Sen. Chuck Grassley, R-Iowa, represents a state that exports lots of soybeans to China but remains critical of the U.S.'s largest trading partner in goods. He said he recently visited five cities in China with Agriculture Secretary Sonny Perdue and other senators. What he saw there convinced him that Chinese officials "will do anything legal or illegal, moral or immoral, ethical or unethical ... to get ahead and stay ahead." He added, "They are very strategic and we're very short-sighted." Grassley, speaking at a Senate Finance trade subcommittee hearing April 11 on access to China's market, said he's one of the only Congress members still in office who voted to allow China full membership in the World Trade Organization. "It hasn't turned out the way I anticipated," he said. "I kind of feel like I should feel sorry for my vote."
The House Ways and Means Committee grappled with the fact that tariffs might be painful enough for China to change course on its unfair trade practices but that protecting mills and smelters will hurt factories. China's retaliatory tariffs, in turn, will hurt agriculture and chemical exporters. Committee Chairman Kevin Brady, R-Texas, said during a hearing on the effects of new tariffs that he wants enforceable trade policies to target bad actors, but said, "at the same time, we must avoid unintended consequences that hurt Americans."
House Ways and Means Committee Chairman Kevin Brady, R-Texas, said that a NAFTA agreement in principle is not enough to start the clock toward a ratification vote under Trade Promotion Authority. The law says the earliest Congress can vote to approve or reject the deal is 90 days after the president announces his intention to sign the deal. But if there is any change to Chapter 19, Congress and the public must have a minimum of 180 days to examine it. Either timeline cannot begin just from a press release or memo. "The text needs to be generally ready for the public to be able to review [for that period] before the president can sign it and send it to us," Brady told reporters on April 10.
The House Ways and Means Committee will hold a hearing April 12 on how the Section 232 tariffs are affecting the economy and jobs and how proposed Section 301 tariffs might do the same, it said in a notice. "In enforcing our trade laws, we should always take a targeted approach to address unfair practices while avoiding harm to U.S. workers and job creators," Chairman Kevin Brady, R-Texas, said.
The ranking Democrat on the House Ways and Means Trade Subcommittee and Rep. Debbie Dingell, D-Mich., say they are not satisfied with the U.S. trade representative's response to their complaints last summer on inadequate consultation (see 1708040031). In their new letter, sent March 28, Rep. Bill Pascrell, D-N.J., and Dingell say that USTR Robert Lighthizer "failed to respond to the specific issues that we raised." The Democrats did not share the letter they were reacting to.
The chairman of the Senate committee that oversees health announced that he would like input on a draft bill that would improve coordination between CBP and the FDA for drug interdiction through the mail. The bill, released March 26, seeks to make sure that FDA and CBP screening and testing equipment is interoperable. It describes how the FDA could put $94 million in the fiscal year 2018 appropriations toward upgrading technology and labs at international mail facilities or other import sites. It also says the FDA should deploy more drug-sniffing dogs and their handlers in the detecting controlled substances and counterfeit opioids. It would require a progress report six months after the bill becomes law.
The Commerce Department will give blanket exclusions to the Section 232 tariffs on steel and aluminum in some cases, Commerce Secretary Wilbur Ross said at a March 22 House Ways and Means hearing. "We do have the discretion to make broader exclusions available to all importers of those particular products if we find the circumstances warranted." Commerce may also allow for retroactivity for tariff exclusions and has asked CBP to use an "an escrow account," similar to the process for antidumping and countervailing duties, Ross said.
Imposition of upcoming Section 232 tariffs on steel and aluminum products will be paused for a set of countries currently in negotiations with the U.S. over potential exemptions, U.S. Trade Representative Robert Lighthizer said March 22 in testimony to the Senate Finance Committee. The European Union, Australia, Argentina, Brazil and South Korea will join Mexico and Canada as initially and temporarily exempt from the tariffs, which are set to take effect at 12:01 a.m. March 23 (see 1803080025).
An array of steel executives and the United Steelworkers' president joined House members whose districts include steel mills in celebrating the Section 232 tariffs that are slated to take effect on March 23. "National security is only as strong as American steel, and the American steel industry is strongest when we have the ability to manufacture steel from start to finish inside our own borders," said Todd Young, US Steel's chief lobbyist. Only one aluminum representative was at the Congressional Steel Caucus hearing March 21. Bauxite, the raw material for aluminum, has no domestic source.
Senate Finance Committee Chairman Orrin Hatch, R-Utah, speaking at a conference hosted by free-trade interest groups, said Congress will assert itself when it's time to renew fast-track trade negotiating authority in July -- and that no changes to NAFTA can take effect unless Congress signs off. "Because the Constitution very clearly assigns to Congress the power to lay and collect tariffs and to regulate foreign commerce, Congress must have the final word on the fate of NAFTA," he said March 20, according to prepared remarks. "Congress will use the extension disapproval process under the Trade Promotion Authority law to emphasize that the administration must adhere to the TPA negotiating objectives and to encourage the president to seek new agreements with our trading partners."