The Coalition for a Prosperous America says that the Generalized System of Preferences benefits program and the Miscellaneous Tariff Bill lead to offshoring and a low-wage workforce in the U.S., and that the MTB is "abused by importers who lobby against policies to boost domestic production, and it conflicts with the national imperative to re-shore the industries and jobs we have lost."
The Endless Frontiers legislation continues to attract amendments relevant to trade, such as Sen. Josh Hawley's amendment, published May 24, that would make countries ineligible for participation in the Generalized System of Preferences benefits program if any product from that country is identified by the Bureau of International Labor Affairs as one made with child labor or forced labor. Hawley, R-Mo., also proposes that, starting 90 days after the bill's passage, there will be an additional 100% duty on all goods produced in Xinjiang, or goods with components from Xinjiang, for at least one year. At that time, the tariff would only be lifted if the administration "determines beyond a reasonable doubt that no slave labor, forced labor, indentured labor, or child labor exists in the People’s Republic of China; and submits to Congress and makes available to the public a report on that determination." There have been hundreds of amendments proposed for the China package, and Majority Leader Chuck Schumer will decide which ones deserve floor debate and a vote. He has said he wants a vote to happen this week.
No date has been scheduled yet for a vote on the China package championed by Senate Majority Leader Chuck Schumer, D-N.Y., and Sen. Todd Young, R-Ind., but lengthy amendments from senators are continuing to flow in, many with trade implications.
House Ways and Means Committee Chairman Richard Neal, D-Mass., said he's "conceptionally comfortable" with changes to the Generalized System of Preferences benefits program proposed by Senate Finance Committee Chairman Ron Wyden, D-Ore. (see 2105180075), and that "once the staff gives us a green light on it, we'll try to get it done." Neal, who spoke with an International Trade Today reporter in a brief interview at the Capitol May 19, said the renewal of GSP and the Miscellaneous Tariff Bill may be able to move expeditiously. He said he and Wyden are closely aligned on their views on trade.
Sen. Ron Wyden, D-Ore., the chairman of the Senate Finance Committee, announced that he's introducing a bill that would renew the Generalized System of Preferences benefits program through Jan. 1, 2027, and renew the Miscellaneous Tariff Bill through the end of 2023.
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.
Rep. Darin LaHood, R-Ill., introduced legislation that would “incorporate digital trade as a statutory consideration in designating beneficiary developing countries (BDCs) under” the Generalized System of Preferences, he said in a May 7 new release. The bill would allow the U.S. trade representative to “prevent countries from receiving BCD status if, for example, they restrict digital trade to the detriment of U.S. strategic interests through predatory industrial policies that target technology sectors,” it said. Some developing countries seem to be following China's lead in implementing problematic digital trade measures, LaHood's office said. “These countries benefit from duty-free access to American markets under the GSP while employing digital policies that undermine American values, jobs, and exports. Updating and reforming the GSP to support sound digital trade policies will advance American strategic interests around the world and promote sound economic development in the developing world.”
The top Republican on the House Ways and Means Committee said he doesn't have a good sense of when the renewal of the Generalized System of Preferences benefits program or the Miscellaneous Tariff Bill could come up for a vote in the House, where the bills must originate. Rep. Kevin Brady, R-Texas, told International Trade Today during a May 6 press call that Senate Finance Committee ranking member Mike Crapo, R-Idaho, and Chairman Ron Wyden, D-Ore., are engaging about both programs, in the context of a China bill that committee is working on. “I think any discussion at this point is helpful,” he said. Brady said he thinks the two bills could move sooner if they were made a priority in the House, since they have both stood on their own in the past, and have passed under suspension rules or unanimous consent, which means they don't take up significant time on the legislative calendar.
PricewaterhouseCoopers has been cautioning its clients not to get their hopes up about a reversal of sections 232 and 301 tariffs with the new administration, and Scott McCandless, a principal in the firm's tax policy services group, also sought to manage expectations for trade policy action in Congress in 2021. McCandless, speaking to a webinar audience April 27, said that while forced labor is a hot issue right now, and CBP “is on a more active footing” on forced labor, he doesn't believe that legislation that would create a rebuttable presumption of forced labor in Xinjiang is going to pass this year. “I doubt that moves forward,” he said.
Sen. Chuck Grassley, R-Iowa, said that Senate Finance Committee members have been seeking a path to renew the Generalized System of Preferences benefits program and the Miscellaneous Tariff Bill, but have not been able to yet. “There was some talk a week ago about some sort of a deal that might include some extension of that, but there was nothing conclusive on it,” he said. He didn't specify whether he was speaking about MTB, GSP or both, and a trade staffer for the committee and one of his communication staffers did not respond to follow-up questions April 20.