Statutory Interpretation

Lawmakers recently introduced the following trade-related bills:

Democratic trade leaders in Congress urged the Trump administration on Sept. 19 to take major action to address trade-related labor violations overseas. Weak foreign freedom-of-association and collective bargaining rights enable substandard wages in other countries and exert downward pressure on U.S. wages, wrote Senate Finance Committee ranking member Ron Wyden of Oregon, House Ways and Means Committee ranking member Richard Neal of Massachusetts, Finance International Trade and Customs Subcommittee ranking member Bob Casey of Pennsylvania, and Ways and Means Trade Subcommittee ranking member Bill Pascrell of New Jersey in a letter to U.S. Trade Representative Robert Lighthizer, Labor Secretary Alex Acosta and Secretary of State Rex Tillerson.

Dismantling foreign sanitary and phytosanitary trade barriers would be Ted McKinney’s top priority if confirmed as under secretary of agriculture for trade and foreign agricultural affairs, the nominee told the Senate Agriculture Committee during his Sept. 19 confirmation hearing. “We try very hard in the U.S. to subscribe to the [World Trade Organization] standards or any other standards that have been agreed to, and the reverse is not true,” McKinney said. “And I think it’s time to call that out and address it for what it is, and be firm about that.” If confirmed, McKinney would work with the Office of the U.S. Trade Representative, the State Department, and Commerce Department to address SPS double standards of several U.S. trading partners, he said in written testimony to the committee.

Ohio Sens. Sherrod Brown (D) and Rob Portman (R) became the latest voices to push the Trump administration to complete its Section 232 investigation on steel imports as quickly as possible, urging Commerce Secretary Wilbur Ross in a Sept. 15 letter to “prevent further damage to the U.S. steel sector.” Ross originally said his department planned to finish the probe by June 30. By law, Section 232 investigations must conclude within 270 days, meaning the current one must be complete by Jan. 14, 2018. The Commerce Department began the investigation in April (see 1704200029). Steel imports rose 25 percent year-over-year during the first six months of 2017, as foreign producers are seeking to export steel to the U.S. before the Trump administration can impose any remedy, the senators said. Legally, remedies could include tariffs or quotas.

Reps. Chuck Fleischmann, R-Tenn., and Jamie Raskin, D-Md., are circulating a letter asking fellow lawmakers to unify in expressing concern to the International Trade Commission about an antidumping and countervailing duties petition it is considering on uncoated groundwood paper from Canada. The letter says duties on the product would harm the U.S. printed newspaper industry, “which has seen a more than 50 percent decline in advertising revenues over the last 10 years.” The petition was filed by North Pacific Paper Company in August (see 1708140020), and ITC’s preliminary AD and CV injury determinations are due Sept. 25 (see 1708310015). “The irony is that this trade dispute -- brought on by only one company with 400 employees -- would accelerate the decline for an entire industry and may put small market newspapers out of business,” the letter states. “This result cannot be intended by U.S. trade laws.”

Lawmakers recently introduced the following trade-related bills:

Rep. Debbie Dingell, D-Mich., will host a town hall in Dearborn, Michigan, Sept. 20 to discuss ongoing NAFTA renegotiations, Dingell’s office announced Sept. 12. The town hall will convene Dingell, Public Citizen Global Trade Watch Director Lori Wallach, labor leaders, and “affected workers,” Dingell’s office said.

Sen. Rob Portman, R-Ohio, on Sept. 12 took aim at the notion that trade deficits, particularly those with U.S. free trade agreement partners, pose an issue for the United States. Members of the Trump administration, particularly U.S. Trade Representative Robert Lighthizer, Commerce Secretary Wilbur Ross and the president himself, have complained about the U.S.’s trade deficit with several countries, namely China, South Korea and Mexico. Without directly criticizing President Donald Trump or any deficit-focused colleagues, Portman during an event at the Center for Strategic and International Studies rejected the idea that the U.S.’s roughly $500 billion overall trade deficit in 2016 is a problem in the context of trade agreements.

The Senate Finance Committee on Sept. 7 approved the nomination of Gilbert Kaplan to be under secretary of commerce for international trade (see 1708030035), according to a committee executive summary of the proceedings. Kaplan still needs approval from the full Senate.

Senate Commerce Committee Chairman John Thune, R-S.D., wrote a Sept. 5 letter to the Federal Maritime Commission urging the agency to “prioritize” a December petition for FMC to issue a rulemaking preventing common carriers and marine terminal operators from charging demurrage, detention and per diem fees during events beyond shippers’ control (see 1612090018). “Agricultural producers, manufacturers, retailers, and transportation service providers have questioned the fairness of detention and demurrage charges in situations involving port congestion and other circumstances,” Thune wrote. “They assert that such charges have implications for one of the Commission’s critical responsibilities -- to ensure a common carrier or marine terminal operator does not fail to establish, observe, and enforce just and reasonable regulations and practices when receiving, handling, storing, or delivering property.” Thune also urged FMC to engage affected stakeholders and, as warranted, consider “further action” to resolve ongoing concerns.