For more information on pursuing trade policy interests through the legislative process, please contact Nicole Bivens Collinson at (202) 730-4956 or via email.
China. The American Economic Independence Act (S. 4026, introduced by Sens. Romney, R-Utah, and Cortez Mastro, D-Nev.) would require the White House to issue a report analyzing the national security risks from current and predicted economic integration between the U.S. and China across the following economic sectors: financial services; critical minerals, including rare-earth elements; semiconductors and microelectronics; artificial intelligence; communications, including telecommunications, social media applications, satellites and other space-based systems, and undersea cables; quantum computing; cloud-based systems, including computing services and data storage; biotechnology; pharmaceuticals and medical technology, including medical devices; and manufacturing, including casting, machining, joining, and forming.
The required analysis would include an assessment of each sector’s reliance on Chinese entities, including state-owned enterprises, for foreign direct investment and other sources of financial capital; each sector’s reliance on supply chains that have a significant dependence on products or processes based in China; the risks of intellectual property theft or economic espionage by individuals or entities linked to the Chinese government or the Chinese Communist Party; risks to the U.S. defense industrial base; and risks posed by the use of subsidies and the dumping of goods into the U.S. by entities in China, including those owned or controlled by the Chinese government.
H.R. 7807 (introduced March 22 by Rep. Obernolte, R-Calif.) would create intergovernmental coordination between state, local, tribal, and territorial jurisdictions and the federal government to combat U.S. reliance on China and other covered countries for critical minerals and rare earth metals.
Shipping. The House approved March 21 the Ocean Shipping Reform Implementation Act (H.R. 1836, introduced March 28 by Reps. Johnson, R-S.D., and Garamendi, D-Calif.), which includes the following provisions.
- establishes a formal process to report complaints against shipping exchanges to the Federal Maritime Commission for investigation
- bans U.S. port authorities from using the Chinese state-sponsored National Transportation Logistics Public Information Platform and similar state-sponsored malware
- codifies the definition of “controlled carrier” under the Shipping Act to encompass state-controlled enterprises in non-market economies like China
- authorizes the FMC to streamline data standards for maritime freight logistics and use existing data standards or industry best practices
- authorizes the Bureau of Transportation Statistics to collect more information on port operations, such as the total of incoming and outgoing containers and yard capacity
- clarifies that the FMC may stipulate additional minimum requirements for service contracts by ocean common carriers
- establishes reciprocal trade as part of the FMC’s mission in enforcing the Shipping Act
- prohibits the FMC from requiring ocean carriers to report information already reported to other federal agencies
CAFTA-DR. Dozens of House Democrats asked U.S. Trade Representative Katherine Tai in a March 21 letter to remove the investor-state dispute settlement mechanism from the CAFTA-DR agreement because “foreign companies have used ISDS to deter democratically elected CAFTA-DR governments from implementing new policies that uplift democratic sovereignty, strengthen labor rights, and protect the environment.” Rep. Linda Sanchez, D-Calif., said that by eliminating ISDS “we can focus on fair trade that will build a more stable and prosperous future for the people of Central America while also addressing the underlying factors of migration.”
European Union. Sens. Blackburn, R-Tenn., and King, I-Maine, recently wrote to USTR Tai to urge her to seek clarity on the traceability, data reporting, and country benchmarking requirements in the European Union Deforestation-free Regulation, which they said “could negatively limit market access for the American forest products industry” when the EU begins enforcing it in 2025.
Digital trade. A small bipartisan group of senators wrote to President Biden March 19 asking him to reverse USTR’s “decision to withdraw its support for long-standing U.S. government positions on digital trade, data localization, and source code at the World Trade Organization.” That decision runs counter to laws Congress has passed in recent years, they said, and “will create uncertainty and directly harm American innovators and small businesses that rely on the free flow of data and rules-based digital trade.”
Imports. The Vetting And Patrolling E-Cigarette Imports Act (H.R. 7715, introduced March 19 by Rep. Gallego, D-Ariz.) would authorize additional funding for Food and Drug Administration monitoring and prevention of illicit nicotine products at U.S. ports of entry.
The Senate approved March 21 S.J. Res. 62, which would overturn a Department of Agriculture rule allowing imports of fresh beef from Paraguay. The White House responded that, among other things, this measure would “mark a significant setback” in U.S. relations with Paraguay, which has suffered reduced access to the Russian market for its denunciation of Moscow’s war against Ukraine and “is de facto embargoed from directly exporting beef” to China due to its official recognition of Taiwan.
The Securing America’s Titanium Manufacturing Act (S. 4015, introduced March 21 by Sens. Cortez Mastro, D-Nev., and Blackburn, R-Tenn.) would remove the 15 percent duty on titanium sponge imports from nations with preferential trade status until the end of 2031. Titanium sponge is used to make materials used in military aircraft, submarines, satellites, and other defense technologies, and according to a joint press release almost 90 percent of it is imported from Japan.
The Prohibiting Threatened and Endangered Creature Trophies Act (H.R. 7795, introduced March 22 by Rep. Jackson Lee, D-Texas) would prohibit the taking for a trophy of any endangered or threatened species of fish or wildlife in the U.S. and the importation of endangered and threatened species trophies into the U.S.
Exports. The House approved March 19 H.R. 6602, which would amend the Export Control Reform Act of 2018 relating to the review of the interagency dispute resolution process.
The Banning Oil Exports to Foreign Adversaries Act (S. 4020, introduced March 21 by Sens. Fetterman, D-Pa., and Ernst, R-Iowa) would prohibit the export or sale of petroleum products from the Strategic Petroleum Reserve to China, Russia, Iran, Venezuela, Syria, and Cuba as well as any entity owned, controlled, or influenced by the Chinese Communist Party.
Israel. H. Res. 1092 (introduced March 19 by Reps. Hern, R-Okla., and Schneider, D-Ill.) recognizes the importance of the economic relationship between the U.S. and Israel and affirms that trade facilitated by the U.S.-Israel Free Trade Agreement is a tool to support the economy of Israel during the conflict with Hamas.
Cargo inspection. S. 4062 (introduced March 22 by Sen. Cornyn, R-Texas) would establish a pilot program to assess the use of technology to speed up and enhance the cargo inspection process at land ports of entry.
Copyright © 2024 Sandler, Travis & Rosenberg, P.A.; WorldTrade Interactive, Inc. All rights reserved.