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Legislative Update: MTB Passes, Other Issues Likely Delayed Until After Summer Recess |
The House and Senate both approved the long-awaited miscellaneous trade bill recently, but that is likely to be the last action Congress takes on any trade-related measure before adjourning for its month-long summer recess. Once lawmakers return, however, bills on registered agents for foreign manufacturers, China’s currency, food safety and toxic substances are among those that could be on the agenda.
MTB. A miscellaneous trade bill providing duty breaks for hundreds of imported inputs and other goods not produced or otherwise available domestically has been approved by both the House and Senate and should be signed into law by President Obama in the near future. A second MTB is expected to be drafted and possibly passed before the end of the year.
Registered Agents for Foreign Manufacturers. The House Energy and Commerce Committee marked up July 21 legislation (H.R. 4678) designed to ensure that foreign manufacturers and producers of consumer goods can be sued in U.S. courts for product safety and other violations. This bill would require foreign manufacturers of consumer goods to establish registered U.S. agents who are authorized to accept service of process on behalf of the manufacturer in all civil and regulatory actions in state and federal courts. If the foreign manufacturer or producer fails to register an agent, its products would be banned from importation into the U.S. The July 21 markup resulted in several changes to the proposed language.
Inside US Trade reports that House Democrats are working to pass this bill sooner rather than later as part of a broader initiative to increase domestic manufacturing employment. However, the bill has received criticism from several quarters. The European Union has warned that the registered agent requirement could violate U.S. obligations under various international rules, and the National Retail Federation added that it could slow down imports of consumer merchandise while exposing U.S. companies to retaliation abroad.
Toxic Substances Control Act Reform. Legislation introduced in the House July 22 aims to reform the Toxic Substances Control Act, the primary law by which the Environmental Protection Agency regulates chemicals in U.S. commerce, for the first time since its enactment in 1976. The Toxic Chemicals Safety Act of 2010 (H.R. 5820) includes a number of significant revisions affecting importers, manufacturers and users of chemical substances.
China. It appears that legislative action addressing the alleged undervaluation of China’s currency will be postponed until after the August recess, as the momentum for such legislation seems to have slackened in recent weeks. The House Ways and Means Committee will hold a hearing Sept. 15 to consider whether the renewed exchange rate flexibility China announced in June has led to material appreciation of the yuan, as well as whether Congress or the Obama administration should take action to address China’s currency policy and its impact on U.S. businesses and workers. Such action could include legislation, such as the Currency Reform for Fair Trade Act (H.R. 2378), and/or the initiation of formal dispute settlement consultations at the World Trade Organization.
FTAs. More than 100 House Democrats have asked President Obama for a meeting to discuss their concerns with the U.S.-Korea Free Trade Agreement, which the president has said he wants to submit for congressional approval likely in early 2011. The signatories said they cannot support this “NAFTA-style FTA…in its current form” and that “major changes” are needed, listing specific objections to provisions on financial services, investment and labor. The letter also highlighted the need to remove non-tariff barriers to the Korean market. House Ways and Means Committee Chairman Sander Levin agreed in a July 27 speech, saying the White House should seek to remove such barriers for “all industrial products,” not just automobiles.
Mexican Trucks. Sen. Patty Murray, D-Wash., recently included in a fiscal year 2011 transportation appropriations bill language requiring the Department of Transportation to report by Oct. 1 on the steps it is taking to resume cross-border trucking with Mexico in a way that addresses the safety concerns raised during the DOT’s earlier pilot program and to end the $2.4 billion in retaliatory tariffs imposed by Mexico on more than 90 U.S. products. Administration officials have repeatedly said this year that they were close to submitting a proposal to Congress but nothing has yet happened, prompting U.S. business and trade groups as well as numerous lawmakers to urge the administration to move more quickly.
Burma Sanctions. The president recently signed into law another one-year renewal of the economic sanctions against Burma first imposed by the Burmese Freedom and Democracy Act of 2003. These sanctions include a ban on all products of Burma that are imported directly or indirectly into the U.S., with certain exceptions.
Food Safety. Senate Majority Leader Harry Reid, D-Nev., said recently that a food safety reform bill is one of the measures he will try to get through the Senate before it adjourns for its summer recess. The House approved its version last year.
Other. Other trade-related bills that have been introduced recently include the following. (Note that the text of these bills can be found on the Library of Congress’ Web site.
• H. Res. 1562 – a resolution recognizing the importance of trade to job creation and the U.S. economy and calling for the immediate implementation of the FTAs with Colombia, Panama and Korea
• S. 3659 – to reauthorize certain port security programs
• H.R. 5857 – to amend the Internal Revenue Code of 1986 to decrease the top marginal corporate rate to 28 percent and to prevent corporations from exploiting tax treaties to evade taxation of U.S. income |
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