WASHINGTON- The Coalition for a Prosperous America (CPA) today applauded the House passage of the America COMPETES Act of 2022 (HR 4521), the House China Competition Bill, which contained a number of trade provisions that the CPA supports and encourages legislators to include. Specifically, the commercial title of the China House of Representatives Competition Bill represents a marked improvement over the commercial title of the China Competition Bill passed by the Senate, the US Innovation and Competition Act (USICA) (S. 1260), which the CPA urged members of the House Ways and Means Committee to reject.
“With the passage of this bill, the House has planted a clear line in the sand that it is time to reform the flawed practice of granting trade preferences to countries that are undemocratic and use forced labor” , said Zach Mottl, president of CPA. “The bill also prevents retailers from abusing the Miscellaneous Tariff Program, which allows low tariff treatment for intermediate manufactured goods that American workers need, but cannot get here, to make finished goods. As House and Senate lawmakers seek to reconcile their two bills to deal with U.S. competition with China, we urge Congress to include the trade title of the House bill in any final package. Not only does the House trade title represent a monumental shift toward a more worker-friendly U.S. trade policy, but it also fixes serious flaws in legislation passed by the Senate that would be a huge giveaway for Chinese importers and trade retailers. electronics like Amazon. ”
In particular, the America COMPETES Act of 2022It includes legislation strongly supported by the CPA that was introduced by U.S. Representative Earl Blumenauer (D-OR), chairman of the House Ways and Means Commerce Subcommittee. The law project, Import Safety and Fairness Act (HR 6412), will close an import loophole, known as de minimis, which is used by non-market economies and counterfeiters to ship hundreds of millions of packages worth less than $800 to states States without inspection, disclosure of information, or payment of duties. Michael Stumo, CEO of CPA, recently wrote an op-ed highlighting the importance of the bill. Earlier this week, joined labor groups and trade associations that support U.S. manufacturers in a coalition letter backing Rep. Blumenauer’s bill.
“With today’s passage of the America COMPETES Act of 2022, House lawmakers passed one of the most worker-friendly trade bills introduced in Congress in decades,” said Michael Stumo, CEO of CPA. “In particular, the CPA strongly supports Rep. Blumenauer’s bill to close the de minimis loophole that companies like Amazon and China routinely exploit to avoid U.S. tariffs and CBP inspection. Senators who support pro-worker trade policies and efforts to relocate domestic manufacturing should seriously consider the merits of the House trade title, instead of the seriously flawed Senate language that dumps our 301 tariffs and provides a windfall to multinational importers of cheap, often dangerous and counterfeit products, Chinese products.
The America COMPETES Act of 2022 also includes additional legislation introduced by President Blumenauer, which the CPA strongly supports, that would modernize and reauthorize Trade Adjustment Assistance (TAA) programs, the Generalized System of Preferences (GSP) , the Miscellaneous Tariff Bill (MTB), and the American Manufacturing Competitiveness Act of 2016 (AMCA). Importantly, these bills correct significant flaws in the USICA passed by the Senate, which failed to set out GSP eligibility criteria and transparency provisions, and close shortcomings of the MTB process that benefit China. Additionally, the House legislation aims to support domestic manufacturers and limit the benefits of imports from China by excluding finished products from future MTB cycles.
The commercial title of America COMPETES Act of 2022 includes provisions for:
- Reform the SPG and MTB programs;
- Strengthen U.S. international trade laws to prevent unfairly traded goods from exploiting the de minimis import threshold;
- Strengthen U.S. anti-dumping and countervailing laws to protect U.S. workers and combat China’s unfair and anti-free market trade practices that distort the global marketplace; and
- Enable U.S. Customs and Border Protection to update its staffing model to better meet the challenges of the modern trading system.
In addition, the CPA supported the following changes which were included in the America COMPETES Act of 2022:
- Costa (D-CA) Amendment No. 49:Requires a report within 180 days examining the involvement of the People’s Republic of China, state-sponsored companies, and PRC-incorporated companies in owning, operating, or otherwise involved in mining or processing in countries from which the United States imports minerals, metals, and materials, and assess the strategic and national security implications for the United States of such involvement.
- Fallon (R-TX) Amendment #78:Authorizes the hiring of 10 additional people for the Treasury Department’s Office of Foreign Assets Control to carry out activities associated with the People’s Republic of China.
- Garamendi (D-CA) Amendment No. 91:Adds the Democratic People’s Republic of North Korea, the People’s Republic of China, the Russian Federation and the Islamic Republic of Iran to the list of “countries of concern” banned from loans and loan guarantees under the proposed critical supply chain resilience. Sensitive materials from these same non-allied foreign countries are excluded from DOD purchases.
- Hill, French (R-AR) Amendment No. 111:Requires foreign business entities to appoint and register an agent with the Department of Commerce as a prerequisite to doing business in the United States, and requires foreign business agents to be responsible and liable for any regulatory proceeding or civil action relating to that entity foreigner covered.
- Luria (D-VA) – Amendment No. 156:Prohibits the use of US bailout funds to purchase telecommunications equipment made by Chinese companies Huawei and ZTE.
- Salazar (R-FL) Amendment No. 212:Requires a State Department report on major Chinese infrastructure projects in Latin America and the Caribbean and the ability of host countries to service the debt associated with them.
- Sherman Amendment (D-CA) #218:Requires securities issuers that satisfy certain Securities and Exchange Commission (SEC) registration exemptions to submit basic information to the SEC regarding the issuer and the country in which it is based.
The CPA is the premier national, bipartisan organization representing exclusively domestic producers and workers in many sectors of the US economy. For nearly two decades, CPA has advocated for the implementation of strategic trade, tax, and growth policies that bring prosperity and security to America, its citizens, farms, factories, and workers. We are a bipartisan coalition of farmers, ranchers, manufacturers, and labor organizations that make and grow things in the United States. Our members believe that America’s strength and well-being rests more on America’s growing productive capacity and quality employment than on cheap consumption.