Clete Willems Quoted in Inside U.S. Trade on Trade Opportunities Amid COVID-19 Pandemic

Inside U.S. Trade has quoted Akin Gump public law and policy partner Clete Willems in the article “Former Trump ‘sherpas’ see trade opportunities amid pandemic.” Willems, who played key roles in trade talks between the United States and China while working for the Trump administration, discussed how the White House should consider broader tariff relief for key medical goods in response to COVID-19.

One of the issues Willems addressed was a recent executive order extending duty payment deadlines for importers suffering hardships because of COVID-19. Along with a request for comment from the U.S. Trade Representative on potential exclusions to two initial lists of products from China subjected to Section 301 tariffs, Willems said the United States “should think about whether broader base tariff relief is appropriate.” He said that, while the administration “doesn’t want to let countries like China off the hook,” he thinks the White House “can move much more quickly on exempting a broader range of medical supplies.”

As of last week, the article reports, roughly 80 countries, including the United States, had imposed export restrictions in response to the pandemic. Willems said the rampant adoption of such restrictions “points to some of the shortcomings of the current global trading system.” He suggested that the United States instead work with other G20 members to reach an agreement on the elimination of tariffs on medical supplies.

“I do think that is where the U.S. could, and appears like it is intending to, move more quickly on that; it would be good to see the G20 agree to something like that,” he said.

Willems also spoke about the upcoming G7 ministerial meeting, which will now take place virtually. While not ideal in this format, he said, “I think they are really looking at focusing on talking about how they can coordinate on opening up the [global] economy.”

Willems said countries should focus on establishing “consistent definitions” for essential businesses so that “when our businesses open up, they know that they can get supplies from these other countries. That kind of coordination is something they can do through the G7.”

The “continued proliferation” of digital tax measures was another topic Willems discussed. He said many countries are using it as a way to gain revenue needed to fund economic stimulus measures in the wake of the pandemic.

With regard to concerns about the vulnerability of supply chains, Willems said they are largely well-founded, but added that the United States should not consider imposing “Buy American” restrictions in response. Instead, it should “ultimately” focus on establishing a “reliable network of supplies” from allies rather than trying to “make every single product it can at home,” he argued.