Senator Braun, Colleagues Voice Concerns With USICA Bill, Recommend Changes

Yesterday, Senator Mike Braun, Senator Kevin Cramer, Senator Dan Sullivan, Senator Rick Scott, and Senator Marco Rubio sent a letter to the Senate Conference Committee members appointed to reach an agreement related to H.R. 4521, the United States Innovation and Competition Act, outlining their concerns with provisions in the bill that would strip away tools for competing with China, and proposing changes to incentivize domestic investment.

“We write to reiterate that the economic competition with China is the single most important geo-political issue facing the United States,” the Senators note in their letter. “We remain deeply concerned that several provisions germane to the conference would substantially weaken the ability of the United States to combat malicious Chinese economic influence.”

The Senators’ primary concern is Section 73001 of the Senate-passed USICA bill. Section 73001 “amends the Trade Act of 1974 to create a rigid exclusion process under Section 301 which we fear would eliminate it as a tool to combat unfair and malicious Chinese trade practices.”

The Senators note that President Trump relied on Section 301 to exert economic pressure on the Chinese Communist Party, arguing:

“Section 73001, if passed, would neuter these authorities by creating a statutory exclusion process so broad that USTR would be incapable of implementing an effective strategy. The provision requires USTR to conduct a detailed analysis of each exclusion request and, for exclusions that it intends to deny, requires USTR to demonstrate both that the tariffs do not impact the internal finances of a business unit, and do not create an anticompetitive market structure. This burden is nearly impossible for USTR to meet. Any request for which USTR cannot analyze in 90-days, or provide for a 120-day extension, would be automatically granted.”

Under this provision, Washington lobbyists and special interests could nearly guarantee an exclusion for any client by overwhelming USTR with exclusion requests, rendering it impossible for the agency to conduct a thorough review within the 90-day window.

Other provisions the senators note their concern with include a forced labor provision that may in fact complicate enforcement of the U.S.’s existing ban on imported goods produced with forced labor.

In addition to these concerns, the letter endorses four provisions in the House-passed version of USICA, including:

· Leveling the Playing Field 2.0,

· Sec. 104001. National Critical Capabilities Reviews,

· Section 103002: Additional Exceptions to De-Minimis Treatment,

· Sec. 106002. Limitation on Duty Suspensions or Reductions for Finished Goods.

The Senators conclude:

“In order to best represent American workers from the dire economic threat of malicious CCP influence, we respectfully request you support these recommended changes in the conferenced bill.”