Senate Finance Committee Hearing for USTR Nominee Robert Lighthizer
Key
Topics & Takeaways
NAFTA: Lighthizer declined to provide
details on the Trump administration’s plans regarding the future of the
North American Free Trade Agreement (NAFTA). Lighthizer promised to defend
U.S. agricultural producers in any NAFTA renegotiation, as numerous
Senators noted the importance of the Mexican market for U.S. agricultural
products and broad Canadian restrictions on U.S. agricultural exports.
China: China
dominated the discussion during the hearing, and many Senators expressed
concern over the Chinese dumping of steel and metal products, Chinese
government support for state-owned and state-aligned industries, and the
lack of Chinese protection for intellectual property. Lighthizer assured
the Senators he would protect the U.S. steel industry from unfair Chinese
trade practices and would use the World Trade Organization (WTO) and
bilateral agreements to protect U.S. producers.
Agriculture: Numerous Senators requested
Lighthizer, and the Office of the United States Trade Representative
(USTR), protect U.S. agricultural producers and break down barriers
overseas to U.S. agricultural exports. Lighthizer said that agricultural
exports would be a priority for him at the USTR, as the U.S. is a major
producer of agricultural products.
Nominee
Robert
Lighthizer,
to be United States Trade Representative
Opening Statements
In his opening
statement,
Chairman Orrin Hatch (R-Utah) criticized the Obama administration for not
filling vacancies at the Office of USTR, and criticized Democrats for attaching
the “extraneous” issue of miners’ health benefits to Lighthizer’s candidacy.
Hatch also discussed Lighthizer’s previous legal representations of foreign
clients in the 1980s and 1990s, which Democrats believe necessitate a
Congressional waiver for Lighthizer to fill the position of USTR. Hatch argued
that it is “unclear” if the statute in question – a component of the 1995
Lobbying Disclosure Act – applied to Lighthizer, and accused the Democrats of
“legislative hostage-taking” by trying to link the waiver to the miners’ health
benefits issue. Hatch also discussed trade priorities for next USTR, saying he
expects Lighthizer to serve as a strong advocate for US intellectual property
rights, and that he expects “quick and effective use” of Trade Promotion
Authority to negotiate new, strong trade agreements and update existing
agreements. Hatch also named anticorruption, trade secrets protection,
transparency in government reimbursement regimes, and price fixing overseas as
key priorities for the next USTR.
In
his opening
statement,
Ranking Member Ron Wyden (D-Ore.) linked any waiver for Lighthizer to the
miners’ health issue. Wyden also criticized the administration trade policies
thus far, describing it as “just talk.” Wyden called on Lighthizer to improve
U.S. enforcement of existing trade agreements, saying that foreign subsidies
and dumping should be identified and halted, and US trade partners should be
held to their commitments, including their labor and environmental obligations.
Wyden identified the Asia Pacific region as a key area of interest for the
U.S., noting the large number of people entering the middle class in that
region. Wyden said that the U.S. cannot remain “on the sidelines while other
nations negotiate trade deals that advantage their exporters over ours.”
Former
Senator Bob Dole introduced Lighthizer. Sherrod Brown (D-Ohio) and Rob Portman
(R-Ohio) each testified briefly in support of Lighthizer’s nomination. Brown
described him as the “man to design a new trade policy” and spoke favorably of
his previous work on behalf of the steel industry. Portman also supported
Lighthizer and lauded his previous experience as Deputy US Trade
Representative. Brown did criticize the committee’s inaction on the
miners’ health and pension issue during his remarks.
Testimony
Robert Lighthizer, to be United States
Trade Representative
In
his brief testimony, Lighthizer talked
about his previous work on trade issues. He stated his support for President
Trump’s ‘America First’ trade policy, and discussed the importance of strong
enforcement of existing trade agreements. Lighthizer said the administration
would work with like-minded trading partners to “ensure fair trade and to
encourage market efficiency.” He also discussed the importance of trade to
economic growth and to improving the lives of everyday Americans.
Question & Answer
North
American Free Trade Agreement (NAFTA)
Sen.
Chuck Grassley (R-Iowa) asked Lighthizer whether NAFTA would be renegotiated
through a new trilateral agreement or two new bilateral agreements. Lighthizer
said the administration has not decided how it will renegotiate NAFTA.
Sen.
Tom Carper asked Lighthizer if the U.S. needed to renegotiate NAFTA completely,
or if the U.S. would use the Trans-Pacific Partnership (TPP) as a baseline for
changes to NAFTA. Lighthizer agreed with using TPP as a baseline, saying former
USTR Michael Froman did a “good job” on TPP.
Numerous
Senators asked Lighthizer about the U.S. trade relationship with China. Questions
focused on Chinese steel and metal exports and the impact of Chinese dumping on
global markets. Lighthizer said the U.S. needed to “Start thinking about some
new remedies” saying that using the WTO should be one part of broader
engagement on trade with China. Lighthizer also said he did not believe the WTO
could effectively deal with Chinese industrial policy. Lighthizer said he would
oppose “Market Economy” status for China. He was also asked several times about
ways to reduce Chinese steel exports to the U.S., and reiterated numerous times
his commitment to protecting the U.S. steel industry from dumping.
Sen.
Pat Roberts (R-KS) and Grassley asked Lighthizer about the importance of U.S.
agricultural exports in trade negotiations overseas. Both asked for assurances
that the USTR would prioritize gaining access to new markets for U.S. farmers,
which Lighthizer assented to. Lighthizer said it is “hard…to understand why we
tolerate so man barriers to agricultural trade when America is the number one
producer of agriculture products.” Grassley specifically called on Lighthizer
to protect agricultural products in any NAFTA renegotiation, noting that Mexico
is a major destination of U.S. agricultural exports.
Wyden
discussed the U.S.’s long-running dispute with Canada over that country’s
exports of softwood lumber. Lighthizer assured Wyden that softwood lumber would
be “at the top of [his] list” in any trade discussions with Canada.
Sen.
Michael Bennet (D-Colo.) and Sen. Bill Cassidy (R-La.) both expressed concern
over possible Mexican retaliation on U.S. agricultural exports in the event of
a contentious NAFTA renegotiation. Toomey also asked Lighthizer to help U.S.
dairy producers gain better access to the Canadian market.
Intellectual
Property
Hatch
asked Lighthizer several times about the USTR’s role in enforcing U.S.
intellectual property (IP) rights overseas, especially in India. Lighthizer
assured the administration would provide “robust protection” for U.S.
intellectual property and promised to bring WTO and bilateral enforcement
actions against violators of IP rights. Lighthizer also promised to include IP
rights enforcement in any trade negotiation with Canada, in response to Hatch’s
questions about Canada’s refusal to enforce U.S. IP rights on in transit cargo.
Sen.
Pat Toomey (R-Pa) also asked Lighthizer to protect U.S. IP rights overseas,
particularly for biologics. Several other Senators made statements about the
importance of IP for the U.S. economy.
Data
Location
Wyden
asked Lighthizer about data location issues, saying it is important to stop
“foreign efforts to require American companies to store data where governments
want the data stored, not where it makes sense for the private economy.”
Lighthizer said it is “essential” to protect the free flow of data, and to
ensure that companies can store their data where “it makes sense economically.”
Lighthizer said he was “fully committed” to protecting U.S. companies’ data and
that data location would be included in any new trade agreements, as well as
any updates to existing trade agreements. Lighthizer noted that this issue
“didn’t even exist” when NAFTA was originally negotiated and promised data
location would be a priority for the USTR.
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Key
Topics & Takeaways
NAFTA: Lighthizer declined to provide
details on the Trump administration’s plans regarding the future of the
North American Free Trade Agreement (NAFTA). Lighthizer promised to defend
U.S. agricultural producers in any NAFTA renegotiation, as numerous
Senators noted the importance of the Mexican market for U.S. agricultural
products and broad Canadian restrictions on U.S. agricultural exports.
China: China
dominated the discussion during the hearing, and many Senators expressed
concern over the Chinese dumping of steel and metal products, Chinese
government support for state-owned and state-aligned industries, and the
lack of Chinese protection for intellectual property. Lighthizer assured
the Senators he would protect the U.S. steel industry from unfair Chinese
trade practices and would use the World Trade Organization (WTO) and
bilateral agreements to protect U.S. producers.
Agriculture: Numerous Senators requested
Lighthizer, and the Office of the United States Trade Representative
(USTR), protect U.S. agricultural producers and break down barriers
overseas to U.S. agricultural exports. Lighthizer said that agricultural
exports would be a priority for him at the USTR, as the U.S. is a major
producer of agricultural products.
Nominee
Robert
Lighthizer,
to be United States Trade Representative
Opening Statements
In his opening
statement,
Chairman Orrin Hatch (R-Utah) criticized the Obama administration for not
filling vacancies at the Office of USTR, and criticized Democrats for attaching
the “extraneous” issue of miners’ health benefits to Lighthizer’s candidacy.
Hatch also discussed Lighthizer’s previous legal representations of foreign
clients in the 1980s and 1990s, which Democrats believe necessitate a
Congressional waiver for Lighthizer to fill the position of USTR. Hatch argued
that it is “unclear” if the statute in question – a component of the 1995
Lobbying Disclosure Act – applied to Lighthizer, and accused the Democrats of
“legislative hostage-taking” by trying to link the waiver to the miners’ health
benefits issue. Hatch also discussed trade priorities for next USTR, saying he
expects Lighthizer to serve as a strong advocate for US intellectual property
rights, and that he expects “quick and effective use” of Trade Promotion
Authority to negotiate new, strong trade agreements and update existing
agreements. Hatch also named anticorruption, trade secrets protection,
transparency in government reimbursement regimes, and price fixing overseas as
key priorities for the next USTR.
In
his opening
statement,
Ranking Member Ron Wyden (D-Ore.) linked any waiver for Lighthizer to the
miners’ health issue. Wyden also criticized the administration trade policies
thus far, describing it as “just talk.” Wyden called on Lighthizer to improve
U.S. enforcement of existing trade agreements, saying that foreign subsidies
and dumping should be identified and halted, and US trade partners should be
held to their commitments, including their labor and environmental obligations.
Wyden identified the Asia Pacific region as a key area of interest for the
U.S., noting the large number of people entering the middle class in that
region. Wyden said that the U.S. cannot remain “on the sidelines while other
nations negotiate trade deals that advantage their exporters over ours.”
Former
Senator Bob Dole introduced Lighthizer. Sherrod Brown (D-Ohio) and Rob Portman
(R-Ohio) each testified briefly in support of Lighthizer’s nomination. Brown
described him as the “man to design a new trade policy” and spoke favorably of
his previous work on behalf of the steel industry. Portman also supported
Lighthizer and lauded his previous experience as Deputy US Trade
Representative. Brown did criticize the committee’s inaction on the
miners’ health and pension issue during his remarks.
Testimony
Robert Lighthizer, to be United States
Trade Representative
In
his brief testimony, Lighthizer talked
about his previous work on trade issues. He stated his support for President
Trump’s ‘America First’ trade policy, and discussed the importance of strong
enforcement of existing trade agreements. Lighthizer said the administration
would work with like-minded trading partners to “ensure fair trade and to
encourage market efficiency.” He also discussed the importance of trade to
economic growth and to improving the lives of everyday Americans.
Question & Answer
North
American Free Trade Agreement (NAFTA)
Sen.
Chuck Grassley (R-Iowa) asked Lighthizer whether NAFTA would be renegotiated
through a new trilateral agreement or two new bilateral agreements. Lighthizer
said the administration has not decided how it will renegotiate NAFTA.
Sen.
Tom Carper asked Lighthizer if the U.S. needed to renegotiate NAFTA completely,
or if the U.S. would use the Trans-Pacific Partnership (TPP) as a baseline for
changes to NAFTA. Lighthizer agreed with using TPP as a baseline, saying former
USTR Michael Froman did a “good job” on TPP.
Numerous
Senators asked Lighthizer about the U.S. trade relationship with China. Questions
focused on Chinese steel and metal exports and the impact of Chinese dumping on
global markets. Lighthizer said the U.S. needed to “Start thinking about some
new remedies” saying that using the WTO should be one part of broader
engagement on trade with China. Lighthizer also said he did not believe the WTO
could effectively deal with Chinese industrial policy. Lighthizer said he would
oppose “Market Economy” status for China. He was also asked several times about
ways to reduce Chinese steel exports to the U.S., and reiterated numerous times
his commitment to protecting the U.S. steel industry from dumping.
Sen.
Pat Roberts (R-KS) and Grassley asked Lighthizer about the importance of U.S.
agricultural exports in trade negotiations overseas. Both asked for assurances
that the USTR would prioritize gaining access to new markets for U.S. farmers,
which Lighthizer assented to. Lighthizer said it is “hard…to understand why we
tolerate so man barriers to agricultural trade when America is the number one
producer of agriculture products.” Grassley specifically called on Lighthizer
to protect agricultural products in any NAFTA renegotiation, noting that Mexico
is a major destination of U.S. agricultural exports.
Wyden
discussed the U.S.’s long-running dispute with Canada over that country’s
exports of softwood lumber. Lighthizer assured Wyden that softwood lumber would
be “at the top of [his] list” in any trade discussions with Canada.
Sen.
Michael Bennet (D-Colo.) and Sen. Bill Cassidy (R-La.) both expressed concern
over possible Mexican retaliation on U.S. agricultural exports in the event of
a contentious NAFTA renegotiation. Toomey also asked Lighthizer to help U.S.
dairy producers gain better access to the Canadian market.
Intellectual
Property
Hatch
asked Lighthizer several times about the USTR’s role in enforcing U.S.
intellectual property (IP) rights overseas, especially in India. Lighthizer
assured the administration would provide “robust protection” for U.S.
intellectual property and promised to bring WTO and bilateral enforcement
actions against violators of IP rights. Lighthizer also promised to include IP
rights enforcement in any trade negotiation with Canada, in response to Hatch’s
questions about Canada’s refusal to enforce U.S. IP rights on in transit cargo.
Sen.
Pat Toomey (R-Pa) also asked Lighthizer to protect U.S. IP rights overseas,
particularly for biologics. Several other Senators made statements about the
importance of IP for the U.S. economy.
Data
Location
Wyden
asked Lighthizer about data location issues, saying it is important to stop
“foreign efforts to require American companies to store data where governments
want the data stored, not where it makes sense for the private economy.”
Lighthizer said it is “essential” to protect the free flow of data, and to
ensure that companies can store their data where “it makes sense economically.”
Lighthizer said he was “fully committed” to protecting U.S. companies’ data and
that data location would be included in any new trade agreements, as well as
any updates to existing trade agreements. Lighthizer noted that this issue
“didn’t even exist” when NAFTA was originally negotiated and promised data
location would be a priority for the USTR.