Transcripts For CSPAN3 Elected 20240703

Up next, a discussion about congressional efforts on trade policy, enforcement and access to local markets. Republican congressman adrian smith in nebraska and Stephanie Lester take part in the conversation. Congressman smith criticizes the Biden Administration for not doing enough on trade. Toot in the discussion. Toot smith criticizes the Biden Administration for not doing enough on trade. Thank you, everybody, for your patience with us. I would like to welcome to the stage congressman adrian smith with Stephanie Lester ga think everybody for your patience with us. I would now like to welcome to the stage, congressman adrian smith with Stephanie Lester of gap. Thank you for sticking with us for the closing session of the International Trade conference. We are delighted to welcome our final speaker on stage. The chairman of the house, adrian smith of nebraskas third Congressional District which im told is about 65,000 square miles, its one of the largest nonatlarge districts in the country bigger than 26 states if my math is correct, thank you so much adrian for joining us and stephanie who is the Vice President thank you for joining us as well it is not only large geographically but your district is the number one agriculture producing district by market value. Weve got a lot of things, well you are a big nebraska volleyball fan. Folks may remember last year the nebraska womens Volleyball Team set a new world record pulling 92,000 fans to a game which would make it taylor swift proud. You are a cochair of the bipartisan congressional agriculture trade and we all know that trait is very important to farmers. Lets dig right in. Im going to start with the constitution. And the constitutional under paintings of trade with the constitution article one section 8, giving congress the authority to regulate tariffs and foreign commerce. But, where is Congress Going to go, what is the role of congress . Tpa expired and last renewed in 2015. It feels like generations ago, what do you think the role of congress should be in policymaking . Understanding the constitutional underpainting. Trade obviously requires the votes of congress, but it also necessitates the leadership of the administration. This is a great example of tag teaming that can take place to achieve a common goal. Obviously the legislative branch, there can be gridlock and various things. And yet, now would be such a great opportunity for the administration to stand up and be heard on biotech corn in mexico for example. I guess they are going through the process here for enforcement i would like to see a stronger position from the administration because congress did our work, please remember that it was a trump priority under a pelosi speakership, it got done. A great example and i think can give us some opportunity moving forward. On that, we have seen both the trump and Biden Administrations have claimed authority to negotiate agreements without tpa. We had with trump, the japan phase one agreement, weve got biden pursuing Critical Minerals, theyve also imposed and maintained some significant tariffs under authorities delegated by congress dating these delegations back to the 60s and the 70s. To think that theyve gone too far and how do we get that back and forth that you were talking about . Go creation. As you know, the critical agreement that the Biden Administration established. Democrats raised their concerns of the administration went too far on the to expand trade and find trade that has enforcement. It is such a light touch approach, the administration went too far, theres just not a lot there. But enforcement, i think this is a bipartisan dynamic, enforcement to any trade agreement, its vital. There are discussions that take place around trade, thats fine. Unless it contains enforcement it just wont be as strong. And at the same time for my colleagues concerns and there are many, concern about labor and environment on both sides of the aisle. That level Playing Field that we seek, the best way to achieve that is through a trade agreement and having these discussions, ironing out the differences in the best way to get other countries to elevate their labor and environment policies to be closer to us is to say, hey, here is how we can go about that after a good thorough conversation and ultimately the trade agreement. There isnt much there as you mentioned, is there any effort to maybe change that dynamic . There is an effort. I sense that the workforce shortages across our economy have recently impacted ustr also. The fact is, we just dont see the priority from the administration which is unfortunate because i did have some hope that there would be some stronger posture of really leaning in to trade policies that we know these problems exist. Its not just mexico and biotech corn for example, it happens to be important to my district and i will say that if we push that aside or do not aggressively defend ourselves on that, i think we should expect other countries on many fronts to really undermine what has previously been agreed upon. When you look at agriculture, the main difference between these is biotechnology. And here we are. I think it could have and should have been resolved long before now, but lets not sit back and just watch to see what happens. We need to be aggressive and hopefully the president will step up and say himself that what is happening is not right. Yeah. I mentioned the tariffs that were imposed under President Trump and then maintained with biden and now we are in an Election Year and ive heard suggestions of maybe 60 tariffs on china in addition and 10 across the board tariffs increase, do you think congress should rethink these authorities that theyve delegated to the administration . Do you think, congress, is there any appetite to revisit some of those . I thick it would be hard to revisit those right now. It is no secret that im not a huge fan of tariffs, i will also say that with any good negotiation, you want all of your tools available, to have every tool on the table. And that should they be used, it should be done in a nimble fashion to send the message that we are serious about leveling the Playing Field. I think we definitely want to always keep in mind what is net impact on consumers . After all, they are the ones that make up our economy and i heard someone say one time but its not government that creates jobs, its not even employers who create jobs, its customers who create jobs. Here we are. Is a brand working for a brand, i can relate to that sentiment very much. Countries, trade policy feels very stuck and polarized, how are members of Congress Just looking at trade policy and trade subcommittee chair, coming to you and talking to you, how do we talk about trade in our district, i imagine for you having such an agricultural district, farmers, it is top of mind for them. Just curious what the behind thescenes conversations that lawmakers are asking. Colleagues generally come to me with a concern about supply chain and maybe cost of inputs. I hear a lot about that. Back home in the district i will say that in terms of agriculture, President Trump enjoyed a lot of support even amidst some of the retaliation that had taken place because i think they sensed that there was a strong position coming from washington and the white house at the time on leveling the Playing Field. And so leaning in to those issues, trade large i think really empowered folks to ultimately come together, finish up with u. S. Mca and provide a framework, i think at least best to my knowledge is the most bipartisan trade agreements in modern history. And so that i think was an opportunity to kick off in a precursor to other opportunities around the world that has not been seized of late. That raises a good question. While they both have imposed tariffs, you have seen trump really take on the japan agreement, how would you compare the two administrations and their trade policies . Well, were still waiting to hear what the announcement is in some of the tariffs which we shouldve heard before now i would argue, but not even looking at the outcomes of say the four years of the Trump Administration so far, the three years of biden, but its hard to say the trade in the last three years is even close to priority. And as much help as i had when our trade investor was introduced in a bipartisan basis before the senate panel in the confirmation process, and so i dont know what all has led to such an activity coming from the administration as it relates to trade, but its glancing and this all amidst supply chain crisis, inflation. If ever there is a time that we need to really leaning to trade, its right now and has been this way for some time and the line as well, they fear they dont have the votes for a trade agreement well, i dont know of any trade agreement that started out with enough votes. Its required a great amount of diligence, conversation, interactions. Both branches executive and legislative branch of the government and that is the way it is supposed to be. Trade is not easy its very difficult and complex it gets in the weeds really quickly but to just ignore it will not cause the problems to go away. Engagement is what is necessary and domestic manufacturers, for example, they are begging for stronger supply chains, and various other dynamics that we need to Pay Attention to and were just not seeing it and its unfortunate. Yeah. I hear you on the in action. I am an optimist and i would like to, i am excited at the prospect of which means can dig in on trade hopefully in the near term and i think thats what everybody wants to hear about, the way the trade agenda, lets go there there are some pending legislation that are the role of congress. I personally think it is a dereliction of duty that its been expired for as long as it has. But also, the miscellaneous tariff bill, all of these things are coming up for renewal in our legislative programs, what do you expect to come up in committee in the coming weeks and months . I think you look for legislation coming up. Ive been really interacting with colleagues and some good dialogue there that i think can help us arrive at some text to move some things forward i think overall we just had a hearing last week about the wto heading into their next. Very bipartisan in our concerns whether it is the trips waiver and what that means moving forward, but three years, more than three years now with gsp and mtb lapsed that obviously has concerns when they are thinking about a go up coming up next year for renewal and that sends signals. Threeyear lapse sends signals in other directions that we should be concerned about. I think we are making Good Progress and able to bring folks together on this. It is unfortunate that it has taken so long. Do you expect that work to be bipartisan . I do. I believe the work will be bipartisan. Domestic manufacturing for example that is begging for these provisions, it is bipartisan, these Companies Across america arent just in republican districts for example or just democratic districts. Its all very bipartisan. I think the fact that u. S. Mca was very bipartisan has really elevated interest of both sides of the aisle. Moving the ball down the field. Theres also a lot of intention on china among policymakers in the select committee on the Chinese Communist party, theyve been quite vocal and active including making recommendations on china trade issues, raising questions about policies like these are squarely within the jurisdiction of the committee, how do you think the committee is going to deal with some of these things that the China Committee has raised in their recommendations . With any select committee, creation that can sometimes concern the Standing Committees in the jurisdiction associated, i think overall there has been good conversation between the committee on china and other committees as well. I appreciate their diligence, i think that under bipartisan nature and priority of being bipartisan has been especially helpful. I will also say looking back to last spring when the president of taiwan came to california to the Ronald Reagan president ial library, that was a bipartisan presence for us to welcome the president of taiwan. It helped us get some other things done moving forward from there. When it comes to supply chains and china happens to be doing it right now, that concerns me a lot that perhaps there were some unintended consequences. But, our response, we need to be careful as well, we might take some action yet not even come close to achieving what was intended. We have to be careful about how we fashion our policy, keeping consumers in line but also realize that our supply chain resiliency can take form in different ways, its not just about china. Perhaps not 100 aligned, we need to be were about as well. To develop as the friends girlfriend shoring and your shoring, fantastic opportunities along the way whether it is central america, south america, i dont want to get too geographically specific, but the fact of the matter is, i think there are options of the world that exist in a very vibrant way that again, leaning into trade policy could deliver better results than what weve seen. I think at the beginning a while back i wouldve characterized the trade coming from the white house as just treading water, but i dont think it is that good these days and that inactivity, the in action from the administration that Many Democrats tell me off to the side that they are concerned about as well that we are losing opportunities and that is with our own interest in mind as well as the broader geopolitical interest as well. Losing opportunities takes me back to farmers and they are so in touch with trade and so reliant on trade. Are they asking you to find new ways to open Market Access and how do we get there in a bipartisan way . It just feels very stuck. Calling it stuck, that is correct. I think u. S. Agriculture, they are very engaged on trade. They understand whether it is tpi, other promotion of our products abroad, i wish that more of the American People could understand the service and what exists on our behalf and embassies around the world is very impressive. We want to keep them on task and to keep advocating for our products around the world. There are good examples of this and we dont want to forget about that. In fact, i was in japan a while back, a few years back that in hearing our Service Officer talk about u. S. Beef and i am a little partial, but an expert on the ground in a country like japan where it is absolutely vital, these are things that take place that we should really celebrate and i think agriculture is very engaged on this to your question. But we cant take anything for granted. Other countries, they would love to take the market share that we might take for granted from time to time. I have to think that our beef taste better than other type of beef from other countries, and fortunately i think consumers around the world share this view. But, if our products are so much more expensive, consumers whether it is here, whether it is there, there ultimately getting charged. And they are going to be price sensitive as well. I imagine you have a strong opinion, corn fed or grass fed . There is no question. Japan likes to tell me that they like to buy our corn even to feed their beef. The fact of the matter is that japan and the u. S. Are fierce competitors in many ways, healthy competitors i will say and when it comes to beef, theyve got their products, we got our products and both valuable in different ways and that backandforth has been very healthy and has given more opportunity for different products, for our products and really elevates the entire situation. And so i dont hear from the producers in my district saying, they shut out the japanese, there is room in the world for both of our products and i think that is just one example of how healthy competition ultimately helps consumers. I mentioned the congressional trade, youve got a strong cast of cochairs, what do you hope to achieve with that . We just launch that a couple of weeks ago. We appreciate the ways and means that, they are such keen interest in this that weve got a great story to tell on trade. And having this trade helps elevate the exposure to what has happened previously but lets always remember how we got to the place where we are and how we can leverage our position now for greater opportunities moving forward, thats what this is about and bringing more information to colleagues in america around the world that agriculture, it doesnt happen by accident, we have record yields and that is not just the research that takes place, that is and is valuable unless producers are willing to engage. And we dont have expanding markets overseas, we just have our producers come victims of their own success in terms of efficient production. And i think it is an Incredible Opportunity that we can help feed the world. I think we should take this very seriously and when we look at developments, there is absolutely celebrate and highlight. I dont want to monopolize all the question. I imagine the audience has some burning questions. Doug, im looking right at you. Thanks, i just wonder if you could maybe elaborate a little bit on the prospects for legislation. You sounded fairly optimistic of stuff moving. To see a package of trade legislation getting through the house and the senate all the way to the president s desk and what would you think would be in that, would include the bill, i dont know what else or a go renewal, just if you could be a little more pacific. Hearing from colleagues and so forth that gsp has a lot of momentum. But it certainly is still important as well. Hard to say exactly even with legislation there is bipartisan here, the signals that we can send to teeing up, hopefully a renewal before it expires so that we can prevent any lapsed time that might take place. I had a question which stephanie mentioned, there are a lot of proposals swirling around on that to reduce the level or even eliminate the minimus entirely to ensure that they get sufficient information, what are your thoughts on that and what youre hearing for members how you navigate that while maintaining the underlying policy behind having a de minimis provision. A Common Thread with those who express concern to me and for good reason is enforcement. So, just hypothetically, if de minimis were gotten rid of and there was no enforcement, would anything change . And then, the tighter that might be the more difficult enforcement can become. Keep in mind that varies countries just take with canada, they are such a glaring difference between our de minimis in their de minimis. Now ultimately i think it hurts the consumers. Looking at it the way it is now and looking at a variety of opinions, my first messages okay, how can we accomplish whatever someone is setting out to accomplish and we have to be, im very thoughtful in this approach because i think weve arrived at a scenario commercially looking anecdotally that some of these things were not intended with increasing de minimis the way it was or the way it has been. Moving forward, lets have as much information on the table as possible so that we can sort through what is it that folks really want to achieve and how and what is the best way to go about achieving that . So, we have to be diligent and careful there. Good to see you again, i have a question on enforcement. Mentioned that is a priority and of course it is for all private sectors, mexican private sectors are not the up session exception. As you know, the record of enforcement, putting aside labor is not very good. So, my question is, if we can expect that there is a window of opportunity to change this, once the elections are over, you have your election, we have hours and we will very soon get after the elections into the review process, to indicate that october 25, that process will start. So, do you see that there is a window of opportunity building on the bipartisanship to work on getting to the review with a better record on enforcement . I dont know, maybe the recently created act could take the lead on that, but is there something that could be done there . The short answer, yes. I think there is a window of opportunity. Obviously with our president ial election coming up that provides limit of opportunity for policy for this year, i think soon after the election, there are reasons that you mention as well. The point to lets get this worked out. So that both sides can move forward in a way where it is understandable and the various stakeholders see on the horizon. Congressman, my name is kate. Thank you so much for taking the time. In particular, i really liked what you said about the consumer and the customer really driving the way we think about trade and perhaps one of the most direct ways for companies in america, particularly small and Medium Size Companies to reach new customers is through the internet. We havent spoken much about digital trade. Im very interested in your perspective on this. You talked about the administration treading water, but in many ways in digital were actually seeing the backstroke because of course, usmc a had some really novel commitments when it came to digital trade and ecommerce and regret regrettably we are seeing the administration move away from flea flow free flow data. Im very interested in your perspective of what the subcommittee or even more broadly the ways the committee might do to ensure that we are still promoting high standards in this space. Well, this bipartisan, great examples of expressed concern among colleagues and that is just two of many who are really diligently working on the digital front. The fact that the administration stepped away, i think we are all nervous what might be said the wto, we just dont sense a priority from the administration that here, here we are on the digital front, we dont want to give that away. In our National Interest but consumer interest around the world. Realizing that on the digital front, its not even an entity replacing in the economy something else, but it is the Multiplier Effect is, it can be actually a little bit daunting at times. But, what a great opportunity, again i would say for the administration to step up and say, here is what we need. Perhaps because of congress in the bipartisan concern in the legislative branch, but im very concerned that the administration, even having no enforcement to it that they backed off of anything digital along that route. Thank you for the time, i was wondering what the studies is in regards to the agreements between the u. S. And the eu and what the role of congress and the way in the Means Committee is playing there and what we expect in the next few months . I dont think its clear, certainly not clear enough yet for us to really be able to formulate a way forward. Now, Critical Minerals, the broader issue is getting a lot of conversation among colleagues with the environmental point of view from some economically speaking my own district has a play for Critical Minerals. I think that is a great opportunity for us in middle america. But also, i think they are lacking clarity moving forward in terms of manufacturing, whether it is them totally or the hybrid approach, that is more on the manufacturing side. The intensity of need for Critical Minerals i think will be there but working out those details. But i think again, it is a great example that we need to have the conversations moving forward that are not yet being had at least that weve been informed of. Whether it is europe or elsewhere, we need to engage. Hi, i wanted to come back to de minimis, you are talking about what if we changed de minimis and enforcement doesnt change, what does that mean . I wanted to ask if they have to enforce, what are they telling you for their staff telling you about what could be administrable. Cutting out textiles are cutting out china specifically, are they saying we dont think that would be effective and this is what we think would be more effective . I think overall there is concern about resources and how impactful, what they actually need moving forward, i can give you the exact specifics of what they actually want, we want them to be able to do their job and theyve got a task, its not easy and so, that agility moving forward i think is important so that they feel that theyve got the opportunity and the ability to enforce without perhaps some distractions or some that they may not be able as effective as accomplishing the objective as well thank you for your time, you insist very rightly on the importance of enforcement for the value of the trade agreement. Actually it is the u. S. Administrations who killed the enforcement mechanism. Sorry, say it again. Who killed the enforcement mechanism, or the country won 85 of the panels they asked for. So, i would like your thoughts about that. Thoughts about the enforcements the fact that the u. S. Essentially got rid of the enforcement mechanism in the wto. Well, there is concern about wto and the overall framework of how they operate, basically one country can effectively have veto power over anything. So, my colleagues, here for my colleagues a lot in terms of how theyre funded and how they operate, but heading into various big decisions, i grow concerned that the way it is structured, that other countries might have that veto authority, are we utilizing our role the way we can and should as well . And trips and so forth have given me concern that we are not even as ambiguous as some of these challenges are that we have the opportunity because of the way they are structured that we are not even taking advantage of those opportunities. That concerns me. It especially concerns my colleagues as well who raise various concerns and part of those were raised in the hearing last week as well. Were just going to take one more question over there and then we will wrap up. Hi, thank you for taking the question. My question is about, you know we were talking about china in trade and then we have this Technology Competition going on. I just wanted to get your thoughts, right now the Biden Administration is looking for areas to corporate with china. Do think agriculture is one area that can actually become the foundation of like kind of rebuilding the relationship . And, as our National Security concern in that area as well . Recently we had a senator saying that importing garlic is a National Security concern. I just wanted to get your thought on that, thank you. There would be a number of different characterizations with various interests in mind. I think by default, the fact that the sector is so productive and efficient and the fact that Everyone Needs to eat around the world in the 96 of the World Population there is outsider country, it is a natural fit that we are viewed as a leader and how important agriculture is to, like i said, feeding the world. So agriculturd center. So agriculturd make no mistake. Thats why other countries retaliate on agriculture because so, agriculture is front and center, make no mistake. That is why other countries retaliate on agriculture, because they know how important it is to our country. I will say, thats an even better reason President Biden should address the mexico corn issue just head on. And it can be done in a very diplomatic fashion. And so, 435 members of the house and another 100 senators, all free agents so to speak as it relates to representing their constituency and the various perspectives that they share, but that is the beauty of our system too. It is broadbased and lets utilize that in those various conversations, but that is what makes trade more difficult. That does not mean we should walk away doing what we need to do to lean in. And like i said, it is an Incredible Opportunity to have the resources to help feed the world. Not even mentioning the benefits of what a fed world can deliver. And that might be for several more conferences moving forward. Appreciate the opportunity. Glad you are here, glad you are leaning into several such opportunities. One last question, because we are going to give everybody a little homework. This is the trade policy, a microcosm of the trade policy ecosystem here in d. C. We talk about trade being stuck. We are the policymakers, lobbyists, embassies, what would you like all of us to do to help get to a more constructive place in a trade . Trade is an issue that might be stuck right now, but it will not be stuck by yourself. Consumers, domestically and beyond, they are going to have some things to say about various things, whether it is what they have to pay at the Grocery Store or elsewhere. But to really share the information, and i am probably preaching to the choir here about where where we x amount of time ago, compared to where we are now, and where we can go moving forward . Like i said, it is a complex issue. Over time, it has evolved a little bit, can tilt the field against us, domestically. I also see that as an opportunity to elevate the discussion. I will tell you that even in a district like mine, before usmca , stay early trump term, trade was getting a bad name. I would say it was inaccurately that way, but, the Trump Administration, leaning into the trade issue at large elevated the discussions in coffee shops across my district and i think across america. Whether it was democrats opposed to terrace at the time because they were trumps terrace, or what have you, but the discussion was elevated in terms of what is happening, where have we been, where are we going with this, i think that is healthy. We should utilize that moving forward to channel the discussion and be productive about it, and ultimately getting trade unstuck, but also in a productive fashion. Thank you. Thank you, congressman. Very grateful to you. Thank you, stephanie. 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