August 2021 Volume 3

WASHINGTON UPDATE

tariffs are here for the foreseeable future. Moreover, it seems unlikely that USTR, which is in the midst of a China policy review with no deadline for completion, would reopen the Section 301 process unless Congress enacts legislation forcing it to do so. We understand that staff for Senate Finance and House Ways and Means staff are talking, but at this point, there isn’t an obvious, immediate path to resolution of the differences between the House and Senate trade provisions and their enactment into law. Some pieces could end up in reconciliation, e.g., Trade Adjustment Assistance, but others may need to wait to ride on the broader China bill or some other legislative vehicle. With the limited exception of some Republicans and a few Democrats, Members of Congress aren’t clamoring for Ambassador Tai to continue new free trade agreement negotiations with Kenya and the United Kingdom, which were launched by the prior Administration, nor are they urging USTR to initiate trade negotiations with other countries. And this aligns with the Ambassador’s and the overall Administration’s focus on enforcement and levelling the playing field as they promote their worker-centered inclusive trade policy. So, on the oversight front, much of the Hill activity, especially on the Democratic side, has revolved around enforcement, particularly of labor rights. Whether it is the enforcement of the USMCA labor provisions, or the Section 307 of the Tariff Act of 1934 forced labor

prohibitions, these issues are getting time and attention. Already this year, both House Ways andMeans and the Senate Finance have held forced labor hearings. While much of that forced labor focus is on Chinese forced labor in Xinjiang province, many Members expect U.S. Customs and Border Protection to vigorously enforce these rules globally. As mentioned at the outset, it’s still early days in the Biden Administration when it comes to trade. But as the forgoing indicates, certainly rhetorically, and at least somewhat substantively, Ambassador Tai’s focus is different than her predecessors, with increased focus on enforcement, levelling the playing field for domestic workers and industry and less apparent interest in opening new markets for U.S. exports of goods and services. In the coming months and years, we’ll see how this plays out and whether it holds true. ■ Alex Perkins Principal Mehlman Castagnetti Rosen &Thomas Phone: 202-754-1726 Email: aperkins@mc-dc.com

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