A bipartisan bill was introduced in the House to create an Office of Supply Chain Resiliency and Crisis Response in the Commerce Department, with the goal of partnering with industry, unions, and state and local governments on supply chain vulnerabilities, and ways to plan for supply chain shocks. It would make recommendations on how to expand "the sourcing of critical goods and services, equipment, and technology from allies or key partners of the United States," its writers said.
Rep. Earl Blumenauer,D-Ore., chairman of the House Ways and Means Trade Subcommittee, Rep. Brian Fitzpatrick, R-Pa., and Sen. Brian Schatz, D-Hawaii, want to pass a law that would require importers of certain commodities to first certify that they exercised reasonable care that the products they are buying were not produced on illegally deforested land. If the goods -- such as palm oil, soybeans, cattle, cocoa and rubber -- are coming from a country that the government designated as high-risk for illegal deforestation, importers will have to fully document their supply chains and the measures buyers took to ensure it was not produced on deforested land.
Rep. Kevin Brady of Texas, the top Republican on the House Ways and Means Committee, said that while what he called the "food fight between Democrats" is preventing legislation from moving this year, "this next year would be an opportune time to have a conversation about [Section 232 reform] in a bipartisan way." Brady, who was responding to a question during a call with reporters Oct. 6, said he'd like to be a part of that conversation about the use of national security tariffs and Congress's role in setting tariffs.
Two Chinese scholars specializing in international trade said they found U.S. Trade Representative Katherine Tai's Oct. 4 speech (see 2110040008) encouraging, even though she criticized Chinese adherence to market principles and the effect that has on companies around the world.
Sen. Pat Toomey, R-Pa., one of the original advocates for narrowing the authority of the executive branch to impose national security tariffs or quotas, has once again introduced a bipartisan bill to reform the legislation that delegated that authority. Toomey, joined by Sen. Mark Warner, D-Va., six other Democrats and 10 other Republicans, said the prior administrations abused Section 232 tariffs "to protect favored industries, which has resulted in economic disruption, damage to U.S. relationships with our allies, and harmful retaliatory tariffs on American farmers and manufacturers."
One measure of how much more common detentions over forced labor have become is that the withhold release order affecting cotton grown in Xinjiang has led to either the detention or diversion of more than 1,000 shipments, said Nate Herman, American Apparel and Footwear Association vice president for policy. Herman said the value of the garments or textiles in those shipments added up to hundreds of millions of dollars, "probably over a billion dollars at this point and only a handful of them have been released, maybe a dozen, maybe a little bit more."
The Office of the U.S. Trade Representative is seeking comments on whether it should reinstate hundreds of Section 301 product exclusions that expired either late last year or early this year. The public docket at https://comments.USTR.gov will open Oct. 12, and parties can submit comments until Dec. 1. The agency is asking that commenters not only weigh in on specific products, but also on how long the exclusions should last.
The office of the U.S. Trade Representative plans to restart a Section 301 tariff exclusions process, and has no immediate plans to remove any of the Section 301 tariff targets now that its comprehensive China review is over. However, a government official who spoke on background during an Oct. 3 call with reporters said, "We also want to make sure to align existing tariffs to those [Biden-Harris administration] priorities."
The rollout of the new China trade policy looks a lot like the old China policy, with a new chance at Section 301 exclusions and all the tariffs remaining for now. U.S. Trade Representative Katherine Tai suggested during the speech on the results of the China policy review that she doesn't have much hope for getting more structural reform that the phase one China agreement did not secure.
The Coalition for a Prosperous America wrote to Commerce Secretary Gina Raimondo, suggesting that tariff rate quotas on European aluminum should be what replaces the 10% tariff on aluminum from the European Union. "We cannot return to the unhealthy belief that ad hoc anti-dumping or countervailing duties are sufficient for these vital sectors. Managing import penetration in aluminum, in particular, remains vital," the group wrote.