The Senate voted Dec. 9 to reject bipartisan resolutions to block U.S. arms sales to the United Arab Emirates. The resolutions, introduced by Sens. Bob Menendez, D-N.J.; Chris Murphy, D-Conn.; and Rand Paul, R-Ky., were struck down 46-50 and 47-49. The trio had tried to garner bipartisan support over the past month, saying the sales of billions of dollars worth of F-35 fighter jets, drones and military equipment could harm U.S. national security (see 2012070022). Speaking before the votes, Menendez said the sales deserved more “careful and deliberate consideration within” the administration. “We are being asked to support a significant transfer of advanced U.S. technology, without clarity on a number of key details regarding the sale, or sufficient answers to critical national security questions,” he said. “There are simply too many outstanding questions.”
The National Defense Authorization Act, which passed the House of Representatives with a veto-proof majority of 335-78, would end anonymity at shell companies, in an attempt to prevent money laundering. Companies, whether corporations or limited liability companies, would have to file the information with the Financial Crimes Enforcement Network (FinCEN). If the regulations are not obeyed, or if the information is false, there could be criminal penalties, not just fines.
Leaders of a congressional commission on China asked Intel and Nvidia to explain whether they knew their technology exports to China would help the government conduct mass surveillance of Muslim minorities and eventually lead to human rights violations. In Dec. 4 letters, Rep. James McGovern, D-Mass., and Sen. Marco Rubio, R-Fla., chair and co-chair, respectively, of the Congressional-Executive Commission on China, said they are concerned that sales of the companies’ computer chips are helping to power a Chinese supercomputer being used to suppress minorities in the Xinjiang region, The New York Times reported Nov. 22.
Senate Finance Committee Chairman Chuck Grassley, R-Iowa, said that he hopes that a technical fixes bill for USMCA can pass this month, but its passage is hung up on whether goods manufactured in foreign-trade zones should be able to benefit from USMCA if those goods meet the rules of origin.
Claims that a ban on single-use plastics is a trade restriction prohibited in the USMCA are wrong, seven Democratic senators, led by Sen. Dianne Feinstein, D-Calif., wrote to U.S. Trade Representative Robert Lighthizer and Canada Trade Minister Mary Ng. The senators' Dec. 7 letter said the industry groups incorrectly argue the ban “would not be based on sound science. In fact, the science clearly shows the detrimental impact of single-use plastics. An estimated 11 million metric tons of plastic waste enters the oceans each year.”
The Senate is expected to vote this week on resolutions to reject proposed military sales to the United Arab Emirates, which include billions of dollars worth of F-35 fighter jets, drones and related equipment (see 2011130022). Opposition to the sales is being led by Sens. Rand Paul, R-Ky.; Chris Murphy, D-Conn.; and Bob Menendez, D-N.J., who said last month the sales may damage U.S. national security.
House Ways and Means Committee member Stephanie Murphy, D-Fla., said that although “the politics of trade are fairly tricky,” she feels confident in saying “things can't get any worse” for free trade during the Biden administration. Murphy, one of two members of the House speaking on a Cato Institute webinar about what to expect in trade with a new president, said she's encouraged by President-elect Joe Biden's choices for the secretaries of the treasury and state, and the head of the National Security Council, because all of the individuals recognize that trade is an important tool in foreign policy.
Sen. John Cornyn, R-Texas, led a bipartisan letter to U.S. Trade Representative Robert Lighthizer arguing that he should not push for returning treatment of foreign-trade zones to the NAFTA approach, and instead, should allow goods manufactured in those zones to receive tariff benefits if they meet USMCA rules of origin. This issue has been hanging up a technical fixes bill since the summer (see 2007200021).
The Congressional Research Service issued a Nov. 20 update on U.S. restrictions against Cuba, including the recent remittance restrictions announced by the Treasury Department. The report outlines the new restrictions, including the State Department’s new Cuba Prohibited Accommodations List (see 2009230029) regulations that aim to restrict the Cuban government’s access to remittance-related funds (see 2010230024 and 2010260018) that become effective Nov. 26.
House Ways and Means Committee member Rep. Jimmy Panetta, D-Calif., has a district full of farms growing grapes, berries, lettuce, artichokes, garlic or other non-commodity crops. His constituents want export markets, so opening trade negotiations is popular in Central California. Panetta, who was interviewed online by the Washington International Trade Association on Nov. 23, said there needs to be a lot of education in the Democratic caucus on why a renewal of Trade Promotion Authority is important before it expires July 1.