Industry News

Trade Enforcement Bill Introduced in the House, Action Unlikely this Year

July 22, 2008


House Ways and Means Committee Chairman Charles Rangel (D-NY) and Trade Subcommittee Chairman Sander Levin (D-MI) recently introduced the Trade Enforcement Act of 2008 (H.R. 6530).  The proposed legislation is intended to amend the U.S. trade laws to eliminate foreign barriers to U.S. exports, restore rights under trade remedy laws, improve intellectual property rights (IPR) enforcement, strengthen health and safety laws at U.S. borders, and create stronger congressional oversight of trade related activities.

In a statement made prior to introduction of the bill, Chairman Rangel said that it was motivated by the sentiment that the U.S. has not been tough enough in enforcing trade laws and agreements, “especially with China.”

According to a House Ways and Means Committee summary of the bill, H.R. 6530 would:

  • Require the U.S. Trade Representative (USTR) to annually identify  “priority foreign countries” with unfair barriers and takes action.
  • Restore the “Super 301” provision, directing USTR to identify significant barriers to exports and work to eliminate them.
  • Create a congressional Trade Enforcer Office to investigate barriers to U.S. exports, develop complaints and urge USTR to file cases.

To enhance U.S. trade remedies the bill would:

  • Mandate the application of countervailing duties (CVD) to all non-market economies (NMEs) like China and ensure Congress has a role in determining when an NME should be treated as a market economy.
  • Limit the President’s discretion to deny relief under the Section 241-safeguard mechanism.
  • Overturn the Department of Commerce’s decision to comply with World Trade Organization Appellate Body rulings against the use of zeroing in certain antidumping duty proceedings, and direct it to come up with an approach that captures the entire unfair trade practice.

To combat counterfeiting and piracy, as well improve import safety, H.R. 6530 would:

  • Create a Director of IPR Enforcement and an IPR Enforcement Advisory Committee to promote the use of new technology to better fight IPR infringement, maintain a “watch list” for suspected bad actors, and prohibit U.S. Customs and Border Protection (CBP) from excusing fines assessed for illegal imports.
  • Create a voluntary public-private sector import safety partnership; require “unique identifiers” to identify the source of goods that pose health and safety threats.
  • Authorize additional monies for support, resources, and training so that CBP and Immigration and Customs Enforcement (ICE) can more effectively carry out their import safety and IPR enforcement responsibilities.

Chairman Rangel has acknowledged that congressional action on the bill is unlikely to occur this year, but did not rule it out.