The nominated U.S. Trade Representative, Robert Lighthizer, is a well-known and veteran international trade lawyer and a free-trade critic who has spent much of his career filing trade remedy cases that seek to protect U.S. industries from "unfair" trade, and advocating for changes in U.S. legislation and policies that benefit domestic producers. At his Senate confirmation hearing held on March 17, Lighthizer reaffirmed commitment to President Trump's "America First" guiding strategy for the new administration including enforcing U.S. trade laws, stating that, "Effective enforcement of these laws is an essential and indispensable element of a strong and effective trade policy for all Americans [...] I will commit to use all the resources available to the U.S. Trade Representative to enforce fully existing U.S. trade agreements to ensure that our trading partners comply with their international obligations."
As noted in the previous article, Lighthizer has indicated that ensuring U.S. softwood lumber producers can compete on a level playing field against subsidized imports from Canada will be "at the top of his list" if his nomination is confirmed.
The overall scope and breadth of the application of this " America First" strategy in the area of trade policy will become further understood with the passage of time. An early indication of how this principle will be applied in the area of economic sanctions and export controls is discussed in our recent Osler Update, which explores the implications for Canadian companies of the recent enforcement action taken against a Chinese telecom company, ZTE Corp., which has been fined $1.2 billion by the new administration. Accompanying the announcement of this record-breaking fine was a statement from Commerce Secretary Wilbur Ross that "these penalties are just the first example of the extraordinary powers Commerce will use" to punish non-U.S. companies who ignore U.S. trade laws, including U.S. export control and economic sanctions laws.
It is time to buckle up and brace for turbulence ahead.
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