The Congressional Research Service issued a report April 30 on exports of U.S.-made defense products. The report includes explanations of U.S. regulations covering defense exports, international governing bodies of those exports -- including the Wassenaar Arrangement -- the foreign military sales process and more. The report also suggested that Congress should consider whether increasing trade should be an “explicit goal” of U.S. arms sales policy and whether current sales methods are consistent with the intent of the Arms Export Control Act.
Rep. Brad Schneider, D-Ill., said that many of his colleagues think “that we can pull back and do everything ourselves,” and that he thinks they may look at the shortages during the COVID-19 pandemic response as evidence that reshoring is the way to go. “You will see more capacity building in the United States, and that makes sense; the idea we can do it all ourselves is pure folly.” Schneider, who was speaking on a webinar hosted by the Washington International Trade Association on April 28, also thinks there needs to be redundancy in supply chains, and more warehousing and less “just-in-time” delivery.
Eight House Republicans have joined to introduce a bill that would require the U.S. trade representative to submit a report to Congress on how World Trade Organization agreements will be fully implemented. In a press release announcing the bill's introduction on April 24, Rep. Ted Yoho, R-Fla., said: “For too long the United States, and the world, has turned a blind eye to much of China’s unfair practices in business and trade, and it has been the American producer and consumer who has paid the price. It’s time the United States and the global community assert their rights under WTO rules to hold China accountable for its behavior on the world stage and ensure a level playing field for all.” He said his bill would prevent China and other high-income nations from receiving special and differential treatment as developing nations. However, under current WTO rules, countries must willingly give up developing nation status; there is no way to force them to leave that status.
The chairman of the House Energy and Commerce Committee and the top Republican on the committee want to authorize up to $750 million in grants to accelerate the deployment of “open interfaced, standards-based, and interoperable 5G networks.” Because the leadership of the committee supports the telecommunications bill introduced April 24, it's likely to pass the House. There is a companion bill in the Senate with bipartisan support.
Sen. Cory Gardner, R-Colo., urged the Trump administration to sanction Chinese officials responsible for committing human rights violations in Hong Kong. The U.S. must use “all diplomatic tools available to prevent Hong Kong’s backsliding on democracy,” Gardner said April 18, including sanctions. Gardner’s comments came after Chinese officials arrested pro-democracy leaders in Hong Kong, according to an April 18 Reuters report.
Sen. Ted Cruz, R-Texas, said he plans to introduce a bill that would sanction Chinese officials involved in the “suppression” of medical experts, journalists and others, which is “helping to fuel” the COVID-19 pandemic, according to an April 14 press release. The bill would sanction officials who tried to censor Chinese people from sharing information about the virus and who tried to limit access to media, Cruz said. That censorship posed a threat to the U.S. and countries around the world trying to combat the spread of the coronavirus. Cruz said he will introduce the bill when Congress returns.
Senate Armed Services Committee Chairman Jim Inhofe of Oklahoma and five other Senate Republicans urged the departments of Commerce, Defense, Energy and State Tuesday to “issue regulations as soon as possible confirming that U.S. participation in 5G standards-setting is not restricted by export control regulations” in order to ensure U.S. technology “continues to form the core of 5G foundational technology.” U.S. tech leaders “have been constrained from full participation in 5G standards-setting bodies” since Commerce's Bureau of Industry and Security’s addition of Chinese equipment maker Huawei to its entity list, the senators wrote Energy Secretary Dan Brouillette, Defense Secretary Mark Esper, Secretary of State Mike Pompeo and Commerce Secretary Wilbur Ross. “We are deeply concerned about the risks to the U.S. global leadership position” in 5G “as a result of this reduced participation, and the economic and national security implications of any diminished U.S. role in 5G.” When U.S. export controls “restrict U.S. companies from participating in standards-setting bodies,” Huawei “is well positioned to fill any gaps,” the senators said. The other GOP senators signing the letter were: John Cornyn of Texas, Tom Cotton of Arkansas, Mike Crapo of Idaho, Marco Rubio of Florida and Todd Young of Indiana.
The Trump administration should take more “diplomatic action” to renew the expiring United Nations arms embargo on Iran, U.S. lawmakers said in a dear colleague letter being circulated. Even though Iran continually violates UN bans on arms transfers, the ban is an “important means” to restrict weapons sales to Iran, the lawmakers said in a letter addressed to Secretary of State Mike Pompeo. The expiration of the arms embargo, which is set for October, could lead to more states buying and selling weapons to and from Iran, which could have “disastrous consequences” for U.S. national security. The lawmakers also urged Pompeo to “make clear” that U.S. sanctions on Iranian arms transfers will “remain in place and will be fully enforced.”
The Senate Finance Committee chairman, joined by 11 other Senate Republicans, is asking President Donald Trump to consider a total moratorium on new or raised tariffs, as well as examining how tariffs and import and export restrictions specific to medical supplies can be tackled. They praised the Office of the U.S. Trade Representative for excluding some medical supplies from Section 301 tariffs since the novel coronavirus COVID-19 pandemic spread to the U.S., but said a wider review should be done to make sure none remain. And they encouraged him to coordinate with other countries that have imposed export restrictions in response to COVID-19, so that there aren't cost increases and “critical supply shortages.”
A bipartisan group of lawmakers introduced a bill March 12 that would sanction Huawei and other companies producing 5G technology if they “engage in economic or industrial espionage,” according to a news release. The bill would place those companies on the Treasury Department’s Specially Designated Nationals List, which blocks parties from accessing the U.S. financial system. The House bill was introduced by Reps. Mike Gallagher, R-Wis., Ruben Gallego, D-Ariz., Liz Cheney, R-Wyo., and Chrissy Houlahan, D-Pa., and the Senate bill was co-led by Sens. Chuck Schumer, D-N.Y., Rick Scott, R-Fla., and Chris Van Hollen, D-Md.