Mandating a broad exclusion process for importers of goods subject to Section 301 tariffs, extending the period of the Generalized System of Preferences benefits program renewal, reforming the GSP competitive needs limitations, a ban on importing sodium cyanide briquettes, and changes to the Lacey Act are all among hundreds of amendments to the America Competes Act that have been submitted to the Rules Committee, which has the responsibility for shaping the bill that will get a vote on the House floor (see 2201310033).
House Ways and Means Trade Subcommittee Chairman Rep. Earl Blumenauer, D-Ore., said he and colleagues Reps. Dan Kildee, D-Mich., and Bill Pascrell, D-N.J., "are alarmed by reports of continued harassment, intimidation, and violence against independent union activists in the General Motors’ (GM) auto plant in Silao, Mexico leading up to next week’s union election." The congressmen noted that a previous vote in Silao was overturned through consultations under USMCA's rapid response mechanism, and they say that unless GM and Mexican officials immediately act, the agreement to rerun the election could be pointless.
The 15% tariff on most solar panels and the 15% tariff on imported solar cells past a 2.5 gigawatt threshold are slated to expire Feb. 6, and, according to Reuters, the White House is considering accepting some of the International Trade Commission's recommendations on extending the solar panel and cell safeguard, and rejecting others. The ITC recommended reducing the current 15% rate by just .25% in 2022, and by another quarter point each year, until early 2026, when the safeguard would expire.
A consulting firm hired by the National Council of Textile Organizations published an analysis that says that adding cumulation provisions and altering the Dominican Republic-Central America Free Trade Agreement's short supply mechanism would destabilize Central America by destroying more than 247,000 jobs in apparel. "U.S. textile manufacturing and employment will be devastated through the loss of billions of dollars in exports to the CAFTA-DR region, and the loss of over 307,000 jobs in the short to medium term," the Werner International report said.
Tariff rate quotas on European steel are really meant to be a gap-filler while the U.S. and the European Union figure out a way to offer import preference to cleaner steel, said Greta Peisch, general counsel at the Office of the U.S. Trade Representative. Peisch, the European Commission staffer responsible for trade relations with the U.S., the General Motors counsel on Legal Affairs and Trade and a former Trump administration trade official were speaking on a panel about the shift from tariffs to tariff rate quotas, and what the next step would look like.
A Republican staffer from the House Ways and Means Committee said that while Republicans are certainly open to having a discussion on the balance between preserving the benefit to small businesses of importing goods under the de minimis statute and the need for improvements, a conference committee on a massive China package is not the right venue for it.
A center-right think tank noted that with the International Trade Commission saying safeguard tariffs on imported solar panels and cells should continue, and the Department of Justice appealing a ruling that tariffs on bifacial solar panels weren't legal, the White House is likely to continue the safeguard tariffs past the original February expiration date. The American Action Forum said Jan. 14 that is a poor choice, with the U.S. paying twice as much for solar panels as other countries as a result. "Utility-scale bifacial solar modules are the most important for President Biden’s climate agenda because they are the most efficient and will be increasingly used in large utility-scale energy projects. Despite the years of tariffs intended to boost domestic production of these utility-scale solar modules, they are still not manufactured in the United States."
The House Majority Leader Steny Hoyer, D-Md., said he will bring the massive America COMPETES bill up for a vote soon. While it may not need to attract any Republican votes to pass there, a bipartisan compromise will be necessary in conference. House Ways and Means Committee Chairman Richard Neal, D-Mass., said that the Senate's U.S. Innovation and Competition Act (USICA) was not adequate, aside from the issue that revenue measures, such as the Miscellaneous Tariff Bill, must start in the House. "This legislation is the boldest, best option we have to stand up to China’s harmful actions and support American workers, and I look forward to discussing these proposals further during our conference on the package with the Senate," he said.
Iowa Republican senators Chuck Grassley and Joni Ernst are asking the Biden administration to complete free trade agreements in Asia, or rejoin the Trans-Pacific Partnership, as China expands its influence through the Regional Comprehensive Economic Partnership (RCEP). They wrote Jan. 25: "Initially, your administration stated they were content with focusing on your domestic agenda before they consider negotiating new free trade agreements. However, a year later, it is clear that your domestic agenda has been stalled while China is taking serious action to expand their foothold in the region."
All 14 of the Republicans on the Senate Finance Committee are telling colleagues in their chamber that providing a $12,500 incentive to purchase union-made, U.S.-assembled electric vehicles will spur foreign retaliation against American auto exports. The House version of Build Back Better offers a $7,500 refundable tax credit for any electric vehicle purchase -- the same amount as current law, but makes it refundable and does not phase it out for leading manufacturers. Currently, Tesla and General Motors vehicles are no longer eligible for the credits. But in order to receive $12,500, the car or truck would need to include a U.S.-assembled battery and be made by union workers in the United States.