House Foreign Affairs Committee Chairman Rep. Gregory Meeks, D-N.Y., introduced a bill that would create a rebuttable presumption that all goods mined, produced or manufactured wholly or in part in Xinjiang, or by organizations working with the Xinjiang Uyghur Autonomous Region's government in the guise of poverty alleviation, were made with forced labor and cannot be admitted into the U.S. If CBP determines “by clear and convincing evidence” that the goods were not produced by indentured, convict or forced labor, then the goods could enter. This section of the Ensuring American Global Leadership and Engagement Act, or EAGLE Act, would take effect 120 days after the bill is enacted.
The Coalition for a Prosperous America says that the Generalized System of Preferences benefits program and the Miscellaneous Tariff Bill lead to offshoring and a low-wage workforce in the U.S., and that the MTB is "abused by importers who lobby against policies to boost domestic production, and it conflicts with the national imperative to re-shore the industries and jobs we have lost."
Sen. Lindsey Graham, R-S.C., has proposed that CBP be given the authority to exclude from entry into the U.S. any articles produced by a foreign firm that misappropriated a trade secret, when that theft has been proven by either a court or the International Trade Commission, under Section 337. The amendment, published May 24 in the Congressional Record, notes that the Section 337 process may not provide complete relief "because the foreign person has used or is reasonably likely to use the misappropriated trade secret in the home country of the foreign person or a third country."
The Endless Frontiers legislation continues to attract amendments relevant to trade, such as Sen. Josh Hawley's amendment, published May 24, that would make countries ineligible for participation in the Generalized System of Preferences benefits program if any product from that country is identified by the Bureau of International Labor Affairs as one made with child labor or forced labor. Hawley, R-Mo., also proposes that, starting 90 days after the bill's passage, there will be an additional 100% duty on all goods produced in Xinjiang, or goods with components from Xinjiang, for at least one year. At that time, the tariff would only be lifted if the administration "determines beyond a reasonable doubt that no slave labor, forced labor, indentured labor, or child labor exists in the People’s Republic of China; and submits to Congress and makes available to the public a report on that determination." There have been hundreds of amendments proposed for the China package, and Majority Leader Chuck Schumer will decide which ones deserve floor debate and a vote. He has said he wants a vote to happen this week.
U.S. Trade Representative Katherine Tai said the U.S. and Canada could not reach an agreement on the administration of Canada's dairy tariff rate quotas, so the dispute will be decided by a panel. At issue is the fact that Canada has reserved the large majority of TRQs for Canadian processors, which means that consumer goods produced in the U.S. like ice cream, cheese or yogurt face higher tariffs in Canada because very little of the TRQ is available to Canadian retailers. Even when it's not restricted to processors, the TRQs are reserved for distributors, which means American producers cannot pitch their goods at lower prices directly to retail chains.
The Commerce Department is preliminary set to increase antidumping and countervailing duties on Canadian softwood, possibly at the end of November, as a result of AD and CVD administrative reviews, according to notices set for publication soon in the Federal Register.
Sens. Ted Cruz, R-Texas; Kevin Cramer, R-N.D.; and Tom Cotton, R-Ark., are criticizing the Biden administration's decision to rescind a Trump-era order that banned the importation of bulk power electrical equipment from China or other adversaries (see 2005040040). The Department of Energy “has a significant responsibility to protect the U.S. electric grid and help ensure that critical equipment supplied from foreign adversaries does not pose a risk to the national security of the citizens of the United States. While President [Joe] Biden’s CIA director recently acknowledged that China is 'formidable authoritarian adversary' your agency’s action does not appear to treat them as one,” the May 19 letter said.
Eight House members, four Democrats and four Republicans, wrote to U.S. Trade Representative Katherine Tai that five months of consultations is more than enough, and it's time to push for a binding resolution to the administration of dairy tariff rate quotas in Canada. Under the USMCA, the next steps could be Canada and the U.S. agreeing to conciliation or mediation, or the U.S. could call for a dispute settlement panel. Reps. Ron Kind, D-Wis.; Tom Reed, R-N.Y.; Antonio Delgado, D-N.Y.; Glenn Thompson, R-Pa.; Suzan DelBene, D-Wash.; Dusty Johnson, R-S.D.; Jim Costa, D-Calif.; and David Valadao, R-Calif., sent the letter May 21, and in it noted that Canada reserves part of its quotas for processors in Canada, a factor that undermines the ability of American dairy exporters to use the TRQs.
No date has been scheduled yet for a vote on the China package championed by Senate Majority Leader Chuck Schumer, D-N.Y., and Sen. Todd Young, R-Ind., but lengthy amendments from senators are continuing to flow in, many with trade implications.
Lawyers speaking at the Foreign Trade Association’s World Trade Week event said CBP is already drowning because of the consequences of the massive increase in post-importation tariff exclusions, and they're expecting it to get worse. Michael Roll, from Roll & Harris trade law firm, said he's betting that the Office of the U.S. Trade Representative will reopen the exclusion process for Section 301 tariffs before summer's over. But he expects it will take until late 2021 or early 2022 for exclusions to be granted, which means many imports that entered after exclusions expired, or that never had exclusions, will have been liquidated by the time the importers learn they didn't have to pay the tariff.