Trade leaders on Capitol Hill asked the International Trade Commission on Sept. 24 to conduct a follow-up investigation into Indian trade policy. The ITC began an investigation in August 2013 that focuses on Indian trade policies from 2003 through mid-2014 (here). Finance and Ways and Means committee leadership are now pushing the ITC to look into Indian industrial policies that discriminate against U.S. companies, and are also asking that the ITC report on Indian trade policy developments after mid-2014. “We expect that this new investigation will allow the Commission to meet with relevant Indian government officials in the new Bharatiya Janata Party-led government and seek additional information from U.S. firms on any developments in India relevant to the scope of matters identified in our original August 2013 request,” said the Sept. 24 letter. Indian Prime Minister Narendra Modi is scheduled to meet with Obama and House Speaker John Boehner, R-Ohio, in Washington, D.C. on Sept. 29 (see 14092522). The letter asks for the ITC to release the new report by September 2015.
The second ranking member of the House Ways and Means Committee, Rep. Kevin Brady, R-Texas, will vie for the committee gavel in the coming months, a spokeswoman for his office said on Sept. 25. A Brady challenge may complicate Rep. Paul Ryan’s bid for the chairmanship as both have long expressed interest in the position. Ryan’s office did not comment on a race for the chairmanship, instead saying he is focused on his current role as House Budget Committee chairman. Brady previously was the chairman of the Ways and Means Trade Subcommittee. His spokeswoman said he is committed to the trade agenda, but did not elaborate. The current Committee Chairman, Rep. Dave Camp, R-Mich., is retiring (see 14040113).
Recent trade-related bills introduced in Congress include:
The American Apparel and Footwear Association applauded the introduction in recent days of legislation that would eliminate tariffs on outdoor apparel. The U.S. Optimal Use of Trade to Develop Outerwear and Outdoor Recreation Act of 2014, introduced in the House and Senate as HR-5646 and S-2838, would modernize an outdated tariff system for recreational performance outerwear, said AAFA President Juanita Duggan in a Sept. 18 statement. “The innovative and high tech apparel being designed and produced today looks nothing like the outerwear garments that existed when these tariffs were first imposed decades ago,” said Duggan. “The outdoor industry has transformed itself by incorporating state of the art technical construction and sustainable materials to meet the needs of consumers for higher performance product and specialized gear. It’s time to update our tariff policy to reflect these products and the industry they cover.” The bills’ lead sponsors, Rep. Dave Reichert, R-Wash., and Sen. Maria Cantwell, D-Wash., have not yet released copies of the legislation. A Reichert press release said the bill eliminates tariffs on both knit and woven apparel (here).
Recent trade-related bills introduced in Congress include:
The Obama administration will restart litigation in a U.S.-Guatemala labor dispute, administration officials, lawmakers and a union leader announced on Sept. 18. The dispute is the first to focus on labor in a U.S. free trade agreement. The Office of the U.S. Trade Representative in August gave Guatemala four more weeks to prove its labor policy and practice is in compliance with a U.S.-Guatemala labor action plan in 2013, but those efforts evidently fell short. The 2013 Enforcement Plan was brokered under the Dominican Republic-Central American Free Trade Agreement.
The Senate passed the Continuing Appropriations Resolution 2015, H.J.Res.124 (here), on Sept. 18 with a bipartisan 78-22 vote. The bill will fund the government through Dec. 11, extend the Export-Import Bank through June 2015, and authorize training and arming of Syrian rebels. President Barack Obama will now have to sign the measure. The Senate also approved the nomination of Robert Holleyman as deputy U.S. Trade Representative.
The top House Democrat on trade released a report on Sept. 18 that reiterates a call for more congressional influence on U.S. free trade agreements and trade policy in order to ensure FTAs best serve U.S. workers, the economy and the environment. House Ways and Means Committee ranking member Sandy Levin, D-Mich., is urging trade policymakers to include the principles of the “May 10th Agreement,” brokered in 2007 among lawmakers, in all U.S. FTAs. That pact focuses on worker rights, environmental protections, access to medicine and human rights.
Republicans are trying to give a “death knell” to the Export-Import Bank through its short-term extension in the funding measure passed by the House on Sept. 17, said House Financial Services ranking member Maxine Waters, D-Calif. “By isolating the expiration of the Bank’s charter from any other must-pass legislation, Chairman Hensarling and his ideological stalwarts are counting on increased partisan gridlock to shutter the institution in July,” said Waters in a statement, referring to staunch critic of the bank, Financial Services Committee Chairman Jeb Hensarling, R-Texas. “Although Mr. Hensarling believes this could ultimately result in the Bank’s demise, he and Mr. McCarthy should be ready for Democrats and Republicans to engage in a tireless, bipartisan effort to preserve the Bank, and ensure America’s businesses continue to compete in the global economy.” House Majority Leader Kevin McCarthy, R-Calif., has also opposed the bank. Waters voted for the Continuing Appropriations Resolution 2015, H.J.Res.124 (here). Meanwhile, Boeing also said the short-term extension will damage investor confidence. "Congress has left thousands of small, medium and large U.S. exporters and their workers in limbo until the middle of next year and this will likely negatively impact U.S. sales to foreign customers," said Boeing in a statement. "We will continue to press Congress for a multi-year reauthorization of Ex-Im." Boeing is one of the biggest participants in Export-Import Bank financed contracts. National Associations of Manufacturers official Linda Dempsey also urged a long-term extension in a Sept. 17 letter, while calling on lawmakers to first support the continuing resolution. "While extending Ex-Im Bank’s reauthorization in the CR will address the short-term crisis facing manufacturers, their employees, and their families, Congress’ job is far from over," said Dempsey in the letter. "Manufacturers of all sizes require a long-term, multi-year reauthorization to help grow sales overseas and jobs here at home."
The Senate is scheduled to vote on Sept. 18 on the nomination of Robert Holleyman as deputy U.S. Trade Representative. The vote is slated to come after the Senate considers and votes on a stopgap funding measure. The American Apparel and Footwear Association in recent days pressed the Senate to approve the Holleyman nomination in order to complete the USTR leadership team (see 14091701).