[CTC] Trump’s Antigua gambling problem

[Arthur Stamoulis]

http://www.politico.com/tipsheets/morning-trade/2016/12/trumps-antigua-gambling-problem-217766 <http://www.politico.com/tipsheets/morning-trade/2016/12/trumps-antigua-gambling-problem-217766>

Trump’s Antigua gambling problem
By ADAM BEHSUDI <http://www.politico.com/staff/adam-behsudi>   12/08/16 10:00 AM EST
With help from Doug Palmer, Megan Cassella and Brian Faler

TRUMP’S ANTIGUA GAMBLING PROBLEM: President-elect Donald Trump is taking a gamble that he can make America great again by cracking down on powerhouses like China for rigged trade practices, but he might actually find himself on the receiving end of trade retaliation the first day he sits down in the Oval Office.


Without regard to the next occupant of the White House, Antigua and Barbuda is taking a page directly out of Trump’s tough-on-trade playbook. The country recently declared it has reached the end of its rope over a 12-year-old trade dispute with the U.S. over Internet gambling. The Antiguan government says if the case isn’t settled by the end of the year it will retaliate against the U.S. to the tune of $21 million a year by setting up an online market to rip off copyrights and other protected content. The World Trade Organization has sanctioned the retaliation.

Antigua brought a WTO case <https://www.wto.org/english/tratop_e/dispu_e/cases_e/ds285_e.htm> against Washington in 2003 to protest anti-racketeering laws that restricted gaming companies incorporated on the island from providing online gambling services in the U.S. Washington lost the case and subsequent appeals, which found the laws in violation of international trade rules.

Trump is sure to inherit the problem, but Antigua says it doesn’t matter who’s in charge. “Whether you have a government that is led by one man or tomorrow is led by another, it does not change the circumstances. ... The United States violated its obligations under the treaty, we sought to get that rectified and we got a judgment from the World Trade Organization,” Ronald Sanders, Antigua and Barbuda’s ambassador, said in an interview. “We’re simply implementing that judgment. In this case we are completely blind to who the government is.” Read the full story here <https://www.politicopro.com/trade/story/2016/12/trumps-future-antiguan-gambling-problem-139883>.

IT’S THURSDAY, DEC. 8! Welcome to Morning Trade, where we’re wondering if Trump plans to use any moves <http://www.wwe.com/videos/playlists/donald-trump-greatest-wwe-moments> he learned during his professional wrestling appearances in trade disputes with China. Got any news to share? Let me know: abehsudi at politico.com <mailto:abehsudi at politico.com> or @abehsudi <https://twitter.com/abehsudi?lang=en>.

POLITICO EVENT ALERT – AGRICULTURE AND THE NEXT ADMINISTRATION:  <http://www.politico.com/events/2016/12/agriculture-and-the-next-administration-232079>Join POLITICO for a forward-looking conversation on President-elect Donald Trump's policy agenda for agriculture, how his administration will work with the new Congress, and pathways to legislative action. Monday, Dec. 12 - Doors at 8 a.m., The Mayflower Hotel. RSVP: here <http://www.politico.com/events/2016/12/agriculture-and-the-next-administration-232079>.

PORTMAN TO TRUMP: GO WITH EXPERIENCE ON USTR: Ohio Sen. Rob Portman has a message for Trump on who he should hire as his chief trade negotiator: Pick someone with experience.

"Unlike most Cabinet-level jobs, you really have to come into the job with some experience in order to be successful," the former U.S. Trade Representative told POLITICO.

The Ohio Republican was in New York for other meetings on Monday, so Trump transition officials invited him to drop by Trump Tower to talk about the possibility of Congress passing tax-reform legislation.

"But we did talk briefly about [the Office of Management and Budget] and USTR since I was there," Portman said. "No particular name, just generally what kind of person is needed. ... It’s not a typical Cabinet job in that you end up often having to negotiate one on one with trade ministers around the world and often get into the weeds, deeply. So you need somebody, in my view, that has experience in trade and that’s the point that I made." Doug Palmer has the story here <https://www.politicopro.com/trade/story/2016/12/portman-choose-someone-experienced-for-ustr-139887>.

BUSINESS GROUPS BACK BRANSTAD: Trump’s pick of Iowa Gov. Terry Branstad to serve as ambassador to China received high marks from U.S. business groups following the announcement of his nomination Wednesday.

“The U.S.-China Business Council is pleased with the choice of Gov. Terry Branstad to serve as ambassador to China. He comes to the position with firsthand perspective on the importance of the commercial relationship with China for state and local economies,” U.S.-China Business Council President John Frisbie said in a statement. The business group recognized <https://www.uschina.org/events/uscbc-gala-2014> Branstad in 2014 for “expanding and strengthening bilateral commercial relationships with China on the state and local level.”

National Association of Manufacturers President and CEO Jay Timmons called Branstad the “perfect pick” who has a deep understanding of China and a close relationship with Chinese President Xi Jinping.

WWE’S MCMAHON TO SBA: Linda McMahon, the co-founder of World Wrestling Entertainment Inc. and a two-time contender for Connecticut’s U.S. Senate seats, has been tapped <https://www.politicopro.com/financial-services/whiteboard/2016/12/trump-selects-linda-mcmahon-to-lead-sba-080410> to lead the Small Business Administration, Trump’s transition team said Wednesday. 

In a statement announcing the decision, Trump praised McMahon as “a phenomenal leader and champion for small businesses” and said she would help advance his pro-business agenda by rolling back regulations. McMahon added that she would help small businesses “grow and thrive.”

McMahon began publicly supporting Trump when she became a top donor to the president-elect throughout the fall, giving $6 million <https://www.politicopro.com/states/florida/story/2016/10/linda-mcmahon-gives-6-m-boost-to-pro-trump-super-pac-run-by-rick-scott-106526> to a pro-Trump super PAC run by Florida Gov. Rick Scott. But the Connecticut Republican wasn't always a Trump fan: She called New Jersey Gov. Chris Christie her favorite during the Republican primary, and she criticized <https://www.yahoo.com/news/former-wwe-ceo-linda-mcmahon-lays-smack-down-on-210446597.html> some of Trump's rhetoric during the campaign as "deplorable."

The McMahon pick was quickly praised by the chairman of the House Committee on Small Business, Rep. Steve Chabot, who called her an “excellent choice” to lead the agency. “I look forward to working with her and the new administration to roll back burdensome regulations and increase access to capital for America’s 28 million small businesses,” Chabot said in a statement. “Our committee will work with the new administrator to advance meaningful reforms that will make the SBA more efficient and customer-friendly for small businesses.”

IMPORTERS ASK FOR PORT FEE REPRIEVE: A coalition of retailers, manufacturers, truckers and other business groups are appealing to the Federal Maritime Commission to stop port operators from charging unfair fees for cargo pick-up delays caused by uncontrollable incidents like storms and worker strikes.

“Recent events involving port congestion, labor strife, an ocean carrier bankruptcy, inclement weather and other disruption events have had crippling effects on U.S. ports and the stakeholders who rely on the efficient movement of goods,” the 25-member Coalition for Fair Port Practices said in their petition <https://nrf.com/sites/default/files/FMC%20Petition.pdf>.

The issue came to a head this fall when South Korean shipping company Hanjin went bankrupt, creating delays for cargo owners picking up containers. The bankruptcy also disrupted the process for returning containers and chassis, used to pull containers behind trucks, creating more fees for companies. Similar delays also occurred during the 2014-2015 labor strikes at West Coast ports and as a result of Hurricane Sandy on the East Coast in 2012.

KOCH BROTHERS REJECT GOP PLAN TO TAX IMPORTS: The Koch brothers, top supporters of the Republican Party, have come out against a key plank of the House GOP tax reform plan that calls for a “border adjustable” business tax. The proposal would apply taxes to imports while exempting exports, and is meant to respond to similar consumption tax schemes used at the border in other countries.

"We worry that the border-adjusted tax provision proposed in the House Republican blueprint would adversely impact American consumers by forcing them to pay higher prices on products produced in and goods imported to the U.S. that they use every single day," Koch Industries spokesman Philip Ellender said. "Our tax system should encourage, not destroy, free exchange and trade resulting in robust commerce, and lower, not higher, prices for consumers."

Experts have also argued that the border adjustability in the tax reform plan would be an easy target <https://www.politicopro.com/trade/story/2016/12/some-warn-house-tax-plan-would-blow-up-world-trade-organization-139699> for a WTO dispute. WTO rules allow for border adjustments on taxes, but only for consumption-based taxes like a value-added tax. The GOP plan argues that it would similarly be immune to a challenge because taxes would be adjusted based on consumption. Read the full story from Pro Tax’s Brian Faler here <https://www.politicopro.com/story/2016/12/in-blow-to-gop-tax-plans-koch-brothers-denounce-border-adjustable-proposal-139902>.

TTIP’S NEXT ORDER OF BUSINESS: A ‘SCREENSHOT’: U.S. and European trade officials are taking a “screenshot” of progress made in transatlantic trade talks before putting the TTIP in a deep freeze, EU Ambassador David O’Sullivan said Wednesday.

"We stand willing to continue those discussions if the new administration wishes," O'Sullivan said during a discussion on the future of the U.S.-EU relationship. "We believe there's a very good possibility of a good trade deal to be done, but of course we wait to hear what the new administration has to say."

O'Sullivan said he believes the two sides could finish the TTIP negotiations in one or two years, if the incoming administration is interested in pursuing the negotiations. If not, the EU would still like to talk with the new U.S. team about an alternative trade agenda, he said.

PRO-CUBA CAMP TARGETS TRUMP’S BUSINESS INSTINCTS: Lawmakers, lobbyists and others who favor moving toward increased economic engagement with Cuba are touting the benefits that such a move could bring to companies — a strategy they hope will appeal to the president-elect’s business sense. Standing alongside four Cuban lawmakers on Capitol Hill on Wednesday, a bipartisan group of lawmakers called on Trump to lift the decades-old embargo and urged him not to undo steps that President Barack Obama has taken to open ties between the two countries, primarily through executive order.

“We do not want to go backward," Sen. Amy Klobuchar <https://cd.politicopro.com/member/51842> said at the event. While Trump has at times talked about his support for opening up Cuba, she noted, he also gave a speech <http://www.politico.com/story/2016/09/donald-trump-miami-cuba-hardliner-228314> toward the tail end of his campaign indicating more of a hard-line stance. "We're following the Twitter feed. We hope that there can be a case made here with entrepreneurs like this — he is a businessman himself — that we need to move forward."

Trump has yet to take a concrete stance toward Cuba, and he has hardly commented on policy decisions involving the island nation since his election a month ago. But James Williams, president of the Washington-based advocacy organization Engage Cuba, said he and colleagues have been in touch with the president-elect's transition team, and they remain optimistic even as it remains unclear what the next administration wants to do policy-wise.

“It's been quite positive in the conversations that we've been having and our allies have been having,” Williams said. “I think they're looking for options, are there deals that could be made, who should benefit and who shouldn't — and I think that's healthy.” Read the full story here <https://www.politicopro.com/trade/story/2016/12/pro-cuba-lawmakers-appeal-to-trumps-business-senses-to-influence-policy-139899>.

TRADE REMEDY CORNER: WHIRLPOOL SEEKS RELIEF: Michigan-based Whirlpool is pleading for import relief from the U.S. International Trade Commission, arguing that South Korean companies Samsung and LG have shifted production to China, which is being used as an export platform for dumping unfairly priced washing machines into the U.S.

"Serial dumping by Samsung and LG continues to injure our U.S. washers business," Jeff Fettig, Whirlpool’s chairman and chief executive officer, told the ITC. "Just a few years ago, this commission unanimously voted for a remedy to address dumped and subsidized imports from Korea and Mexico. I am very frustrated that Whirlpool received virtually no benefit from the orders. In fact, Samsung and LG effectively circumvented the remedy before the investigation was completed by moving production to China."

The plea comes as Trump is promising to crack down on foreign countries that engage in unfair trade practices. However, the Obama administration points to dozens of anti-dumping and countervailing duty orders issued over the past eight years as evidence it has been tough on that front. Doug Palmer has the full story here <https://www.politicopro.com/trade/story/2016/12/whirlpool-pleads-for-import-relief-from-south-korean-rivals-139889>.

COMMERCE WASHING MACHINE DECISION COMING: While a final injury determination from the ITC is still weeks away, the Commerce Department on Friday is expected to announce final anti-dumping duties on residential washing machines from China. The duties would affect a significant amount of trade with an estimated $1.1 billion worth of imports from China in 2015, according to the Commerce Department.

EX-IM SUPPORTERS LAMENT BANK’S BAD LUCK: The absence of a rider in Congress’ continuing resolution that would have brought the Export-Import Bank back to its full working capacity has left its supporters downcast over future prospects to revive the agency.

“I am disheartened that a provision to enable Ex-Im to fully support American jobs was not included in the continuing resolution,” Bank Chairman Fred Hochberg said in a statement. “I am hopeful that when the new Congress begins in January, they will expeditiously address the need for a fully functioning Ex-Im to level the playing field for American workers.”

The bank’s foes, however, celebrated the move, which leaves the agency unable to approve deals worth more than $10 million. Andy Koenig, vice president of the Koch-linked group Freedom Partners, took credit for Congress’ decision to leave it out of the stopgap funding bill and said it was a good move for taxpayers.

“With hard work from our network, a sweeping election, and principled leaders standing their ground, we are happy to see that our chief priorities were protected in this CR,” Koenig said. “While taxpayers have traditionally been dealt ugly deals in lame ducks, we’re encouraged that lawmakers did not bend to Washington lobbyists working to secure special interest tax extenders, Obamacare bailouts, and billions in taxpayer giveaways from the Ex-Im Bank.”

INTERNATIONAL OVERNIGHT

— Trump took to Twitter on Wednesday evening to slam a union boss who criticized the president-elect’s claim to have saved 1,100 jobs at the Indiana Carrier plant, POLITICO reports <http://www.politico.com/story/2016/12/trump-carrier-union-boss-232354>.

— Vietnam’s prime minister warns against protectionism as its TPP hopes fade, Bloomberg reports <https://www.bloomberg.com/news/articles/2016-12-08/vietnam-prime-minister-warns-of-the-return-of-protectionism>.

— Texas lawmakers aren’t worried about a renegotiation of NAFTA under Trump, KXII reports <http://www.kxii.com/content/news/405330786.html>. 


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