USTR Nominee Says Auto MFN Rate Will Be Reviewed

Sen. Raphael Warnock, D-Ga., told Greer that low-priced imports of fruits and vegetables from Mexico and Latin American countries have hurt Georgia's growers, and asked if Greer would use the USMCA renegotiation "to help stem these growing import levels and keep our produce farmers in business?"

Greer said he would.

On the review generally, he told the committee: "The review will be a top priority for me; I will broadly solicit input from stakeholders to ensure that USMCA creates more balanced and reciprocal trade, and supports good-paying jobs for Americans."

The Senate Finance Committee released the written questions to Greer and his written responses ahead of a planned vote on Greer's nomination on Feb. 11, but the vote was delayed due to attendance issues.

Finance Committee Chairman Mike Crapo, R-Idaho, asked Greer if he would prioritize "appropriate recourse against subsidized and dumped lumber, market access for America’s dairy producers, including by addressing Canada’s administration of its tariff rate quotas, and discriminatory digital services taxes," and Greer said yes. All three are irritants in the Canadian-U.S. trade relationship.

Several senators, from both parties, asked Greer if tariff exclusions should be available for importers, or at least for manufacturers who need imported inputs, and he declined to answer directly. "During his first term, President [Donald] Trump created exclusion processes for various tariff-related actions. If confirmed, I look forward to discussing the issue in greater depth," he wrote to each questioner.

Since then, Trump said there would be no exclusions to 25% tariffs on aluminum and the current 25% tariffs on steel.

The top Democrat on the committee, Sen. Ron Wyden of Oregon, asked Greer how he would tackle the China relationship. Greer said a study of phase one trade deal compliance was underway, but also said he would focus on "duty evasion from Chinese companies."

Wyden also used his written questions to reveal private conversations with Greer, saying that he told Democratic committee staff "that comprehensive trade agreements can be unhelpful because of the length of time it can take to negotiate and get them approved by Congress and because they can require significant political capital."

He also said Greer "remarked that preference programs do not seem to have any benefit for the United States because they are non-reciprocal. You referred to the African Growth and Opportunity Act (AGOA) as 'a giveaway.'"

Greer did not directly respond to those disclosures, but said he would consult on reauthorizing trade preference programs and with Congress on obtaining foreign market access.

Sen. Michael Bennet, D-Colo., also asked about trade preferences, pointing out that since the Generalized System of Preferences benefits program expired in 2020, "outdoor retailers like The North Face have paid a total of $1.53 billion in duties on products that were once GSP-eligible."

Greer said in his written response, "The America First Trade Policy Presidential Memorandum outlines a number of interagency processes that are pertinent to the Trump Administration's policy towards trade-relevant legislation, like GSP. I cannot prejudge the results of those processes."

He did tell Bennet that strengthening the U.S.-Africa trade relationship is a high priority, and wrote: "If confirmed, I look forward to collaborating with colleagues from across the administration to align the Trump Administration’s trade policy towards Africa with U.S. economic and national security interests."

Warnock, who also asked about AGOA, asked: "Can you confirm the Trump administration’s support for the renewal of Haiti HOPE/HELP?" Greer replied, "Again, I cannot prejudge the results of the processes required by the Presidential Memorandum."

Sen. Maria Cantwell, D-Wash., asked if the justifications for recommendations that come out of the studies directed by that memo would be public. He did not say they would, but said he would be transparent with the committee.

Sen. Catherine Cortez-Masto, D-Nev., asked: "President Trump said he would use 'economic force' to push Canada toward becoming the 51st state. Do you agree with that policy?"

Greer replied: "The President is a proven negotiator, and I defer to him and the State Department on foreign policy objectives."

Sen. Steve Daines, R-Mont., and Bennet both asked about potash, a fertilizer input for farmers, with Daines pointing out Canada supplies 85% of the product. Daines asked if potash could be excluded from tariff actions on Canada, "given its importance to food security, and by extension, national security?"

Greer replied: "I understand the importance of potash to our agricultural industry. If confirmed, I will use USTR's authorities to collaborate with stakeholders from the agricultural community to ensure that President Trump's trade policy advances the interests of American farmers and ranchers."

Sen. Elizabeth Warren, D-Mass., asked Greer: "What do you expect will be the impacts on working Americans of any foreign retaliation to U.S. tariffs?"

Greer replied that tariffs to counter unfair trading practices won't necessarily bring retaliation from trading partners. "Americans are already experiencing the costs and consequences of unfair trading practices," he argued. "If confirmed, I look forward to engaging with you on specific market access priorities and helping to protect our producers against potential retaliation."