Sen. Lindsey Graham, R-S.C., has proposed that CBP be given the authority to exclude from entry into the U.S. any articles produced by a foreign firm that misappropriated a trade secret, when that theft has been proven by either a court or the International Trade Commission, under Section 337. The amendment, published May 24 in the Congressional Record, notes that the Section 337 process may not provide complete relief "because the foreign person has used or is reasonably likely to use the misappropriated trade secret in the home country of the foreign person or a third country."
U.S. Trade Representative Katherine Tai said the U.S. and Canada could not reach an agreement on the administration of Canada's dairy tariff rate quotas, so the dispute will be decided by a panel. At issue is the fact that Canada has reserved the large majority of TRQs for Canadian processors, which means that consumer goods produced in the U.S. like ice cream, cheese or yogurt face higher tariffs in Canada because very little of the TRQ is available to Canadian retailers. Even when it's not restricted to processors, the TRQs are reserved for distributors, which means American producers cannot pitch their goods at lower prices directly to retail chains.
Seventeen House Republicans introduced a resolution that opposes removing sanctions on a company and executive connected to the Nord Stream 2 pipeline. Rep. Richard Hudson, R-N.C., on May 20 introduced the resolution, which is not binding on the administration, even if it were to pass both chambers. Republicans have been publicly criticizing the decision (see 2105200055).
Rep. Alexandria Ocasio-Cortez, D-N.Y., and 14 colleagues introduced a joint resolution to halt a recently notified sale of weapons to Israel. "For decades, the U.S. has sold billions of dollars in weaponry to Israel without ever requiring them to respect basic Palestinian rights. In so doing, we have directly contributed to the death, displacement and disenfranchisement of millions,” she said in a press release announcing the resolution.
Lawyers speaking at the Foreign Trade Association’s World Trade Week event said CBP is already drowning because of the consequences of the massive increase in post-importation tariff exclusions, and they're expecting it to get worse. Michael Roll, from Roll & Harris trade law firm, said he's betting that the Office of the U.S. Trade Representative will reopen the exclusion process for Section 301 tariffs before summer's over. But he expects it will take until late 2021 or early 2022 for exclusions to be granted, which means many imports that entered after exclusions expired, or that never had exclusions, will have been liquidated by the time the importers learn they didn't have to pay the tariff.
Eight House members, four Democrats and four Republicans, wrote to U.S. Trade Representative Katherine Tai that five months of consultations is more than enough, and it's time to push for a binding resolution to the administration of dairy tariff rate quotas in Canada. Under the USMCA, the next steps could be Canada and the U.S. agreeing to conciliation or mediation, or the U.S. could call for a dispute settlement panel. Reps. Ron Kind, D-Wis.; Tom Reed, R-N.Y.; Antonio Delgado, D-N.Y.; Glenn Thompson, R-Pa.; Suzan DelBene, D-Wash.; Dusty Johnson, R-S.D.; Jim Costa, D-Calif.; and David Valadao, R-Calif., sent the letter May 21, and in it noted that Canada reserves part of its quotas for processors in Canada, a factor that undermines the ability of American dairy exporters to use the TRQs.
No date has been scheduled yet for a vote on the China package championed by Senate Majority Leader Chuck Schumer, D-N.Y., and Sen. Todd Young, R-Ind., but lengthy amendments from senators are continuing to flow in, many with trade implications.
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...."
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.
In a joint statement, Canada's trade minister, Mexico's economy minister and U.S. Trade Representative Katherine Tai said they reviewed USMCA committee work, noting progress and offering “recommendations for future work to maintain progress.”