The Senate’s China competition bill will now include legislation introduced by two senators earlier this year aimed at securing U.S. leadership in emerging technologies. Sens. Chris Van Hollen, D-Md., and Roy Blunt, R-Mo., said their National Strategy to Ensure American Leadership Act will be included in the Endless Frontier Act, which is expected to see a vote before the Senate soon (see 2105130025). The two senators’ original bill called for the Commerce Department to work with the National Academies of Sciences, Engineering and Medicine to identify the 10 most critical emerging technology challenges facing the U.S. and recommend steps to ensure U.S. leadership in those technologies. Commerce is in the middle of crafting a series of export controls over emerging and foundational technologies (see 2105040063 and 2103190037).
The House Foreign Affairs Committee passed a resolution May 19 urging the United Nations to impose an arms embargo against the Myanmar military. The resolution calls on the UN to “prevent the continued acquisition of arms and military equipment and the proliferation of weapons throughout the country,” and to hold Myanmar officials accountable for human rights violations. The U.S. has placed sanctions and other restrictions on the Myanmar military for its overthrow of the country’s government (see 2105170015 and 2104080026).
Congressional Republicans are expressing their dismay at the White House notification earlier this week that it will not be imposing sanctions on the CEO of the primary company building the Nord Stream 2 pipeline from Russia to Germany, even though Congress clearly said it wanted that company to be a sanctions target (see 2104220003). Rep. Andy Barr, R-Ky., said that all congressional sanctions bills give the president the authority to waive the sanctions, and President Joe Biden is choosing to do so.
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 group of Democratic senators asked President Joe Biden to do more to end the Saudi blockade of humanitarian goods into Yemen, saying it is preventing food, medicine and fuel imports into the country. The senators, including Elizabeth Warren of Massachusetts and Patrick Leahy of Vermont, said in a May 19 letter that Biden should use “diplomatic and economic leverage” to force Saudi Arabia to end the blockade. The U.S. should demand that Saudi Arabia allow delivery of food, fuel and other humanitarian aid through the Hodeidah port, the senators said. “Failure to provide such access should have a direct impact on our relationship with Saudi Arabia, to include pending weapons sales, military cooperation, the provision of maintenance for war planes and spare parts, as well as U.S.-Saudi ties more broadly,” the letter said. “The current commercial fuel import standoff must end today and be decoupled from ongoing negotiations.”
Three senators reintroduced legislation May 20 that would lift a Cuba trade embargo to eliminate business barriers between the two countries and boost U.S. exports to the island. The Freedom to Export to Cuba Act wouldn’t repeal trade restrictions surrounding human rights violations but would eliminate “key provisions of previous laws that block” U.S. exports to Cuba, a news release said. Sens. Amy Klobuchar, D-Minn.; Jerry Moran, R-Kan.; and Patrick Leahy, D-Vt., are the sponsors.
More than 40 Republican lawmakers urged President Joe Biden to refrain from providing sanctions relief to Iran, saying that nation is supporting “terrorist activity” against Israel. The senators -- including Jim Risch of Idaho, the top Republican on the Senate Foreign Relations Committee -- said Iran is supporting “Palestinian terrorists” in Gaza and has encouraged the group to attack Israel amid the ongoing conflict between the two sides.
Sens. Dianne Feinstein, D-Calif., Jeff Merkley, D-Ore., and Alex Padilla, D-Calif., asked the commerce secretary and U.S. trade representative to work to convince China and the European Union to lift their retaliatory tariffs on American wine. In both cases, the tariffs were imposed in response to U.S. tariffs on those countries' exports. The three said in the May 11 letter: "Wineries in our states are already under siege by the pandemic, wildfires, and now drought. Many will not survive if they are also asked to indefinitely sustain a damaging trade war."
Eighteen senators, led by Sen. Tim Kaine, D-Va., and Sen. Todd Young, R-Ind., are asking the administration to convince Europe to remove 25% retaliatory tariffs on American whiskey before it's scheduled to double on June 1. The tariff was imposed in response to 25% tariffs on European steel. Their May 11 letter said that whiskey exports to the European Union fell by 37% since the tariff went into place, and exports to the United Kingdom fell by 50%. "Like other small businesses involved in the food and drink industry, American craft distillers have struggled during the pandemic, as on-site sales and sales to restaurants and bars declined substantially. Nearly a third of craft distillers’ employees have been furloughed since the start of the pandemic. These employers are just now starting the road to recovery and the continuation, and potential increase, of these tariffs will inhibit this recovery. ... As the Biden administration works to address trade disputes with our allies in Europe, we urge the administration to work to secure the immediate suspension of tariffs on American Whiskey and, ultimately, the permanent removal of all retaliatory tariffs on American, EU, and UK spirits and wine."
U.S. Trade Representative Katherine Tai, in her second day of testimony on Capitol Hill, heard again and again from members of Congress who are hearing from companies in their districts that they want Section 301 tariff exclusions back. She heard repeatedly that the 9% countervailing duties on Canadian lumber are making a bad situation worse. And she heard that the Miscellaneous Tariff Bill and Generalized System of Preferences benefits program should be renewed. On each topic, both Democrats and Republicans shared concerns, though on GSP, Republicans only spoke of the cost to importers, while Democrats worried about the effects of GSP on the eligible countries. Tai testified for more than four hours in front of the House Ways and Means Committee on May 13.