Two Democrats and two Republicans on the House Ways and Means Committee, along with 98 colleagues, are asking the Office of the U.S. Trade Representative to re-establish an application process for exclusions to Section 301 tariffs. In an April 27 letter, led by Reps. Ron Kind, D-Wis., Jackie Walorski, R-Ind., Suzan DelBene, D-Wash., and Rep. Darin LaHood, R-Ill., they also say they believe companies that had exclusions that have expired should have expedited procedures for getting a new exclusion.
U.S. Trade Representative Katherine Tai heard many bipartisan complaints about the pain of both Section 301 tariffs and Europe's retaliatory tariffs in response to steel tariffs, but stood her ground on both during a hearing in front of a Senate Appropriations subcommittee responsible for funding the Office of the U.S. Trade Representative.
At a webinar on U.S.-Vietnam economic relations, Ambassador Ha Kim Ngoc said Vietnam is working to narrow the trade deficit with the U.S., whether by buying more American agricultural exports or encouraging Vietnamese businesses to open factories in the U.S. "I don’t think we can solve the problem overnight, with COVID-19 and the increased demand of the goods from Southeast Asia, and particularly Vietnam," he said April 27.
PricewaterhouseCoopers has been cautioning its clients not to get their hopes up about a reversal of sections 232 and 301 tariffs with the new administration, and Scott McCandless, a principal in the firm's tax policy services group, also sought to manage expectations for trade policy action in Congress in 2021. McCandless, speaking to a webinar audience April 27, said that while forced labor is a hot issue right now, and CBP “is on a more active footing” on forced labor, he doesn't believe that legislation that would create a rebuttable presumption of forced labor in Xinjiang is going to pass this year. “I doubt that moves forward,” he said.
A former Trump political appointee said that he believes the concentration of solar panel making and inputs in China is a major concern for the U.S. as it looks to an energy transition, and suggested the campaign against blood diamonds could be a model for how to deal with human rights abuses alleged in the production of polysilicon in China's Xinjiang province. That campaign relied on traders' desire to avoid reputational risk, and self-policing among distributors. But Keith Krach, formerly State Department undersecretary for economic growth, energy and the environment from 2019 to the end of the Trump administration, also suggested that a forced labor ban could be a future action.
Presidential Climate Envoy John Kerry, when asked about the utility of a domestic carbon tax, said the idea is under consideration. “President [Joe] Biden, I know, is particularly interested in evaluating the carbon border adjustment mechanism, he wants to look at that and see whether that’s something that we need to deploy,” Kerry said. “Europe is already looking at that in depth and may well wind up deploying it if they don’t get satisfaction from China and other countries with respect to the transition off of coal and their effort to try to do their part in reducing emissions.”
The European Union, Japan, South Korea and U.S. all recognize they will be at the mercy of China during the energy transition unless they change the supply chains for batteries, experts said. The U.S. has nickel mines and a lithium mine (with another in process of opening), but China's dominance in processing minerals and making cathodes and anodes means China still could interfere with America's ability to produce economical electric vehicle batteries.
The U.S. should lead the charge to reopen the Environmental Goods Agreement in Geneva, House Ways and Means Republicans wrote April 22, on Earth Day. This follows a resolution introduced earlier in the month by four pro-trade Democrats calling for the same thing (see 2104080050).
The Office of the U.S. Trade Representative announced a technical correction that allows refunds for products exported after the tariffs were hiked from 10% to 25% but on the water at the time the increase was announced. The notice, set for Federal Register publication April 26, says goods that left China before May 10, 2019, and entered the U.S. before June 15, 2019, and are covered by a Section 301 exclusion, are now excluded.
The Safe Cribs Act, which would ban the sale of crib bumpers, was reintroduced in the Senate April 20 by Sens. Rob Portman, R-Ohio; Richard Blumenthal, D-Conn.; and Tammy Duckworth, D-Ill. A version of the bill introduced in the House in 2019 passed out of committee during the previous Congress. That these deadly products can still be found on shelves across the country is extremely confusing to new parents who don’t believe stores would be selling them if they were truly dangerous to babies,” Duckworth said. “We should be doing everything we can to help new parents and end preventable deaths like these, which is why I’m proud to be introducing this bipartisan bill with Senators Portman and Blumenthal that would ban the sale of deadly padded crib bumpers.” The Consumer Product Safety Commission a year ago proposed a rule updating its standard to ban padded bumpers but allow mesh bumpers (see 2004020039). That proposed rule has not yet become final, and according to the most recent stakeholder meeting notes posted by CPSC, it may be difficult to find test labs that can certify the air flow standard described in the proposed rule.