Nine Democratic senators on Feb. 2 urged President Donald Trump to lift his federal hiring freeze, which is hurting trade enforcement efforts and is worrisome given that several agencies are implementing new enforcement tools as directed in the Trade Facilitation and Trade Enforcement Act of 2015, they said in a letter to the White House (here). “Congress included a directive for more resources to be dedicated to trade enforcement as part of the Act, yet the freeze would have the effect of reducing such resources,” the senators wrote. A Jan. 23 Trump memo (here) ordered a hiring freeze applying to employees at all executive agencies, except for military personnel. Signees, who included Senate Finance Committee ranking member Ron Wyden, D-Ore., and Sen. Sherrod Brown, D-Ohio, reminded Trump that trade enforcement was a central campaign promise. “Freezing hiring for the very agencies that will be essential to fulfilling this objective runs contrary to your own campaign promises and undermines long-running bipartisan efforts to enhance trade enforcement throughout the Federal government,” the senators wrote. “While the freeze presents a host of serious challenges across the federal government, here we would like to focus your attention on its impact on trade enforcement.”
Lawmakers recently introduced the following trade-related bills:
Senate Finance Committee Chairman Orrin Hatch, R-Utah, and House Ways and Means Chairman Kevin Brady, R-Texas, left with a positive impression following their Feb. 2 meeting on trade with President Donald Trump. Hatch in a statement (here) said Trump intends to advance a “strong trade agenda” for Americans, including ideas to “modernize” NAFTA. “Given that the trade pact is now more than two decades old, a re-examination of the agreement to ensure it remains the best possible deal for American workers and entrepreneurs in the 21st century global economy makes sense,” Hatch said. “Ultimately, major shifts in policy are decisions that should made with the consultation of Congress which, under the U.S. Constitution, has authority over tariffs." Brady called the meeting "very constructive and very thoughtful," emphasizing any updates to NAFTA should not just follow "free trade" doctrines, but also "fair trade" ideals. Brady added that attendees talked about trade collaboration between the executive and congressional branches, and he called it an "encouraging discussion." The meeting also included Senate Finance Committee ranking member Ron Wyden, D-Ore., and House Ways and Means Committee ranking member Richard Neal, D-Mass. Trump didn't specify how he would seek to change NAFTA through any renegotiation, but did signal that he wants to amend the deal, Wyden said in a statement.
A coalition of more than 25 American businesses launched on Feb. 1 to support House GOP tax reform efforts, including the border adjustability components, the American Made Coalition said in a statement (here). Another group, Americans for Affordable Products, launched the same day opposing those elements of the House Republicans’ reform plan (see 1702010049). The American Made Coalition didn’t immediately make public the names of its members. “The Coalition believes the obsolete and biased tax system subsidizing imports of foreign goods must be replaced with one that restores the United States’ competitive advantage in the foreign marketplace,” the group said. “By ending the ‘Made in America tax,’ we can create a more favorable business environment for American manufacturing and level the playing field so American workers can compete with foreign competitors.”
Rex Tillerson on Feb. 1 was confirmed by the Senate and sworn in as secretary of State. Tillerson addressed State Department employees during a speech Feb. 2, in which he thanked U.S. diplomats for their service (here).
The Footwear Distributors and Retailers of America set up a new page on its website (here) focused on the border adjustment tax being considered by House Republicans as part of a tax reform plan (see 1612010056). The trade group is strongly opposed to the idea (see 1701120028) and is working to get its members to engage with lawmakers. The FDRA also created a summary of the issue (here) and its prospects in Congress. "While this concept is controversial -- pitting exporters against importers -- it aligns with the campaign rhetoric on domestic manufacturing and does not increase tariffs," the FDRA said. Border adjustment provisions "may be modified or removed from a final tax reform bill, but the current political environment increases the prospect of passage and makes congressional advocacy critical," it said.
House Homeland Security Committee ranking member Bennie Thompson, D-Miss., named Rep. Filemon Vela, D-Texas, ranking member of the Border and Maritime Security Subcommittee, according to a Jan. 31 statement by committee Democrats (here). Committee Chairman Michael McCaul, R-Texas, also announced on Jan. 24 (here) that Rep. Martha McSally, R-Ariz., will continue as Border and Maritime Security Subcommittee chairwoman, and named six other GOP members to the panel.
The Senate Finance Committee on Feb. 1 used procedure similar to unanimous consent to advance Treasury secretary nominee Steven Mnuchin for full Senate consideration a day after committee Democrats used their own procedural move to block a committee vote on the nomination, the committee announced (here). The committee GOP majority cleared the nomination under “suspension of the rules," again with no Democrats present, the committee said. All Democrats on the committee boycotted a scheduled confirmation vote for Mnuchin on Jan. 31, which required at least one of them to be present to establish a quorum (see 1701310038).
Lawmakers recently introduced the following trade-related bills:
A Jan. 31 Senate Finance Committee vote to advance President Donald Trump’s nomination of Steven Mnuchin to serve as Treasury secretary was postponed after the committee's Democrats boycotted the session, causing the absence of a quorum. The move further delays committee action on Mnuchin. “Due to the current Democrat posture of blocking consents on the Senate floor today, the Committees will more than likely not be permitted to meet again today,” a committee majority spokeswoman said in an emailed statement. Meanwhile, the full chamber on Jan. 31 confirmed Elaine Chao to serve as Transportation secretary, and the Senate Foreign Relations Committee on Jan. 30 advanced Trump’s secretary of State nominee, Rex Tillerson, for full Senate consideration.