Crapo Says Section 301 Exclusions Language May Not Return in Senate Trade Legislation

Senate Finance Committee ranking member Mike Crapo, R-Idaho, said that he and Chairman Ron Wyden, D-Ore., have not delved into details about what they might keep and what they might drop from the U.S. Innovation and Competition Act trade title as the Senate tries for a second China competition bill. But, Crapo said, with regard to the Section 301 exclusion process directive that was part of the June 2021 package, it may not be on the agenda.

In USICA, members directed the Office of the U.S. Trade Representative to restart applications for exclusions, but it gave the agency the ability to decline if it "would impair the ability of the United States to maintain effective pressure to remove unreasonable or discriminatory practices" (see 2106090041). While a China package became law, it did not include a trade package.

"The 301 exclusion process -- the whole debate about that has kind of moved forward. And so, to a certain extent, that one is one that it may be moot at this point," Crapo said in a hallway interview at the Capitol. However, he noted that he hadn't discussed the measure with Wyden "to see whether there would be a reason to include that or not."

Crapo was more certain about renewing the Generalized System of Preferences benefits program and passing a Miscellaneous Tariff Bill. He said he feels very strongly that they should be in the bill. The past trade title included a five-year renewal of GSP.

Democrats, too, have been supportive of bringing back GSP, but in the last Congress, they were not willing to do so unless they also could get Trade Adjustment Assistance renewed (see 2212140043 and 2211160068).

When asked if he'd support changes to antidumping and countervailing duty law, such as those proposed by Ohio's two senators in the previous Congress (see 2104160037), Crapo didn't say it was out of the question but suggested he was skeptical.

"That was controversial last time. And I believe that controversy remains," he said. He added that he and Wyden had not talked about Level the Playing Field Act proposals. However, the bill did face opposition from many business interests (see 2203230049), who said its "far-reaching changes to U.S. antidumping and countervailing duty laws" had not faced scrutiny in the committee process, and said that the law would result in more and higher tariffs on many imported goods, "including products from economies that are not unfairly subsidized or dumping into the U.S. market."

Still, by the time the last Congress concluded, the bill had 19 sponsors, including 14 Republicans, so if it received yes votes from most Democrats, it would have enough support to clear the filibuster. Sen. Todd Young, R-Ind., told International Trade Today he intends to co-sponsor the bill in this Congress, replacing retired Sen. Rob Portman, R-Ohio. Young was a pivotal actor in getting the first China package through the Senate.