House Trade Subcommittee Chair Wants 2012 Action on MTB, CBP Trade Functions, Etc.

Hopes to Move on Miscellaneous Tariff Bill in 2012

Rep. Brady emphasized the importance of passing a Miscellaneous Tariff Bill (also referred to as a Miscellaneous Trade Bill, MTB) as a number of current duty suspensions and reductions are scheduled to expire on December 31, 2012. Rep. Brady acknowledged that MTBs have been caught up in the Congressional ban on earmarks, although he does not consider such bills to be earmarks. The Trade Committee is seeking to revise the MTB process so that member of the House, and especially Senate, are assured that such bills are job creating and transparent. Rep. Brady said that he hopes that Congress can move on a MTB in 2012.

(See ITT’s Online Archives 11033017 for summary of House Ways and Means Committee Ranking Member Levin’s (D-MI) desire to pass another MTB. See ITT’s Online Archives 10081218 for summary of the enactment of the last MTB.)

Customs Reauthorization Bill also a Subcommittee Goal

Another goal of the Trade Subcommittee will be to ensure that CBP’s trade facilitation and cargo security missions are not mutually exclusive and make sure they are aligned. Rep. Brady hopes to address these issues soon through action on a Customs reauthorization bill.

(See ITT’s Online Archives 11061529 for summary of House Ways and Means Committee Chairman Camp’s June 2011 statement that he wanted to continue work on Customs reauthorization legislation. See ITT’s Online Archives 10051437 for announcement of 2010 House Ways and Means Committee’s hearing on CBP reauthorization legislation, that examined topics such as ACE/ITDS; CBP's structure, policies and operations, including the development and funding of its trade facilitation functions; advance data and partnership programs; etc.)

AGOA 3rd Country Fabric Extension Bill Expected as Soon as Vehicle is ID’d

Rep. Brady also stated that he supports legislation to extend the African Growth and Opportunity Act (AGOA) third country fabric provision, which expires on September 30, 2012. Rep. Brady hopes to move an extension as soon as a legislative vehicle for passing it can be identified.

(See ITT’s Online Archives 11121405 for summary of USTR discussion of plans to extend the AGOA third country fabric TPL sublimit past its September 2012 expiration date.

See ITT’s Online Archives 11071415 for summary of House legislation (H.R. 2493) to extend the AGOA third country fabric provision, etc. See ITT’s Online Archives 11060619 for summary of Administration’s announcement that it wants AGOA and the third country fabric provision extended for ten years.)

China Agenda Includes Numerous Issues, Not Just Currency

Rep. Brady noted that the U.S. must improve its trade relationship with China and that China must open its markets more fully and come into compliance with its obligations. The Subcommittee’s agenda for China includes numerous issues, such as indigenous innovation requirements, subsidies for state-owned enterprises, directed lending policies, intellectual property rights (IPR) theft, restriction on exports of key raw materials, as well as misaligned currency and closed capital account. Rep. Brady notes that these issues, when taken together, are equal to or more important than the currency issue alone. Brady warns that the U.S. needs to see concrete improvements and if negotiations are not successful, the U.S. must protect its rights through the WTO.

(See ITT’s Online Archives 11102606 for summary of House Ways and Means Committee hearing on the U.S.-China economic relationship. See ITT’s Online Archives 11101212 for summary of Senate’s passage of China currency bill (S. 1619) on October 11, 2011.)

PNTR for Russia Expected to be “Heavy Lift” in Congress

Rep. Brady expressed strong support for Russia’s WTO accession, but noted that getting Congressional approval to remove the Jackson/Vanik requirements and grant Russia permanent normal trade relations (PNTR) status will be a “heavy lift.” (PNTR is necessary for the U.S. to enjoy the full benefits of Russian membership in the WTO.) Although Rep. Brady stated that a vote could be possible in the first half of 2012, he noted that there is a lot of skepticism about Russia in Congress and he expects that Congressional members may also want to address non-trade issues such as human rights, foreign and security policy, and Iran. The Trade Subcommittee is expected to hold a hearing on Russia’s WTO Accession in early 2012.

(See ITT’s Online Archives 11032502 for summary of the President’s affirmation of support for Russia’s WTO accession and establishment of PNTR.)

Updated Trade Promotion Authority Needed for TPP

Rep. Brady said that updated trade promotion authority will be needed for the Trans Pacific Partnership (TPP) agreement. In order for Congress to be ready to consider the TPP agreement as soon as it is done, TPA must be in place. Rep. Brady expressed the hope that TPA could be passed in 2012.

(See ITT’s Online Archives 11120120 for summary of USTR’s discussion of the Administration’s plans to seek trade negotiating authority for TPP.)

Brady Would Like to See TPP Negotiations Accelerate, Agreement by Mid-2012

Rep. Brady, who has been a long time supporter of TPP, stated that it is time for the conclusion of the TPP negotiations to accelerate and he would like to see the talks finish by mid-2012. Although Rep. Brady welcomes the interest of Japan, Canada, and Mexico in possibly joining the TPP negotiations, he said that the new entrants cannot be allowed to delay the conclusion of the TPP talks. He also emphasized that any new entrants to the negotiations must resolve any outstanding bilateral issues with the TPP countries.

In particular, Rep. Brady noted that there is some opposition in Congress to Japan joining the TPP negotiations and that the burden is on Japan to resolve issues such as beef, autos, insurance, medical devices, etc. over the next couple of months.

Rep. Brady also noted that he sees no reason for labor issues in the TPP agreement to go beyond the May 10, 2007 bipartisan agreement on labor. He warns that any attempts to go beyond that previous agreement would result in a loss of Republican support.

(See ITT’s Online Archives 07051405 for summary of May 10, 2007 agreement on labor, etc.)

Trade Subcommittee to Work with Ag Committee on Farm Bill Cotton Issues

In response to a comment from the audience expressing concern that a 2012 Farm Bill could unravel the WTO agreement between the U.S. and Brazil on cotton and lead to cross-retaliation by Brazil, Rep. Brady noted that the House Ways and Means Trade Subcommittee would be working with the House Agriculture Committee on such issues.

(See ITT’s Online Archives 11061663 for summary of a previous House bill which contained a provision to block funding from being used to make cotton payments to Brazil. See ITT’s Online Archives 11062015 for summary of Brazil’s threat to retaliate if the U.S. refuses to continue payments related to the WTO ruling on cotton.)