Rep. Kevin Brady of Texas, the top Republican on the House Ways and Means Committee, and the Trade Subcommittee chairman and ranking Republican met with World Trade Organization Director-General Dr. Ngozi Okonjo-Iweala when she was in town last week. Brady and Rep. Vern Buchanan, R-Fla., issued a statement that said, "We were delighted to meet with Director-General Dr. Ngozi Okonjo-Iweala at this critical juncture in the history of the World Trade Organization. As we discussed today, our commitment to the success of the WTO is unwavering. However, the United States has long insisted that reform is needed at the WTO, and bipartisan support in Congress for WTO reform is stronger than ever." Rep. Earl Blumenauer, D-Ore., chairman of the trade subcommittee, said, “It was an honor to lead a bipartisan roundtable discussion with Director-General Ngozi where members shared their support for the WTO and relayed their priorities to Dr. Ngozi directly. I, along with several of my colleagues, emphasized the importance of a WTO TRIPS waiver on COVID-19 vaccines, treatments, and tests as well as the critical role that the WTO has to play in protecting the climate. I’m also glad we were able to discuss illegal, unreported, and unregulated fishing, and was encouraged by Dr. Ngozi’s comments about potential progress in dealing with these horrific and destructive practices.”
A panel of trade experts said managed trade doesn't have to be a dirty word, but that the conflation of national security and economic security is dangerous. The Washington International Trade Association decided to host a discussion on managed trade after an essay was published by Edward Alden called, "Free Trade Is Dead. Risky ‘Managed Trade’ Is Here."
The domestic textile industry, which employs about a half million people and a million less than 25 years ago, was the focus of U.S. Trade Representative Katherine Tai's trip this week to factories in the Carolinas. Tai met with textile executives and leaders in the National Council of Textile Organizations trade group, and, according to a summary of the Sept. 23 meeting, she said the administration wants to increase trade between the U.S. and El Salvador, Guatemala and Honduras. One of the factories was a thread factory -- in the Dominican Republic-Central America Free Trade Agreement, unlike in NAFTA, thread must be from either the U.S. or one of the CAFTA-DR countries.
Rep. Claudia Tenney, R-N.Y., introduced a bill that would prohibit the Biden administration from changing country-of-origin labeling on goods made in the West Bank or Gaza Strip. The Biden administration has made no public moves to do so, but under the Obama-Biden administration, according to Israeli press reports, enforcement was stepped up on a longtime rule that goods made in the West Bank had to be labeled as such.
The Commerce Department has initiated a Section 232 case to determine whether the importation of neodymium magnets, a type of rare-earth magnet used to improve motor efficiency, is imperiling the national security of the United States. The department signaled it might initiate such an investigation back in June (see 2106080002), when it published a supply chain study.
American Apparel and Footwear Association CEO Steve Lamar told U.S. Trade Representative Katherine Tai that freight rates and delays are a crisis, and wrote, "We implore you ... to provide the kind of immediate and short-term relief that companies need today to survive this existential threat. We urge you to retroactively reinstate the expired Section 301 tariff exclusions. Further, we urge you to suspend the application of all Section 301 tariffs going forward. Combined, these actions would immediately make millions of dollars available to companies that are hardest hit by the shipping crisis."
House Ways and Means Committee Chairman Richard Neal, D-Mass., told International Trade Today that a carbon border adjustment tax is still "in the mix" as Democrats try to figure out how to pay for a broad array of social and environmental spending. A carbon border adjustment tax could add tariffs to certain imports that are carbon-intensive, if the U.S. determines their manufacture was less clean than the domestic manufacturing processes. But when pressed during a Sept. 23 hallway interview with reporters for more details on where things are on the tax, Neal acknowledged that the discussion of this tax is more conceptual than practical. "Did it come up as a talking point? Yes. Did it come up as a solution point? No." Neal said that all the pay-fors that passed out of Ways and Means are on the menu of options for how to pay for the Build Back Better bill. That includes restricting the use of drawback by tobacco importers and exporters (see 2109130038).
Trade professionals and a trade scholar, talking on a panel that compared the Trump and Biden administrations' trade policies, said that not as much has changed on trade as might have been expected. Christine McDaniel, an economist at George Mason University, said she doesn't expect any of the Section 301 tariffs or the steel and aluminum tariffs to be lifted before the end of 2021. "I haven’t seen any indication they’re going to pull back on the tariffs," she said during a seminar at the Virginia Small Business Development Center on Sept. 21. "I’ve heard people say that the Trump trade policy is just being continued by the Biden administration, minus the rhetoric. You can make the argument for that."
Importers that used to benefit from the Generalized System of Preferences program have paid about $750 million in tariffs since the program expired at the end of last year, according to a Sept. 21 letter to the leaders of the Senate Finance Committee and House Ways and Means Committee. The letter, signed by more than 300 trade groups and firms, says the lapse of the GSP benefits program hurts workers at importing companies, which are also dealing with much higher freight costs and pandemic impacts.
Sen. Jeff Merkley of Oregon, the co-chair of the Congressional Executive Commission on China, said that in order to transition as soon as possible to renewable energy without doing so "on the backs of slave labor," the House of Representatives "must pass and the president must sign into law the Uyghur Forced Labor Prevention Act." The Senate passed a version of this bill in July; a House version was included in the EAGLE Act, which passed out of the House Foreign Affairs Committee, and Merkley's co-chair, Rep Jim McGovern of Massachusetts, said he felt the Senate approach was not strong enough (see 2107290018). Merkley and McGovern are both Democrats.