Turning a Corner on Trade?

(Forbes – Brian Wingfield)

When it comes to trade policy, April has been anything but the cruelest month for the United States. The question, however, is whether this good fortune will remain.

Friday, press reports out of Beijing indicated that the Chinese government will soon allow the country’s currency to appreciate, a long-standing wish for American manufacturers who feel that they’re being undercut by cheap imports from Asia. But if the renminbi appreciates only slightly against the dollar, U.S. producers won’t have much to cheer about.

Earlier this week, U.S. trade negotiators said they were close to reaching an agreement with Brazil to resolve an eight-year dispute over U.S. cotton subsidies. If a deal is reached, major U.S. industries including autos, pharmaceuticals and wheat producers may escape some $820 million in retaliatory measures from Brazil. The deadline for a settlement is less than two weeks away.

And last month, a World Trade Organization panel reportedly determined that the European Union provided Airbus with subsidies that run afoul of international trade rules. Problem is, both Airbus and its chief U.S. rival, Boeing, have claimed victory. (Airbus says the trade organization rejected 70% of U.S. claims.) A final report isn’t expected until June. Read more here.