Bill Introduced to Study Effect of Avoiding Joining a Tariff Liberalizing FTA in Asia
Five members of House Ways and Means Committee and the ranking member of the House Foreign Affairs Subcommittee on the Indo-Pacific introduced a bill that would set up an ‘‘Indo-Pacific Trade Strategy Commission’’ to make recommendations to Congress on a comprehensive trade policy in the region, and direct the International Trade Commission to produce a report on how the Comprehensive and Progressive Agreement for Trans-Pacific Partnership multilateral free trade agreement and China's Regional Comprehensive Economic Partnership multilateral free trade agreement affect U.S. exports and growth opportunities in the Indo-Pacific. The report also would address differences between the TPP successor, RCEP, and the USMCA, and the impact of Asian regional trade agreements on U.S. supply chain resiliency, and how they affect China's role in key global supply chains.
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The bill's text complains that the Office of the U.S. Trade Representative hasn't adequately consulted Congress as it negotiates the Indo-Pacific Economic Framework, which, unlike the TPP (which the U.S. exited in 2017), doesn't lower tariffs.
The press release announcing the bill was critical of the decision not to address tariffs. "It is evident that the United States is falling behind in the Indo-Pacific region. China has engaged our allies to pursue active trade agendas that block the US from competing. The U.S. has not concluded a single comprehensive trade agreement with an Indo-Pacific partner in more than 10 years. Trade with our Indo-Pacific allies is critical as it supports millions of American jobs and represents several of our top export markets," it said.
Lead sponsor Rep. Carol Miller, R-W.Va., was joined by Ways and Means Trade Subcommittee Chairman Rep. Adrian Smith, R-Neb., and two prominent pro-trade Democrats on the committee, as well as one other Republican.
"The Biden Administration’s inaction on trade has left gaping holes that the Chinese Communist Party is more than happy to fill, and Congress must step up," Miller said.
Smith said: "Considering the challenges to security in the Indo-Pacific and aggression by China, we cannot allow the United States to miss crucial opportunities to stand up for American workers, benefit consumers, and strengthen relationships with allies."
Rep. Don Beyer, D-Va., said: "It is hard to overstate the tremendous and growing importance of the Indo-Pacific region for the U.S. economy, either as a destination for American exports, a key link in critical supply chains, or as a source of foreign direct investment. It is crucial that the United States is at the table as the rules governing Indo-Pacific trade are being crafted."
The bill is supported by the U.S. Chamber of Commerce, the National Foreign Trade Council and the American Apparel and Footwear Association.
AAFA CEO Steve Lamar said: "The U.S. is left out of key markets because we are not negotiating meaningful and comprehensive trade agreements in the region, specifically with Vietnam."