By William Mauldin
WASHINGTON -- As senior officials from the U.S. and China
gathered in the Oval Office in February, President Trump had a
simple message for his top negotiator, Robert Lighthizer: Close the
deal.
"Mr. Lighthizer has done a great job," Mr. Trump told the
negotiating teams, as reporters looked on. "But it's only a great
job, Bob, if you get it finished, right?"
Three months later, the U.S.-China trade deal remains far from
finished. Talks broke down this month as Beijing resisted U.S.
demands that China change its laws to cement the accord, which
Beijing saw as an assault on its sovereignty.
The impasse, after indications that a deal was in sight,
reflects the Trump administration's determination that any deal
should focus on long-term changes in Chinese economic and business
rules. To trade lawyers and others following the talks, Mr.
Lighthizer's fingerprints are plainly visible.
Before his appointment in 2017 as U.S. trade representative, Mr.
Lighthizer spent three decades as a trade lawyer, largely
representing U.S. Steel Corp. and other clients as they petitioned
the U.S. government for tariffs on overseas rivals.
According to lawyers who have worked alongside Mr. Lighthizer
for years, for him the goal of negotiation isn't to find a
compromise or middle ground, but to pursue aggressively the best
deal possible for his client. "He brings the characteristics to the
table that you would want, " said Clete Willems, a former Trump
administration trade adviser who recently joined law firm Akin,
Gump Strauss, Hauer & Feld LLP. "His background suits him
uniquely well to the situation" with China.
Not everyone is a fan of the no-holds-barred approach. Miriam
Sapiro, former acting U.S. trade representative in the Obama
administration, said trade negotiators need to recognize that each
side must score wins to reach a successful deal.
"If you're negotiating an agreement -- a trade agreement or
really any agreement -- an approach of 'my way or the highway' is
not likely to work," said Ms. Sapiro, in comments aimed at U.S.
trade negotiators in general. "An adversarial hat may work at
certain moments, but it's not necessarily going to be the strategy
that gets you across the finish line."
Like the president, Mr. Lighthizer, 71 years old, eschews
complex deals with several countries at once and has sought
concessions from China unilaterally, despite many lawmakers' calls
for a multilateral approach that wouldn't expose U.S. firms to so
much risk from trade fights. "The more people you bring into the
negotiations, the harder it is," Mr. Lighthizer told a House
committee in March.
Mr. Lighthizer, who declined a request for an interview, does
most of his work behind the scenes. But on occasion he will seize a
public platform to attack trading partners' positions at crucial
moments in the negotiations.
In 2018 talks to overhaul the North American Free Trade
Agreement, or Nafta, he used a news conference to vent frustration
against Canadian Foreign Minister Chrystia Freeland in Montreal,
attacking a Canadian proposal for new auto rules.
Mr. Lighthizer later used some of the Canadian ideas in an auto
deal he struck with Mexico. Ms. Freeland called Mr. Lighthizer a
"true professional" last week after the two struck a deal to
eliminate U.S. steel and aluminum tariffs and Canadian
retaliation.
Similarly, Mr. Lighthizer used a rare briefing at his office
this month to attack China's actions at the negotiating table,
accusing Chinese officials working on the agreement of a
"redrafting of it in ways that pulled back important
commitments."
Mr. Lighthizer cut his teeth in the 1980s as a deputy U.S. trade
representative in the Republican Reagan administration. Mr. Reagan
backed free trade, but officials including Mr. Lighthizer used
America's economic heft and influence at the latter stages of the
Cold War to win concessions that limited U.S. imports from
fast-growing emerging markets.
Japanese officials at the time called him "missile man" after he
took a proposal from Tokyo, made it into a paper airplane, and
threw it back at them.
Later, Mr. Lighthizer entered a long period as a trade lawyer at
Skadden, Arps, Slate, Meagher & Flom LLP, focusing on corporate
calls for tariffs. He took a break in 1996 to serve as the
treasurer and an adviser to the presidential campaign of former GOP
Sen. Bob Dole.
Along the way, he staked out a major position on China, saying
in 2010 testimony before the U.S.-China Economic and Security
Review Commission that Washington should consider putting aside its
low-tariff commitments under the World Trade Organization if China
continued to violate market principles.
Thus Mr. Lighthizer was a near-perfect fit for the Trump
administration, since Mr. Trump had promised to tear up old
agreements and use the threat of tariffs to put together new deals
that he said would restore U.S. sovereignty. Recent U.S. trade
representatives had leaned more toward free-trade orthodoxy.
U.S. officials say one reason for Mr. Lighthizer's hard line is
the belief that China has ignored previous trade obligations, so he
wants to make any new deal as legally binding as possible.
"Our objectives are to foster reform in China," Mr. Lighthizer
told Congress recently, saying the country's state capitalism and
technology thefts were an "existential problem."
The insistence on changing Chinese law is sensitive for Beijing
because it represents an imbalance in the agreement: U.S. law isn't
expected to change, because the Trump administration isn't planning
to submit any deal with China to Congress.
"You can't have American officials going all over China without
reciprocity, and we would have to have a similar concession to
China for it to make sense," said Jerome Cohen, an expert in Asian
law at New York University's law school.
There are other issues beyond the legal question, including the
Trump administration's desire to remove tariffs only gradually to
ensure China complies with the terms of the deal.
Politics and geopolitics are also in play in both countries. Mr.
Trump, who was elected in part by promising to be tough on China,
could also be returning to a more hawkish approach as he prepares
for the 2020 campaign.
"If Bob can't get a deal, there may not be a deal to be had,"
said Michael Wessel, a trade consultant and member of the
U.S.-China Economic and Security Review Commission.
Write to William Mauldin at william.mauldin@wsj.com
(END) Dow Jones Newswires
May 23, 2019 05:44 ET (09:44 GMT)
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