Brady Says Ways and Means Republicans Dislike Narrow Exclusion Decision

Rep. Kevin Brady, the top Republican on the House Ways and Means Committee, said that when Republicans meet privately with U.S. Trade Representative Katherine Tai ahead of her testimony March 30, they will argue that the Section 301 exclusions announced last week (see 2203230070) were far too limited.

"The world has changed a lot in the last two to three years. It's important that we have an exclusion process in place that allows all American businesses to participate. ... and for USTR to be able to weigh the current economic climate and supply chain in awarding or denying those exclusions."

Up to this point, the only exclusions the Office of the U.S. Trade Representative has considered are those that were granted during the previous administration. The Senate version of a China bill requires the USTR to reopen exclusions for all companies, and lays out more criteria to consider, but allows USTR to ignore the directive if it argues doing so would undermine the trade action.

Brady said the administration has not articulated exactly how it will "counter China’s predatory trade practices around the world," and Republicans want to hear specifics.

When asked on a phone call with reporters if ending permanent normal trade relations for China, or ending de minimis eligibility, or raising tariffs on more Chinese goods would be the kinds of actions he'd like to see, Brady replied, "I’m convinced that random single shots of trade sanctions on China won’t achieve much. I do believe Congress, both parties, and the White House ought to have a serious conversation about what our strategy needs to be, looking at all the tools that are at our disposal. Most would hope that this USICA bill [conference] would be where we have those conversations." USICA is the U.S. Innovation and Competition Act passed in the Senate.

He said he hopes the White House "considers some of these actions." But on restricting de minims, he added, "I think de minimis plays an important role in trade, and certainly in the U.S. has played a big role for our small businesses to be able to participate. None of those ideas have been vetted very carefully -- I think that needs to be done."