Trading Timber ______
Total Page:16
File Type:pdf, Size:1020Kb
Breakthrough Insights ● Information Advantage On TAP 1 May 2017 The Administration Project powered by DELVE Trading Timber __________________________ Jeff Berkowitz What’s inside: Founder and CEO [email protected] The Issue in Brief........................................................................................ 2 Matt Moon Executive Vice President What's On TAP for Banking and Finance? ................................................ 4 [email protected] What's On TAP for Economic Growth? ...................................................... 5 David Selman Senior Vice President [email protected] What’s On TAP for Energy and Environment? ........................................ 10 Foster Morss What's On TAP for Foreign Policy? ......................................................... 13 Vice President, Research [email protected] What’s On TAP for Defense? ................................................................... 14 What's On TAP for Healthcare? ............................................................... 16 What's On TAP for Justice? ..................................................................... 17 A comprehensive listing of Administration appointees can be viewed at the TAP webpage www.delvedc.com/administration-key-players which our team of analysts will keep updated with each week’s personnel announcements. www.delvedc.com Competitive Intelligence for Public Affairs The Administration Project (TAP) is Delve’s on-demand research service to help subscribers understand the who, what, and when of the Administration. A standard TAP subscription includes weekly updates and insights on the Administration delivered directly to your inbox every Monday with the “On TAP” research report prepared by our team of analysts. Subscribers also receive exclusive pricing on any custom vetting and background research on any and all issues regarding the Administration. Learn more @ www.delvedc.com/the-administration-project. ________________________________________________________________________________________________________________________________ Page 1 2017 Delve, LLC SEE DISCLAIMER ON LAST PAGE 1 May 2017 _________________________________________________________________________________________________ The Issue in Brief Banking and Finance A one-week Continuing Resolution paused government shutdown fears, but negotiations are likely to face the same sticking points next week, plus additional demands that are already emerging, like bailing out Puerto Rico’s Medicaid fund and prohibiting agencies from denying health care funds for clinics that refuse to provide abortion services. Late last night, congressional negotiators announced they were close to agreement on a spending bill that pushes off many of these issues until September. White House economic advisor Gary Cohn may be eyeing replacing Chair Janet Yellen at the Federal Reserve when her term expires in 2018. The White House is also close to naming a new IRS commissioner. Economic Growth President Trump unveiled his tax reform proposal, which includes simplified tax brackets with a top rate of 25%, a corporate tax rate of 15%, a territorial rather than a global tax system, a reduced capital gains tax rate, increase of the standard deduction, and elimination of the death tax and alternative minimum tax. At the FCC, Commissioner Ajit Pai said he would seek to roll back the treatment of ISP’s as utilities and the net neutrality framework, possibly shifting those responsibilities to the FTC. The FCC will hold an open comment period in May before voting on how to proceed on these issues. Trade The President threatened to withdraw from NAFTA, but walked it back after conversations with North American leaders and White House advisors who support free trade, including Jared Kushner and Gary Cohn, and Agriculture Secretary Sonny Perdue who showed the President a map of U.S. areas that would be negatively impacted by the sudden withdrawal. While the Administration reviews their options for renegotiating NAFTA, the Commerce Department slapped a new and long-sought after tariff on Canadian lumber, the result of a break down in trade discussions from Obama’s last year in office. Trump also signed two executive orders designed to rework the U.S. position on global trade. The first builds on earlier trade reviews to establish a 180-day review of all trade agreements to identify abuses by other countries. The second creates The White House Office of Trade and Manufacturing Policy, led by economic advisor Peter Navarro, which will advise the President on reducing the trade deficit and supporting “Buy American” policies. Energy and Environment The White House debate over the Paris Climate Agreement continues, with some advisors supporting walking away while others advocating renegotiating the U.S.’ financial commitments. Because there are no consequences for not meeting the terms of the agreement, it is likely to U.S. will not scuttle the Paris Agreement, but instead push for better terms and lower financial commitments. One way the President could meet the carbon emissions commitments is by supporting more natural gas and clean coal, although pro-gas policies may hurt coal efforts. ________________________________________________________________________________________________________________________ Page 2 TAP The Administration Project 1 May 2017 _________________________________________________________________________________________________ President Trump signed two executive orders last week in an effort to increase domestic oil production, first by allowing offshore drilling in Arctic waters, and second by reviewing the use of the Antiquities Act to declare federal land “national monuments” without sufficient consultation with state and local officials. Some of these lands could be opened to leasing for oil exploration after the review is completed. The President also signed an E.O. creating a task force, led by newly-confirmed Agriculture Secretary Sonny Perdue, to support rural America through easing regulations, increasing biotechnology investments, and addressing workforce concerns in an industry dependent on immigrant labor. Perdue has assured the industry the focus of immigration enforcement on farms will be on criminals and the Administration may support some provisions for guest workers in the future. Foreign Policy In a phone call to discuss North Korea and the drug war, President Trump invited controversial Philippines President Rodrigo Duterte to The White House to head off closer relations between the Philippines and China and Russia. Secretary Tillerson will begin a “listening tour” at The State Department to gather input on how to restructure and slim down the department, with the intention of significantly reducing the workforce through attrition over the next two years. Tillerson also said he will delay appointing senior leaders for the Department until the restructuring plan is settled, a decision that will leave him hamstrung in major diplomatic efforts and overall management of the bureaucracy. Defense The President hosted ambassadors representing U.N. Security Council members at The White House to discuss the urgency of action against North Korea. At the meeting, Trump threatened to reduce U.S. contributions to the U.N. absent unified action against the rogue state. At the same time, the U.S. is preparing military options, and has placed THAAD missile defense systems in South Korea. President Trump is also considering recommendations, including additional troop deployments, for addressing the war in Afghanistan, now in its 16th year, following Secretary Mattis’ visit with the country’s leaders. Healthcare Although the Administration has made progress with conservative congressional leaders on a replacement for Obamacare, there is no new bill and no plan to hold a vote. Trump still faces the challenge of gaining support from moderate Republicans, many of whom are skeptical of any changes to protections for pre- existing conditions. Justice A federal judge blocked the President’s executive order withholding funds from Sanctuary Cities, and the Administration is expected to appeal the ruling to the 9th Circuit. The Department of Homeland Security opened its VOICE office to support victims of crime committed by illegal immigrants. ________________________________________________________________________________________________________________________ Page 3 TAP The Administration Project 1 May 2017 _________________________________________________________________________________________________ What's On TAP for Banking and Finance? Quick Takes: • President Trump announced his intent to appoint Jovita Carranza to be Treasurer of the U.S. Carranza was previously Deputy Director of the Small Business Administration during the George W. Bush Administration. One Week CR Pauses Shutdown A One Week Continuing Resolution Paused Shutdown Fears, But Negotiations Are Likely To Face The Same Sticking Points Next Week, Plus Additional Demands That Are Already Emerging. Congress passed a one week continuing resolution to stop a government shutdown because little progress has been made towards a spending agreement that would fund the government through September. The White House, Congressional Republicans, and Congressional Democrats are all likely to run into the same disagreements next week, and the shape of a compromise remains unclear. President Trump waivered on his commitment to funding Obamacare subsidies and funding for a border wall, but his Administration