Top Republican on Ways and Means Committee Would Like to See India Restored to GSP
House Ways and Means Committee ranking member Kevin Brady, R-Texas, said he hopes India's eligibility for the Generalized System of Preferences benefits program is restored, but cautioned that India is hard to pin down on opening market access -- which is the administration's requirement for even partial restoration. Brady touched on tariffs, negotiations and implementation of the U.S.-Mexico-Canada Agreement as he took questions from reporters late Feb. 12 at the Capitol.
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Brady noted that U.S. trade representative is visiting India this week. When asked if India's GSP eligibility could be fully restored -- its imports were the highest under GSP of any country -- Brady said he hopes so, but added: “A lot of that's up to India.” Reuters reported Feb. 13 that India is offering to import chicken parts, turkey, cherries and even dairy products -- though with tariffs and quotas -- and lower the tariff on Harley-Davidson motorcycles that the president has fixated on.
“I know the goal is to really move India to some concrete steps in opening their markets... over the years, they continue to make U-turns” on market-opening and rules-based trading, he said. He said the USTR is hoping to break that cycle. “I'd love to see that,” he said. “Through my years up here, I usually get my hopes up, and then they get dashed.”
Brady also addressed the implementation of the U.S.-Mexico-Canada Agreement. The date of July 1 has been mentioned as a goal for the new trade agreement coming into force -- that would require uniform regulations to be completed in all three countries by late April. Brady said he thinks that day is realistic. “We have some work to do on labor issues and making sure everyone's up to speed and ready for it to come into force.” He acknowledged, however, that the complexity of the auto rules of origin could make it hard to get the regs ready in time for a July 1 date of entry into force.
With regard to the possibility of Section 301 tariffs on China lasting for years, since there is no deadline for phase two to conclude, Brady said, “I'm eager for us to be in the business of subtracting tariffs. It's really up to China on phase two.
“I know the president has not set any deadline, including this year, because they want to make sure China follows through on phase one. But I think there's going to be some good discussions this year over those. My sense is China is eager to get those tariffs removed, as well.”