A bipartisan bill led by Maine senators Susan Collins (R) and Angus King (D) calls for the end of cash deposit collections on newsprint and a stay to final determinations in the antidumping and countervailing duty cases. Both would be halted until after a study on the economics of newspapers and newsprint is concluded, and until President Donald Trump still certifies that antidumping and countervailing cases against Canadian groundwood paper exporters is in the national interest.
Congress needs to be notified by May 17 of a deal for updating NAFTA in order to vote in the lame duck session, Speaker of the House Paul Ryan said during a speech at the Ripon Society. "As the author of [Trade Promotion Authority], I can tell you we have to have the paper -- not just an agreement. We have to have the paper from USTR by May 17 for us to vote on it this year, in December, in the lame duck," he said on May 9. Ryan also alluded to the U.S. position on Canadian dairy protections, and his desire that Investor-State Dispute Settlement be retained in NAFTA 2.0.
Two pro-trade Democrats, a Freedom Caucus member and a retiring moderate Republican have banded together to introduce a bill meant to curtail executive power on trade proceedings. The bill would create a process similar to the Congressional Review Act, which allows Congress to nullify recently completed rulemakings, for trade measures. "It’s time that Congress steps up to the plate, and uses the powers granted by our Constitution to collaboratively shape U.S. trade policy,” lead sponsor Rep. Ron Kind, D-Wis., said in a statement announcing the bill's introduction May 10.
Without calling out President Donald Trump by name, both Sen. Ben Sasse, R-Neb., and Undersecretary of Agriculture for Trade Ted McKinney criticized his approach of describing trade with friends as them taking advantage of the U.S. and stealing its jobs and wealth (see 1803300013). Sasse, a longtime critic of Trump and ardent free-trader, said good neighbors see trade as positive. "If you understand trade is a win-win, you don't talk about it as a zero-sum game," he said. Washington is talking about trade deals as if they were real-estate transactions, which are zero-sum, while trade enriches both parties as they each produce more according to their comparative advantage, Sasse said. "NAFTA has been overwhelmingly good for the U.S. and NAFTA has been overwhelmingly good for Mexico and NAFTA has been overwhelmingly good for Canada," he told an international conference May 8.
Rep. Ron Kind, a Wisconsin Democrat who traditionally supports free trade deals, and Rep. Sander Levin, a Michigan Democrat who's more of a trade skeptic, co-authored a May 8 letter warning President Donald Trump not to send over a NAFTA 2.0 at the same time he announces he's withdrawing from the original NAFTA. There have been reports that the U.S. trade representative would like to use this hardball tactic to make sure the new NAFTA passes Congress (see 1804260047). "Any attempt to hold Congress hostage would threaten your Administration's negotiating authority and only serve to sow chaos in the U.S. economy," the lawmakers warned. "A new NAFTA should pass Congress based on its merits and not on the threat of withdrawal from the existing agreement."
Immigration issues dominated an appropriations hearing for the Department of Homeland Security, but DHS Secretary Kirstjen Nielsen said she also wanted to touch quickly on trade. More money is needed to "keep foreign adversaries from stealing our intellectual property" and to enforce trade laws, she said. In prepared testimony that she did not read during the hearing, she said the president's budget "includes funding to enhance the Automated Commercial Environment and to put more attention on high-risk imports while facilitating smaller, legitimate shipments more quickly. The request also includes funding for additional attorneys, trade specialists, and financial specialists to provide adequate support for trade facilitation and enforcement activities."
The process for importers to get product exclusions from Section 232 tariffs on steel and aluminum items is too slow, and too burdensome, according to 39 members of the House of Representatives, from both parties, who have suggestions for how to change it. Their letter, sent May 7 to the Department of Commerce, says that retroactive relief from tariffs should date back to the date of submission, not the date of posting, unless the submission was not initially complete. In that case, the lawmakers say, the refund should be from the date the submission was complete, rather than the date it was publicly posted.
The chairman and ranking member of the Senate Homeland Security and Governmental Affairs Committee told Commerce Secretary Wilbur Ross that his replies on how the department weighed the issues before recommending Section 232 tariffs were incomplete -- and said that if his next letter isn't an improvement, the committee may have to consider compelling his testimony. The letter, sent May 3, gave Ross two weeks to reply. "Clearly, these tariffs will have a much more far-reaching effect on downstream industries and consumer prices than explained in your response," Senators Ron Johnson, R-Wis., and Claire McCaskill, D-Mo., wrote. They said Ross failed to provide detailed cost-benefit analyses on the tariffs' effects, or analyses of prior tariffs' effects on downstream industries or prices. They also said he declined to say how the agency is going to measure success of the tariffs.
More than 1,100 economists signed a letter to Congress and the president asking the government not to make the same mistake it did in 1930, when Congress passed the Smoot-Hawley Tariff Act. The letter, published May 3, said trade is significantly more important than it was in 1930, but that the fundamental economic principles that argue against tariffs have not changed in the nearly 90 years since then. The letter quotes a 1930 letter, signed by 1,028 economists, that asked Congress to reject Smoot-Hawley. Tariffs "would raise the cost of living and injure the great majority of our citizens," the original letter said. Exporters would also suffer from retaliatory tariffs. The signatories include economists from the left, right and center, and 15 Nobel Prize winners.
Stakeholders continue to ask for additional and enhanced ACE capabilities, and the agency is working on system enhancements to enable de minimis functionality, CBP Commissioner Kevin McAleenan told the House Homeland Security Committee Subcommittee on Border and Maritime Security in his prepared opening statement. Creating de minimis functionality "will provide CBP access to previously unavailable admissibility data for low value shipments, resulting in improved cargo processing and use of enforcement resources," he said.