Republican China Task Force Calls for More Trade Agreements to Counter China
A task force led by Republican House members recommended more trade agreements, engagement at the World Trade Organization, and “a strategic plan for Phase Two negotiations” with China to address distorting subsidies, dominance of state-owned enterprises that dictate the terms of trade and data, and forced tech transfer and joint venture requirements. It also said the U.S. should be aggressive in enforcing the China phase one agreement, particularly on forced tech transfer, intellectual property and barriers to agriculture imports.
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The report, released Sept. 30, said that the U.S. should negotiate trade deals that require congressional approval, that strengthen economic and geostrategic ties with other countries, and are ambitious and create export opportunities for U.S. producers.
It said that negotiating with the United Kingdom and Kenya should continue, and that a comprehensive trade agreement with Japan should still be sought. They called on the administration to “identify additional partners for negotiations if they demonstrate a willingness and ability to take on ambitious, enforceable, and comprehensive obligations; and include ambitious provisions in agreements to set rules aimed at addressing [Chinese] barriers and require parties to consult with us if they negotiate with non-market economies.” They also said that once specific outstanding trade issues with Taiwan are resolved (without saying what those are), the U.S. should launch trade agreement talks with Taiwan.
The Republicans said using the Africa Growth and Opportunity Act, the Caribbean Basin Trade Partnership Act and the Generalized System of Preferences benefits program strengthen ties with developing countries in Africa, Asia and Latin America.
“The United States should make securing the supply chains of the most strategic products for national security and health requirements a top priority,” they said, and they should use all trade negotiations and international trade fora, with allies, to secure supply chains. They said the International Trade Commission can help identify which products are most strategic.
At the World Trade Organization, the Republicans said the Appellate Body must be reformed, and transparency and notification obligations must be strengthened. They said the U.S. should develop a strategy to select a new WTO director-general who is prepared to challenge China's efforts to undermine the system. They said the U.S. should work with allies at the WTO to make sure China can no longer call itself a developing country, and they should negotiate new disciplines on subsidies, state-owned enterprises and intellectual property. They asked the team in Geneva to “negotiate an ambitious agreement on e-commerce that prohibits localization barriers and allows cross-border data flows.”