Sen. James Risch, R-Idaho, ranking member of the Senate Foreign Relations Committee, introduced a bill that would require the president to impose sanctions on members of the Taliban who support any terrorist group in Afghanistan, who engage in international narcotics trafficking, or who engage in "serious human rights abuses." The three requirements would begin 90 days after passage, the Sept, 27 bill says. Twenty-six Republican senators co-sponsored the bill.
Rep. Kevin Brady of Texas, the top Republican on the House Ways and Means Committee, said he's had no consultation with staff or principals from the Commerce Committee or the Office of the U.S. Trade Representative on how they would like to change their approach on tariffs on European steel and aluminum. The European Union and the U.S. have been negotiating over lifting 25% tariffs on steel and 10% tariffs on aluminum imposed during the Trump presidency, ostensibly to protect national security. If the U.S. and the EU do not reach an agreement, retaliatory tariffs on spirits exports are scheduled to double, to 50%. "We’d love to have this conversation with the administration on how you’d tackle 232s and 301s," he said, particularly in a time when supply chains are strained and inflation is up. But Brady declined to say during a call with reporters on Sept. 29 whether his concerns about the drag on the economy from supply chain challenges and inflation mean that he would argue to lift the tariffs on the EU.
European Union Trade Commissioner Valdis Dombrovskis told reporters that because of the work that needs to happen within the EU to get it done before retaliatory tariffs are scheduled to double, the U.S. and the EU need to reach an agreement by the beginning of November. Tariffs on the retaliation list are supposed to double on Dec. 1. Dombrovskis said this on Bloomberg TV; he also suggested to reporters that the import and export monitoring that was part of the removal of steel and aluminum tariffs on Canada and Mexico is something that the EU is open to.
Rep. Kevin Brady of Texas, the top Republican on the House Ways and Means Committee, and the Trade Subcommittee chairman and ranking Republican met with World Trade Organization Director-General Dr. Ngozi Okonjo-Iweala when she was in town last week. Brady and Rep. Vern Buchanan, R-Fla., issued a statement that said, "We were delighted to meet with Director-General Dr. Ngozi Okonjo-Iweala at this critical juncture in the history of the World Trade Organization. As we discussed today, our commitment to the success of the WTO is unwavering. However, the United States has long insisted that reform is needed at the WTO, and bipartisan support in Congress for WTO reform is stronger than ever." Rep. Earl Blumenauer, D-Ore., chairman of the trade subcommittee, said, “It was an honor to lead a bipartisan roundtable discussion with Director-General Ngozi where members shared their support for the WTO and relayed their priorities to Dr. Ngozi directly. I, along with several of my colleagues, emphasized the importance of a WTO TRIPS waiver on COVID-19 vaccines, treatments, and tests as well as the critical role that the WTO has to play in protecting the climate. I’m also glad we were able to discuss illegal, unreported, and unregulated fishing, and was encouraged by Dr. Ngozi’s comments about potential progress in dealing with these horrific and destructive practices.”
The domestic textile industry, which employs about a half million people and a million less than 25 years ago, was the focus of U.S. Trade Representative Katherine Tai's trip this week to factories in the Carolinas. Tai met with textile executives and leaders in the National Council of Textile Organizations trade group, and, according to a summary of the Sept. 23 meeting, she said the administration wants to increase trade between the U.S. and El Salvador, Guatemala and Honduras. One of the factories was a thread factory -- in the Dominican Republic-Central America Free Trade Agreement, unlike in NAFTA, thread must be from either the U.S. or one of the CAFTA-DR countries.
Rep. Scott Franklin, R-Fla., introduced a bill that would prohibit U.S. funding for the Taliban government and require sanctions on foreigners who knowingly provide assistance to Afghanistan's government. Franklin said Sept. 23 that his bill is a companion to the bill introduced by Sen. Marco Rubio, R-Fla., (see 2109210010). He has five Republican co-sponsors. Franklin said the bill also would repeal the exception in Iran sanctions for sectors necessary for Afghan reconstruction. "While we feel this should be an issue on which all sides can agree, sadly our Democrat colleagues have not chosen to join this effort,” Franklin said.
A panel of trade experts said managed trade doesn't have to be a dirty word, but that the conflation of national security and economic security is dangerous. The Washington International Trade Association decided to host a discussion on managed trade after an essay was published by Edward Alden called, "Free Trade Is Dead. Risky ‘Managed Trade’ Is Here."
In reaction to news that China has formally asked to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (see 2109170052), TPP's two greatest champions in the Senate said negotiations on trade with Asian allies must resume. Sens. Tom Carper, D-Del., and John Cornyn, R-Texas, issued a joint statement Sept. 20: “It shouldn’t come as a surprise to anyone that China is taking steps to strengthen their trade powers across the globe. For quite some time, we have been warning about China’s subtle yet deliberate moves to join the CPTPP -- the very trade pact crafted to counter China’s trade influence that the United States mistakenly walked away from. And last week, we saw them take an affirmative step in that troubling direction. We’ve long believed that United States trade leadership is critical for our country’s economy and national security -- and it’s clear that China is not waiting to assert itself in the region. The U.S. cannot afford to continue waiting in the hallway -- we must get our seat back at the table to re-engage our Asia Pacific allies in trade.”
Customs brokers in Washington to lobby for the Customs Business Fairness Act renewal should also talk about the importance of the Ocean Shipping Reform Act of 2021, National Customs Brokers & Forwarders Association of America transportation committee members told the annual government affairs conference attendees, as a way to fight excessive detention and demurrage fees.
A day after the White House's primary spokesperson said that if there's an opportunity to renegotiate the Trans-Pacific Partnership, that's a discussion the U.S. could join, a former White House trade negotiator said the path to reentering the TPP is so steep that he doesn't think it's likely in the next few years.