Transcripts For CSPAN3 U.S. 20240706

Pharmaceutical ingredients, of which 95 of imports of ibuprofen are from china. I just want to lay that out for this administration to consider. I think it is another opportunity for us when we talk about nearshore rain and friendshoring, that could be a good strategic partnership. The committee stands and recess. Thank you. The committee will come back to order as you know, ambassador, trade policy is incredibly important to me and my district and my constituents. I represent the heavy agricultural district and Manufacturing District whose jobs and economic success rely on Market Access account of the building and opportunities to send our Great American products all across the globe. Knowing that, i dont think it should be a surprise to anyone here that ive been incredibly frustrated that another year has passed without kind of a proactive substantive policy on trade and progress on the an enforceable trade agreements from the Biden Administration. I know you, ambassador tai, you are in the senate yesterday or the day before the Senate Finance committee, and i know there was frustration over there. There was a political article that said the ambassador plays defense as the senate rips into the trade agenda. In that article ellipsis senators on both sides of the aisle criticized for not initiating the trade agreements with foreign partners. Opting instead for frameworks that lack the same Market Access professions and Enforcement Mechanisms as traditional. Weve talked about this a little bit before. We sit here two years into this job we dont have an fta with kenya or with taiwan. We dont allow them to take advantage and to set the Playing Field for the disadvantage of u. S. Businesses and workers. I am also a member of the new select committee on china which has raised awareness in a bipartisan way that what we see every day in the Indo Pacific Region is the growing threats of china and considering that, having an insufficient trade engagement in that region. I believe it is unacceptable. And i know you mentioned as a look at it today i believe the framework is actually getting weaker. Take the digital pillar as an example. Theyve chosen to engage in a framework that lacks tangible policy and avoids congressional consultation or approval, and im hoping to hear your views on that and i worry that we are not countering were providing Strong Enough alternatives to the growing pressure of nonmarket economies. Instead of increasing the leadership in the Indo Pacific Region, countering the influence into leaning in on opportunities like digital trade to set global rules and standards that would put countries like china at a disadvantage we are missing an opportunity to use trade as an offense of tool. And so i mentioned those things again as we look at every conversation as a part of the select committee on china when we talk to our likeminded whether its japan, south korea, australia they are craving our leadership economically and i just i express my frustration and concerns about two years in and weve not made any progress on these things. So with that, id love to hear your specific ideas or comments whether it prevents alternatives to chinas pressure in the Indo Pacific Region. Its good to see you and let me say a couple things before i get to your specific question. I hear your frustrations and id like to make two points. One is you are seeing a key part of the trade that its not the traditional trade agenda and that is out of a recognition that a lot of the challenges we are facing today, whether it is the supply chain challenges, whether it is the challenges that we are facing from nonmarket economy practices like those from the prc to russias invasion of ukraine that a lot of these have roots in the traditional trade approach that has brought us to where we are today. So yes, we are not preserving traditional fully liberalizing trade agreements because we see those as a part of the problem that we are trying to correct. So, your frustrations are affirming that yes we are not preserving the traditional trade agenda. But what i would like to point out to you, and i would be delighted to spend more time with you as well is to have you see those things that we are doing, that we are putting forth a trade agenda to try to correct for exactly some of the challenges that you have highlighted especially with respect to the nonmarket economic policies and practices that have really made the Playing Field extremely tilted and we will have to adapt and respond to as long as the practices are there. I am delighted that you are as a member of the ways and Means Committee i think there are two of you with that are on the china select committee. Im looking for an opportunity to come up to brief the committee and get to know you better. Let me get to the economic framework. You are absolutely right our partners in the region are thirsting for engagement with us on economic matters. That is what we are bringing through the framework including the digital engagement. We have got very robust, very enthusiastic participation from 13 partners in the region, 12 of whom are actively engaging with us through two rounds of negotiation. And im happy to spend more time with you there as well but our vision is for an Economic Engagement in the indo pacific that is first of all durable and well supported at home and second of all that promotes the shared interest of that we have with all of our partners around adapting to a very disrupted Global Economy that will bring more resilience, more sustainability and inclusiveness to all of our economies by working together and i would be delighted to spend more time with you and explain how what we are doing here connects with those goals. I would appreciate your willingness to meet with the select committee. The last point i would make is what the ccp fears the most is bipartisan support engagement in the Indo Pacific Region we look forward to working with you on it. Ms. Sanchez is recognized. Thank you, transmitting and Ranking Member neil for the opportunity to discuss the Biden Administrations 2023 trade agenda and i want to thank you for returning to brief us about the efforts to advance the Worker Center trade agenda and for your always willing to be accessible and available. You let the administration along with calling for its muchneeded reform and i want to commend you for the stance youve taken to the defense of the National Security while ensuring a commitment to a rulesbased trading system. I also want to highlight your leadership for the strong environmental commitments and labor standards through the Rapid Response mechanism under the u. S. Mca. As a former labor lawyer, i am proud of that our efforts have led to an unprecedented number of Union Elections and the facilities. To that end, the u. S. Mca model includes the updates that many of us here in Congress Want to see reflected across the trade agreements of the western hemisphere. Ambassador tai, you stated the American Partnership for Economic Prosperity will build upon the strong core of trade agreements in the hemisphere yet the United States is not effectively enforced several existing agreements with countries in the region including Member States of the dominican republic. I was hoping maybe you could speak to the administrations views on the best way to improve labor enforcement under cap and would it be practical to with congressional approval to update the labor standards and include the Rapid Response mechanism like we see in the u. S. Mca . Its wonderful to see you. I appreciate the question because we do care about our partnerships with them our neighbors in the western hemisphere. In terms, you will recall it is one of our pre may 10th agreements and there were enhancements and improvements like the ones we made in the u. S. Mca in the earlier version two labor and environmental provisions and enforceability of those. So, to your point about the opportunity for leveling up if you will, it is something that we think about and a number of different ways with respect to that particular agreement. On the Americas Partnership, let me touch on that briefly. We know that in our own a hemisphere we have the most existing traditional freetrade agreement that we have are in this hemisphere and yet the partners with whom we have those agreements continue to want Something Different and more from us and i think it really does reflect the changing nature of the World Economy and the needs that we have around promoting resilient, sustainability and inclusiveness, so whether it is with partners with whom we have an fta already or those that we do not come of the progress we are advancing right now and the trade agenda is not meant to address those items. To the question about how to revisit some of these pieces in the context of the Americas Partnership, id be delighted to explore that with you. I think theres a lot of potential. We are really focused on our regional resilience in a new way and i think that theres a lot of opportunity. Thank you. So, im wondering if you foresee any tension between states that are party to both and the compliance with the differing agreements if one has a strict standard. Ive been thinking about it differently in terms of the Americas Partnership there are 11 of us right now, so thats the United States plus ten. Of those 108 of them have freetrade agreements. The two of them do not. We didnt want to make them a disqualifying factor because we want to think about the region as a whole. We want to advance an agenda here that is complementary to the existing arrangements that we have and this is an area as we get into more detail that i would be very happy to continue to work with you on. I have one last question. My time is short so i will submit it for you to respond to in writing. Thank you for your time and again for always being willing to be accessible for questions or input. I yield back. The gentleman from pennsylvania is recognized. Thank you, mr. Chairman and ambassador tai for testifying today. Ive noticed the Biden Administration has a bad habit of redefining things that dont fit your agenda. For example, last year the administration redefined the definition of the recession. Now the administration is redefining what is considered a freetrade agreement, ustr has also been working to redefine congresses role in developing trade arrangements as exhibited the involvement. Youre also redefining what consultation with congress means. Before our Senate Finance counterparts yesterday, you told multiple senators that youve been in close consultation with congress as you negotiate critical agreements with japan and the eu but i want people to know, my constituents to know what activities the ustr is defining as close consultation. Apparently you believe that close consultation is leaving documents in a skiff for members to review but not share with constituents and staff level zoom hearings. I dont believe that is sufficient consultation to move forward with signing any critical mining agreement that our constituents have not been allowed to see. I know many of my colleagues have raised and will continue to raise similar concerns and i hope that it conveys the point that Congress Finds this wholly inadequate consultation with congress. Pivoting from definitions, i want to raise a few constituent specific trade matters the first relates to gsp and i hear from so many constituent companies about how theyve been an effective tool for them to strengthen their supply chains, to create highpaying jobs at home and overseas attitude of interest in sustainability. I know congress is responsible for the renewal, but i would like to ask what tools does ustr have at its disposal or what tools could congress provide as a part of the renewal to ensure that any new Eligibility Criteria in the gsp promotes a race to the top both across and within the countries but also avoids farming the users like ive heard from that are meeting or exceeding the Programs Development totals or goals i should say, im sorry. I like your question although the lineup was a little bit brutal. Let me just say on consultations look, i am here before you right now. Let me just commit to desire to be here as much as possible on issues and if you have specific concerns with respect to the Critical Minerals, which im sure you will, please always feel free to reach out. Im taking the feedback and we will commit to do better as well. On gsp, look i think that gsp ought to reflect the state of modern u. S. Trade policy practice. We have anna established bipartisan, bicameral consensus in u. S. Trade policy that trade includes labor and the environment. This is something that i carried with me and all of my conversations with my counterparts around the world to say that you should be like us and acknowledge that trade is more about just goods crossing the border but it is about Economic Engagement and making our economies Work Together. So, in terms of to reflect both labor and environmental criteria it should reflect that race to the top and yes it should be usable but that is because at heart it is a Development Tool and theres an additional u. S. Mca enforcement challenge that the Pennsylvania Company is facing that i just want to bring up as well. As you know, canada committed to ensuring the u. S. Home shopping programming could distribute in the country under annex 15 of u. S. Mca. I understand president bidens meeting with of the pre minister trudeau this weekend im asking for your commitment to work on this enforcement issue with my office and we will also be following up by the way with a formal letter that has a huge impact on the pennsylvaniabased company qvc. I know this issue well and i would be happy to work with you on it. Thank you, ambassador. The gentleman from new york is recognized. Thank you very much for being here. Also thank you for being so responsive to our concerns on behalf of our constituents about the illadvised property tax in canada thats imposed on the underutilized properties. It was intended to address a problem with foreign interest purchasing large swaths of land in both toronto and vancouver and then holding that and taking supply off the table, increasing the cost of housing and the availability of housing or decreasing the availability of housing so i just want to thank you for that. China and russia are involved in a big land grab in africa for rare earth elements, cobalt, copper and lithium. These are essential elements to developing electric vehicles and semiconductor manufacturing. They are the primary inputs for future Global Economic growth. So today its a global gold rush for these minerals. Combined, china owns about 80 of these minerals followed by the United States. Each refined materials or imports from china. Production of electric vehicle batteries worldwide china has 553 gigawatt hours the United States has 44 gigawatts hours. According to the snp global, global lothian ion capacity will more than double by 2025. China will have 65. 2 , germany will have 11. 3 . The United States, 6. 3 . There are 200 battery factories being built between now and 2030. 148 of them will be in china, 21 in europe and 11 in the United States. Theres a lot of talk here and generally in the congress about being tough on china. While that is true i think we have to be tougher on ourselves about china. The Biden Administration i think is responding to that with both of the Inflation Reduction Act and also the chips and science act to incentivize re shoring, call it what you will. My concern is giving dominance in the continent of africa and in the area of electric vehicle lothian ion and manufacturing. Is that too little too late relative to the United States trying to catch up and what is the vision with the Inflation Reduction Act and the chips and science act relative to that competition . Thank you so much, congressman. I agree with you and i really appreciate you highlighting all of the data and statistics to demonstrate the dominance of the prc in the Global Marketplace in a lot of these areas. Let me address the question with respect to africa first which is i tend not to think about it as, first i dont think its too little too late. First of all, we cant think like that. But also i just dont think its true. With respect to africa, where i would like to start in terms of our partnership with africa is to ground it in our partnership being inherently valuable for being good partners, a good partner to africa. In terms of the demographics of africa, the use of its population, the growth in terms of its population as well as all of its other resources, africa has a potential to become the engine to drive not just its own growth as a continent in the next decades, but a driver of Global Economic growth. Our connections with africa historically and in terms of our people and our communities, diaspora communities that are recent and have been here for hundreds of years are part of the strength and connectivity into the reason why we should be partnering with africa in the first place. To the point in terms of industrial competition, looking at some of these critical supply chains and where the industries of today and the future are growing up, you are absolutely right it needs to be a combination of policy approaches that we take that involve investing here at home but also working out how to secure supply chains that are more resilient that make us less vulnerable and open up more opportunities for us and our partners to be able to thrive in the Global Economy as it continues to evolve so you are right absolutely that in terms of the investments that we make but also in terms of the adaptations to the trade policy weve got to find a way to make our industrialization and trade visions Work Together, and that is absolutely what we are focused on. Thank you mr. Chairman and ambassador tai for being here today. Im from iowa. The breadbasket to the world. A second largest exporter of agricultural goods, number one when it comes to greens and export. Its been a challenge for us. Its been a struggle to watch this administration that we are sort of in a trade deficit right now when it comes to agricultural goods. For the first time in decades and we havent seen any new markets being opened. I will say this i do appreciate your work on the gmo issue. Weve got to get it resolved. This is paramount to the midwest and agricultural markets. And i cant tell you if you can pass along information to the administration is that we are not to fly over. We actually do a lot of good things to the economy in the agricultural breadbasket of america and it just seems like we get neglected because it never mentions us but thats not what i want to talk about. I want to talk about continuing section 301 tariffs on amino acid that expanding those to include lysine and thorazine. The african swine fever hit china and the hog population the demand for amino acids that went into their food plummeted and the excess was dumped here right in america. To the detriment of amino acid producers in iowa and across the country, the United States and china are the major amino acid producers but if this dumping goes unchecked, the american industry will be devastated into go out of business so this is critical to the supply chain and off shoring and actually fighting against the geopolitical rival in china. So my ask to you is will you commit to continue to work on section 301, keep it and then also expanded to include such things like like a scene and pharaoh and i as he and . Ive now been to your great state of iowa and in fact visited the iowa state fair last summer with secretary vilsack so i just want to say iowa isnt a flyover for me. I know how strong iowa is for our agricultural economy and i care very deeply and im always inspired and in impressed by the farmers and Agricultural Producers in your state. Let me say one thing on the Market Access, we have been expanding Market Access for the producers, and our agricultural economy we know is one of the strongest producers in the world. As we adapt our trade policies, we will not forget you. We are not forgetting you and i have a list with me that i want to run through right now of all of the market openings that we continue to do for the farmers, ranchers, producers and especially the Champion Industries of the small ones in family farmers and producers as well. On the amino acids, let me say this because i think i just want to highlight in terms of the 301 program, its a very Important Program for us. Its important for us to bring a responsible strategic approach to it. As a result, we have an ongoing review of the section 301 action where we opened a portal and invited a stakeholder comment. I trust that the amino acid producers in iowa have participated in that process and we have committed to running a serious deliberative process where we do everything to do right by the entire economy so let me just highlight for you that that is going on and we take that very seriously. We are happy to do what is right. The right thing for the economy. So what are the conditions that should the case at the right time to tear down some of these tariffs, Tariff Barriers and opening a lot of these markets for iowa farmers. Thank you for paying attention to that hearing and not relying on that reported by politico which is not always nice. But, supposed to sound like my words. What i want to say is there is no allergy to pushing on our partners to reduce their barriers. The problem is the traditional approach as a whole of economy which has led to a lot of the vulnerabilities we are facing today. I am looking for partners from congress, trading partners from her stakeholders to think about how we can use a tool like tariff liberalization to advance the greatest cause of resilience, sustainability and inclusiveness and or trading relationships. We can harness this tool to promote those goals im all for per. My time is up china continues to build economic relations. They have 10 new treat Free Trade Agreements in this last five years. Theyre not trading for 120 countries, we are falling behind. That is a real problem for the American Farmer fred thank you yelled back. From alabama is recognized for quick think it mr. Chairman welcome ambassador. First i was to thank you for coming to my hometown of selma, alabama to trace the footsteps of john lewis is a civil rights soldiers foot soldiers and 50th anniversary of the blood he sunday. I know you personally see the office as a mechanism to promote human rights and civil rights around the globe. I hope the pilgrimage to selma is an inspiring experience for you. I also need to thank you secretary blinken and ambassador for the entire by demonstration for your tireless efforts to hold the Mexican Government accountable for the illegal facilities in port in mexico. Just yesterday i joined a letter with the rest of the alabama delegation to the mexican ambassador demanding answers for alabama workers and materials which is headquartered in birmingham, alabama. Ambassador i know both of us are strong supporters of the u. S. And ca and the updated labor environment and enforcement provisions that we negotiated and secured a new agreement. I am very concerned present lopez is seriously threatening the progress and goodwill that has been established since the implementation of usmc eight. Think arty know the answer to this. I was hoping to get your commitment to stay engaged on this issue and to send a very clear message this illegal seizure is not acceptable. Ask yes, maam. Thank you pretty soon i also represent the steelworkers in my districts. I was a supporter of section 232 steele terrorists because i know china and other bad actors overseas are actually dumping steel on the Global Market and is an effort to kill the u. S. Steel industry but this has a dramatic devastating action. But, we have to make sure that we are enforcing it correctly or dousing of the administration is negotiating a global arrangement on the steel and aluminum with the eu so we can find a longterm solution to the steel overcapacity while also partnering with our allies to promote the production of a more environmentally steel like that producing alabama. Could you tell me how those negotiations are progressing . What happens they walk away from the table to the 232 tariffs go back in the u. S. In the eu . Congressman i will respond to that question backwards for yes. Let me take it off the eu and say if we do not succeed the 232 tariffs come back on eu steel and aluminum and the retail tory tariffs across the board on a lot of her Agricultural Products in particular come back and swell. I do want to let you know that since the top of your question, but i have very Strong Partnership with my european counterpart the executive vice president. We have committed to staying in touch every single month this year to ensuring our team stays on track to meet the deadline of october 31 that we have imposed on ourselves a successful completion of these negotiations. The vision is exactly as you have described it. Which is to update aurora steel and aluminum trade create a framework that promotes fair trade which has been so devastating to us and marketbased economies and also to push for plainer production and trade as we look to the future. It has to do both of these things. They are quite challenging in terms of getting her to systems to mesh. I want to assure you we are working very hard. I remain very optimistic their teams will get us there. Thank you so much for all of your engagement on these issues. We can tell you workers are really, really worried about the seizure and hope the unite states will continue to put pressure on the Mexican Government, thank you. Thank you, good to see you. Public would speak speak kind and polite and sweet. Thats the only way will ever accomplish your demonstrates the trade is the priority. Weve worked with use of former ways and means staff person. I think i know you are inclined to do. You believe trade is critically important. Not just to agriculture which is traded defendant is the lifeblood of the region i hail from. You understand how important it is on the u. S. Economy. In future growth. For all of President Trumps shortcomings and for all of the reasons im people were not crazy about his personality or his leadership style, President Trump was totally committed to trade. And a boston made trade a priority. Other countries took very seriously. That is why we were able to come together in a bipartisan way and actually accomplish something for the United States, for our workers, for our producers and manufacturers. I hate that you do not have that because i think his wasted talents for a hated more for the country because we are getting whipped on the Playing Field. I cannot stand to see america lose win the game is rigged, people are cheating, but worst of all when we do not even show up to the game. That is how i feel about where we are today. Dina, and just about every other competitor country is taking market share every day from the United States and from our great farmers, ranchers, manufacturers et cetera. It is because we do more talking and we are looking in various ways to get debt to gdp down thats a threat to everything. We noticed a sonic got to question its a broad rod abased a question on the impact of trade to our economy into our growth. How important is traded to growing our economy . I would be delighted to. I would like to let you know i was not an west to exit recently but i did make a trip to houston and got to go to the rodeo. It was really quite something to see. The spirit of your people in texas across the board he got to see something they are there aspects of the hearing today that remind me a little bit of what is on the rodeo. Probably the calf scramble. [laughter] excellently speak to your specific question. Let me put it this way, trade has the potential to be a tremendous tool for growth and development. If it is done the right way. We have pursued trade policies that have expanded the price certainly. If you want to look at the gdp and from your budget perspective. What we found over time is the way we pursued our trade policy is to too much on the big picture. The distributional effects of trade we have seen benefits clustered in separate places they have not flowed broadly enough. In terms of our trade policies now, are to try to bring corrective aspects to trade by continuing to do trade but by continuing to push ourselves to do it better. Thank you and i am out of time to comment so i wont. Thank you. Whats a gentle lady from washington for a quick thank you, mr. Chairman. Thank you so much ambassador its great to see you. Mr. Chairman i want to start in asking ms consent to enter into the record a letter for members of the Washington State delegation raising concern with japans additional Gaming Market in compliance with existing digital trade commitments for carts without objections order progress thank you, mr. Chairman. Speaking of Digital Investors i know you have been working very much on the Digital Economy as part of the endo Pacific Economic framework. This is an area or we have been behind. The world is deeply impacted by technology and so it is important that we have trade revisions that reflect that include nondiscriminatory treatment of digital products, privacy protections, restrictions on data locations, and bands on internet shutdowns. It is important have binding and enforceable rule. And i deduced also very closely connected in making sure we continue to five job growth in the u. S. In promoting human rights around the world. Its very clear every industry is impacted from agriculture to manufacturing, we increasingly depend on Digital Tools in the transfer of data to stay competitive. Work on digital rules can help benefit small businesses. Help workers and strengthen human rights. This congress and this is near and dear to your heart into your area of expertise. Think our engagement on digital is one of the most important things they were doing. And trading into two areas. Not only are we behind rocks and conversation is lagging behind the economy we are living in right now. Already affected by digital transformation. I also wanted to highlight and build on an aspect of your question how do we engage in a way thats looking forward and acknowledging the fact that our entire economy is touched by digitalization. Thats really important part of how we are approaching the Digital Economy, digital trade conversations including the the pacific framework. Which is it acknowledging the way we engage with our partners and the groundwork the blueprint for digital trade negotiations of our biggest stakeholders in this area. His got to reflect the interest of our small companies. The lifeblood, the backbone of our economy such as ours but others. Also reflect the interest that our workers, that our environment, better content creators all have this economic echo system. Take forward steps is going to be impacted by an really limited by how far u. S. Legislators have been able to go in terms of establishing Regulatory Frameworks that are critical to the Digital Economy. One example is privacy legislation. The right to privacy of individual people and consumers in the Digital Economy is an important rate to be weighed against and how we formulate our rules. But without that legislation here in the United States, there is really a limit to how much we can do in these negotiations because we have got to leave room for all of you to make that decision first. This really is an area or congressional executive partnership and communication to be critical. I am looking for to work with you and many of your colleagues on this committee. Am a big proponent of Consumer Data Privacy legislation. I quickly wanted to bring up taiwan which others have brought upwards a key alex United States mh apartment on defense, trade, taiwan is the seventh largest export market for washington farmers and a major export market for aircraft and Digital Projects desert products built in Washington State. Our Economic Partnership with taiwan is not as extensive as it could be. I think we have talked about ways we continue to strengthen that. We encourage you to think boldly how we can strengthen our economic ties with taiwan as you proceed with the current initiative. Thank you, mr. Chairman i yield back. Thank you for being here today. Its trade initiative is concerning for bold leadership is a necessity to ensure and succeed on the world stage. Any weaknesses in the United States will be exploited by our adversaries, mainly china. Our trade agenda must provide certainty future agreements will create new import and export opportunities to the benefit of american businesses and workers. No steps towards reviving a bipartisan authority that it has expired without tpa believe a marketplace that china is already capitalizing on. All freetrade agreements have improved and implemented through tpa. To be be a mistake for the ministration to turn a blind eye to tpa all the International Marketplace being actively manipulated by our allies and competitors solely for their own priorities. Other nations, even our allies are not looking out for interest. It is on us to go after market share and create access for products around the world. We fail to create a robust trade agreement americans are at a disadvantage in china grow stronger. Tpa supports job growth. Exports of made in america products and better trade agreements make more competitive globally. That being said with my limited time today Digital Service with you. Ambassador, i am concerned that by the administrations unilaterally disarming the 301 investigations while other countries are still charging Digital Service taxes today. Today i am even more concerned about the administrations action because it is uncertain where we go from here at our is stripped away. Ambassador, 30 out of 38 nations already have in place or plan to have them placed Digital Service taxes. France is or express a need to press ahead with the Digital Service tax because of implementation challenges facing. I am afraid other countries are growing impatient as well. My colleague brought up a serious question and concerns with you and the response was not sufficient enough in my eyes in the explanation for it you scr is the tip of the spear when u. S. Companies are facing the discriminatory treatment abroad. What is ustr plan b . They have not already fell so far. Would you reinstate section iii zero one investigations on this 30 countries ests . Congressman, i have engaged on this as well. I disagree with so much of what you have laid out at the beginning. Let me be responded to this particular question i do not think of any unilateral disarming under section iii zero one. Are suspended, right . That means they can be unsuspended. I would also like to take the opportunity because you lead so much groundwork to correct it for the record a couple of things you stated. One is that it is not true all ftas have gone through the congress under tpa for the jordan fta was passed by the Congress Without tpa and place. Congress is also true tpa does not always guarantee an fta makes its way through. We need look no further than a tpp or a tpa was tailormade for tpp ntp pete never made its way through. So, this is all to say that pursuing failed trade policies does not guarantee we become stronger. But i am looking for is bipartisan partnership raising trade policies that make the United States more resilience, are economy more sustainable our results more inclusive. And if congress in this committee can show me the money and can show me there is bipartisan work that we can do together lets do that together. Involves a respect ambassador what you are implying that is it is congress as a fault we dont have a trade agreement. It is not anything the administration is putting forward. The Energy Behind this space. Youve been here a number of times and is saying we would love to move forward and you can work with us on that. So help us with that. Recognition on the kind of world we are living in right now. Where we are as an economy. Where we are strong. Where we are vulnerable. Meet me on the terms we need to do things differently. Not everything but do not for the baby out the bathwater. Meet me on the terms we can Work Together on adapting to the reality that we live in. And i think that is the past to heavenly bipartisan partnership that we all are interested in having. Im saying trade policy, at the intersection requires all of us to make sure the vision in terms of where we are going. And if we can do that i think that is where we all come together and get something done on the United States. Ambassadors all the respect east of this committee long time. This committee has been well known for working together with administration and trade deal debbie a great message for the thank you i yield back. Ms. Miller is recognized. Think you chairman smith. You certainly are on the hot seat today. I really always enjoy working with you and i want to continue working with you as we move forward. You know i made a trip very early of still wet behind the ears and congress to china and realize how important trade was to my state in my country. And immediately i wanted to be on the ways and Means Committee and trade. And as some things happen im very grateful to be there. Ive been disappointed with the Biden Administration on re strengthening our position in the global trade economy. I have heard from so many of our allies of the just is not quite enough. As we continue to elevate our competition with china and key regions of the world, especially in the indo pacific i think it is important for the u. S. To advance trade policy and agreements that feature real incentives such as a Market Access and tariff cuts. These kind of incentives are critical if we truly want to link supply chain with our partners and allies. And if we would to give our company our incentive to move supply chain out of china. For example i just traveled to cambodia, this summer, and singapore and heard from their Prime Minister. Cambodia is hungry for u. S. Trade and investment. Unfortunately we are doing too little too late. We also view as being too little too late. China is outmaneuvering us. By implementing the largest freetrade agreement and history with the regional comprehensive Economic Partnership and trying to join. We need to run faster than china in this region and ensure American Workers can compete globally. Now quickly im going to ask you a question. What are you doing to directly counteract the advantage chinese products have over u. S. Products in the end of pacific is there other trade agreements out there . Looks cumbersome to look good to see you then. I always enjoy working with you as well. You said something early on in your question about Market Access and tariff cuts leading to better supply chains. I think that is an area where we are going to have to really have to disagree. I lead an agency with a bunch of experts that get way in the weeds in the guts of all the trade agreements that we negotiate. I think there is work we can do to come. To this committee. Also more broadly explain how tariff cuts and the rules for accessing those preferences have worked in different sectors. In certain sectors we have seen them in the textiles areas that the combination of the tariff and the tariff cuts and the rules of origin have created strong supply chain. In agriculture as well we have tended to do something to savor our producers. Across the industrial areas, what we have seen is the combination of the tariff cuts and those rules of origin have led to a deindustrialization and an erosion of our capabilities. This is just to say. A lot of words for. It is a lot of words it matters it matters to people on this committee how a trade agreement actually works. What is inside of a trade agreement matters to what the result is going to be for your economy. We have seen very event results. Okay. Those tariff advantages in the asiapacific have driven already in top of the liberalization supply chain to be deeply clustered inside the chinese economy. And so for our approach is not to just go in and further liberalized. Nice to bring discipline and strategic change to the trade program to make the supply chain more resilience. And on that i think we agree when its been more resilient brick. I want to move on to accra, and mexico so many want to improve their commercial ties with us as well. Just as in the end of Pacific China is all over the place and they want to be our trading partners purdue latin american countries often raise Market Access and gsp renewals as a priority and bilateral talks with you and other administrative officials . Do you believe renewal would improve your ability to negotiate with these countries . Let me reaffirm my amp for the reauthorization in a way that brings it in line with our current trade practice for in terms of my conversation with partners, especially those that youve just highlighted they are really important partners they are our neighbors. They are out allies. And what i would like to do is just say that when i talk to them i want to hear from them what it is built from Economic Engagement with the United States. They want to be more closely tied to us. They want to be able to develop their economy in a way that we can rely on each other. We get there then is the next question. It make it as part of the way there but here i like to push all of you as wellin terms of thinking outside of the box. Where can we improve our trade program to really serve those interests that we are trying to accomplish . As opposed to relying on traditional trade practices that have been released body in terms of the result. But we need to meet and really goes through these things thank you yelled back. Ex ambassador it is wonderful to see her today. And welcome back to the ways and Means Committee. I also want to bring up taiwan. Last fall at a hearing in this committee i expressed support for Free Trade Agreement between the u. S. And taiwan. Such agreement should include enforceable standards for labor, environment, intellectual property and other produce remember sparse and stick up in the u. S. And taiwan. I want to thank you for your focus on deepening our trade relationship with taiwan through the initiative on 21st century trip. This is an encouraging step toward deepening economic relations but i believe this negotiations with first step toward a comprehensive with direction and approval from congress between the u. S. And taiwan. I understand that you have had an agreement on five areas would you call the early harvest. Could you please elaborate on the status of the remaining six trade areas the negotiating mandate specifically will the remaining areas be negotiated together . Or further divided . Continue to update so congress and the public on these negotiations and what is the timeline for completing the initiative . Think you congressman we are very excited better trade initiative with taiwan and we are very Good Progress. You are right we have serviced five core areas. In light of our desire to deepen and expand our Economic Engagement with taiwan. Which already is quite significant. Iran is one of our top trading partners. We are making very Good Progress in terms of the first that we have scoped another five or six i think elements which will follow. I do not have specifics for you in terms of a schedule or timeline except to say we continue to be encouraged by the progress we are making. We are looking forward to working on those additional areas with taiwan. And absolutely we will keep you and others update as we continue to make progress. Thank you for that. On another topic i am the cochair of bipartisan creative Rights Congress and represent the Southern California district that the hub of our countrys Creative Economy and copyright industries. In 2020 when the Copper Industries employed 9. 6 million workers accounting for nearly 6 of all private employment and almost half of all the workers newest Digital Economy. I also strongly greet the principle of the aflcio recently laid out in its policy agenda on the Digital Economy and trade which states that trade policy must aggressively address the stolen or unlicensed use of copyright content on digital platforms. I believe that a worker with trade policy must ensure the trading partners protect intellectual Property Rights im disappointed that is why these protections have not been prioritized in the Administration Initiatives including the end of Pacific Economic framework. Given that is the case, tell me how ustr is insuring trading partners provide adequate protections for copyrights in the digital environment. Like for instance will countries be asked to join the World Intellectual Property Organization internet treaties which ensures creators can control and manage works online . Congressman, our toolbox of intellectual property is quite extensive. No my intellectual property and Innovation Office is always in one part of the cycle on the notorious marker support the special 301 report that ends up being a very important tool of ours in terms of tracking how intellectual Property Rights are being observed, respected inter partner countries where the problems are and also tracking progress when they make progress. In the end of Pacific Economic framework right now, we are deeply engaged on a digital conversation it also takes into account that there are content creators who have rights and interests in the Digital Economy. Let me leave that they are in terms of things that are more specific you that i will have to come back to you. I do not believe we are pressing our partners on participation. But im happy to continue that conversation with you. Thank you, i hope you encourage them to do that and he yelled back. You are recognized. Thank you chairman. Thank you ambassador for being here. We are talk my intellectual property quite a bit here. I have concerns when we waive intellectual Property Rights. We have inventors, creators that develop and manufacture in the United States. There are situations in talking about the vaccine just given the intellectual property away. Thats a disincentive for people in the United States to want to produce and create if they are concerned their own government in the United States is going to take their intellectual Property Rights away from them. And i believe their ways to produce our product in another land under our control which is very, very important for a lot of reasons. Especially when it comes to health. We know that right now we are in a huge deficit dependent upon china for our medical prescriptions, generic drugs they control it, they control the world it is a problem it leaves us externally vulnerable to National Health security issue and a National Security issue. If we turn over the intellectualproperty of a pharmaceutical or a vaccine to another country that does not produce it with the same quality as we have seen from china 250 people die from heparin in the United States about 15 years ago. We turn that over too another company to then make it they tainted that product and then we have a problem. I think as we do and by the by the fda is not over there trying to make sure everything and may have an office there but they are not in their everyday. We now have in the United States we are testing the drugs we got from other countries for being tainted or inefficient, not the right dose, all these things are happening. I just want to say is if we in any way, shape, form or giving away our intellectual property and we are worried about others dealing our intellectual property but if we are stealing our own intellectual property leases very vulnerable. I think you raise your eyebrows may view not engaged with the situation on the medical side. That is a shame because maybe you need to get into and get a classified brief on what is going on. Thank you i yield back brickwork sorry i was making faces little but i think its because i was trying to track how your describing giving away intellectual property. That does not bear any resemblance to what we agreed to the w geo last year. Im happy to clarify some of that. In terms of your presentation especially around our reliance on others for api let me affirm i completely agree with you for that is a critical supply chain that we need to work to fix. The answer is not just about ip it also does connect to this tariff conversation as well. The way that a lot of our supply chains and the decisions that our producers have prioritized which is to chase cost efficiency at the expense of resilience. At the expense of having more options in terms of supply is part of the change we need to bring toward trade policy. Of all the things we agree out i hope we will be able to find a way to Work Together. I want to say i am engage on the medical issues there really, really important and i look forward to continuing the conversation working with you on this. Thank you the chair now recognizes the gentleman from north carolina. Thank you sir, thank you, mr. Chairman thank you ambassador. I think you can sense the frustration lease on this side of the dais that just does not appear we are moving the needle on trade. I do not know you very well for you come very, very highly spoken of for members to have work to the previously. I personally think youre too nice of a person to be the job that you are in. I think you are handicapped because of administrative folks that you have to report to, et cetera that are handicapping you and your job. Negotiators are usually very, very tough and sometimes mean people they are not nice people like you are. If you look at what has happened with us, we are absolutely handcuffing the United States because we worry more about green things. It is all the other distractions. We are in the paris claimant accord, we handcuff ourselves and we give china the ability to buy build nine dispenser 27 more coal plants. If you look at what we are doing to the United States, all we are doing is giving an open door for china. It is just a fact we do not negotiate where we talk about real earth metals we were fine to tear them up and get them from china where we are using slave labor we have them in her own country were not able to do that. That puts us absolute and disadvantage you are stuck personally. Figure stuck in the middle of that. And so, let me get to some of the other issues its an absolute frustration because you see this country swirling down the drain because we are so distracted and so many other different issues that trident does not care about. Because they dont care about they are over the rest of the world with influence. Im happy youre going to try to work on a taiwan Free Trade Agreement. Thats absolutely necessary. Id come from the second largest pork producing district in the country but is a big deal, pigs are big deal for us, pork is a big deal for us but unfortunately with taiwan we have seen our exports decline 35 , one third since 2021 in the time when taiwans import went up 15 . Can you help me understand that . Why has that happened . Why have we hurt our own pork producers in a time when taiwan is been increasing in importation . Whats congressman i can assure you that i know to be nice to members of the ways and Means Committee. [laughter] i have never been faulted for being too nice. Have too nice of a smile progress i also do not need you to feel sorry for me so please dont, please dont say that. I feel give them in a tough spot personally this administration above you has shown no interest brickwork some just take off the eye dont need your pity i stand up for the American People by people listen because i represent the interest of the United States. Let me go to your specific question on what your frustrations are on our trade policy look i am hearing from this and higher side of the day as i saw sat in the backseat before also you guys are staying very well on message its great because its a good message of the true message fricatives you have completely missed the point you are from a great state its also textiles producing state. I think that should inform a particular perspective in terms of where our trade policies have been strong for agro trade policies have bled out some of our critical industries. I do consider textiles to be a critical industry on rare earth limiting a couple things here. Why are rare earth instrument important . Especially now they have significant applications and clean energy and clean technology. Said that is actually part of the greeting agenda. We are not getting it from our own country for. I will tell you why we are not producing rare earth anymore. We used to. I litigate a case on this 10 years ago which we won. But it is not put us in a better place that gets us into a conversation im not going to down that rabbit hole with you right now. But for quick summary asked this question. The chinese practices which you are right we should be working together on that. But blaming each other and not being able to come to an agreement on what is actually important for the u. S. Economy, that is whats holding us back. Absolutely do not disagree with at all. Let me assess one other question. Arent thank you i agree i do not disagree with you i do not disagree that we are throttling ourselves and some of im an original cosponsor bipartisan resolution of disapproval which would roll back the regulation suspends tariffs on chinese solar products that have circumvented u. S. Trade laws throughout fort Southeast Asian countries. And i hope the Biden Administration will reverse the policy. So congress is not forced to act to protect american jobs and keep subsidized chinese products out. Can you explain the rationale behind the decision . Do have grace from the chairmans goals will be on time . Yes . Sure, sure. Look, on the solar issue we are in a real bind and this might be let me see if you and i have common cause here as well. As with many other industries about 20 years ago we had a growing innovative strong Solar Industry here in the United States which we lost. Absolutely. When we lose Industries Like that is not to say were not producing is just we are not producing at scale. We are not producing enough. When we are in a bind it like this we end up fighting ourselves. Our industries fight each other. Our regent fight each other we basically end up fighting ourselves of the scraps of what we thought we are in a really hard place. Where i would really like partnership with all of you is to figure out the really hard work in terms of how we get to a better place in areas where we need to build back. But also, can we look forward and anticipate the other industries where we are at risk of losing and eroding our capacity and Work Together to prevent that from happening. Again that really did not answer my question. Why it will rebuy this position . Why were we allowing the chinese to do workarounds . Hugs im happy to continue this conversation. This is one where our economy for. Were recognized. Thank you mr. Gentlemen, thank you ambassador for being here. Let me start off by saying we do not agree on everything across the aisle here. I do want to associate myself with the last, saw all of the comments, the less comments mr. Murphy mate i share his concern regarding chinese solar and the circumvention of america tariffs i disagree the position the in ministration took on this. I am leading the effort on the last issue that mr. Murphy raise a disagree with him that you are too nice you are just nice enough. [laughter] so, first of all say were i come from the term freetrade is a bit of a loaded term. The people that i represent in michigan particular in manufacturing and our farmers have seen trade deals come and go and never meet the promises that they were sold under. Enough being a good example. We saw autoworkers lose their jobs and have those jobs show up in mexico sometimes making 13 a day undercutting American Workers. They were big promises under enough that never materialized rates for that reason i am equally enthusiastic about usmc avery did not know where i would get to a place for i could support it but at the end of the day i was enthusiastic in supporting it because it writes the wrongs of some of the past trade deals and i think provides a really important framework. I was proud of the work the democratic leadership particulate mr. Neil did to improve that trade agreement in the late stages of the negotiation. I think that was the game changer for many of us particularly, including the Rapid Response mechanisms. That is been a lifeline for workers in mexico. In plants like the General Motors plant which obviously you are familiar with our ability to stand up against protectionist unions, against Multinational Companies operating in mexico, taking advantage of workers is really remarkable last month i was in mexico, met with many of the workers who are fighting for their new rights including workers at the vu manufacturing plants. Right now these brave workers are in a battle fighting for better wages, for better working conditions, for safer working conditions despite pretty significant threats, intimidation, bullying from the Company Leadership i just want to ask if you can assure me and more so assure the workers at vu and workers all across mexico that ustr in the u. S. Governments going to everything we can to help them exercise the new rights that are guaranteed to them under usmca . One 100 . U. S. Dr, the United States and frankly i think this Committee Also stands behind the tools that we have in the usmca which critically are there to empower workers. And to turn that narrative to say trade agreements can work in the favor of workers for. Thank you just want to say likewise i am pleased with the work you are doing in mexico. I know it has been raised before ill not go too deep into it at all. Sticking up for our corn growers as mexico trying to circumvent the agreement that they signed in order to protect their interests we need to make sure that this not happen. But i will say this i do share the concern some have expressed about the new frameworks that the administration is pursuing. I believe is not a step in the right direction we ought to be taking. What we saw under usmca is a good example of how we ought to build a framework, a high standards type agreement that provides us access to markets we needed. Also elevate the standards of those workers and other places. Right now we are seeing violence against Union Organizers in guatemala, and honduras, and columbia. They do not have the recourse that would be protected under usmca. I am concerned we are pursuing this type of approach. Rather than fixing existing trade agreements one particularly with an opportunity the enforceability we need in the usmca. I like to see renegotiation or improvements to agreements was him or if you be able to comment on that. Your interest in that makes sense. You to be mutually exclusive lets continue to talk quick thank you very much i yield back in. Think it mr. Chairman. Investor in your recent testimony for the Senate Finance committee dodge questions religion whether the administration was taking a go it alone course in trade negotiations living out congress and not making deals public before signing them. Senator crapo senator wyden pushed you for commitment to make the terms of deals permanent but you cannot do such a commitment we have seen time and again for inviting ministration is unprecedented lack of transparency even on issues there might be room for bipartisan consensus much of your office work should be bipartisan. A lot in congress one team versus the other and it comes to trade thats not always the case. That is why its so surprising were running to the lack of transparency. Whats critical mineral agreements, potatoes are such a surmise that Congress Needs to be informed. My constituency judy informed and the American People need to be informed. Along the lines i have question for you. Does u. S. Law for the importation of chinese citrus . Books so congressman i have to say i would have to object too. The answer to the question is yes you do allow for the importation of chinese citrus. Do you know roughly how much urgently answer a question for you too . This is a hearing but since you answer the first question want to go an answer for. 26. 8 million tons of chinese citrus is imported into United States roughly every year we should not be importing chinese citrus to the detriment of u. S. Producers production a bill asked congress to ban the importation of chinese citrus because of the challenges that face is just from a production standpoint, but from a disease and standpoint i intend to do that again this year. What is your office specifically doing to promote america citrus . Theres a lot were doing to promote american citrus fruit effect i believe in vietnam we have just gotten approval for the first shipments of american grapefruits to vietnam. That is one example of something we have been doing with usda. In another area, we have been working closely with seasonal produce and Fruit Growers in the southeast to address serious import concerns they have by setting up a committee to allow them to provide us with advice and recommendations specifically respect to their interests i care a lot about our farmers and producers including her citrus growers. You have concerns with respect to the import and export opportunities i am happy to talk to about them. Is a Chinese Communist party allow for debate here to the same regulations are domestic producers have to adhere to here in the United States . Such as labor, epa, all the things our domestic producers are abiding by . Think part of the bigger question youre getting at is our trade relationship with china reciprocal and doesnt feel fair question. No im talking citrus. Yes you are talking citrus. Think its linked to this larger issue. Its not when youre bringing in from china that then in fact american citrus with canker and other diseases that are a detriment from the health and safety and welfare of our groves. I do not understand why that is funny that you think it is okay to love the importation of chinese citrus to the detriment of a florida farmers and ranchers that grow citrus every single day. All you have to do is look at the numbers and boxes of production because of greeting and the diseases that have been brought in from china. I am specifically talking about citrus and im specifically concerned about the importation of chinese citrus to the detriment of our production in america specifically florida because majority of citrus and goes into juice comes from the state of florida. Lets talk about the smoke very close with usda and i think there is a conversation to be had which i dont think needs to be oppositional. Okay, well. Im interested in your china strategy as it relates to supply chains. Youve been in this role for over two years i would like to know how you plan to combat the ccp through trade. There are a lot of things that we are due with respect to the challenges from the prc economic policies and practices. We have in place still section iii zero one actions from four years ago where the process of reviewing the effectiveness of that and taking in all of the comments that we have received. At the same time we are work with partners and allies consistently and on an everyday basis with respect to challenges that we all experience. Whether it is in terms of our civil aircraft industry, steel and aluminum, economic coercion and overall and unlevel Playing Field and a lack of reciprocity for trying to link to your previous questions which includes with respect to the citrus rate. There is a lot for us to do. We are going to have to bring our very best game and i would be very interested to work with you on making sure what we do is effective and puts our stakeholders in the very best position to compete. Proximate time has expired. Think it mr. Chairman. Thank you ambassador for being here. Ive got three questions for you. Very important and might district my near 24 districts is not only the number one egg district in the northeast system number one dairy producing of the northeast. Our new york Dairy Producers rely on consistent access to international markets, their bottom i give might proximity to canada we are basically mostly on the Canadian Border with new york, ive been concerned a dairy Market Access terms are to go shows our trading partner to the north have not been honored. So ambassador can you provide an update on the dispute Settlement Panel process and will be can expect to see tangible results American Dairy farmers understanding we did not get will everything we want u. S. And ca this is a huge issue thats plaguing our Dairy Farmers. Oh be delighted to give you updates here. As you know this was like the first dispute Settlement Panel we established under the usmca. It was on the dairy dispute and is precisely because derry has been such a contentious issue between us and canada made promises in the usmca that our Dairy Farmers would have better access, which we have not seen translated into reality. We litigated through that first case, wanted too. In canada made some changes. Claim its brought itself into compliance. That has not translated into additional access we know our Dairy Farmers deserve. Which is why we have now requested and moved into anaphase a second time. This time i had my lawyers work very, very closely with usda and with our stakeholders you fashion a case that we have a lot of confidence in. One is pending right now for. If i can reclaim my time appreciate the second panel. How far are we going to go to reinforce this . Would he be considered retaliatory measures against canada on this issue . We feel very confident in this dispute too. Im just trying to check through my notes to look at women would expect that Panel Decision. If justified the Panel Decision yes, no, absolutely everything were going to do is going to look to translate our rights into access trick works great i appreciate that every second question want to get to select a followup on the letter we sent representative since you a letter. This is about the European Union and course to impose significant restrictions on steel scrap exports by changing its waste shipment regulations, steel scrap is critical to many my constituents who rely on it to be among the lowest cost most sufficient producers in the world in upstate new york, believe it or not also in the district. The proposed eu regulations will distort global scrap prices reduce the domestic supply of scrap increasing costs for American Steel producers and putting them at significant disadvantage compared to competitors around the world. Do you agree if doctor es proposed regulation steel scrap exports would be detrimental to the American Steel industry . I care deeply about. Can use answer the question you think it will be detrimental to the still initiate the ease proposed regulation . I have to say im not fully briefed on this particular. We have so many channels of work with the eu on steel im happy. I just went quick i want to get to the third question two. So lets work on that as engage in the misdistrict is home to wayne county. One of the top app producing counties in the nation. We work to address with countries in the regions surrounding the sanitary measures. Im just looking at some of the countries there are no Market Access here. This is significant. Wayne county is the second top apple producing county in the nation. What will we do on that and count on your commitment to work with this and get some access. Between australia, indonesia, japan, we get access. We scoped in an negotiation with the regulatory processes to improve Market Access. Some of the countries you just listed we have i know you have delivered to them benchmarks and including deescalating the conflict for assistance addressing human rights violations. Can you provide an update on where we are and is there a review under consideration . Congressman buyer, and out of cycle review is always available as a part of the program and you know about the list of benchmarks that we shared with ethiopia, and also i had of the opportunity to meet with Prime Minister abby on the margins of the summit here in washington and december. This is something that we work on very closely with the state department and we have a special envoy for africa as well and in terms of the very latest, i would be happy to have my team send over to yours where things are today. Thank you very much. I also appreciate the wto and the belief that it can be a force for good. Without the wto it is a state of nature. In the last ministerial meeting, on the covid19 vaccines illustrates despite the challenges the wto actually can work under the right conditions. To that end, there are mixed messages on the support for the wto and commitment to abide by the decisions and rules even if we dont like the outcome of the individual cases. I know you worked hard on reform. Can you update us with progress on this area . I would be delighted to. We are doing so much work on reform its frustrating for me that is not more people know about it because these issues can get technical. All this is happening in geneva which is far away from washington, d. C. I know how much you care about it whether its on the committee processes and the negotiating function or settlements my team shows up to every meeting with new ideas. Our motto is to reform by doing and to put ourselves out there as a model for reform, to not just talk about it but behave in the way that we would like members to behave which is to be very engaged in the wto and seeing our needs and not something we go on autopilot about and forget about it. So on the dispute settlement we are on phase three of work in terms of driving an interestbased negotiation conversation and inclusive process that brings in all of the wto members. With the goal in mind that for real reform and a change to happen at the wto, we cant dictate that change. Its got to be negotiated and accepted by everyone. I would be delighted to facilitate a followup for you and every other on the committee to learn more about what we are doing. One last question, given that ustr is not seeking congressional approval at least in the traditional way for those like ipf or Critical Minerals agreements. And i know youre constrained when you formerly offer the negotiations. Are you concerned we are not being ambitious enough on the environment and labor standards . I think that you will always find that we will be ambitious because we speak on behalf of the United States and we are always going to be pushing for what we think is right and our vision for a better vision of globalization. To your point about the congressional role, this is something that is very near and dear to my heart and an area in all the various introductions ive had with members of the committee and the Senate Finance committee yesterday. Ive been effective conveying my interest in demonstrating there are things we can do on a bipartisan basis. There is a robust role of congress. Im not afraid of those conversations. I would be happy to build those with you and others. Ms. Fischbach is recognized. First of all, ambassador id like to say the congresswoman cn brought up the Canadian Border. The entire northern part and so that issue is very important to me. I appreciate the update. I wont make you give it again, but i also did want to just thank you for pressing mexico as it relates to the scientific than of the gmo corn imports. I do want to savor the record that while consultations can be helpful, i fail to see an obvious reason for delaying the resolution process that youve already used effectively for the canadian dairy issue. I firmly believe it is time to utilize this and do so as soon as possible because i think it has been mentioned a couple of times. While i appreciate the work on the enforcement aside, i want to address something more broad and consequential. I was reading through the written testimony and saw a lot of words like framework, arrangement and an initiative but i failed to see a single mention of the ustr pursuing the word agreement. My district in western minnesota is a top agricultural producing region in the country and at the rural economies in my district depend on those products being exported to markets across the world. Between a quarter and a half of everything we produce in minnesota is headed overseas. This lack of ambition pursuing new agreements particularly for the agate exports is putting farmers in my district at a disadvantage. For the first time the u. S. Is set to be a net importer of agricultural goods. I urge you to be more aggressive in pursuing new export opportunities for farmers in my district and across the country. Getting a little bit more specific, i hear often about nontariff trade barriers that the trading partners used to block producers in my district to export into their markets. For example, the eus use of geographic indicators to monopolize generic cheese names or taiwans various pork exports. Resolutions of these issues certainly wont promise the benefit of the full trade agreements that will help correct the current trade imbalance we are seeing in agriculture. What are you and your team doing to address these and other issues of nonTariff Barriers blocking access to u. S. Agricultural goods . Thank you for this question. We are doing a lot. I have an a agricultural trade team and just had my chief agricultural negotiator controlled december 202nd we swear him and in the first week of january he hit the ground running and it is exactly the force amplifier that we needed on top of the head of the office and very dedicated team. We are nontariff trade barriers we have good region to usda. We pursue those with the specific country when they come up. Im delighted to let you know that there are a number of wins that we have over the course of the last two years. The producers and also growers. The science based and riskbased negotiations that we are doing right now in the indo pacific context and others arent exactly key to that aspect of the nonTariff Barriers that a lot of the Agricultural Producers face, and we are also working very robustly for example the East African Community issue at their first joint notification that we welcomed. We have planes with ecuador when they declined to implement the ban on the powdered milk imports and at the wto as well. My team again as a part of the robust geneva work that often goes unsung very robustly engaged on issues and other focus on the agricultural sector. Ambassador, i appreciate your response but i do want to reiterate the need for the more aggressive stance when it comes to preserving new agreements and more Market Access for the agricultural goods. Its so important to the economy all across the country and i look forward to working with you on it and after that i will yield back. The gentleman from utah. Thank you chairman, Ranking Member, ambassador tai for being here. I think youve seen that almost every question from the district angle as well as the overarching u. S. Angle those are special opportunities for us as representatives to be able to focus on, and im no different. You taught us a very unique crossroads position in the western United States within the mountain region, various opportunities for us to lead on trade and individuals like the former governor and ambassador to china. Youve talked about the overall of the refunding authorization of gsp is usually important and for so many reasons. There is an enforcement mechanism that exists. Theres a competitive nature to china that is essential in my opinion. Can you please share a little bit, Great Success since 2018 the sheriff imports fell from over 90 to less than 15 that provided among the countries comes with the Program Works and we are seeing good data come from it that expires at the end of 2020 they and hundreds across have felt the pain and u. S. Importers have paid close to 2 billion in the tariffs on the eligible imports. Expired in 2020. Im new to the committee. It wasnt reauthorized last year. You expressed support for it, theres broad bipartisan support. Can you highlight some positives that can come from this and context on what they need to think through the potential reauthorization . The more i think of the governor huntsmans many titles he was also a deputy u. S. Trade representative and a good friend, so in terms of the case i think youve laid out a very strong case. I would also say that its one of our bed rock Training Development programs into something that our developing Country Trading partners have come to rely on. So that might be one additional dynamic that wasnt already listed and what i thought was a very robust and good list of reasons for having the gsp program in place. And again in terms of my commentary, i think if congress can update it it is a helpful tool for all of us in many different ways. There are things that would be a barrier to the administration and ustr being supportive of this. I think that if they are not already in conversation they have been over the last two years. We will continue to stand ready to work with all of you. From the wto National Security challenge by china to the u. S. Export controls on semi conductors and multiple other rulings against of the United States, wto has no authorities in the matters of National Security and members of the committee stand firmly behind the ustr rejections. Can you update the committee on any more context on how you are thinking about this and other disputes to the National Security . I think congressman bier mentioned a little bit feeling like ive send mixed messages. Government and their Sovereign Authority shouldnt be subject to wto panels taking them apart from the trait perspective, and at the same time before the reform of the wto including its dispute settlement systems, so again i want to credit my wto ambassador for carrying the flag. While leaning into the Reform Program on how to make the wto work better for us and for all of its membership. We have to be firm and strong on this particularly with respect to china. So that it doesnt end up in the hands of our adversaries and that is cleared of who those adversaries are. Thank you and i yield back. Mr. Evans is recognized. Good to see you. I commend you and of the administration for making this essential element of the trade agreement. I applaud you for the leadership in the Biden Administration. I really only had one comment about the ethical nations and my focus is to expand the collection i share with you that we are willing to work anywhere we can. Thank you for all that you do. I yield back, mr. Chairman. Thank you, ambassador. Trade is a highly important for my home state of california. Weve exported over 185 billion worth of goods in 2022. One area of concern is for the agricultural experts. Weve been hearing this all day. The ustr must continue to protect our farmers and agricultural industry, and i know youve been answering this and know how hard you are working so please continue to fight against it. There are two major trade agreements that the ccp controls china in the regional cooperation, Economic Partnerships and at the pre trade agreement. Currently the United States is not part of either agreement. When the United States leaves we get a strong bipartisan freetrade agreement that can outlast us all. For the trade and economic influences around the world and in the Pacific Region if we are on the sidelines and how can we counter the influence without trade deals that require congressional approval . Thank you for all those comments, congresswoman. On the trade agreements in the asiaPacific Regions, we know how deeply entangled the supply chains are and we know that our partners there want us engaged in the region and not to force them to choose between two of the largest trading partners and to provide them with a choice. So we are engaged. At that is the indo Pacific Economic framework and in terms of how do we compete, i would say this i think a large part of how we compete with the second largest economy in the world is by putting forth a vision and following through on how the United States is a good partner and what we stand for and what our principles are and the kind of engagement that we have that we provide each other all with more choices not to further restrict or make vulnerable our partners economies and that is informing all of our work in this area. The other part of the congressional involvement i would say that there has been a lot that has happened in the congress in the past five to eight years on trade. Some of those things go to show how difficult it can be to get a bipartisan consensus around here but there is a strong narrative around where we have succeeded in accomplishing that a bipartisan consensus most recently on the u. S. Mca. So i appreciate the opportunity that you have given me to reinforce that and ustr on behalf of the Biden Administration. Its split us from each other and we are absolutely see ourselves as a country that leads economically as well and that the core of the leadership is around that affirmative vision. If i may ask a quick question on the indo pacific framework taiwan is one of the really big trade partners for the United States, but taiwan was not included and at the same time i think everybody asked to hear what is the progress here. That way that ive been reading and studying, can you give a quick answer for that . I would be delighted to and 19 will followup as well. We just published the summaries of the proposals that we made to taiwan in the first round of negotiations which was about six weeks ago and want to let you know we made very Good Progress and so we are looking forward to coming back to you with an update very soon. Thank you very much. I yield back. Thank you very much i would like to start out by saying i do not envy your job. As you know very well, the trade agenda is important for the strength around the world and yet this administration does not seem to have an agenda and i appreciate your response to congressman murphy but its not just congressman murphy by the way whos shown sympathy for the position. Weve been talking with trade partners around the globe and they have all praised your skills but also said they feel bad because they feel that youve been sidelined by this administration and that you would want to be more aggressive in making these agreements but you are prevented from doing that. This is on the heels of incredible activities by the government and encroaching on the rights of private and more specific u. S. Businesses. The state owned Mexican Company didnt like the terms of the Contract Negotiation there was a court order and it seems the government has done nothing. Our administration has done nothing responsive to that abuse. As you know the trade relationship between texas and mexico is so critical but actions like this are detrimental. I appreciate you saying you are going to be a strong voice and when you speak, people listen and that you are standing up for the United States. Where are you in mexico . The livelihood is being threatened because the president is falsely attacking them and the quality and Safety Standards of the parties which is a direct violation of the u. S. Mca. Are you standing for the u. S. Businesses who are encouraged to invest in mexico with the belief that this would permit the much needed help and much needed jobs and security to the people of mexico but instead of the companies have been abused and lied to by the Mexican Government with little or no response from this administration who is charged with enforcing the trade agreements. I would love to know your response to the claims that while mexico is clearly not abiding by the terms of the u. S. Mca it is the u. S. Is full because we are, quote, misinterpreting the conditions of the contract. And i would love to also know are you standing up for the u. S. While mexico is partnering with china and the mexican drug cartels were being empowered and enriched to bring thousands of pounds of drugs fentanyl specifically into the country that is targeting the youth in murdering over 100,000 american lives all the while making hundreds of millions of dollars, where is your voice and that . Thank you for the opportunity to weigh in. Yes, we know the company very well and we have been in close touch with them and the members of Congress Whose districts and states are affected and deeply invested in the success. So, here i would say that we are in very good touch with im glad to hear that [inaudible] thank you. I appreciate knowing that you are in touch with them. But you ask if we are standing up for them. I would like to be able to get an answer because i have one minute and five seconds left. Extending the global influence in partnerships as opposed to the intervention specifically with china with trade relations to achieve these results. Does china use slave labor, yes or no question. Do you want me to answer this one . I think you already know the answers so im happy for you to continue. Im asking you. You are a witness. It does china use slave labor . Our indications are yes. Are they benefiting from forced slave labor . All indications are yes. Do you recognize the genocide being committed in china . All indications are yes that is happening. So how many plans are trying to build each week . I dont know the answer and that is that a yes or no question [inaudible] why is china not subject to the same constraints that the u. S. Is in the paris climate accords . Which constraints are those . I yield back my time. Thank you very much. Mr. Panetta is recognized. Madame ambassador, thank you for being here, and its great to see you having grown into this role tremendously. Especially considering how busy youve been. Obviously looking abroad at u. S. Mca enforcement, but also looking forward with our industrial policy at home and how its been fueled by incentives for electric vehicles and clean energy and a supercharger investment in the United States which will inevitably spill over into the regional trading partners canada and mexico. Using trade through the strategic advantage especially when we compete with china because i think we know the u. S. Has the biggest and most innovative companies. Mexico has a very wide and inexpensive labor pole and canada has many Natural Resources and ive read this and i believe this where north america goes, the world will follow. I think to do that, we have to pull in the same direction. I was on that trip to mexico and i have to tell you i was a little disturbed by some of the comments by the president of mexico but more so by his recent actions, the populist and National President has proven that he may be in our boat but he may not be rowing in the same direction. Hes taken steps to weaken the agency. He is occupying the property of the materials in mexico. My question what actions and assurances can the United States trade representatives provide to my companies and district that they are safe and secure . We will do everything we can using the tools and tools that are outside of the u. S. Mca and to secure a positive investment environment to mexico. At the end of the day we do have to recognize mexico is a sovereign nation and the leaders have the right to make decisions that we see are not in their best interest but you are absolutely correct about the nature of the relationship that we have with mexico. We are committed to using the powers of persuasion or whether they are tools of enforcement to make sure that we are going in the same direction. Since the fall of the soviet union, because exxon has been subject to this requirement that has been lifted for other soviet states including russia. Bringing kazakhstan up with outdated requirements will ring it closer to the western world. I think that is clear and out of russia and chinas sphere of influence. What is your position on that . In the jurisdiction of the congress mr. Panetta it means a lot to me to know that you are supportive and i would be interested to know working with you and others how they work on the pnt are in kazakhstan. Thank you for working together. Would you support reinstating gsp for ecuador . Im interested in working with all of you as you work on the reauthorization. Thank you. I yield back. The gentleman from ohio is recognized. It is a pleasure to speak with you. So many of the questions get asked. My dear friend to the left asked what i was going to ask about ecuador, but just a little bit. I grew up in the 1980s and grew up in a very rural town. As i represent agriculture, so i do support and applaud you on the work that you are doing as my colleague to the left mentioned our meeting with the mexican president was very interesting to say the least. I saw so many of the factories close down and i was almost going to quote the old billy joel song allentown. Looking at the trade policies we want to sing from the same hymnal we just have to make sure we are singing from the same page. We look at rare earth materials. Theres nothing about rare earth. Its just rare that we can get a permit for a lot of these materials and also get the financing to develop them. Second, as we do this to the renewable energy, we have to be cognizant of the fact for developing lithium if anybody has google or youtube day video. As we move to this economy weve got to be cognizant of that. Im going to diverge quick because i have a question i want you to answer and give as much time as you can. Some have been reported to me is avoiding by selling directly to American Consumers under demint ms. Its estimated the u. S. Imported about 128 billion in shipments last year. This treatment that gives foreign ecommerce commitment a leg up on many of the retailers. We are paying millions in tariffs for the same products however if a balancing act of trying to level the Playing Field without costs obviously to American Consumers during the inflationary times. Regarding the Foreign Trade zones like the ones that i have in my district in central ohio, and it definitely impacts my district, do you think the u. S. Should level the Playing Field for domestic manufacturers by enduring demint ms applied to shipments for the u. S. Foreign trade zones . I think i agree with everything you laid out in your entire presentation. Let me come to your specific question on leveling the Playing Field for american producers, and im sorry i think at this point in the hearing the specific proposal was by applying. Let me just say this. I understand why when i was appear be expanded and i think that the way its operated has raised legitimate questions around whether or not there are loopholes and exploitation and abuse other than how it was intended so im interested in leveling the Playing Field and i would be interested in following up with you to look at the specific proposal. If you would i would very much appreciate that. Also again following up on my colleague to the left we had an opportunity and i will tell you the chairman and the Ranking Member i think have done a great job of trying to get out and talking to real people with our field hearings and the trade trip that we just did and we got to hear from many different countries. They are eager for American Leadership around the world and its important that this Committee Work in a bipartisan way that we have in the past to make sure that again we are all singing from the same page and a same hymnal. Mr. Fitzpatrick is recognized. Thank you for being here you end of the administration had begun negotiations with the eu. The freetrade agreement they are not Free Trade Agreements only congress can pass ftas. I asked to secretary yellen if she was aware both japan and germany what to tell semi conductors from automakers in favor of their own automakers. I also pointed out the extensive use of barriers that make it almost impossible for the u. S. To export autos to japan. The 2. 5 tariff on the european auto imports into our country. Perhaps most importantly we are unaware china itself is the biggest supplier of the technology and production to both japan and the eu which means allowing them to take advantage of the risk benefits benefiting china. In my estimation it will be impacted by the administrations to circumvent the requirements enacted by congress, so i have a few questions. First, and i know im not alone in this. What if anything america is getting out of these negotiations. Do you believe that the u. S. Automakers receive tariff relief and a better Market Access or are the negotiations a feelgood exercise . You raised legitimate questions and concerns regarding the Bigger Picture where we are and also where we are trying to get to which is to be in a stronger position especially in this industry. On the specific types of benefits you are talking about those are not things that we will see in the type of things we are negotiating right now. But what i would like to say is what i do feel strongly about is the European Union, japan being important allies in building towards more secure supply chains these are some of our strongest partners if we are doing that work. The main concern is given how integrated chinese materials are specifically the battery components from these countries. What are we doing, what is the administrations plan to ensure these entities controlled by the ccp that supply european and japanese battery makers dont benefit from this . Part of the issue that we have and given where we are which is not an ideal place and where we want to go, there is no switch that we can flip to get from where we are to where we want to go so in a number of areas we confront this all the time and how we are thinking about the u. S. China trade relationship. Its how we envision a transition from where we are today to where we try to get to that can be effective and that will work given all of the needs of our industries where we are. So i think that is my latest way best wayof responding to your qn what we need to do to figure out the things we are doing right now as step one and a longer transition that will take probably more mediumterm timeframe to successfully complete. Thank you for your testimony taking all the questions. We look forward to partnering with you and working in a bipartisan fashion to make sure that we address our supply chains and of course the aggression of china appreciate you being here and look forward to working with you. Please be advised members have two weeks to submit written questions to be answered later in writing. Those questions and your answers will be made a part of the record and with that, the committee stands adjourned. [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations]