Sen. Barbara Boxer, D-Calif., floated draft legislation to overhaul the Toxic Substances Control Act in September before leaving the Capitol for pre-election recess. Boxer is the chairwoman of the Senate Environment and Public Works Committee. The draft bill revises another draft released by committee ranking member Sen. David Vitter, R-La., in late July. House lawmakers in the early months of 2014 ramped up efforts to advance that chamber's version of the overhaul legislation, but Democrats on a House Energy and Commerce subcommittee threatened to obstruct movement on the House draft bill (see 14043003). The House draft would launch a review of the risk levels of chemicals in U.S. commerce, but would not make significant changes to import regulations.

Foreign countries may be using state credit agencies to launch “an export credit arms race” through loans that are below-market rates and possibly in violation of World Trade Organization subsidy rules, two senators said in a Sept. 29 letter to U.S. Trade Representative Michael Froman. The WTO Agreement on Subsidies and Countervailing Measures (SCM) put restrictions on export credits, and an Organization of Economic Co-operation and Development agreement also provided an exemption, but many countries are likely not acting in compliance with those stipulations, said the letter. Sens. Orrin Hatch, R-Utah, and Bob Corker, R-Tenn., said the U.S. should continue to negotiate the terms of legislation to clamp down on export credit agencies [ECAs]. The Export-Import Bank Reauthorization Act of 2012 to reduce and ultimately eliminate state export credit (here). “While the negotiations proceed, it is important that the Office of the United States Trade Representative remain vigilant with respect to enforcement of the terms the SCM Agreement, including its safe harbor provisions, so as to prevent unfair market distortions,” said the letter. “We respectfully ask for an update on your investigative efforts and analysis as to whether foreign competitors are operating their ECAs in a manner consistent with their obligations under the SCM Agreement.” Export-Import Bank proponents say foreign credit agencies justify the continued need for the Ex-Im Bank, despite powerful opposition from Republicans.

The United Nations reached the 50 ratifications necessary to enter the Arms Trade Treaty into force, the UN said in recent days. Eight countries submitted their ratifications of the pact to the UN on Sept. 25. The U.S. is a signatory, but has not yet ratified the treaty and Republican opposition remains strong. On the same day the pact hit the 50 ratifications threshold, two U.S. senators criticized the “closed nature of the preparatory process” for a conference on the pact.

Trade leaders on Capitol Hill asked the International Trade Commission on Sept. 24 to conduct a follow-up investigation into Indian trade policy. The ITC began an investigation in August 2013 that focuses on Indian trade policies from 2003 through mid-2014 (here). Finance and Ways and Means committee leadership are now pushing the ITC to look into Indian industrial policies that discriminate against U.S. companies, and are also asking that the ITC report on Indian trade policy developments after mid-2014. “We expect that this new investigation will allow the Commission to meet with relevant Indian government officials in the new Bharatiya Janata Party-led government and seek additional information from U.S. firms on any developments in India relevant to the scope of matters identified in our original August 2013 request,” said the Sept. 24 letter. Indian Prime Minister Narendra Modi is scheduled to meet with Obama and House Speaker John Boehner, R-Ohio, in Washington, D.C. on Sept. 29 (see 14092522). The letter asks for the ITC to release the new report by September 2015.

The second ranking member of the House Ways and Means Committee, Rep. Kevin Brady, R-Texas, will vie for the committee gavel in the coming months, a spokeswoman for his office said on Sept. 25. A Brady challenge may complicate Rep. Paul Ryan’s bid for the chairmanship as both have long expressed interest in the position. Ryan’s office did not comment on a race for the chairmanship, instead saying he is focused on his current role as House Budget Committee chairman. Brady previously was the chairman of the Ways and Means Trade Subcommittee. His spokeswoman said he is committed to the trade agenda, but did not elaborate. The current Committee Chairman, Rep. Dave Camp, R-Mich., is retiring (see 14040113).

Recent trade-related bills introduced in Congress include:

The American Apparel and Footwear Association applauded the introduction in recent days of legislation that would eliminate tariffs on outdoor apparel. The U.S. Optimal Use of Trade to Develop Outerwear and Outdoor Recreation Act of 2014, introduced in the House and Senate as HR-5646 and S-2838, would modernize an outdated tariff system for recreational performance outerwear, said AAFA President Juanita Duggan in a Sept. 18 statement. “The innovative and high tech apparel being designed and produced today looks nothing like the outerwear garments that existed when these tariffs were first imposed decades ago,” said Duggan. “The outdoor industry has transformed itself by incorporating state of the art technical construction and sustainable materials to meet the needs of consumers for higher performance product and specialized gear. It’s time to update our tariff policy to reflect these products and the industry they cover.” The bills’ lead sponsors, Rep. Dave Reichert, R-Wash., and Sen. Maria Cantwell, D-Wash., have not yet released copies of the legislation. A Reichert press release said the bill eliminates tariffs on both knit and woven apparel (here).

Recent trade-related bills introduced in Congress include:

The Obama administration will restart litigation in a U.S.-Guatemala labor dispute, administration officials, lawmakers and a union leader announced on Sept. 18. The dispute is the first to focus on labor in a U.S. free trade agreement. The Office of the U.S. Trade Representative in August gave Guatemala four more weeks to prove its labor policy and practice is in compliance with a U.S.-Guatemala labor action plan in 2013, but those efforts evidently fell short. The 2013 Enforcement Plan was brokered under the Dominican Republic-Central American Free Trade Agreement.

The Senate passed the Continuing Appropriations Resolution 2015, H.J.Res.124 (here), on Sept. 18 with a bipartisan 78-22 vote. The bill will fund the government through Dec. 11, extend the Export-Import Bank through June 2015, and authorize training and arming of Syrian rebels. President Barack Obama will now have to sign the measure. The Senate also approved the nomination of Robert Holleyman as deputy U.S. Trade Representative.