House Ways and Means Republicans Ask for Consultations on Phase One With China
House Republicans on the Ways and Means Committee told U.S. Trade Representative Katherine Tai that she needs to provide "a detailed analysis" of how China did or did not live up to the phase one trade deal. "We have great confidence in your abilities to address the many challenges China presents to the United States and other market economies, and we hope you will expand detailed communication on these matters so that Congress and the Administration can be partners in developing effective U.S. responses," they wrote Feb. 24.
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As part of that analysis, the Republicans said, they would like more information about the structural changes, not just the purchase commitments. "It will be particularly important to identify areas in which China is in compliance with the letter of the commitment (such as by enacting a new law or regulation) but out of compliance with its spirit insofar as the responsive measures have not been applied or enforced. It is also important that USTR provide evidence of actual improvement in the market conditions that U.S. companies face to the extent such evidence is available."
They said that there should be retaliation for not living up to the agreement. "If the Biden Administration is committed to enforcing the Phase One Agreement on its terms, then it must be willing to invoke the Phase One Agreement’s enforcement mechanism. We fear that if this mechanism is not utilized, the value of any future trade agreement with China will be seriously compromised," they wrote.
The administration should negotiate a robust, enforceable trade agreement with new countries in Asia "to greatly expand markets for our exporters and their workers as we work to recover from the COVID-19 pandemic," they said.