Americans for Prosperity, a libertarian political advocacy group, is asking lawmakers to reject a carbon border adjustment tax, "which some are looking to include" in the reconciliation bill in the Senate (see 2107200028). The group says it would devastate the economy. AFP President Tim Phillips said, "Making things more expensive for Americans isn't going to improve the environment, but it will make a lot of people worse off -- particularly the least fortunate. ... Importing a border carbon tax would cause incredible harm to our economy, inviting retaliatory tariffs from other countries, burdening farmers with higher costs, and causing prices on everyday goods like fuel and groceries to skyrocket even higher and faster than they are already. Beyond being harmful policy, a border carbon tax also runs afoul of established trade agreements and would be nearly impossible to implement. Washington needs to shake loose this flawed mindset that the only path to a flourishing, healthy environment is economic pain and higher taxes -- it's the exact opposite.”

The Senate Finance Committee will hold a hearing July 27 at 9:30 a.m. to review the implementation of the USMCA one year after it entered into force on July 1, 2020. The witnesses testifying will be:

Rep. Jimmy Gomez, D-Calif., has visited Mexico many times both before and after NAFTA, since his parents were born there and he still has family there. Gomez, who served as the point person on labor in the Democratic Working Group that helped reshape the NAFTA rewrite, said during a July 21 interview hosted by the Washington International Trade Association that he always knew that creating independent unions in Mexico was going to be difficult, because there have been decades of unions that were really an arm of the political party that dominated Mexico, the PRI.

Rep. Kevin Brady, the top Republican on the House Ways and Means Committee, continues to argue that passing the same trade preferences bill that passed the Senate as part of its China package is the best way to get the programs renewed quickly. Brady, of Texas, who spoke to reporters July 20, said that the Senate version of the Generalized System of Preferences benefits program and the Miscellaneous Tariff Bill is practical reform. In contrast, he called Trade Subcommitee Chairman Earl Blumenauer's bill ideological, and said it would lead to fewer countries qualifying for GSP. "Am I hopeful that we can bridge the gap? I am. We’ve begun discussions with Ways and Means Democrats on these issues," he said, in response to a question from International Trade Today. "They are in early stages." He said that there are members from both parties on the committee in the talks, along with Chairman Richard Neal, D-Mass.

In a report accompanying the spending bill for the Department of Homeland Security, House appropriators said they still want a briefing on its efforts to improve automated cargo processing, including scanning at land ports of entry. The report directs the agency to provide the briefing within 60 days of the spending bill's signing. They also asked for a brief within 60 days on how CBP's two-year-old strategy to interdict opioids is going, and what they will do next. They noted that since 2018, Congress has provided more than $200 million in support of interdiction, including money for international mail and consignment facilities, and that it expects CBP and the U.S. Postal Service to have higher capture rates. They also asked for a report within 120 days on whether duties on imported aluminum are being properly assessed when the aluminum "exempt from certain tariffs" is entering the U.S. The report does not say whether they are concerned that aluminum from countries not covered by Section 232 is being wrongly taxed, or whether parties that have exclusions are not receiving the benefits of the exclusions. A press aide did not respond to questions on this part of the report by press time.

Supply chain resilience requires diversification with allies and away from China, witnesses said during a Senate Commerce Committee hearing, but they cautioned senators that improving resilience is complicated, and that government intervention can have unintended consequences. The committee was examining how Commerce Department implementation of the recent China package, once called Endless Frontier, could reduce supply chain failures in the future.

The House Ways and Means Trade Subcommittee will hold a hearing July 21 online at 10 a.m. on " The Global Challenge of Forced Labor in Supply Chains: Strengthening Enforcement and Protecting Workers."

The Senate Finance Committee recommended Sarah Bianchi and Jayme White to be deputy U.S. trade representatives, with strong bipartisan tallies on July 13. White, who was the chief trade adviser to Senate Finance Committee Democrats before his nomination, was approved 25-3. If confirmed, White would have responsibility for the Western Hemisphere, Europe, the Middle East, labor and the environment (see {Ref:2104160066]). Sarah Bianchi, who was approved 27-1, would cover Asia, Africa, services, textiles, investment and industrial competitiveness (see 2106010033). They were nominated by President Joe Biden in April. Confirmation votes will come later in the full Senate

The House Appropriations Committee released its draft proposals for funding the Commerce Department and the Office of the U.S. Trade Representative. It wants to spend $577.4 million on the Commerce Department's International Trade Administration, $36.4 million more than the current fiscal year's spending, a 6.7% increase. It wants to spend $143.4 million on the Bureau of Industry and Security, up $10.4 million from the current year, a 7.8% increase.

Rep. Rick Larsen, a pro-trade Democrat from Washington state, told an audience at the Washington International Trade Association that Congress views China primarily as a strategic competitor, though members recognize there are areas of cooperation as well. He said that 10 years ago, the view from Washington was the reverse.