Ryan Calls on Japan, Canada to Concede More or Leave TPP Talks
As Rep. Paul Ryan, R-Wis., takes on his second month as House Ways and Means chairman, his top priority is wrapping up talks on free trade agreements and putting those pacts into force, Ryan said in a Feb. 5 speech at the Washington International Trade Association. Ryan urged countries involved in Trans-Pacific Partnership negotiations to either meet U.S. expectations for trade barrier removals or join the talks at a later time, a statement couched in criticism toward both Canadian and Japanese reluctance to slash agricultural duties and regulatory restrictions.
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Japanese tariffs on U.S. imports still reach 700 percent on some goods, and the Canadian supply management system for dairy and other agriculture continues to inhibit U.S. exports, said Ryan. The European Union must also eliminate all tariffs as part of a final Transatlantic Trade and Investment Partnership pact, he added. Trade Promotion Authority is essential to securing those agreements, said Ryan.
Lawmakers and industry observers say the debate continues over whether to include a number of trade bills in a TPA package (see 1501270001). Ryan didn’t comment on his preference for the terms of that legislation, but said Congress needs to act to renew the expired Generalized System of Preferences, pass a timely African Growth and Opportunity Act renewal, and resolve differences on the Miscellaneous Tariff Bill.
Congress should also move quickly to pass the Customs Trade Facilitation and Enforcement Act, the House Republican version of Customs Reauthorization floated in recent years, said Ryan (see 13032106). He also endorsed Rep. Charles Boustany’s, R-La., PROTECT Act, a bill that provides the duty evasion language in the House Republican bill. Lawmakers have also considered an alternative to that legislation, the ENFORCE Act, which was introduced in the Senate. Boustany said months ago that there is no clear path forward at this point on resolving differences in those two duty evasion bills (see 14050720).
Implementation of the World Trade Organization Trade Facilitation Agreement is critical to the U.S. trade agenda, as well, Ryan said, adding that WTO partners need to make more progress on other pending WTO pacts, such as one on environmental goods. “We’ve got to look for all opportunities to take down barriers for all members of the WTO, especially the major emerging economies,” said Ryan. “And we’ve got to keep using the dispute-settlement process to enforce our rights.”
Should the U.S. fail to tackle its wide-ranging trade agenda, Chinese "crony-capitalism" will win on the global stage, Ryan added. “Our rivals are playing for keeps. The Chinese are pursuing a lot of agreements,” said Ryan. “The Chinese are walking tall, and now other countries are following their lead: Brazil, Argentina, Indonesia—to name a few.”