Rep. Adam Kinzinger, R-Ill., and Rep. Jason Crow, D-Colo., introduced a bill called the Manufacturing Abilities Determine Economies (MADE) in the Americas Act that would incentivize moving supply chains that are concentrated in Asia to either the U.S. or its allies in the Western Hemisphere. The two announced the bill in a press release May 19. The bill also would prioritize the establishment of free trade agreements in the Western Hemisphere. "Given the complexity of market forces, we are likely unable to bring all these manufacturing operations to the U.S., which is why this legislation would incentivize moving operations to our allies in the Western Hemisphere as a secondary priority," Kinzinger said. "It is my hope that these incentives would also help address the root causes of irregular immigration."
Sen. Mitt Romney, R-Utah, says there is the potential for a bipartisan consensus on a strategy to compete with China. Romney, who was speaking at a U.S. Chamber of Commerce program May 19, said the two parties are more united than they were two years ago, as they recognize China's threat to liberal democracies. He said that "China’s rise is the result really of their economic resources, and those are resources that are built in part through predatory practices, particularly subsidized or predatory pricing which allows them to put western businesses out of business...."
A Republican proposal for a highway bill requires customs brokers and other "covered entities" to verify that the hired motor carrier is registered with the Federal Motor Carrier Safety Administration, has appropriate insurance, and has not been determined unfit to operate by the FMCSA or a state. Brokers are covered "only to the extent that the customs broker is engaging in a movement under a customs bond or in a transaction involving customs business," according to the legislation. These provisions would create "a National Hiring Standard to clarify and standardize industry best practices for hiring safe carriers," according to summary of the bill. "This will ensure that shippers, brokers, and intermediaries have reliable and accurate information on which to base hiring decisions."
A former U.S. trade representative and a former deputy national security adviser agree that companies that do business in China are stuck between a rock and a hard place, as they will anger China if they disavow abuses in Xinjiang or Hong Kong, but could break U.S. law if they make clothes with Xinjiang cotton.
In a joint statement, Canada's trade minister, Mexico's economy minister and U.S. Trade Representative Katherine Tai said they reviewed USMCA committee work, noting progress and offering “recommendations for future work to maintain progress.”
The Leveling the Playing Field Act 2.0 (see 2104160037) could provide the new tools the administration needs to defend the U.S. from trade distortions caused by Chinese firms, Ohio's two senators wrote to Commerce Secretary Gina Raimondo and U.S. Trade Representative Katherine Tai.
The Endless Frontier Act, a massive bill working its way through the Senate that aims to improve the United States' ability to compete economically with China, also addresses a number of issues relevant to importers, including enforcement of the forced labor statute, seizure of counterfeits, and progress on the issues that led to the Section 301 tariffs on Chinese goods.
House Ways and Means Committee Chairman Richard Neal, D-Mass., said he's "conceptionally comfortable" with changes to the Generalized System of Preferences benefits program proposed by Senate Finance Committee Chairman Ron Wyden, D-Ore. (see 2105180075), and that "once the staff gives us a green light on it, we'll try to get it done." Neal, who spoke with an International Trade Today reporter in a brief interview at the Capitol May 19, said the renewal of GSP and the Miscellaneous Tariff Bill may be able to move expeditiously. He said he and Wyden are closely aligned on their views on trade.
Dairy trade groups complained to U.S. Trade Representative Katherine Tai that consultations have gone on long enough, and said it's time to open a formal dispute with Canada over its implementation of tariff rate quotas for dairy products. “America’s dairy farmers appreciated USTR initiating consultations with Canada on its dairy TRQ allocation measures and the decision to hold USMCA Free Trade Commission discussions to pursue reforms,” National Milk Producers Federation CEO Jim Mulhern said in a May 16 news release. “But Canada has always been obstinate on dairy, and at this stage it is increasingly clear that further action is needed to ensure a fair and transparent enforcement of USMCA.” The 68 trade groups said the dispute must begin because the next TRQ year begins July 1, but a dispute panel would take longer than that to rule.
The day before the first USMCA Free Trade Commission meeting, U.S. Trade Representative Katherine Tai and Canada's trade minister, Mary Ng, talked about how to strengthen North American supply chains, combat forced labor and climate change, and reform the World Trade Organization.