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tv   U.S. Trade Representative on China Russia Trade Policy  CSPAN  May 9, 2022 2:02pm-4:37pm EDT

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u.s. trade representative, katherine tai, testified at the biden administration's trade policies with russia and china. the senate finance committee hearing is a little over two and a half hours. >> committee will come to
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order. today, we are focused on russia and china because those are the big national security and economic developments in our world. there are governments, russia and china, are united and putting a barriers to american values in our products. since putin launched his invasion of ukraine, the united states and our allies have hit russia, putin and the oligarchs with the most powerful sanctions in history. it's not just about inking away super yachts and private jets. putin is now the head of a pariah state. the senate and my colleagues and -- the ranking member are working very hard to formerly designate
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rushes as a pariah stable revoking permanent normal trade relations. our country is showing russia that taking this abusive totalitarian road is a bad bet. the united states our allies must prove the same to china. china's government is a human's rights abusing jobs and tech stealing behemoth. in the government has had -- economic superpower. one of my top concerns about the chinese government's economic model is censorship. when the internet took off, americas innovators were first out of the gate with big ideas. the chinese government responded by using great fire wall to block those companies and allow chinese firms to rip off their ideas. even worse, chinese tech comes with chinese censorship. and china sensors the american people and our businesses as well. the china model of censorship
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is now popping up all over the world. it fractures the internet and it certainly is something we see in russia where the people are being fed lies about what's going on in the ukraine. the united states has to stand up to this kind of censorship and u.s. tr has a big role in fighting for a free and open internet through smart digital trade policies. the chinese government obviously wants to dominate the technologies that will dominate the rest of the 24 century. such as semiconductors, ev batteries and artificial intelligence. it continues its horrendous record of abusing human rights and trampling on workers. again, this is where u.s. tr comes in. u.s. tr has responsibility to take on china's anti competitive and anti-freedom practices and we are going to
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be working closely with them as they do. the eu know states are allies recently shown with russian sanctions that our collective economic power is certainly anything but soft. a big reason why the united states was able to marshals such strength was because the biden administration and the u.s. tr has worked to mend our relationships in europe. the united states has wrapped of significant winds that always are important but don't seem to get a lot of discussion. u.s. here are finally brokered a deal in an aircraft trade dispute with the eu and the uk that had been unresolved for nearly two decades. u.s. tr and the commerce department reached deals with the eu, the uk, japan on steel and aluminum. and will help us remove existing tariffs, bring down prices for americans and fight carbon emissions. before resolving these disputes, american firms have been in the
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cross fire with tariffs on everything from airplanes to cranberries to line. eu tariffs on distilled spirits endangered or -- thriving craft beverage industry. ambassadors tie, ambassador ties work in the eliminated significant tariff threats and helped ensure -- that americans will grow good paying jobs and exports last week u.s. tr persuaded japan to allow more u.s. beat at lower tariff levels. that is big news for rangers. in a new agreement with the eu, american fissures are exporting live oysters and clams and mussels to europe for the first time in a decade. resolving these issues brings the u.s. and our traditional economic allies closer together. finally, the committee held a hearing on the indo-pacific economic framework this is another opportunity to strengthen our economic ties and marginalize the russia china model. the indo-pacific effort is
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especially important to folks in our part of the world, pacific northwest. because the pacific northwest in our country is the gateway to the pacific. a good agreement will build overseas barriers to organ products from columbia encourage paris to allow a beef. reducing barriers means better market access for farmers and manufacturers. this is so important in our state where the trade related jobs as you and i have talked about, ambassador thai, pay better than the non trade jobs because there can be a higher value added compound. it's also an important opportunity to raise standards for labor rights, environmental protections and a free and open internet. and i'm going to close with one last point that is especially important. to senator craig boone and i. this is a positive development and with respect to transparency in government. ambassador tai has made it clear to us that there are going to be new transparency
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and consultation efforts to make sure that there is a broader debate about how to get more american workers and small businesses in the winners circle. ambassador, thank you for joining us. our friend, senator crepe. >> thank you mister chairman and welcome ambassador tai. i agree with the concerns and issues that senator wyden raised and the progress that he has identified. but i'm going to issue kind of a strong statement today. on your drive here, ambassador tai, you probably passed excretion engraved on the national archives that says past's prologues. and enduring piece of the past wisdom is president reagan's 1980 to address the nation international free trade. which was founded on his personal commitment to free market principles, both at home and abroad. he explained that as americans we must insist on sound domestic policies at home that bring down inflation, provide
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opportunity for free world countries to go forward in sustain the drive to work more open markets. such as the meeting he organize in geneva that eventually led to the creation of the world trade organization. and most importantly, negotiate. particularly, for free trade agreements. like the united states first to free trade agreements with israel in canada that were led by president reagan's administration. president reagan's policies help to break inflation and restore american leadership on trade. but it seems president biden's trade policy takes the opposite stance. at a time when inflation has soared to 7.9%, president biden says he will not pursue trade agreements until his domestic agenda is complete. if ever enacted, this reckless spending agenda would not only make inflation worse, it would undercut u.s. leadership on trade by promoting a china
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style industrial policy. proposed electric vehicle provisions, for example, will discriminate against 48 of the 50 models available for sale in the united states. it is no wonder why 25 foreign ambassadors told congress these provisions breached our international trade obligations. i'm disappointed that the administration continues to pursue this agenda. instead of focusing on negotiations for new trade agreements. this is a shame because the biden administration knows better. it's 2022 trade agenda opens on the very point, and i quote, the biden administration recognizes that trade can and should be a force for good. absolutely. my home state of idaho is proof positive of that proposition. in 2019, international trade supported over 200,000 jobs in idaho. we are almost 20% of the states
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employment. trade liberalization also saves the average idaho family of four more than $10,000 per year. the problem here is that president biden's recognition of trades overall importance is not matched by an agenda that contains the requisite ambition to succeed. there is not a single free trade agreement under consideration. in this agenda. free trade agreements open opportunity. we have seen over and over in the past really is prologue. idaho's dairy exports to korea increased by more than 250% since our free trade agreement entered into force in 2012. but in lieu of trade agreements, this administration is proposing dialogues in frameworks including the new indo-pacific economic framework or i puff. ipef maybe a positive first steps to engagement in asia but it is no substitute for comprehensive trade agreements. the center for strategic
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international studies will soon release its upcoming analysis on ipef. based on conversations with over a dozen governments in the indo-pacific. two points from its analysis are instructive. first, u.s. engagement is welcome in the indo-pacific. one diplomat stress in particular that his country wants the united states to lay out an affirmative economic strategy that complements its security presence in the region. second, our partners see the ipef as a proposal with many u.s. asks, few u.s. offers in a variety of credible regional alternatives to the framework that could provide more tangible benefits. if the u.s. is to meet and exceed china's challenge, the in u.s. must make stronger commitments than china. regrettably, if the administration's negotiating ambitions are low, it's consultations with congress on the few negotiations actually
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taking place is even lower. and last year's trade agenda hearing, ambassador tai, you stated that he would brief this committee before and after each negotiating session with respect to a waiver of the wto trips agreement. that hasn't happened. u.s. dr recently issued a press release confirming it had reached a compromise outcome on the trips waiver in discussions with south africa, india and the european union. u.s. tr refuses to share the text of that i'll come with this committee. while members may have different views on the merits of this waiver, every member here should agree with me that the administration cannot withhold documents concerning u.s. rights under a congressionally approved trade agreement. we need to see the document and we need to ask questions because that is what respect for the constitution requires. there are serious questions to be asked. for example, last week, south africa and india joined with russia and china to establish
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the b r i ces bricks are indecent or on vaccine cooperation. congress should know whether the text permits south africa and india to share insights on u.s. intellectual property with russia and china. u.s. tiaras transparency with the public is also poor. the american innovators who developed the vaccines provided plenty of evidence on why a waiver is a necessary. including that 20 billion doses will be produced this year. more than enough to achieve the world health organization's vaccination target. the administration, however, has not shared with the public any avoidance as to why a waiver will get shots into the arms any faster. i'm disappointed about negotiations and congressional consultation but i also have concerns about enforcement. americans need to compete on a level playing field and i appreciate the administration's prosecution of two usmca labor disputes. under the brown white and mechanism.
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yet much more can be done. with respect to the usmca, agricultural market challenges remain. mexico continues to restrict potatoes and delay approval of biotech crops. discriminatory practices targeting our technology companies are also increasing. rather than launch cases, the administration appears to be in retreat. for example, the trade agenda highlights that u.s. tr reached agreements to terminate our section 301 investigations against various countries over discriminatory digital service taxes. let's be very clear about what this means. those countries are going to continue imposing discriminatory taxes on u.s. firms. they may give a credit one day but only if congress approves the biden administration's international tax deal. the biden administration's blessing foreign governments which discriminate against americans as long as congress refuses to go along with this plan to seek --
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revenue to foreign competitors. let me close with where i started. past being prologue. history proves that americans do not fear competition. but rise to it. and now is the time to seize on that history and go further on trade, not shrink from it. thank you, mister chairman. >> thank you senator crapo i know will be working closely together on many of these issues. ambassador, welcome. please proceed. >> thank you chairman wyden, ranking member crapo and members of this committee. i appreciate the opportunity to be here today. to discuss the presidents trade agenda. president biden believes that trade can be a force for good. that grows the middle class and addresses inequality and he believes we are at our strongest when we work with others around the world. over the last year, in coordination with my colleagues across the biden administration, we have work to repair strained relationships and re-committed the united states of the world's institutions.
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these partnerships have led to the negative response to russia's unjustified attack on ukraine. turning specifically to our work at u.s. tr, our agenda begins with putting workers at the center of our trade policy. when we defend the rights of workers at home and abroad, labor standards go up and we drive that race to the top. farmers, ranchers, fishers and food manufacturers are key to our trade agenda. and we have delivered real economic lee meaningful winds for them. the 2:32 tariff or insurance and large civil aircraft frameworks with the eu and uk lifted retaliatory tariffs on billions of dollars of u.s. agricultural exports. the agreement with japan will allow our exporters to meet japan's growing beef demand. we regained access to the eu for our shellfish industry and we've open access to u.s. pork exports to india. we are also realizing the u.s. china trade relationship.
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we launched a conversation with the prc about its phase one purchase commitments shortfalls and broader non market practices. those discussions have been unduly difficult and it is time for us to turn the page on the old playbook. that starts with developing a new domestic tools and making strategic investments to maintain our global competitive edge. we have made progress on this effort through the american rescue plan, the administration's focus on supply chain resilience and the bipartisan infrastructure law. passing the bipartisan innovation act will build on this significant progress. we have renewed our engagement with partners and allies and our developing innovative arrangements that strengthen our resilience and address the china challenge. for example, the global arrangement we are negotiating with the eu will be the world's first sectoral arrangement on steel and aluminum trade to
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tackle both emissions and non market access capacity. beyond this corporation, we have deepen our engagement with key trading partners through other avenues. we launched the u.s. eu trade and technology council to promote shared economic growth. we relaunched the united states india trade policy forum to enhance our bilateral relationship. and we hosted the first dialogue on the future of atlantic trade in baltimore last week with the united kingdom. we will meet again in scotland next month to consider what's concrete economically meaningful steps we can take to deepen our trade relationship. we are also committed to intensifying economic engagement in the indo-pacific. u.s. tr will lead efforts to craft a trade arrangement with our indo-pacific partners that includes high standard labor commitments environmental sustainability, the digital economy, sustainable food systems and science based our cultural regulation, good
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regulatory practices and trade facilitation. on the multilateral front the biden administration has continued efforts to make the wto a force for good. we are working towards an intellectual property outcome to help and the pandemic. we are working to engage with ability of members to get safe and effective vaccines to as many people as possible and we are committed to bringing reform to the organization. the biden administration also knows that enforcement is key to trade policy delivering on its promises we have used the usmca rapid response mechanism twice to defend workers rights in mexico. which helps workers here by driving a race to the top. we pursue dispute settlement with canada to institute -- u.s. dairy farmers are treated fairly. we also initiated environmental consultations with mexico to prevent unreported and
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unregulated fishing. a final, important part of our trade agenda is promoting trade policy that is equitable, inclusive and durable. and the presidents trade agenda includes objectives to advance racial and gender equity. we will continue to pair these values with sustained stakeholder engagement. i want to close with one final point. congress is our constitutional partner on trade and collaboration is critical to our agenda and america success. in an increasingly complicated world, i am more confident than ever that we can walk, chew gum and play chess with the same time. i look forward to continue this work in the year ahead with you. thank you, and i look forward to answering your question. >> ambassador, thank you very much. appreciate your being here. let me start by focusing on what you said in your trade agenda. with respect to environmental issues being front and center. you highlighted your goals,
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promoting sustainability, addressing carbon emissions and enforcing the environmental commitments in trade agreements. so i want to focus on a concern that hits on all of these issues. mexico is a key partner in the usmca and it sure looks to me like they are slamming the brakes on renewable energy reform. in recent years, mexico made substantial efforts to modernize green electricity market. it gave the greenlight to foreign investment. and they open their market particularly to innovative american providers of renewable electricity. but as i just indicated, now it looks like they are in retreat. and they're considering laws the country market power and regulatory authority in the hands of the state owned electric company. that result will mean a bigger focus on fossil fuels with a
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limited opportunities for clean energy providers. so, mexico's new reforms are a one-two punch against environmental progress in america. not only are they a setback in the fight against the climate crisis, but they are denying american companies, companies in the pacific northwest for example a fair shake in the mexican market. and my view is, what mexico is doing now, looks to me like it's running opposite from the promises mexico made in the usmca. so, ambassador, as we've talked about the united states needs to make sure that every chapter of the usmca is fully implemented and pays off for american workers and businesses. and a cleaner climate in the americas. that's what was pursued in usmca. what are you doing to address mexico's actions in the energy market that i've described?
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>> chairman wyden, thank you for asking this very important question. let me begin by affirming my agreement with you and my commitment that the usmca must be in force and implemented across all of a shelters. and we will be, that is in organizing principle of our work. i am also deeply concerned with the legislative and regulatory developments in the mexican energy industry that we have seen in recent months. my team and i at u.s. tr along with much of the u.s. government have expressed these concerns regularly and directly to our counterparts in the mexican government. just last week, i convened a roundtable with members of congress and members of our environmental organization community. from our energy industry that includes renewable energy companies as well as more traditional energy companies. and the testimony are heard from them was powerful. they have been unified in
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expressing concerns with what is happening in mexico. specifically with respect to the competitiveness of the north american energy market as well as the competitiveness of mexico's own energy industry. i have informed mexico, and i assure you that we at ustr are looking at all available options under the usmca to address these issues. so that the usmca can work for our stakeholders and protect our environment across all three countries. >> will want to work very closely with them because it seems to me that mexico on one area after another as it relates to greener energy and the challenge of environmental reform, is walking back what they pledged in usmca. and we can't sit by and by that. let me ask you one other question. -- deals with russia and china and
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the challenge of today. we all remember the searing image of the opening ceremony of the olympics president xi and president putin standing there together. asserting their friendship has quote, no limits. obviously, she was flexing his power to expand his authoritarian orbit and basically kind of thumbing his nose at the american led international order. and that was before putin's brutal invasion of ukraine. so how are you working with our allies to ensure that when the united states confronts china's anti competitive behavior and theft of homegrown innovation, it's got the allies on board? >> well, chairman wyden, let me begin by saying that working with our allies is a key component of the biden administration's approach to a smart and more effective strategy towards china. and this is been the case since day one of this administration. i have invested a lot of time
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personally as have my colleagues in the cabinet, to rebuild relationships and trust that we're at the beginning of our administration, badly damaged. this has involved finding creative, sometimes unconventional, but ultimately affective solutions to long-standing problems and irritations that we have had with our strongest partners and allies. like, for example the wto aircraft is fused or the steel women tariffs. we've also worked to establish new corporate mechanisms like the u.s. eu trade council as well as frameworks and dialogues so that we can focus with our allies on effectively addressing the mess of distortions being caused by other economies like china but frankly in more recent weeks like the challenges that we are facing with precious invasion of ukraine. as i have mentioned, it is high time for us to turn the page on the old playbook with respect
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to china. that old playbook had us focus exclusively on -- china's behavior. we must now expand our work to include a strategy vigorously defend our values and economic interests. >> senator crapo. >> thank you, i want to talk -- with regard to the issue thunder wyden raised, namely the enforcement of our -- usmca agreement. you've indicated and senator wyden pointed out that on the environmental and labor front, you are actively pursuing efforts to try to enforce the agreement. [inaudible] try to enforce the market access parts of agreement. i want to focus my question specifically on potatoes. over the -- over a year ago, both you and i were in mexico. and both you and i raised the potato issue. and both you and i got a response from the mexican government that they were going to resolve it. the mexican supreme court even
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is brewing in our favor on this issue. yet i don't see any enforcement action against mexico on usmca with regard to potato access. could you respond to that? >> mr. crapo, i know how important the potatoes are to you and you know how much i love potatoes. with respect to usmca enforcement, again, let me reiterate. my commitment to enforcing all aspects and market access. i want to also raise the dairy case that we have -- >> exactly. >> and potatoes in particular. i just spoke to usda signatory will sack last night about this issue. we have not given up hope even though we haven't taken two subs forward and one step backwards for many months now. i just want to let you know how high on our radar this is and how focused we are on trying to secure a win here until you know that all options are on the table if we are not able to secure that win. >> thank you, i appreciate that.
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with regard to the ipef, the administration's very clear that ipef will not include market access initiatives. given that the administration wants to raise our trading partners labor and environmental standards throughout ipef, with which i don't disagree, why take the carrot of market access off the table? >> so i appreciate the suffering in these dark little bit more about the approach that we are contemplating and consulting with all of you on with respect to the indo-pacific economic framework. it is true that market access, strictly speaking as a tray terminology, is not on the table at this time in the framework. but i want to distinguish between what we mean by market access in trade vocabulary versus market access in ordinary english. market access as we talk about it in trade discussions and negotiations typically means tariff liberalization. and that is true, we are not starting's conversations with terrible-ization. in large part because our
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traditional trade models and traditional ftas have led us to a place where we are facing a considerable backlash that we are listening to from our own people about concerns regarding the offshoring and outsourcing of american jobs and opportunities through these types of arrangements. that does not mean, however, that we are not bringing an economic engagement to this region. that does not have economically meaningful outcomes. so in the sense of market access in ordinary english, which is to enhance our access to each of those markets, that is very much a part of what we are doing. in terms of the high labor and environment standards, i really want to thank you for affirming your commitment to the standards in u.s. trade policy practice. because that is exactly the kind of practice that we want to bring to our trading partners in order to counteract
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those forces that have tended to plead out our industries to other regions. we would like to use trade to race standards around the world to re-standards the standards that we have here so that we can all enjoy the kinds of lives in opportunities that we would like. -- >> as i said, i agree with that. but i define market access as free trade agreements. in i just don't see why we cannot engage in developing -- we've got nations in the indo-pacific who are crying out for free trade negotiations with us. so that they can strengthen the relationship to us economically rather than being tied to china. and so i just want to state that i believe that we need to engage on a free trade negotiations in terms of market access and that define market access to some kind of framework or something else. one last quick question. this is regarding our china policy.
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in your opening statement, europe or the china failed to -- phase one agreement. it's easier for the public -- until purchase commitments but it is much harder for the anyone to know where china fell short on the structural commitments. why doesn't the u.s. tr provide this committee with its assessment on which obligations china fail to comply and how do you plan to regress china's failure to meet these commitments? >> well, ranking member crapo, you are right and who's the prince commitments those are the most transparent because everybody has access to the free data. i will be happy to engage with you beyond the public statements that i have already made it with respect to our assessment of china's performance under phase one agreement. one point i would like to make, however, is that with respect to the commitments that china signed up for. there are a number of different kinds, obviously there's the purchase commitments, there are commitments on lost regulations that china had to pass.
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and then overtime, especially with respect to the intellectual property and force transfer commitments. china's compliance is going to need to be measured by the experience of our own industries who are seeking to do business in china. so it is a dynamic picture but i am all for having that conversation with you and others. and believe that we have been having a conversation as well. >> thank you. >> i think my colleague, senator stabenow and senator grassley are involved in the discussion and the order under normal circumstances go to senator cantwell. thank. you >> thank you, mister chairman, and thank you in the ranking member for holding this hearing and ambassador thai thank you for being here. i know your representative of the biden administration. and you reflecting the views of the biden administration. i would just like to say that i or curry with my colleague from the northwest. but particularly my colleague
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from idaho. i don't find where we are and we had a conversation with you around table discussion with members and he said, we're trying to restore the table here with china. so we give you more time. and now, we're here and we're hearing this focus that we're not saying that opening market access and getting rid of tariffs is a priority. and that's what the people in my state want to hear. as a very traitor penn state, they want to know that we are fighting to increase market access. when you think about it, when you think about potatoes, when you think about some of these other products it's more than 70% of the product. it's an x for market. and when you look at the impacts of the 30 and tariffs and how bad apples have been hurt. we want resolutions to these issues. we are not even getting at the exclusion at this point. so it's very hard to look at this equation in this isn't
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specific to the biden administration. i didn't agree with a lot of ministration's approach on this. i don't agree that throwing down tariffs as we did on the solar industry and now we're ten plus years later and we have no resolution of this issue. i don't think that's the path forward. so i wholeheartedly supported enforcement. i got usda are a bunch of money out of the custom agency so you could hire more lawyers and we could beef up u.s. t are so it could go around the globe and do enforcement. and guess what, it's working. i lead the charge are getting more money for capacity building in mexico. something nobody really wants to say, they don't to see that our government is paying to help build capacity in mexico so we can enforce trade agreements. i'll say that. because i believe in trade. so i'm just trying to understand this notion that somehow trade agreements are 20th century tools and that there are, you know, some sort
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of reckless or something we're not going to do anymore. and that, the indo-pacific agreement will not have a mechanism that specifically focused on opening up markets. so my people believe the state of washington doing business, growing crops. want to know always, always, what are we doing to increase market access. that's what they want to know. so i just, i want to understand exactly how this, i hear what you're saying to my colleague here, you're saying well it's kind of on the table. but it's not really on the table. and right now with these tariffs and the impacts in india and other places, there was no place to go, there was no place to go. this whole effort, i blame a lot on the trump administration in their policies. it's easy to throw down, it's easy to throw down around here. and then guess what, do you get any bills done?
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no. so it does take negotiations. so i really want to understand, i'm for the labor rights, and for enforcement, for capacity building. but why can't we before opening market access right now in getting rid of tariffs or at least getting exclusions dame time. >> well, senator cantwell, your views on trade are well known to me and i know that for the city of washington, you are export powerhouse. and i understand your views. let me just clarify some my remarks. we have been opening markets. when we began our administration we began our administration in without described as a tariff rich environment. in the last year, we have either lifted or averted over 20 billion dollars of tariffs just between the u.s. and europe. seven billion of which was applied or going to be applied to agricultural products. so we are, we are opening
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markets. we are also opening markets and other ways in our work with our trading partners through trade and investment for so we went from the cheapie of india. is a more work to do? absolutely, there is. on my comments about free trade agreements being 20th century tools. that really is just a statement of fact. that free trade agreements are something that we did a lot of in the late 19 hundreds, 19 80 to 2010 or 12 or so. there is a place for a free trade agreements in our tool box. but even there, i feel like, our approach a free trade agreement seems to be updated. we need to update our tool box to reflect the realities of today. and that has to do with bringing along all of our economy for the no states in these trade policies so that we can continue to trade. i take very seriously the lessons that we have learned in the past 57 years around trade
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agreements that we have pursued that have been so big and have been so uneven in terms of the wins and losses they're going to deliver for our economy that they have collapse under their own weight. our approach is guided by the principle that we need to be able to trade in a way where we bring along our stakeholders instead of putting them against each other. and so, your stakeholders are absolutely important to me as are the stakeholders of your colleagues on this committee. >> i see my time is expired. i would just say that i don't see these issues as an exclusion to one or the other. and people here have been working to update the tools that we have. i see the difference here as we have a president who has a great global presence. he should be advocating a global economic opportunity for the united states. we're working hard to get a bill to increase our export capacity as it relates to the supply chain that we're going to build here in the united states and build great products. so we're going to do everything that we can but trade changes culture, trade helps us build
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partnerships around the world but my, it's not just us. the biggest economic opportunity for the united states is to sell things outside of the united states. that means you have how market octave you have to have trade. thank you, mister chairman. >> i think my tall economist so much about this subject. and let me see if i can bring the two points together and then we can go quickly on to senator grassley. i am all in, in the fight for market access. and senator cantwell makes important points about why that is so urgent. to folks in the pacific northwest. part of our challenge is to building a modern market access toolbox. and it needs to have all of these tools that we're all talking about and then we work on a bipartisan basis to apply the appropriate tool to the upper resuscitation. so we'll have a lot of conversations about this in the days ahead. certainly my northwest colleagues, no one awful lot
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about trade and we're going to be working together. okay, next is senator grassley. >> thank you, mister chairman. and thank you for coming, and particularly it hasn't always been easy getting people in your position to come and do what the law requires by being here for the sort of oversight things. when you met with us last year, you were just getting started. i'm happy to have you as our trade representative. however, i'm extremely concerned that more than a year into this administration, it seems to me you will probably protests this but the white house has not allowing you to use your talents to be an advocate for free and fair trade. you've probably heard me say that agriculture markets access is a locomotive that drives and each frayed negotiations, i believe this administration is falling behind china and other competitors by not negotiating
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market access to indo-pacific. on top of this, we also see the administration falling behind on confirming very important key trading close. particularly chief agricultural negotiator and even outside of your department, we don't have a undersecretary for trade and foreign affairs and i recall sure. so my first question is, and i've got all the three questions i want to ask you. this may, it could eat up all the time on this question. but for the save some time. could you tell us if you have a strategy to increase market access for u.s. agricultural products? >> yes, senator grassley. and let me just begin with a statement of values that i think our american farmers are some of the most admirable
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americans and hardest workers that i've ever met. market access for our farmers is absolutely important to me and important to our ability to counter trade policy. i work with secretary vilsack extremely closely. i consider him to be an exemplar of leadership at the usda and also a very good personal friend. and so, i want you to know that i care deeply about our farmers and about allowing them to have opportunities to compete and also to diversify their opportunities. >> thank you. we have all seen the suffering from russia's invasion of ukraine. a product of this invasion is disrupting in our green markets. apart from the ukrainians, president biden has said that this innovation will lead to rising food crisis and human
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suffering in the poorest countries. the president also said that the administration has been talking to the eu about ending trade restrictions. the eu has said that they're considering it. what's engagement has your agency had with the eu on issuing an important waiver for biotech crops and will your agency engage with the eu moving forward to enable science-based regulations for biotechnology so farmers in our country and around the world can use biotech to increase production. >> we are continually engaging with our eu counterparts on ad trade issues between the u.s. and eu. including biotech trade. this has been a traditionally difficult area between the united states and european union. i saw that through the course of last year as well.
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working with secretary vilsack. i do believe that the current disruptions to trade created by russia's invasion of ukraine may provide us new opportunities and windows for collaboration with the eu. which we are also seeking to capitalize on. >> while it appears that the eu, might be moving in the right direction along this line, it also appears that mexico is going the other way. it seems like mexico is blatantly violating the commitments made under usmca regarding the treatment of biotech products. what is your strategy to encourage mexico to implement a trans parents, science based risk assessment process for agricultural biotechnology and do you plan to use the usmca to engage with the mexican government and resolve its fremont of agricultural biotechnology? >> this is another area where i
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have been closely coordinating and cooperating with secretary vilsack. and just to get to the bottom line in your question, yes, we are looking at all of our tools some of the usmca and thinking through our strategy. >> in regard to what you said to crepe oh about potatoes, i know that secretary of agriculture is very committed to doing what you want on. senator crapo. thank you, miss chairman. >> thank you senator grassley. next will be senator stabenow. >> thank you mister chairman ranking member. welcome back, we're so glad to have you and it's so appreciate ambassador tie, all of your hard work. thank you for being with us today. i know you, it's a busy week on the hill. i first want to mention, i know that my friends and our grassley have said and maybe others. it's critical we get the chief
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agricultural negotiation -- absolutely importance you. no mark is a critical for agriculture and so we really need to get this across the finish line as possible. please let me know how i can help to be able to make that happen. i also know you've been very focused on a number of fronts including usmca enforcement as well as your ongoing negotiations with china. as well as new challenges we face holding russia accountable for their brutal invasion of ukraine. so a lot of important things to do. let me first serve with the usmca though. and i would thank you for your leadership and your team's leadership. to hold canada accountable for failing to meet their dairy market access commitment under usmca. this is something i worked hard on as part of usmca and congratulations on the first successful dispute settlement panel verdicts.
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you secured earlier this year. it's critical for our dairy farmers in michigan and around the country that we also make sure that canada comes into compliance. it's just absolutely critical and hear concerns all the time that canada is going to continue to play games and their recent proposal allowing them to limit their market access and so we really need to your continued focus in this area. so could he speaks a little bit about your plan for ensuring that candle is up to their original commitments under usmca so that our dairy farmers see the full benefits that were promised. >> senator stabenow, yes, my view on canada's commitment some of the usmca with respect to dairy is that canada promised and increased access to its market for american
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dairy farmers. and until we are able to accomplish that, we will continue to pursue the tools and avenues available to us under usmca. hard tools in soft fools, i have a very collaborative and good relationship with my canadian counterpart. and i have raised these issues mckenna -- but we will not give up until we see the forces realized. >> thank you so much. and of course, coming for michigan, we have wonderful relationships and friendships with our canadian friends. this is an area that is really so important for us. i think you've also been asked about biotech issues and so let me just say, agree with colleagues of biotechnology has enormous potential to help us increase productivity while farmers address the climate crisis. and as you know, we need regulatory systems that are
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affective that are of concern that mexico seems to be not found in science. and causing long delays in biotech approvals that could have real world consequences on farmers and future innovation. in the industry. and importantly, these decisions are in violation of the commitments that mexico made under the usmca. so what is your strategy to engage with mexico and encourage them to implement transparent science based approval processes for agricultural biotechnology that they already agreed to? so secretary vilsack and i have been working hand in glove on the mexico agriculture challenges we have been pursuing a strategy of cooperation, consultation, with our counterparts in mexico.
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i do think that at this point we are reassessing where we are and the kind of tools we need to bring to bear. u.s. dr we are looking at the full range of tools. with close corner with partners at the usda. you and others we will continue to look at other steps i appreciate that. >> we used to be a leader in research and development in manufacture of next generation technology. it was a -- part of our future and economy it is not just limited to agriculture. we need to make things, grow things, in my opinion we have now lost this future to china or anywhere else. we are working to pass important last-minute and clean energy and advanced manufacturing through competition, innovation, important legislation in front of us right now. senator manchin, senator daines and i have legislation to invest in clean energy domestic
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manufacturing, which is so important. could you speak at all about what we need to do here in the competition. what role are trade policies could play. >> senator stabenow, i'm delighted to hear about all of the efforts that are being undertaken up here in the congress. we have been tracking them closely. they are sometimes inside of the trade lane, oftentimes adjacent to trade, in order to continue to be the competitive powerhouse that the united states has been and wants to continue to be. we are going to need to coordinate artery policies with this type of investment. we are going to need to do it on a sustained basis. i want to commend you and your colleagues for doing this work. i look forward to continuing our work and continuing our efforts throughout the trade policy. >> thank you, thank you mister chairman. >> thank you senator devin all. >> next will be senator
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monsoon. welcome back -- we what is the administration plan to nominate a chief agricultural negotiator. >> senator monsoon we have nominated one i am very grateful for a lane trivia knows willingness to serve. i look forward to working with her and another capacity she will take on at the biden missed ration. at the moment i'm working very hard with our administration to name a new chief agricultural negotiator nominee. as soon as possible! i want to assure you hear that your interest and mine are absolutely aligned. >> okay, your end of the administration, it's just an expression of priorities. i can tell you that there are a lot of farmers and ranchers in agricultural producers across the country who are very very concerned that the promotion of agricultural exports be a priority.
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it doesn't seem like it is. is the administration planning to submit trade promotion request? >> well senator -- with all due respect i am happy to work with even speak with you on it if that is something you are interested in. >> i'd be interested but typically what happens is that it and and ministration that request that. the embalm ministration there were many of us here, republicans, who were willing to work with the president from another party on something that is a big priority, i think. for america's economic vitality. obviously, economic security. i would argue in the parts of the world we are talking about here, national security. is the administration, right now, pursuing any trade agreements in the and opus effects pacific levy which cptpp more strongly promote american leadership? >> we are pursuing economic
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engagement in the indo-pacific right now. it does not mean the win cptpp. let me just draw together a point on cptpp and the pa, which is also -- i lived through the fights up here in congress over t pa and tpp in 2014, 2013 and 2016. i feel very strongly when american trade policies at its best with strongest, and most durable when we are acting in the most bipartisan way. my commitment to you is, with respect to trade policy, promoting trade and also working with the congress. i am looking for strong bipartisanship and a unified american voice. i am happy to engage with you on those issues from that viewpoint. >> that's great, you know your subject well. because you know your subject well i just think
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that, 2022 trade policy agenda that supports a worker centered trade policy may be a convenient political slogan. it does not seem like a serious trade strategy. we are the leading economy in the world for a reason. a major part of that is because american exporters, farmers, businessmen and women, innovators and entrepreneurs boldly go into global markets and oftentimes succeed. as an example, u.s. food exports grew from 46 billion dollars in 1994 to more than 177 billion dollars last year. u.s. exports support a lot of good paying jobs at home, help spread the reach of american influence abroad. i am just trying to get you all to focus and understand this framework. because there isn't market access there, because there is no tangible assets delivered, it is a lot of really flowery rhetoric. i am
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trying to see where this does anything to open markets for our farmers and ranchers in areas of the world where america just flat needs to be a presence, and needs to be competitive, and needs to be leading the way. if we are going to isolate china, doing business with a lot of countries in that region doesn't seem like it makes a lot of sense. let me just ask a fairly direct question. that is, do you agree that farmers, producers, and others that rely on exports and lower costs are part of the backbone of our economy? >> i do agree that they are. we are doing so across everything a trade policy that w >> we are doing so across everything in trade policy that we are pursuing right now. >> i think a lot of us would differ with that. i would hope
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that your clear-eyed focus would be market access, creating opportunities that are real, that are meaningful, that are tangible. and working with us and i'm bipartisan way to do that. you have expressed a willingness to do that. i would certainly hope that he would. starting with nominating a agricultural negotiator. thank you. thank you mister chair. >> thank you senator thune. we have worked often on trade issues, i look forward to doing that again. senator bob menendez, as chairman of the foreign trade commission i regularly here with ambassadors who may participate in the -- that it is not sufficiently ambitious. one has been the administration's response to that criticism? how, if at all, has the scope of the negotiation change based on requests from other potential partners? >> well senator menendez, i disagree with the sense that it is not sufficiently ambitious. in a lot of our interactions and conversations with our
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trading partners in the indo-pacific we have been making the case that what we try to do in the economic framework is new. it will include innovative elements. some innovative for the region, some innovative for the trade policy conversation overall. because of the evolving challenges that we are facing. that is where i would begin which is new things require some time for socialization and for people to appreciate where the economic meeting is going to come. >> we are committed to this region, to our partners, and to engaging in advancing our economic relations. >> i appreciate that, let me just say my own observation is i don't think it is as robust as we need. i think we missed an opportunity with tpp. that has happened, we are not going to revisit it. at the same time when we are thinking with our challenge with china, with the administration has adopted as their number one geostrategic
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challenge. the geo economic strategy to compete with china. i hope you will pursue and ambitious agreement that sets high standards across the breath of our economic relationship across the region. it is critical that the i p p f make real standards across the indo-pacific. to first satisfy the economic rule space for this regime. let me ask you this, taiwan as a key trading partner with the united states. one with with we have a strategic relationship which is intertwined with our economic security particularly as it comes to trade with semiconductors. it is a key trade holder in the indo-pacific economic community. it's a vibrant community that respects the rule of law. and exactly the kind of partner that we should work to strive to have high
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value trade agreements with. several weeks ago the taiwan government officially requested to be part of the i p e f negotiation. one has been the administration's response to that request? >> senator menendez that is an essential trading partner for us and an essential partner overall. the indo-pacific economic framework, i do want to emphasize this for everyone on this committee and publicly, as well, it is a framework that we are developing. it is something that must reflect, also, the view of all of you in our stakeholders. on the point of time one, we are in general in conversation with those who are interested in joining this framework. i do also want to emphasize and recall that in the last year we have revived the trade and framework in taiwan, including at my level. it had been idle for five years. we will continue to look -- at >> when we get back to my original question. what has
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been the administration's funds to that request? are you going to invite taiwan to be part of the i p e f negotiation or not? >> participation in the i p e f the skill under consideration as far as i'm aware no decisions have been made. >> okay, well, i hope and i get a sense from that answer that we will not include taiwan within the ip enough which is missing an opportunity, both through the vision we have for taiwan and for the regional architecture of trade. if it is not invited to join the negotiations i hope the administration considers an agreement with taiwan that extends the benefits on a bilateral basis, which would certainly be the next runner-up. finally, at last year's trade agenda hearing i ask you to commit to brief the hearing before and after ease negotiating setting with regards to the trip waiver. you agreed to do that. do you believe that you kept that agreement?
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>> i do. >> well about three weeks ago press reported on a proposed text that appeared to be a detailed compromise on the issue. u.s. dr in fact released a statement confirming that a compromise had been reached. yet no one on this committee appears to have known anything about the details of that agreement before it was announced. we were kept in the dark. and so to me this is an example, you know, there is a difference between notification and consultation. notification is when we got that. consultation is when there is an engagement about what it is you may be considering agreeing to, so you can have input from congress. that is why, you know, i had real concerns. in your testimony he said congress as a constitutional partner in trade. from my perspective you have an adult that way. >> if i may respond to that because i think it is important
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for the overall conversation. and for the sense for my integrity as the u.s. trade representative. senator menendez, my testimony from the house ways and means committee i made the point, and i want to make up for you here as well, there have been no agreements made at the w. geo. with respect to whatever maybe on the table, i consider these hearings to be a part of a consultation process. i continue to want to hear from all of you. in fact you and others on this committee have made herself very clear to me in terms of your positions. i want you to know that i have heard your concerns. i have also heard the concerns of the other members of the committee. >> miss chairman, i'm sorry, just to say that -- u.s. tr put out a statement that there had been a compromise agreement before anyone was invoked. having come to talk to us after you have the compromise agreement is not input. i don't think you're gonna change the compromise agreement based on anything you hear. i don't
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think it is a fulfillment. i hope we can get to a better place. thank you. >> my colleague is raising this issue consultation. i think the point, ambassador, is it can bring us altogether. we need consultation, apart from hearing otherwise i think it just needs to be ongoing. thank you. all right we are now we portman, carper, toomey, cardin, will be the next four in order of appearance. >> thank you chair. ambassador, good to have you back before us. as you know i feel strongly that you need to have the ability to trade negotiation agreements. that would make your job a lot more interesting as well as the job of your associates. so that is a broader topic but i think in the topic of the compete act, also known about five other names, i think there is an opportunity for us to do something. you and i have talked about it. we have spoke with secretaries in congress about it. i hope that you will be working with us on that. if there's gonna be trade
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adjustment assistant typically that is with trade promotion authority. my view is that, these agreements before us, including the uk agreement. it has virtually no issues at the results to labor or the environment, it's a low hanging fruit. it would be great to get america back in the game. with regard to china and your discussion and your testimony in the need to use existing tools you revert -- the phase one agreement as part of the old playbook. china has not lived up to its agreements. i get that, it is frustrating when china doesn't live up to its agreements. i don't think we can just move along and say let's start to work in other ways. you know, where we can open more opportunities. instead i think we have to stick with that agreement and use what's in the agreement, which is dispute resolution. i think if we just say, forget! that make that part of the old playbook i think it sounds terrible message. i think when china makes an agreement with us and they don't fulfill it
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obligation we have to exercise our legal rights under that agreement. i think it's going to be much more difficult to make progress on china with subsidies and state run enterprises with labor rights and other things if we don't insist that the agreement be adhered to. i guess my question to you would be, are you willing to move forward with dispute resolution? are you willing to be commit to utilizing the dispute resolution process that the u. s. enjoys as part of that phase one agreement? culminating in -- as necessary to enforce the agreement. >> senator portman it is always a pleasure to see you. on your question on china i appreciate the opportunity to clarify my position and what i have said. i have seen a reported, perhaps a bit inaccurately. which is to say it is time to turn the page on the old playbook. which focused exclusively on pressuring china and seeking china to change its ways. or pressing china for compliance.
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we are not giving up on pressing china on compliance or changing its ways. yes, old tools remain on the table with respect to, dispute settlement and enforcement. but my main point is that is not the only thing we can do now. we have to expand our strategy to include developing the tools that we need to defend the interests of our economy. in fact what i'm saying is we are committing to doing more work. a strategy needs to expand. >> thank, you i appreciate that. using those existing tools we have our important setting a precedent of not using dispute resolution tools that would be problematic for china and others. let me talk to you about new tools. it's the other point that you make. we talked about this a lot, we just don't have the tools to keep up with china in my view as they try to undermine our national competitiveness. they are subsidizing manufacturing in many countries through the belt and road initiative. our trade enforcement are powerless to combat the subsidies. level
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the playing field two point oh can pains new tools to deal with that reality. it is what is happening out there. trade shipments, particularly the belt and road subsidies. that bill is something that is very hard to include in the -- hot >> thank you for your support of this approach. can you explain to this committee how the legislation would help to combat china's unfair trade practices? >> senator portman, let me begin by commanding you and senator brown for working in a bipartisan way and -- on this legislation in this initiative. in terms of how it would help us, i just want to emphasize that most of our trade enforcement tools date back to the 1970s in the 19 80s. it is critical that we retain those tools. overtime, as the global economy has evolved around us are tools have not kept up. the updates in the enhancements that are in the leveling the playing field act two point oh
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are exactly in the spirit of what we need right now. the tailoring of a tool set, and expansion no tools that that is going to be up to the task of meeting the challenges that we are facing today. >> with china in particular, would you agree? >> yes. >> thank you ms. chairman. >> i think my colleague. i always like the exchanges of you kind of nba all-stars of u. s. trade history. senator toomey's next. >> thank you mister chairman. ambassador tai, welcome. i supported your nomination because i knew you had the knowledge and the competence and the ability to do the job. also, because you stated in your nomination hearing and i quote, you stated well -- your intention in the nomination hearing to pursue trade
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policies that support american innovation and enhance our competitive edge. a year later i'm still kind of waiting to see that. one of the reasons i say that is because i just don't see a focus on expanding market access. one of the major areas of responsibility for the u.s. do your coronation website is, and i quote, expansion of market access of american goods and services. of course that is a two way street. the phrase expanding market access is not in your testimony today. it is not a part of the i p e f aside from dialing back the previous administration's most heinous trade wars, to my knowledge you have not been pursuing terrified action. every single presidential initiation since reagan has initiated negotiations on a new fta we've done this to increase market access allowing workers to grow and thrive the u.s. kenya
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taiwan in the pacific countries are just view of the countries that reach out to us. they want to strengthen their ration relationship they want to have more market access, thus far we have yet to take them up on it. i get that president biden ultimately makes this decision. it is not yours. but you wore the u.s. trade wrap, you are the presidents primary trade adviser. let me ask you this? do you think it is in america's best interest to pursue free trade agreement with other countries? >> so, senator toomey, if you will allow me to back up just a little bit. >> just a little bit? do it quickly, i will run out of time. >> okay. if by market access, you mean economical meaningful outcomes, if i market access you mean the removal of tariffs, we have accomplished quite a bit in the first year. i mentioned this to senator cantwell, but we began in a
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very tariff rich environment. if we have removed $20 million worth of tariffs in our first year. to your point about free trade agreements. let me say this, i encounter this quite a bit, including from white members of congress on these two committees, which is that trade policy, market access, trade enforcement takes lots of different forms. and i know that trade agreements are maybe the most fun form, and with our traditional agreements, let me put it this way. we are interested in pursuing trade agreements with our partners. but we are also interested in ensuring just like, our toolbox on enforcement, we are committed to ensuring that our trade agreement practices evolves with the times. >> okay, but here is the thing. my understanding is the u.s.
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currently has 14 ftas with 20 countries. you recently seem to be suggesting that you think ftas are 20th century tools. but the fact is china has eight currently being negotiated. the eu has 14 in the process of being negotiated. you don't think this is a 20th century tool? looks like the rest of the world thinks it is a 21st century tool. what this means is that china and the european union are expanding market access for their product producers, and competition for their consumers, and they are getting a market share that we will miss out on. i think that the data is very, very clear. those are all kinds of studies that show that these lead to more jobs, higher pay, increased economic growth, more options, lower cost reductions. it's all kinds of great net outcomes, foreign trade supports over 40 million u.s. jobs. i think that you know this data. but without putting
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market access on the table, lowering tariffs, eliminating barriers, we will just not make the progress we could be making, that other countries make, that we should want to make. in my understanding, in the 40 years since the u.s. began negotiating our first trade agreement with israel, every single trade rep has worked on or completed negotiations of an fta. my concern is that you might be on track to be the first trade rep, not to continue that streak, and that would come as a big cost to our country. i would just hope that you would be an advocate for this really important tool to expand trade. >> time of the gentleman has expired. i think senator harper is online, and then senator
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cardin. senator carper, are you online? >> i am right here. can you hear me, sir? >> great. so senator carper, and senator cardin. >> welcome aboard, great to see you for your leadership, and your service. my question is i want to talk about, an approach to a digital trade policy. second, the form of the 301 trade exclusion process, that we were heavily focused on, and the intellectual property wavered. [inaudible] first, is the worker-centric approach to digital trade policy? ambassador, i want to thank you for testifying, not just before the committee today, but thank you for your service, way, way
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back. going back. weighs and means committee and even before that. i applaud the biden administration's commitment to engage with our ally, through the creation of the indo-pacific economic framework. one area of bipartisan interest is to promote openness and transparency in the digital economy, something which we talked about food digital trade, we have the opportunity to uplift workers, how small businesses compete, with entrepreneurship, here's my question. ambassador tai, what approach we take, we'll is wide in the biden administration's ability for trade policy? please go ahead. >> senator carper, thank you so much, it is always a pleasure to see you. i am appreciating this question in particular. i think it gets lost in the shuffle, some. when we talk about digital trade, that's actually a really inclusive topic. so much of our lives are becoming digitalized every single day. so in terms of an approach to digital trade, we get a comprehensive, holistic approach with respect to how we think about digital trade, and the fact that digital trade at
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this point affects everyone. and therefore, our engagement with our stakeholders needs to be holistic, robust, comprehensive. our concerns we hear from our stakeholders around the offshoring, outsourcing of our jobs extends increasingly be on the manufacturing sector to the services sector. and we take this very serious at ustr, the necessity to conduct our trade policy in a way that brings along all of the u.s. economy and our stakeholders. so, a worker-centric approach to digital trade is one that is comprehensive, meaningful, that recognizes the limits of our congress has acted, spoken, and where it has not. and also reflects the views, aspirations and also the anxieties of our
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stakeholders across our economy. >> great, thank you, ma'am. if i can now spend section 31, tariff exclusion process, since 2018, the trade war initiative by president trump, was on businesses, manufacturers, pharmacists, consumers. we have long advocated from a relief from section 301, especially for imported goods only available from china. i appreciate the reason [inaudible] would be reinstated that's good news. however, our main concern with the impact to the existing tariffs, interesting, my question is this. moving forward, are you considering more comprehensive sections in the 301 tariff exclusions? how do these work with biden's larger china strategy? >> senator carper, we need, and
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i think there is very broad bipartisan support for this particular view, we need a realignment in our trade relationship with china. we need for our relationship to be more strategic, and in favor of our ability to compete. tariffs do have a role. nevertheless, in this realignment, we need to take a strategic look at our tariffs, we need to recognize that the realignment is something that requires a transition, it cannot be accomplished overnight. so i committed in my speech on the biden administration's china trade policy last october, that we would start the first exclusions process that we did, and just concluded last week, and that we would consider additional exclusion processes as warranted, which continues to be true today. >> my time is about to expire. i just wanted to mention, my third question, as per the ambassador, to respond, i
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understand the administration has been working with some of our wto partners to develop a possible intellectual property for the covid vaccine, it remains unclear. my question for the record is how does the administration tend to increase its engagement with congress, and outside stakeholders as this process continues. great to see you, thanks for your good work. >> thank you, senator carper. i am going to recognize myself, and if i complete my question, senator cassidy would be an act. and ambassador tai, thank you for coming from baltimore. it's an incredible occasion. you can see firsthand, the investment made, to be as competitive as we can globally. we have the super max capacities in our cranes, in
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our berths, and you got to see some of the container ships actually come in, in time for your visit, which i thought was good. the uk is a critically important trade partner to the united states, and certainly to the port of baltimore. i'm glad to see that you can see we are engaged in conversations with our partners, to expand opportunities for both countries. there will be more jobs for people in maryland. so thank you for that initiative, thank you for coming to baltimore. first i want to cover the indo-pacific framework and i watched every word that you say, so i did want to critique, if i might, that in your list of objectives, you included, rightly so, workers issues, promoting workers, businesses, advancing strong labor standards, tackling climate change. all of which i completely agree. but i was disappointed knowing the countries that are in the framework it did not include one of the areas that is been very high priority to this committee. advancing good governance and anti-corruption. i know that you are committed
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to that but i would ask that there is sensitivity when that is not included in the list of our objectives. >> senator cardin, your leadership on those issues, is very, very clear. good governance issues are included in the trade pillar under what we call good regulatory practices. again, this gets lost in our jargon. if i were to translate it into ordinary english, it is in our regulations, engaging with our partners, ensuring that there is a notice in comment process which allows for participation. so that part is in the trade pillar on anti corruption. that is in our organization, in a separate pillar on anti
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corruption and tax. that is a pillar that secretary reminder we'll be meeting. it does not mean that the u.s. will not be involved, but will lead the trade pillar, and that pillar, she and her team will lead. >> thank you for the explanation. i would assume that the environmental issues will also be in the regulatory framework. so the more that you could put a spotlight on, it is our expectation. i know you were not using tpa, i know that is expired, but we made that a principal trading objective. so i would appreciate keeping us engaged, this progress is made of several countries which are included in the framework. let me talk about one country which is in this discussion, and that is japan. congratulations on being able to complete some really difficult issues with the beef industry, and others with japan. it looks like it has been extremely positive. quite frankly, japan is a major trading partner in the port of baltimore, as well as with our country. it does not go
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unnoticed that japan was extremely aggressive in supporting the sanctions against russia, and helping provide important equipment to the ukrainians. so they have been true partners. it seems to me, japan is one of the easier partners we have in the indo-pacific area. i was curious to see how you see the next chapter in our trade relations unfolding? >> so senator cardin, i would agree with you that japan is an absolutely important partner with whom we have a really strong relationship. i would not necessarily pick the adjective easy to describe japan, in my list of first five adjectives. i will agree with you that in terms of the keisha administration, we are creating momentum in terms of our work. i think really on a bilateral
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basis, at the u.s. tr, we have begun a new bilateral trade communication channel with japan to address our bilateral issues. we have a trilateral discussion and form that we have reignited with japan and the eu on new subsidies rules, and also new tools for addressing the challenges that we face in this 21st century, and also we look forward with working with japan in a very robust way, in the indo-pacific economic framework. thank you. senator cassidy is recognized. >> madame ambassador, thank you for being here. madam
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ambassador, thank you for being here. first, as contexts, this will be along the lines of what we've discussed in the past we are problematic trading partner, say china, is able to lower the price through noncompliance of environmental regulations. it gives us an advantage not just to us the to a country like mexico and guatemala who must comply with those three treaty with us. every time we enforce that upon them, we raise the price relative to that of china. and then prices decrease and pollutes even more. i think you are on -- in your opening remarks you mentioned we need new domestic tools. and in the press release, as regards to the u. s. eu agreement upon aluminum and steel, there is a suggestion that you may have a new domestic tool looking at the carbon content of the products being based. by the
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way it occurred to me that we put barriers and penalties upon china. they promised that they will change their behavior, we relax those barriers and penalties, then they don't comply! and now we have to enforce. but it's different if you establish a standard that they must reach in order to have access to the market, or >> senator cassidy i think in general the answer is yes. although i don't know i would by which to avoid the penalty. describe it as a border common adjustment. you are absolutely it's a different mechanism. it's less a promise and more of if you don't comply you have to correct that the global steel arrangement that we are in the process of negotiating with the europeans, it exactly does that. it is a mechanism for creating a market between the united states and the european union that is going to ensure fair competition and the promotion of clean industries. i agree with you in terms of the sense of leverage where, you know, you have a market gate keeping mechanism as opposed to you open your market and are stuck having to increase barriers as a form of enforcement. it's a bit of a carrot and stick distinction. >> the nice thing about having
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the border carbon adjustment is it rewards are people who are doing the right thing. therefore paying a price but losing business because that business moves to a place where there is a lower cost of compliance. i want to stick up for my folks! i think that this is a way to do so. we are very interested in partnering with you as you develop these schemes. we have also spoken before regarding indians dumping of shrimp into the united states. i'm told that they're pushing back hard on this. can you give any update on that? >> so this is something that i have spoken to you multiple times about. i know how important this is to you and your constituents. secretary or mondale and her team have had good conversations with mine around the dumping issue. yes i have races directly with my indian counterpart in deadly, last november when i visited him. i did get very forceful pushback. senator cassidy, i am committed to working with you on this issue. that means within our own system and
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engaging with the indian government. i look forward to exploring ways to do that. >> i'm told that we somehow put barriers on cold shrimp importation but if they don't have it it doesn't work. it's the other shrimp that are rhapsody subsidized and perhaps don't meet the fido sanitary standards. the heavily subsidize their rice, even before the seed is planted. our folks are competing with something that is being sold below cost because of heavy subsidies. is there any progress on addressing that? >> we are looking at this issue, carefully. with our partners in the u.s. government in terms of progress, let me get back to you since the last time i asked and make sure you have the very latest.
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>> sounds great. another concern that we have, which i had with ambassador -- way back when. the absence of a dispute resolution for energy companies. in turned out that if your company was naturalized by mexico and you are directly contracting with a government, then you have some sort of the deal. but not if you are a subcontractor. think of somebody required to build something there because of capitalize laws, then they get it nationalized and you wouldn't have recourse. i gather that this is currently taking place. but as to explore, a group out of houston has had their stuff nationalized. what are we going to do to push back against that sort of issue? >> well i've -- i am working with partners across the administration about this. this issue has the attention of many of us working on our different issue areas. and in g, trade, to commerce. including climate. i want to assure you that this has the attention of the biden administration and at u.s. tr we are looking at all the tools that we have to enforce what we know is in that agreement. but also to champion the cause of
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our stakeholders and north american competitiveness. >> thank, you i yield. >> all right. there is lots going on here today ambassador tai. my understanding is the good souls here is senator warren will go next. >> thank you mister chairman. thank you -- let start with some good news! and that acid or tai, your approach to work or center trade policy is actually beginning to pay off. thanks to your work in large groups of employees and mexico, voted overwhelmingly for new unions. that is good for those workers and helps level the playing field for american workers who don't have to compete with overseas factories that a paying below poverty wages. now the administration
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has announced plans to negotiate a new trade deal, called the indo-pacific economic framework. a lot further giant corporation is celebrating the i p e fsb second coming of the trans-pacific carnage ship. there is a reason that the original tpp was de railed. it would have offshore more jobs to countries that use child labor, prison labor, and pay workers almost nothing. let me be clear the ipef cannot be tpp two point oh. ambassador tai you believe in negotiations as a key pillar of this new framework on fresh air and resilient trade. commerce secretary gina rim and left several other pillars. i urge the chairman to schedule in public human with her soon, as well. i want to ask you about your approach to these new negotiations. ambassador tai, you have included labor and climate legit to top areas of focus in these negotiations. are you committed to include strong, enforceable, commitments in these two areas? in the ipef and extend trade benefits only to countries that can meet the standards?
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>> senator warren, thank you so much for this question. thank you for highlighting the objectives that we have put out, including in our federal register notice recently. the short answer is yes, the reason why these two areas are listed at the top of our list is to indicate that in the way exercise of setting high standards one of the areas where the united states have consistently lad realm the world has been and incorporating strong, and forceable labor and environment
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standards. demonstrating our commitment to the importance of these areas in our competitiveness and in terms of trade. >> good, they are the right gold. they are already perfect. we can make this work. our trade policy for far too long has been about lowering standards so that giant corporations can increase profits. let's raise standards and build more of these jobs at home. i know that you are also going to be negotiating roles on the digital economy. tech companies like facebook, amazon, they are huge part of global trade. they are also involved in spreading misinformation, mistreating workers and squashing competition. they are also hiring hordes of lobbyists to protect their appalling way of doing business. ambassador tai, will you ensure that any new digital trade rules promote competition so they benefit workers, consumers, and small businesses? not just a handful of big tech companies? >> senator warren, let me assure you that one of our
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guiding principles in all of our exercises and in particular with the indo-pacific economic framework and the digital component of the trade pillar is to ensure that our stakeholders views are represented robustly and comprehensively. that table of advice and input is going to reflect our entire economy, not just parts of it. >> i am very glad to hear that. i very much appreciate your demonstrated commitment to labor, environmental and, competition standards. frankly i'm worried that these higher standards will only be included in the trade pillar that you are responsible for negotiating. secretary rhonda will lead the negotiations on the three other pillows. when she listed her priorities labor standards and competition were absent. based on this and her other comments i am concerned
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that her approach will proof profits for giant corporations them one that offshore jobs and squash small businesses that should be a nonstarter in our negotiations thank you mister chairman. >> thank you senator warren, >> thank you senator brown senator warren, senator brown, all we standing up for workers. >> thank you mister chairman. ambassador, it is wonderful to see you. i look at the chairman of this committee, a trade rep, and frankly the last question, i see the most pro worker officials i have ever seen in this government, and in my time here as a chair of the finance committee, and ambassador tai, i commend the administration, in the recent success as a usmca, and raising tax in mexico, police or the brown, white, red response mechanism. your leadership in lifting workers standards, everywhere
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we have when you say, when you lift workers standards everywhere, we'll help american workers, that is what your predecessors never understood, or never cared to understand, you do that, thank you for. that the president's 2022 trade policy agenda makes it clear, senator white has said, this administration is taking the worker center approach to trade policy, as it always should have been. i know what that trade policy has done in my state, we lived with the wreckage caused by a trade policy, lobbied by corporate interests, where congress and administrations went a long, but encouraged products to be moved overseas in the name of efficiency, always efficiency, which i think is business school speak for lower wages and more environmental pollution. you have taken a different approach. i am deeply indebted to you, that's why i was thrilled with you are confirmation a year plus ago. a
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couple of questions. in your testimony you said china is continuing to double down on unfair trade practices. you explained your administration will need to explore to " build and design new tools and unique investments ". i've called for those strategic investments in manufacturing american industrial production for all of my time in washington, including, as you know, part of the failed tpp effort. i'm glad he meant, not leveling the playing field of two point, which was included in the american competes package. i'm depending on senator portman to keep this in this version. you said i could help strengthen endorsement. order the tools we need to make good on the administration's commitment to supporting american workers? >> senator brown, it is wonderful to see you. thank you for your kind words. i also celebrate the winds and our demonstration, on our workers and to trade policy can work and how we can do trade right. on new tools and strategic investments, let me just
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mention that some of the efforts which are currently underway is extremely promising. when we level the playing field two point oh, one of them, when i talked to senator portman about this, frankly, the uyghur force labor prevention act, that was signed into law last year, it's another example. the chips legislation which has been proposed in both chambers. let me just say that all of these components are critically important, necessary, but also not sufficient. so i look forward to working with you and your colleagues here in the senate, the house, on building out our suite of tools, including keeping all of you informed and engaged, receiving input on exercises like the negotiation with the european
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union on a global steel arrangement which will approach fair competition as well as clean industries. >> thank you. very important to our country and to the climate. i have one of the question, mister chairman. i would like to bring up what the chairman spoke about earlier on, on revoking permanent normal trade relations with china. we have been appalled, all of us of course, while almost all of us, by russia's invasion of ukraine. it's a moral imperative that we do every single thing we can. i know the former vice president's daughter, liz cheney, house member of wyoming talked about the putin wing of the republican party. i am hoping that's not representative in the senate, but i am not sure of that. but we do have an agreement, russia shouldn't have free and unlimited access to our economy, or the global economy. the senate has a chance to revoke the -- with russia, senators keep blocking
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it as you know, every day we've let this stay on the books is another day we fail to support the ukrainian people, who have to live under the fire from his unprovoked, imperialist russian invasion. could you speak to the importance of ending pntrs, and how it will help ending the war in ukraine? >> senator brown, the service of the coordinated actions between the united states, the european union and our other allies and partners on the issue of pushing back, creating aerial significant consequence for russia's invasion of ukraine, and russia's violation of ukrainian sovereignty, this has been a real achievement. i want to commend the members of congress for speaking up, very quickly, in a united way, in a bipartisan fashion, on the need
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to take pntr away from russia. that said, we are only halfway there. and we have said the words, but now we need to finish the act. it has been so important to have the united states government speaking in one voice. i look forward to speaking with you and others, when we get this over the finish line. >> thank you. thank you, senator brown. also, i very much appreciate you bringing up a pntr this morning. because this is the way, revoking pntr, this is the way that you deal a powerful body blow to putin and the oligarchic's, there were stunning reports over the weekend that basically, anybody who makes money in russia is giving putin a cut. these
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oligarchs have enormous influence, we need to get this pntr passed. senator brown and i talk about, this is our likely move on to another bill, so if american companies are doing business in russia, and paying taxes to the russian government, we have to take away foreign tax credits, there's no reason why people in oregon and ohio out of the subsidizing to the putin war machine. so we gotta get this pntr done, then we can move on to other important issues. i thank senator brown. all right, our next three in order our senator casey, senator james, and senator warner. and i hope we can get all three of those done before the vote. senator casey, are you online, senator daines is here? >> yes. so senator casey, senator daines, and senator brown, we'll get you are done before the vote. >> thank you very much. i want to infect ambassador tai to coming to the hearing today, for being with us today. i want to commend both you and the biden harris administration for a critical work to promote
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workers-centric trade policy which lifts up our domestic production in our manufacturing capacities. as you know, senator cardin and i have been working on a good piece of legislation, the national capability defends act, which sets up a committee to review offshoring of critical u.s. supply chains, as the pandemic has demonstrated, we need to enhance visibility on the supply chain vulnerabilities. this legislation as you know, it's also being led and asked by representative [inaudible] as well as united states representative delauro. he spoke in front of that committee yesterday, talking about leaving no stone unturned. last week, you may have seen that secretary remodel said publicly, she would support and help on our investment streaming. so here's the question, how would an outbound investment screening add to an enhanced, existing tool, for offshoring, which threatens our national security,
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domestic supply chains, as well as threatening u.s. workers, and leaving us dependent upon foreign adversaries, especially china and russia? >> senator casey, it is a really important issue. i know you and i have spoken directly about your bill. in terms of your question, i think what is critical about this particular type of tool is that it is keeping pace with the challenges that we are facing, and the risks that we are seeing in the competitive environment, and that our economy is in right now. so again, with respect to inbound screening, that is something that we have existing tools, as
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we are seeing new vulnerabilities arise in the outbound area, i think it is critical for us to be taking a look at tools like the one that your proposed. thanks very much, one more final question for you it would be on the indo-pacific economic framework. i hope as the administration develops the -- two and count for decades of on fair practices by these non market economies who have left both our workers and our businesses and a competitive disadvantage. we need to ensure our trade policy supports both safe and fair working conditions for workers across the globe. i know you understand that and believe that. i have been working on policies like the particular bill, the women economic empowerment and trade act. working with senators cortez,
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masto, and senator menendez. as you know the u.s. mca trade agreement included sweeping labor provisions. we have exceeded our expectations -- here is a question, how would usdr learn on the lessons we learned from past trade agreements and ensure that our trading partners are treating workers fairly in the future. >> senator casey, i think the united states is truly a global leader in this area as well. in terms of our trade practices and bringing our trade policies back to their roots, which is all about creating opportunities for all people. we are, i would like you to know, getting very good pick up from our trading partners and the world trade organization in
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trying to renew this principle that trade policies are intended to benefit our economies and the human components of our economies above all. in terms of the mechanisms and standards that we have in usmca, they are really at the cutting edge of international practice. we are looking forward to building on what we have already accomplished in the usmca. that is the guiding principle for our work across the globe. >> thank you ambassador, thank you mister chairman. >> thank you senator casey, next is senator daines, and senator warren. >> ambassador tai, welcome good to have you here. think about montana certainly reducing these unveil barriers to trade are so important with farmers,
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ranchers, those with small businesses. 95% of the world consumers are outside of the united states. that is a lot of mouths to feed. with the importance of being engaged in those markets is critical for montana and for u.s. jobs for economic growth. it is especially true given china's growing economic and geopolitical influence, in asia specifically and around the world. regarding china, despite growth and exports for some commodities it is pretty clear that china has not been meeting its agricultural purchasing or intellectual property agreements in that phase one agreement. i was there in beijing in 2019 to get that phase one agreement finalized. we, we want to hold both sides accountable to make sure that we are both living up to what we agreed to. can you tell us the latest in regard to any relationship you had with your chinese counterpart in regards to that phase one deal? how are you working to enforce both the agriculture and ip agreement in
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that phase one. senator daines i know in your experience with china runs very deep. you understand both the opportunities and the significant challenges that we have coexisting with china in the global economy. we, as the biden administration, thought it was very, very important to begin our bilateral engagement with china on that phase one agreement and the commitments that china made to the u.s. government. and also to the u. s. stakeholders in that agreement. that is why we have spent the past couple months focused in our conversation with china, on two aspects. one is the performance in view of the promises that it made in that agreement. especially with respect to its purchase agreements, which means so much to our farmers, ranchers, and agricultural producers. we have
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fought very, very, hard to secure accommodations from china for the shortfall that are apparent in the trade data. so far, as i have noted, the conversations have been very difficult. we are not going to close the door on those conversations. nevertheless, we do need to move to a new phase of our engagement. that includes looking more intensively at the overall industrial -- >> let me ask you this, what's confidence do you have if we are not willing to get better compliance on the phase one deal? why would they give you confidence that they would do better on a different deal? >> i think we are not necessarily looking at another deal in the next phase. but expanding our focus on china challenges beyond its commitments and compliance in phase one to the issues that were not captured by phase one, or the original investigation on intellectual property and
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forced technology transfer to industrial targeting practices. we have seen china, again and again, corner the market in critical industries. now increasingly in future industries. >> thank you, i want to talk about another important country, that's india. late last fall i traveled to india, i met commerce minister goyal to advocate with reducing tariffs on montana and u.s. agriculture. we've seen firsthand some of their leading technology company. i was down in bangalore, delhi and bangalore. it's clear in the coming region they will -- i think the u.s. should consider entering formal negotiations with india, which represents an enormous opportunity for growth
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ontana. the number one of pulse crops, india the number one consumer. what is the u.s. trade policy doing for the india forum or otherwise to address these long-standing agricultural market access issues? it is not a new problem we have had with india. and particularly we've regard to poll's crops. >> so i heard about your visit, also from minister goyal who is a very, very, charismatic and also a very strong advocate for his country's policies. some of which i think we will be able to strategically align with, some of which have proved to be challenging for us. it is very important for us as u.s. tr in for us, personally, to go to delhi and revive the trade policy form. and a result of the trade policy forum we have secured agreements from india to open up trade for the first time, and resume trade in a number of areas, the one that has been delivered on soonest has been access for u.s. pork and pork products into india. we will continue to build on this relationship, which is so strategically important. it also has traditionally been quite challenging. i want to thank you for making that trip to india. that type of tag
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teaming is really critical. i look forward to continue to be able to do that with you. with respect to india, and other trading partners. >> ambassador tai, thank you. i just want to conclude by echoing some of my colleagues frustration with the lack of achieved agriculture negotiation at u.s. here. as you are here i want you to hear my frustration as well. it can really hinder the negotiations going forward. these agricultural producing states like montana, the number one economic driver. over the past 15 months of the ministration they did not even have a nominee to consider as unacceptable. it is hurtful to our farmers and ranchers, they are battling the high cost of fuel, high cost for the letter,
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and drought. >> senator, if i may quickly the president has nominated someone, we will nominate another person i commit to you on that today. >> the time of the dolan--'s >> thank -- you has expired. >> okay senator warner is next. >> thank you chairman, ambassador it tai is good to see you at least remotely, i appreciate the chance that we have touched me in person. i want to start my questions in terms of discussing our countries trade relationships with africa and first country specifically, ethiopia. i know the country -- made a determination that ethiopia, because of some of the human rights and other circumstances, was being pushed out of agoa. my concern well my very large ethiopian as we do that, we do it carefully because the ramifications it will have for a lot of ethiopian civilians, for the economy, for civil society, particularly in light of the fact that there has been
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progress made. the government has reached some level of at least, lifting the state of emergency. working with the tigrayans to try to create some level of cease-fire. my hope is we can improve our relationship with the ethiopian government. frankly get ethiopia back into ago. can you speak to that relationship and has the recent relationship on the ground in ethiopia sped up any of this >> senator warner, i would be happy to comment here. i think we have all been watching what has been happening in ethiopia, with grave concern. and as a humanitarian issue, it is heartbreaking to see what is happening in that country. the ramification of ago a benefits is a result of the criteria and
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that the ago a program, as it is written, we are following the latest developments in ethiopia. we are very much encouraging the government and others in ethiopia to continue to make progress. we have sent out a very clear set of benchmarks for if you'll be a, which will create its pathway back into agoa. and on this, we are working not just as u.s. the, article with partners throughout the administration, including the special envoy to the horn of africa, to support the pathway back. >> i would like to continue that conversation and i think the government in honest has made significant strides forward. i think that will make the humanitarian relations with the tigrayans, let's try to get
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two more questions in, one i want to raise the status of the negotiations for kenya, another opportunity in virginia, and many states around the country, a fast lead growing population in the commonwealth is the african diaspora. this is an incredibly talented asset, in mayfield, virginia, and increasing our trade with everywhere in africa, is a great opportunity. and i know that the u.s. canyon trade conversations have been under agenda, if you could provide any update on that, that will be great. >> i will be happy to provide an update to you. i believe it's this week, if not this, week it will be next week. we had of my african affairs office is leading a delegation to nairobi to continue to engage with our counterparts in the kenyan government around trade enhancements, that we can work on. and we have exchanged a set of ideas, that and forth.
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i will be happy to have my team report back to yours on that trip, as soon as they are back. >> my last comment, my last minute. this is respectfully an area that the chairman and i have had some disagreements on. but i want to raise it with you. and that is the growing debate in our congress about reforms, section 230, around the protections that it provides to many of our social media companies. i was concerned one section 2:30 protections were included in the usmca, and while there is a great amount of debate on this issue, i hope we can have that wholesome debate here. i don't individually include section 2:30 protections, due to trade agreements, when i think is a
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growing bipartisan consensus here in the congress, we need to work with section 230. i won't ask for comment on that, but i want to continue to look forward to working with you on the truman on this issue. >> and the massacre, because i feel very strongly that that approach would be a mistake for the americans, in the state for the world. senator warner and i will continue this debate off line, because we have got lots of members ready to ask questions. i just want to repeat how strongly i feel about that. okay, next to senator whitehouse, and then senator john a. barrasso. senator whitehouse, you are there, and then senator barrasso. >> i am their chairman, and i am their ambassador tai. i would like to ask you a few questions about the indo-pacific framework, on specific issues. and i have four different areas, some of them are fairly complex. i'm sure, given that i have four and a half minutes now, take this as a question for the
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record, and have your team get back to me. i would hope by a set date, so it is not just an unknown obligation to answer. >> the first has to do with ocean plastic waste. we say ten rivers contribute to ocean plastic waste, and eight of those rivers are in asia. and getting agreements to deal with the ocean plastic waste problem, in the indo pack framework would seem to me a very important priority. number two, is predatory chinese fishing, which is a problem around the world, and particularly throughout asia. i've traveled extensively throughout asia with senator mccain. and in every asian coastal country we
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visited, there was very strong resentment about the way that the chinese fishing fleet, often supported by the chinese needy was treating the sovereign fisheries. i think this issue actually really goes around the world, but particularly in this indo-pacific framework. i will be interested in what you are doing both with the chinese predatory fishing practices, and more generally, pirate fishing, which is called iuu fishing, illegal fishing. so that is number two. the third is climate. i am not sure what you are looking at for climate provisions in the framework. we are obviously facing a huge crisis, particularly, the sea level impacting areas of the pacific, they are going to be pricey in the future as they get overwhelmed by sea level rise. and then fortunately, in they're not too distant future,
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it looks like for some of the major cities, even bread baskets like the delta in vietnam and the fourth is anti kleptocracy. we have just seen this played out in ukraine. what happens when fossil fuel funded kleptocrats can't run their countries like dictators, and destroy other nearby countries, or at least try to, using their military? i think that the biden administration has widely understood that kleptocracy is a national security issue, and the areas in which people hide money and are able to seek rule of law shelter for ill gotten gains, we have got to clean up that mess. and wherever there is a leak, that is where the crooked
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kleptocrats money will go. it is really important to have agreements across the nations of that world, that they will stop providing that kind of sanctuary to cryptic criminal and corrupt money going around the world. so you now have one minute 15 seconds to answer on all of that, so it might be more no than i will get you an answer for the next day on each one, but i offer those four questions to you. >> senator whitehouse, but me just say a couple of words over here and, we will get answers to you on the qr far schedule as senator wine sets out. on all of the issues you have identified, we are interested, and intending to cover, in the indo-pacific economic framework, many of them within the trade pillar. anti kleptocracy, generally if we understand that
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as anti -- >> it is. >> i just want to emphasize that secretary raymond oh and i have been working hand in glove with this economic framework, as have our teams. and as we move forward into launch, into the discussions, we will continue that hand in glove partnership with each other. but also, i want to incorporate all of the priorities that you and the other members of this committee have. i look forward to doing that work with you. >> starting strong, thank you, you get stronger in negotiations. thanks, my time is up. >> the time of the gentleman has expired. ambassador, i was not clear whether you wanted to answer today about 230, or send a response to the record, what is your play?
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>> i would be happy to begin by responding today, senator wine, to senator warner's question, which is that we are at, u.s. t, are very aware of the dynamics, the debate around this particular provision in u. s. law. and we will continue to follow it closely as we conduct our trade conversations. >> very, very good. obviously, we will work with you. but my interest over here is very much connected to trade space. and
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that is that 230 is all about the innovators. it is all about the risk takers. the big guys, they never have to worry. they can monetize any claims, and it's always about the people with the big, new ideas, what is striking is a lot of these platforms, when they were small, my goodness, they thought that 230 was the greatest thing since night baseball was invented. but as they got big and powerful, they pulled out the most to try to hold down the little guys, the innovators. we'll have that conversation in the future. thank you, senator barrasso? >> thank you so much, chairman, ambassador, nice to see you again. thank you for your service and taking time to meet with us today. >> when we last met to discuss president biden's trade agenda, i raised concerns about a number of issues. it included u.s. electoral property rights, protections, opening markets to wyoming's beef, soda, ash and energy, unfair chinese trade practices, human rights violations, border adjustments, world trade organization reform and trade enforcement as well. and you know that after more than a year, i believe the administration failed to address any of these concerns that i have. instead of protecting american properties from covid vaccines, the americans work vigorously at the wto to give this intellectual property away. we have had that interaction, you and i in this committee room about that. instead of
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aggressively seeking new markets for american goods president biden has allowed our nation to fall behind. last year the trade deficit increased to an all-time high. from day one, the president made it clear that he was not interested in negotiating new free trade agreements. unfortunately he has kept his word. instead of prioritizing energy production at home so that we could lower prices and increase experts to our friends, the president remains focused on shutting down u.s. energy production and exporting a wide array of liberal labor, social, environmental policies. well america sits on the sidelines, and china is clearly winning in this confrontation. this year, china started -- signing the largest trade deal in history. the regional comprehensive economic partnership, the rcep, encompasses one third of the global gdp. 15 indo-pacific countries, and 53% of the world's exports. china understands the importance of not only market access, but securing market share. so the question i have, is what is the
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biden administration's solution? is it an indo-pacific economic framework, what if that pervade -- fails to provide market access, or increase market share for u.s. producers, is it a series of pillars or modules, that could, may or may not voluntarily join? it's also not clear to me how the framework will help us counter our adversaries, our -- including china. by august of wyoming understands the importance of trade has been very important to us historically, and presently. we need to work with our allies to exchange goods and services across resilient, reliable supply chains. there are tariff barriers, trade barriers. we must provide relief for families facing skyrocketing prices, amid a global pandemic. wyoming wants to strengthen our economy and create jobs, the trade agenda falls way short of that. giving
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your wealth of experience, international trade. can you explain how an agenda that experts progressive ideas instead of american made goods and services is going to help our country keep pace with china? >> while senator barrasso, it is good to see you. i know we have had good conversations in the past. and you know, i am disappointed to hear that you don't think that we have been doing anything. i can assure you, that my commitment to the united states, our economy, our stakeholders and our trade policy are absolute. i guess i am trying to sort out the specific question that you have for me, which is what have we've been doing? >> i want to know how we recover the market share that we have already lost, without aggressively pursuing market access for u.s. producers. >> i don't actually think we have lost market share. let me take as an example, your point about the rcep. that is a trade agreement between 15 countries,
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who already have multiple trade agreements between them. so i think that the economic analysis of the impact of the rcep on the united states economy, i do not think that they are significant, detectable impacts. it is kind of a re-mix and match of what is already there. but let me also, i want to stick up for myself in terms of all of the work we have been doing for the past year. it does include market opening over the previous years. there is a lot of market closing, if you will. there is a reason for it. but we feel very strongly that our approach to trade needs to be
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more strategic. and the first year, i dealt with a lot of converting trade tensions that we had taken over into real winds for america, for our farmers, for our workers and for our economy as a whole. and you know, i do want to focus on your interest in this question of market share. because this is something we are looking at. >> specifically with respect to our competition in china. and there i would say, with respect to steel and aluminum, with respect to solar panels, we have lost market share but that is because of the negative impacts of china's policies on us, and that is an area where we are extremely motivated to act and to act along with the u.s. congress.
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>> thank you, ambassador. my time has expired. >> the time of the gentleman has expired. we have the good fortune of having senator maggie hassan here, she's good knowledge on trade issues. she will close this out. we have a couple of other people, but just a very quick close for you, ambassador. and then i'm glad we have senator maggie hassan here. you have made progress on key issues in the past year, it has been a bit less chaotic, but no less challenging. you have had your hands full, you have reduced tariffs on our exports to the eu, which is a good, good thing. you increase market access for our egg products, for example, to india. so your job is not for the faint hearted. we are glad that you keep coming back to the importance of transparency, consultation. because we have a lot of members who are not
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focused on that, and we look forward to working with you in the days ahead. senator hassan, your comments, and probably several to close the hearing. >> thank you very much, mister chair. i appreciate you and ranking member crapo's decision to hold this here, i want to thank you, ambassador tai, and for all of your work on behalf of the american people, american businesses. the ignited states has led our allies around the world in imposing crippling economic sanctions on vladimir putin and his cronies, for russia's unprovoked invasion of ukraine. we have to ensure that putin can circumvent our sanctions, which is why senator cordon and
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i, are leading a bipartisan effort to close a loophole which will allow russia to prop up its economy by selling off s. congress has certainly spoken. and we have, in concert with our allies, our partners, made it very clear that its massive gold reserves. ambassador, what tool does your office have available to ensure that russia does not evade any existing sanctions? how can we continue to provide pressure on putin for these unprovoked attacks? >> well, senator hassan, this is such an important issue, so extremely timely and responsive to the challenges we are facing, in the global economy. the most direct rule we have in the trade toolbox is how we treat russia at the wto. the u. s.
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congress has certainly spoken. and we have, in concert with our allies, our partners, made it very clear that russia's behavior has disqualified it from the courtesy's that we grant to our partners at the wto. in terms of the circumvention concerns that you raised, those are critical issues to how effective our sanctions will be. i think in terms of the largest set of sanctions which are related to the financial system, and export controls, we are happy to work with our lead partners at the congress department and at the treasury department in whatever way that we can. >> i appreciate that very much. this is not only a whole of government, but a whole of country, a whole of democracies response, so thank you. i want to follow up now with a question about supply chains. earlier this month, the committee held a hearing on outcompeting china by strengthening economic ties with our allies in the indo-pacific region. i spoke with witnesses about ways to
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increase our supply chain resiliency, including how we brought back american manufacturing, in extremely critical sectors. ambassador, how is your office working to suppress the security of increased supply chains, while also strengthening our alliances in the indo-pacific? >> this is really one of the critical issues that is before us, and our trading partners right now, which is after pursuing decades of an efficiency first trade policy, that we are all about unfettered trade globalization, what are we going to do today in the face of two years of a pandemic, where lockdowns are continuing, even now. and also, russia's invasion of ukraine, which is deeply disruptive to certain parts of our global trade. what will we do about our supply chain resilience? in terms of the u.s. tr's role, we have been working in the inter agency, a whole government, a whole effort. we lead a supply chain task force, we did looking at combinations of our trade tools, whether they are on the enforcement, defensive side, or they are on the negotiation side. in terms of how we come together with our trading partners to help each other, make each other stronger. how do we not just trade more, but trade smarter with each other? >> we have a very, very good
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conversations. and in the indo-pacific economic framework will be a really critical for him for this type of collaboration. and frankly, innovative thinking in terms of our trade policies. it is not a problem we have solved before, but it is really clear to all of us that the version of globalization which we have today's fragile, and is reinforcing our own security. we need to figure out how we can trade with each other in a smarter way, and i do want to reinforce where you started, which is that it is about trade. it is also about rebuilding the u.s. manufacturing base. >> right, thank you. i want to follow up on another important issue, we discussed at last year's trade agenda, regarding the small business chapter of the bipartisan u.s. mexico canada agreement. in addition to cutting red tape for small, new hampshire business experts, exporting into canada and mexico, the agreement also created a committee to get the small business community a voice, shaping our trade policy. can you update us on your officers efforts to be
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responsive to small businesses in regard to trade with canada and mexico? >> i would be happy to. i believe it was last october that actually, we had a usmca small business outreach event, in texas, i think san antonio, my team will correct me if i have gotten the wrong city. the small business chapter is one of the clear wins of the usmca. and i want to reinforce for you that in our ongoing conversations, our forward looking conversations, we are carrying that small business record from usmca into these new conversations. because this is a critical part of democratizing trade, bringing our trade policies to our people in our communities. >> thank you very much, i really appreciate that. and now, i will turn it over to senator
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cortez masto, she is available virtually. >> thank you maggie, thank you chairman. ambassador tai, it is great to always see you. thank you for joining us again. there is one thing we talk about, that will bring up with you again, it's the aggressive tariffs on solar panels. here is my concern, and i think for so many in the industry, it is that with these aggressive tariffs, we are running the risks of rapid solar deployment, and risking our ability to achieve goals. right now in nevada, i have union workers ready to go to work. this year, they are building a 300 megawatt solar panel in the. but it is at risk. if they can't get the materials they need for construction. i also know, risk cutting office supply is over 80% of the solar panels needed to build out the development of our clean energy economy and create good paying jobs. these are reaching our climate goals. i am raising this concern with secretary
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reminded directly, when we sent letters in opposition, i am joined by my colleague, senator rosen, our concerns about this, here it is in a nutshell at the. end of the day, i absolutely understand the need to go solo manufacturing in this country. but we can't do it overnight. and if we are going to make sure that we continue with the growth, with the jobs, but we go down this clean energy path, we can't kill it by continuing these tariffs for these investigations which are happening, which will keep installers and others from moving towards this, so here is my ask of you, just as secretary or a mondale's asking, how can you help us? is there a path forward for resolving this issue, so that we can support growing our domestic industry, holding countries like china
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accountable, but, what do we mean about clean energy workers in my state, across the state, putting their careers of their jobs online. >> senator cortez masto, i know your views on this, the impact on the community that you represent in nevada. let me try to respond to your direct question in this way. i think that we do have the tools to thread this needle where we need to, rebuild our manufacturing capacity here at home, but also be able to deploy this available technology and support jobs in both parts of this sector, i will be the first to admit that trade tools are powerful, but there are limitations in bringing out the policy change that we need, and need to be deployed in combination with
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other policies. and i know that there are legislative initiatives as well to address some of these issues. i want to let you know, we are very interested, that our trade policies can work in concert with. other policies for better support, all parts of our economy. >> thank you. ambassador, i appreciate that. i look forward to working with both of you, and secretary remodel. on a separate subject, i understand, senator casey, and his economic empowerment trade act that he and i both worked together on. so thank, you thank you for the good work you are doing, and your support of that legislation. >> finally, let me jump to workers rights. on march 2nd,
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the u.s. the r believes both of its strategic plan as well as his 2022 trade policy agenda, and 2021 report to congress, both focus on pursuing a worker-centric trade policy, standing up for workers rights. ambassador, could you discuss how you plan to implement these policies, talk a little bit about them? >> certainly. senator cortez masto, we have been implementing policy for already more than a year. and let me talk a little bit, give you some examples of our winds there, and talk about where we want to take this. the worker-centric trade policy is about taking a new approach to our trade policies, where we are championing, not just the biggest economic stakeholders, and the biggest winners in our economy, but also bringing trade policy back to regular people and the communities in which they live. so our approach to resolving the 17-year-long dispute with the european union on large, civil aircraft is an example of bringing the spirit of worker centrism to our trade policy. we did not just work with our aircraft maker and its suppliers, but also with the
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machinists who work for those companies, as we negotiated the agreement with the european and the united kingdom, so that when we got to the outcome, it is an outcome that does not reflect one part of our economy, but all cases. in that case, agreement also lead to the arguments of both sides of the atlantic, which we feel strongly further championed the interests of large segments of our economy. so the spirit of workers centrism is one around uniting as much as possible, american economic interests including those of our people, behind what we do in trade. we are very excited to build on our record from the first year and do more in our second year. >> ambassador, thank you again for joining us.
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>> thank you, senator cortez masto. louisiana then you are out there in cyberspace somewhere? thank you madam chair, i really appreciate it
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very much. can you hear me? >> yes i am going to interject for a minute because of the timing of votes and the timing of this hearing. senator bennett i'm going to turn over the gavel to you virtually you will ask your questions and close the hearing out. we have checked with the knowledgeable people in the room it is okay. i'm going to go back and vote ambassador, thank you so much. >> that's bad news for ambassador tai, i have about an hour worth of questions for her. i'm just kidding, i'm just kidding! ambassador tai, can you hear me? >> thank you for testifying in front of the committee today. i want to lend my voice to underscore the need to confirm a new chief agricultural -- their concern on high input costs and the regulatory gm challenges that they are facing in international markets. they need a permanent chief trade advocate for them here in washington. moving to the question that i am concerned for years across democratic republican administrations we have neglected to implement a coherent strategy in the indo-pacific region. i have talked about that before. instead, china has expanded its influence in that region in the world, including across latin america. for example, in our own hemisphere. i am just wondering in light of supply chain disruptions due to covid and ongoing global instability,
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whether you see potential opportunities to restore critical supply chains to the u.s.. what can you say about our opportunities to strengthen partnerships across the western hemisphere through trade? what might also give us a greater chance of strengthening those supply chains and would challenges do you think that we face in reshoring the critical industries? how can congress help produce any barriers there? >> senator bennett, this is such a critical question. i think one of the greatest barriers that we face is we requireing new thinking. new thinking is often met with fear, but also met with very quizzical. sometimes i think the first barrier is bringing innovation to our trading partners around how we accomplish resiliency through trade. i have spoken a little bit about this. our traditional trade policies have been about maximizing liberalization. creating incentives for efficiency for our firms. i think our experience shows us that, where we are today, we need to work for resilience. we need to look for ways to reestablish a sense of security
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and confidence in the global economy. i think that will be done through a combination of rebuilding and manufacturing based here in the united states. and establishing trusted and strategic trade relationships with our partners and our friends. >> i would like very much the opportunity, if you have someone who's doing some of the new thinking, to talk to them about it. i do think this is a moment where we are realizing that prioritizing making stuff as cheaply as possible in china versus, as you say, resiliency or the chance to make things here in the united states for our own national security, there are all kind of values that i think our trade policy ought to reflect. let me just in the last few minutes that i have, ambassador shift gears slightly. in your testimony you
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state that the administration relaunch the united states india policy forum. i know that that has come up this morning, i did not have the chance to hear it. india has been a critical u.s. ally. i'm deeply concerned about the status in trajectory of our relationship with india, especially in light of russia's invasion of ukraine and india's reluctance to condemn what vladimir putin has done. can you elaborate on the progress of that forum? discuss any challenges we face and how our trade policy can strengthen our partnership with india and then i will let you go. >> thank you senator bennett, with respect to india. india is such an important trade partner. and a strategic partner. india's complicated. we live in a complicated world. it was extremely important for us in the biden administration to restart that trade policy forum with india. to do it at the ministerial level. so i went to delhi last november to meet with my counterpart
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minister goyle, it was the first time in four years that the tps had met at all. the last time it met in 2017 it was so fraught that the two sides did not even issued a joint statement, but this time we issued a robust five-page statement that included a important principles where we agreed to work together as well as market access commitments that we have made to each other i think that this will continue to be a complicated relationship to your point it is a important one where we need to invest our dedication and our ability to make breakthroughs. >> thank you for that, on behalf of the committee thank you for your testimony today ambassador tai, this hearing is adjourned.
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next hearing examining the home appraisal process bias against minorities. house members ask questions about diversity in the industry, recruitment and retention. experts familiar with the process of the industry testified for about three


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