Andrew Roth - February 27th, 2012
UPDATE (Feb. 29, 2012): The Club for Growth urges all members of Congress to vote “NO” on the Camp/Baucus bill (H.R. 4105 / S.___) that applies punitive countervailing duties to non-market economies like China. The Club is key-voting this proposal, and recently sent out this alert stating our rationale.
This new bill makes it clear that Congress wants to escalate its trade war rhetoric with China. Among other things, the plan doesn’t fix the non-WTO-compliant “double counting” practice (it arguably makes it worse), and it harms U.S. importers and consumers by validating illegal, punitive duties that have already been collected.
KEY VOTE ALERT
“NO” on the CHEATS Act (H.R. 4071)
The Club for Growth urges all members of Congress to vote “NO” on any bill, including H.R. 4071 sponsored by Rep. Tammy Baldwin, that gives the executive branch the authority to apply countervailing duties to non-market economies (NMEs). While we believe that it’s unlikely that H.R. 4071 will be the proposal voted on, we believe something similar will be considered in the next few weeks. A vote on passage, and perhaps procedural votes, will be included in the Club’s 2012 Congressional Scorecard.
The Administration wants to retain the ability to apply countervailing duties on China, Vietnam, and potentially other less developed countries. These duties restrict economic liberty and are anti-growth.
This may be a narrow issue, but its implications are significant. A recent court ruling (GPX International Tire vs. U.S.) held that the federal government cannot apply countervailing duties to non-market economies like China and Vietnam. Rather than pursue a pro-growth solution to this situation, like doing nothing and allowing the duties to expire, Congress wants to give the executive branch the continued authority to apply these punitive tariffs. We strongly urge members of Congress to defeat this proposal.
- President Obama’s Chance to Fix Deteriorating Economic Relations with China – Dan Ikenson, Cato Institute
- Bombshell: CAFC Rules US CVD Law Cannot Apply to China & Other “Non-Market Economies” – Scott Lincicome, Lincicome.blogspot.com
- Nonmarket Nonsense: U.S. Antidumping Policy toward China (PDF) – Dan Ikenson, Cato Institute
- Antidumping: The Third Rail of Trade Policy (PDF) – Greg Mankiw and Phillip Swagel
Our Congressional Scorecard for the 112th Congress provides a comprehensive rating of how well or how poorly each member of Congress supports pro-growth, free-market policies and will be distributed to our members and to the public.