While the U.S.-Hong Kong Policy Act of 1992 gives the president clear authority to terminate Hong Kong's special status if China violates the island's autonomy, the fact that Hong Kong has its own membership in the World Trade Organization could complicate the matter, the Congressional Research Service says. In a June 5 “legal sidebar,” CRS said that not only is it not clear when the administration would end Hong Kong's special trade status, it's also not clear whether the U.S. would say it no longer acknowledges Hong Kong's membership in the WTO.
The implementing bill for the U.S.-Mexico-Canada Agreement did not allow for merchandise processing fees to be refunded in response to a post-importation preference claim, and Sen. Tim Scott, R-S.C., has introduced a bill that would fix that. The bill was introduced June 3. The replacement agreement for NAFTA will take effect on July 1, and CBP officials have said they hope this fix can be done by that time (see 2005220050).
The top Republican on the House Ways and Means Committee said most in Congress believe “Trump is right to hold China accountable for fundamental rights in Hong Kong,” but declined to say what should be done if that action leads to a breakdown in the phase one trade deal with China. China has already stopped some purchases of soybeans, but has not officially declared it will cease purchases of U.S.-grown commodities.
Democrats on the House Ways and Means Committee are telling the administration that there's a “litany of reasons why we consider it inappropriate for the Administration to engage in economic partnership discussions of any scope with a Brazilian leader who disregards the rule of law and is actively dismantling hard-fought progress on civil, human, environmental, and labor rights.”
Senate Finance Committee Chairman Chuck Grassley, R-Iowa, said some farmers he spoke to in his home state of Iowa told him they're concerned about trade with China. Grassley told such questioners he's not worried about the trade agreement.
The Senate Commerce Committee recommended a bill that would establish a volunteer National Shipper Advisory Committee that would give advice to the Federal Maritime Commission about the reliability, competitiveness, integrity and fairness of international ocean freight. The commission would invite 12 importers and 12 exporters to participate. S.B. 2894, introduced by Sen. Roger Wicker, R-Miss., passed out of committee on a voice vote on May 20.
A bill that would put tariffs on drugs from China and India was introduced May 15 by Rep. Bill Flores, R-Texas. Flores said the Safe and Secure Medicine Supply for Hardworking Americans Act will guarantee that the U.S. will again lead the world in the development and production of innovative prescription drugs. The bill would require labels to include country of origin of all active ingredients; would give incentives to manufacture in the U.S.; and would penalize importers of tainted prescription drugs. “Some foreign pharmaceutical supply chains dramatically increase the risk of intellectual property theft, interference by foreign governments, tainted drugs, and health care risks for hardworking American families,” Flores said in a press release announcing the bill. He did not say what level of tariffs he is proposing. The bill has no co-sponsors.
Two Senate Democrats and two Republicans recently introduced a bill that would require that for products sold online, there be clear disclosure of where the seller is located, and that those products have country-of-origin labeling. The bill is directed at concerns about listings that misleadingly suggest or say that the products are domestic. The bill was introduced May 13 by Sens. Tammy Baldwin, D-Wis.; Rick Scott, R-Fla.; Chris Murphy, D-Conn.; and Kelly Loeffler, R-Ga.
House Energy and Commerce Committee Chairman Frank Pallone, D-N.J., and Rep. Peter DeFazio, D-Ore., want the U.S. to withdraw from the World Trade Organization. If their resolution, and the resolution introduced by Sen. Josh Hawley, R-Mo., were to pass before the deadline set up in the agreement that founded the WTO, and Trump either signed it, or they overrode his veto, the U.S. would exit the institution. “It is time for the United States to withdraw from this institution and start prioritizing American workers over international corporations,” Pallone said in a press release.
The Democratic members of the House Ways and Means Committee have told the leaders of CBP and the Department of Homeland Security that the failure to establish the Forced Labor Enforcement Task Force by the April 28 deadline in statute is unacceptable.