OKONJO-IWEALA SET TO BECOME WTO CHIEF: Okonjo-Iweala spent the bulk of her career at the World Bank, eventually holding its No. 2 post as managing director of operations. Once formally approved by the WTO General Council, she will lead an organization struggling to remain relevant after producing just one new multilateral trade agreement in its 25-year history. The Trump administration, which blocked her selection last fall, also took a number of actions to undermine the WTO. Those included unilaterally imposing tariffs on China and other trading partners, and crippling the WTO dispute settlement system by blocking the appointment of new judges to the group's Appellate Body. It remains to be seen what the Biden administration will do about those Trump actions. But on Friday it voiced its "strong support" for Okonjo-Iweala's candidacy after the other remaining candidate, South Korean Trade Minister Yoo Myung-hee, formally withdrew from the race. Yoo's move followed a pair of phone calls between President Joe Biden and South Korean President Moon Jae-in, and Secretary of State Antony Blinken and his South Korean counterpart. Bipartisan appeal: Former U.S. Trade Representative Robert Lighthizer, in an interview with the Financial Times last month, urged Biden to continue the U.S. block on Okonjo-Iweala, raising the possibility of that becoming a hardened position for Trump supporters in Congress. But both the top Republican and Democrat on the House Ways and Means Committee applauded the Biden administration's decision to back Okonjo-Iweala and expressed hope her selection could be the start of a new era of increased action at the WTO. "I urge all WTO members to lean in and engage with the United States to achieve meaningful reform without delay so that the WTO can be an effective institution in the modern economy," ranking member Kevin Brady (R-Texas) said in a statement. Some U.S. officials have criticized the WTO for being soft on China, particularly when it comes to rules against unfair state aid to industries. Others want to see the WTO crack down on countries with poor labor practices or whose industries contribute heavily to climate change. "The change in administration brings a unique opportunity to finally raise issues that have often been overlooked by the WTO — namely labor, climate change, and women's economic empowerment," Chair Richard Neal (D-Mass.) said in his own statement. Industry response: The fact a new director-general will soon be in place, after the last one stepped down in August, could allow such reform to begin in earnest. And industry groups took the decision to quickly back Okonjo-Iweala as a sign that Biden will embrace the WTO much more warmly than his predecessor. "It was kind of used as a political punching bag for people's aggravations about trade" during the Trump years, National Foreign Trade Council President Rufus Yerxa said in an interview. "There are problems with the WTO but there are also a lot of benefits for the U.S. Now, I think that Biden is a more realistic leader in the world. We need organizations like this but we also need to push them in the right direction." BIDEN WANTS STRONGER TRADE TIES WITH AFRICA: Biden expressed hope for crafting stronger trade and investment ties with Africa in a video message to leaders of the African Union, who held their annual summit over the weekend. He closed his message by wishing that he could meet with the African leaders next time "in person." AGOA summit way overdue: The last summit between U.S. and African leaders took place in August 2014 when Barack Obama was still president. Obama also spoke at a U.S.-Africa Business Forum in New York in September 2016 that was attended by many African leaders. The African Growth and Opportunity Act, which extends trade preferences to eligible countries in sub-Saharan Africa, calls on the president "to the extent practicable" to hold a summit with African leaders every two years. That did not happen at all during the Trump administration. AGOA ministerial possible: AGOA also calls for trade ministers from the U.S. and eligible sub-Saharan Africa nations to meet every year. Last year was the United States' turn to host, but no meeting was held because of the pandemic. A State Department spokesman said they "are currently considering options with USTR" in regards to a meeting this year. WYDEN'S STARTS PUSH TO LIFT CUBAN EMBARGO: In one of his first moves as Finance chair, the Oregon Democrat joined with three other Senate Democrats — Patrick Leahy of Vermont, Dick Durbin of Illinois and Jeff Merkley of Oregon — to introduce the U.S.-Cuba Trade Act of 2021. The bill would repeal the major statutes that codify sanctions against Cuba, including the Helms-Burton Act and the Cuban Democracy Act, as well as other provisions that affect trade, investment and travel with Cuba. It would also establish normal trade relations with the country. The action revives a debate that was put on ice during Trump's presidency after some positive steps in that direction by Obama. But Wyden said the change in administration creates a new opportunity to legislatively end the embargo, despite many failed efforts in the past. "While Trump increased tensions with Cuba during his disastrous time in office, I am optimistic about President Biden's new diplomatic course," Wyden said. "Regardless, Congress has a moral and economic obligation to the American people to improve U.S.-Cuban relations as swiftly and safely as possible." The Trump administration, just days before leaving office, put Cuba back on the U.S. list of state sponsors of terrorism, reversing Obama's decision to remove them in 2015 as part of an opening up between the two Western Hemisphere neighbors. Trump also rolled back many of Obama's moves to increase travel and trade. Biden advisers have already said they will lift Trump-imposed restrictions on sending remittances and barring Americans from traveling to the island USTR ANNOUNCES SEVERAL KEY STAFF POSITIONS: Greta Peisch, who currently works for Wyden as senior international trade counsel on the Finance Committee, is joining USTR as general counsel, the agency's top legal position. Peisch, who previously worked as a lawyer in the General Counsel office, will now oversee a staff responsible for litigating trade disputes at the WTO and enforcing the new U.S.-Mexico-Canada Agreement. In an early Monday morning press release, USTR also announced several other key personnel, drawing heavily on individuals who have worked in Democratic offices on Capitol Hill or who served in the Obama administration. Brad Sester will serve as counselor to the USTR. He was deputy assistant secretary for international economic analysis at Treasury from 2011 to 2015 and more recently was at the Council for Foreign Relations. A recent Wall Street Journal article described Sester as providing the intellectual firepower behind the Biden administration's desire to shift to a more "worker-oriented" trade policy. Jan Beukelman is the new assistant U.S. trade representative for congressional affairs. He previously worked for Sen. Tom Carper (D-Del.), another member of the Finance Committee. He cut his teeth in the House working for former Reps. Jim Matheson (D-Utah) and Dennis Moore (D-Kan.) Jamila Thompson, who previously worked as deputy chief of staff for the late Rep. John Lewis (D-Ga.), was tapped to be a senior USTR adviser. She also worked for Rep. Barbara Lee (D-Calif.). Samuel Negatu, who most recently worked for Rep. Jimmy Gomez (D-Calif.), is now USTR's director of congressional affairs. Negatu was a staff negotiator for the House Democrats' working group on USMCA, focusing on labor issues in the talks with USTR. Sirat Attapit is the new assistant U.S. trade representative for intergovernmental affairs. She most recently was director of legislative affairs for California Attorney General Xavier Becerra, who Biden has tapped to lead Health and Human Services Tai nomination: The Finance Committee still has not scheduled a hearing on the nomination of Katherine Tai to be USTR. She previously was the chief trade counsel for the Democrats on the Ways and Means. (Click here to read our colleague Gavin Bade's profile on Tai.) A hearing seems unlikely until the Senate finishes Trump's impeachment trial. Other nominations: Filling the key staff positions allows the Biden administration to focus on other appointments that need to be confirmed by the Senate. That includes three deputy USTRs, one of whom serves as ambassador to the WTO, and a chief agricultural negotiator. CHAMBER SOUNDS ALARM ON MEXICAN ELECTRICITY BILL: Proposed changes to Mexico's Electrical Industry Law appear to violate that country's commitments under the U.S.-Mexico-Canada Agreement and reinstate a Mexican electricity monopoly that existed until 2016, the U.S. Chamber of Commerce has warned. "Unfortunately, this move is the latest in a pattern of troubling decisions taken by the government of Mexico that have undermined the confidence of foreign investors in the country at the precise moment enhanced foreign direct investment in Mexico is needed more than ever," Neil Herrington, the group's senior vice president for the Americas, said in a statement. Mexico's Supreme Court ruled last week that changes in regulations for the country's electricity market giving priority to the state-owned utility CFE over private power generators are unconstitutional. The decision was a setback for President Andrés Manuel López Obrador's plans to restore the dominance of state-owned energy companies, the Wall Street Journal reported. | 
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