Rep. Lloyd Doggett, D-Texas, introduced a bill Jan. 6 that would bar countries that aren't following international environmental obligations or enforcing their environmental laws from participating in the Generalized System of Preferences benefits program. Currently, GSP is not in effect. In the previous Congress, Trade Subcommittee Chairman Earl Blumenauer, D-Ore., introduced a bill (see 2012080049) that included this plank, as well as eligibility predicated on whether the country is making continual progress toward establishing “the rule of law, political pluralism, the right to due process, a fair trial and equal protection under the law,” and whether those countries are working to “reduce poverty, increase the availability of health care and educational opportunities,” and combat corruption. All legislation introduced last year has to be reintroduced in the new Congress to be considered.
The United Steelworkers, the Steel Manufacturers Association, the American Iron and Steel Institute and two other trade groups wrote to President-elect Joe Biden on Jan. 11, telling him that weakening or removing 25% tariffs and quotas on imported steel “before major steel producing countries eliminate their overcapacity and the subsidies and other trade-distorting policies that have fueled the steel crisis will only invite a new surge in imports with devastating effects to domestic steel producers and their workers.” The letter said the Section 232 tariffs allowed idled mills to reopen and laid-off workers to regain their jobs. “Continuation of the tariffs and quotas is essential to ensuring the viability of the domestic steel industry in the face of ... massive and growing excess steel capacity,” they said, pointing to China, Vietnam and Turkey as countries that did not slow down steel production during the COVID-19 pandemic-induced recession.
In post-hearing comments over the argument that Vietnamese imports of illegal timber hurt U.S. furniture manufacturers, several parties said the Office of the U.S. Trade Representative is not following the law, because it provided no concrete evidence of illegal timber in furniture exporters' supply chains.
The Office of the U.S. Trade Representative is not taxing French cosmetics or handbags, as it wants to have “a coordinated response” to all the Digital Service Tax cases, the agency said Jan. 7. It also released its findings on India's, Turkey's and Italy's proposed DSTs, with no proposed actions.
U.S. Trade Representative Robert Lighthizer called others to join him in condemning of the Jan. 6 violence at the Capitol. Lighthizer, in a signed tweet Jan. 6, said: “All patriotic Americans should condemn the violence we saw at our Capitol today. This is inconsistent with our democracy and our most cherished values.”
The head of the American Chamber of Commerce in Vietnam said businesses there don't know whether U.S. Trade Representative Robert Lighthizer will conclude that Vietnam has been a trade cheat through currency manipulation but not put a tariff number on it; put a tariff number but not start collecting; or implement tariffs before the new administration takes over Jan. 20.
Blueberry growers, importers and distributors have formed a trade group called The Blueberry Coalition for Progress & Health to argue that there should not be tariffs or quotas on imported blueberries. In a Jan. 6 press release, the group said that 80% of imported fresh blueberries enter either before U.S. production begins in earnest in late April or after it peters out in early September. They said that even though there is some U.S. production competing with imports, even Georgia only sells 10% of its crop before that peak period. But Florida competes most directly with Mexican imports, and Florida representatives had pushed for trade remedies to protect them (see 2009020016). The International Trade Commission will hear from those for and against trade restrictions on blueberries on Jan. 12.
President Donald Trump signed into law an act that requires the Department of Homeland Security to submit a plan within 180 days of how it can get to 100% high-throughput scanning of freight rail and commercial and passenger vehicles using large-scale, non-intrusive inspection systems. The Securing American Ports Act was signed on Jan. 5. The agency is to tell Congress how much of the traffic is currently scanned, the personnel assigned to those efforts, and seizure data on contraband discovered by that scanning. The report should create benchmarks on how to get to 100% scanning within six years, and the costs to get there, in both government spending and suspected delays. After the first report is submitted, DHS is to update Congress one year later on progress, then again every other year.
On the day that additional 25% tariffs were scheduled to go into effect on French handbags and cosmetics, the Office of the U.S. Trade Representative and CBP made no public statement about the tariffs' fate, leaving importers in the dark about what they should do.
Sens. Pat Toomey, R-Pa., and Mark Warner, D-Va., said Jan. 4 that they strongly encourage European Union officials “to delay any agreement with China so that the next Congress and president can work alongside them in ending China’s illegal and unfair trade practices and threats to global supply chain integrity.” Some trade negotiators worry that the Comprehensive Agreement on Investment (see 2012300030) will allow China to divide and conquer. “America’s go-it-alone approach to trade over the past four years has harmed American workers, consumers, and businesses, all of whom have paid the cost of various punitive tariff campaigns,” the senators said in a statement, adding it also undermined America's global standing and slowed economic growth. “It is encouraging that President-elect [Joe] Biden would like the European Union to wait until he takes office to finalize an investment deal with China. A multilateral approach is necessary to confront China on issues like its abusive labor conditions, unfair and opaque subsidies, forced technology transfers, intellectual property theft, and more,” they said.