended their support for framing principles to accelerate transition towards paperless trade.
He noted that the G20 members collectively recognized the challenges faced by MSMEs across member countries with respect to access to information. An action plan will be put in place to create Meta Information Portal for MSMEs following the joint presentation made by ICRIER and International Trade Centre (ITC). Many countries supported India’s initiatives to address this challenge.
The Indian Presidency also noted the concerns expressed by some members on the possible duplicity with existing initiatives like ITC Global Trade Helpdesk. During the deliberations, the Indian Presidency shared the view that it will clearly demarcate the value addition offered by G20 members. Besides, there emerged a broad consensus that G20 offers a remarkable opportunity for accelerating the integration of MSMEs in global trade by addressing information asymmetry faced by them.
The G20 members appreciated a presentation on India’s efforts towards developing the mapping framework for GVCs, made by the Indian School of Business. The Indian Presidency noted the concerns expressed by some members regarding the technical challenges and data security issues.
Delegates collectively agreed that G20 offers a meaningful platform for improving the resilience of GVCs in the face of disruptions and future pandemics.
The Institute of Economic Growth opened the discussions with the member countries, broadly expressing their willingness to share experiences and best practices on MRAs in professional services. Some members also added that the compendium on MRAs should be extended to broader service areas and must be called for greater cooperation in developing the compendium. The deliberations highlighted that such a compendium on MRAs can be beneficial for the sensitization of professional bodies in various countries towards the ongoing development in MRAs.
Member countries acknowledged the benefits of having a regular dialogue and exchange of information on regulations that impact various areas of trade and investment. The Indian Presidency also assured that all the efforts would be made to make this dialogue focussed on the most critical regulatory challenges that impact international trade and investment environment.
The 3rd TIWG meeting will take place in Kevadia, Gujarat from 10th to 12th July this year. The Indian Presidency is hopeful to develop a promising outcome in the areas already discussed with the support of all G20 member countries and stakeholders. This aim resonates well with India’s Presidency theme of “Vasudhaiva Kutumbakam”.
Over 75 delegates from G20 member countries, invitee countries, regional groupings and international organizations participated in the conference.
Evening Standard