Sen. Mitt Romney, R-Utah, says there is the potential for a bipartisan consensus on a strategy to compete with China. Romney, who was speaking at a U.S. Chamber of Commerce program May 19, said the two parties are more united than they were two years ago, as they recognize China's threat to liberal democracies. He said that "China’s rise is the result really of their economic resources, and those are resources that are built in part through predatory practices, particularly subsidized or predatory pricing which allows them to put western businesses out of business...."
A group of Democratic senators asked President Joe Biden to do more to end the Saudi blockade of humanitarian goods into Yemen, saying it is preventing food, medicine and fuel imports into the country. The senators, including Elizabeth Warren of Massachusetts and Patrick Leahy of Vermont, said in a May 19 letter that Biden should use “diplomatic and economic leverage” to force Saudi Arabia to end the blockade. The U.S. should demand that Saudi Arabia allow delivery of food, fuel and other humanitarian aid through the Hodeidah port, the senators said. “Failure to provide such access should have a direct impact on our relationship with Saudi Arabia, to include pending weapons sales, military cooperation, the provision of maintenance for war planes and spare parts, as well as U.S.-Saudi ties more broadly,” the letter said. “The current commercial fuel import standoff must end today and be decoupled from ongoing negotiations.”
The Senate’s China competition bill will now include legislation introduced by two senators earlier this year aimed at securing U.S. leadership in emerging technologies. Sens. Chris Van Hollen, D-Md., and Roy Blunt, R-Mo., said their National Strategy to Ensure American Leadership Act will be included in the Endless Frontier Act, which is expected to see a vote before the Senate soon (see 2105130025). The two senators’ original bill called for the Commerce Department to work with the National Academies of Sciences, Engineering and Medicine to identify the 10 most critical emerging technology challenges facing the U.S. and recommend steps to ensure U.S. leadership in those technologies. Commerce is in the middle of crafting a series of export controls over emerging and foundational technologies (see 2105040063 and 2103190037).
Three senators reintroduced legislation May 20 that would lift a Cuba trade embargo to eliminate business barriers between the two countries and boost U.S. exports to the island. The Freedom to Export to Cuba Act wouldn’t repeal trade restrictions surrounding human rights violations but would eliminate “key provisions of previous laws that block” U.S. exports to Cuba, a news release said. Sens. Amy Klobuchar, D-Minn.; Jerry Moran, R-Kan.; and Patrick Leahy, D-Vt., are the sponsors.
Congressional Republicans are expressing their dismay at the White House notification earlier this week that it will not be imposing sanctions on the CEO of the primary company building the Nord Stream 2 pipeline from Russia to Germany, even though Congress clearly said it wanted that company to be a sanctions target (see 2104220003). Rep. Andy Barr, R-Ky., said that all congressional sanctions bills give the president the authority to waive the sanctions, and President Joe Biden is choosing to do so.
The House Foreign Affairs Committee passed a resolution May 19 urging the United Nations to impose an arms embargo against the Myanmar military. The resolution calls on the UN to “prevent the continued acquisition of arms and military equipment and the proliferation of weapons throughout the country,” and to hold Myanmar officials accountable for human rights violations. The U.S. has placed sanctions and other restrictions on the Myanmar military for its overthrow of the country’s government (see 2105170015 and 2104080026).
More than 40 Republican lawmakers urged President Joe Biden to refrain from providing sanctions relief to Iran, saying that nation is supporting “terrorist activity” against Israel. The senators -- including Jim Risch of Idaho, the top Republican on the Senate Foreign Relations Committee -- said Iran is supporting “Palestinian terrorists” in Gaza and has encouraged the group to attack Israel amid the ongoing conflict between the two sides.
Sens. Dianne Feinstein, D-Calif., Jeff Merkley, D-Ore., and Alex Padilla, D-Calif., asked the commerce secretary and U.S. trade representative to work to convince China and the European Union to lift their retaliatory tariffs on American wine. In both cases, the tariffs were imposed in response to U.S. tariffs on those countries' exports. The three said in the May 11 letter: "Wineries in our states are already under siege by the pandemic, wildfires, and now drought. Many will not survive if they are also asked to indefinitely sustain a damaging trade war."
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.
Reps. Ron Kind, D-Wis.; David Schweikert, R-Ariz.; Don Beyer, D-Va.; and Drew Ferguson, R-Ga., introduced a resolution May 11 calling on the U.S. to “reaffirm its commitment” to membership in the World Trade Organization “and work with other WTO members to achieve reforms at the WTO that improve the speed and predictability of dispute settlement, address longstanding concerns with the WTO's Appellate Body, increase transparency at the WTO, [and] ensure that WTO members invoke special and differential treatment reserved for developing countries only in fair and appropriate circumstances... .”