Rep. Adrian Smith, R-Neb., wrote a column arguing in favor of reauthorizing the Generalized System of Preferences benefits program and the Miscellaneous Tariff Bill before they expire at the end of the year. “Renewing these programs, which have enjoyed bipartisan support, will reduce costs and uncertainty for American businesses as they continue to grapple with the effects of COVID," he said. "GSP benefits all Americans by promoting economic growth in developing countries while also providing a tool for the U.S. to encourage good practices like protecting intellectual property, providing reasonable market access to U.S. exports, and treating U.S. investors fairly. Letting GSP lapse would raise the average tariff by 3.5 percent for small businesses in Nebraska while decreasing our leverage to ensure developing nations are raising standards and playing fairly in the global marketplace.”
Although members of Congress have complained that Canada's tariff rate quota changes do not comply with USMCA commitments (see 2008280003), a Nov. 20 Congressional Research Service update on USMCA's agricultural provisions says that dairy exports to Canada in the third quarter of 2020 were 10% higher than in the third quarter of 2019 and 9% above the same period in 2018. It also noted that after four years of decline of U.S. exports of poultry and eggs to Canada, poultry meat exports grew 8% in the third quarter this year compared with the same quarter in 2019, but were only 3% higher than in the third quarter of 2018. Egg exports were flat.
With President-elect Joe Biden said to be reluctant to commit to changing 25% tariffs on $250 million worth of imports from China, a recent Congressional Research Service report contains suggestions that could point to a possible off-ramp. The report, released Nov. 23, says that Section 301 actions terminate automatically after four years, unless the Office of the U.S. Trade Representative receives a request for continuation, and conducts a review that determines the tariffs should continue.
House Ways and Means Committee member Rep. Jimmy Panetta, D-Calif., has a district full of farms growing grapes, berries, lettuce, artichokes, garlic or other non-commodity crops. His constituents want export markets, so opening trade negotiations is popular in Central California. Panetta, who was interviewed online by the Washington International Trade Association on Nov. 23, said there needs to be a lot of education in the Democratic caucus on why a renewal of Trade Promotion Authority is important before it expires July 1.
Rep. Brett Guthrie, R-Ky., introduced a bill Nov. 18 that would eliminate the 4.8% tariff on basketballs. Unless this provision is attached to must-pass legislation next month, the bill would have to be re-introduced in the next Congress.
Sen. Pat Toomey, R-Pa., said he plans to introduce a resolution in the Senate to open trade negotiations for a free trade agreement with Taiwan. Toomey said during a Heritage Foundation webinar on Taiwan Nov. 18, “We’ve got a particularly attractive opportunity to expand trade with Taiwan. Strengthening those trade ties with Taiwan would benefit us both in security terms and in economic growth.” He said Taiwan is the 10th-largest trading partner in goods for the U.S. Toomey, a consistent free-trader, said he hopes that talks will aim to liberalize trade, not manage it. China would be angered if the U.S. did seek an FTA with Taiwan, as it does not recognize the island as an independent country.
The co-chairmen of the U.S.-India Caucus in the Senate did not bring up restoring India to the Generalized System of Preferences benefits program when asked about the possibility of a U.S.-India trade package during a program hosted by the U.S. Chamber of Commerce Nov. 18. Sen. Mark Warner, D-Va., instead said he hopes the Joe Biden administration will pursue a technology alliance with India. He also said he thinks withdrawing from the Trans-Pacific Partnership -- which does not include India -- was a great mistake. “Both political parties bear some blame for that,” he said. Sen John Cornyn, R-Texas, agreed on TPP. “We’ll see what happens in Georgia,” he said, referring to the run-off elections for two Republican incumbents vying for the two U.S. Senate seats in that state later this year. “We may have divided government, it may require us all to work together.”
House Ways and Means Committee ranking member Kevin Brady, R-Texas, said that while he doesn't know if the lame-duck Congress will do anything other than pass a bill to fund the government, and another COVID-19 relief package, he is convinced that both the Miscellaneous Tariff Bill and the Generalized System of Preferences benefits program “would pass easily as suspension bills.” Suspension bills, like the unanimous consent process in the Senate, do not require floor time, only that no one objects.
Even as the U.S. Chamber of Commerce held out hope for a President Joe Biden rolling back tariffs on imports from countries other than China, it doesn't expect Congress to limit a president's ability to impose tariffs without congressional approval. Neil Bradley, executive vice president of the Chamber and its top policy officer, said that if Biden were to win, “he may choose a slightly different path” on tariffs than Donald Trump has.
Senate Finance Committee Chairman Chuck Grassley, R-Iowa, will no longer lead the committee even if Republicans retain the majority in the Senate. The Republicans have term limits for committee chairmanships, so he will move on. Sen. Mike Crapo, R-Idaho, is the most senior member of the committee, and thus is the next expected chairman, though that move has not yet been settled.