advanced strategic thinking to the tariff liberalization, it is a very lonely place to be, but this is something where you see the dots we are trying to connect. i'd be delighted to work with you and anyone else. rep. malliotakis: i'd like to have a follow-up meeting with you on that issue. i don't have time so i will leave it out for you to consider. covid showed our dependency on china can be dangerous in the future. i'm concerned about active pharmaceutical ingredients, of which 95% of imports of ibuprofen are from china. i just want to lay that out for this administration to consider. i think it is another opportunity for us when we talk about nearshore rain and friend-shoring, that could be a

good strategic partnership. the committee stands and recess. >> thank you. >> the committee will come back to order as you know, ambassador, trade policy is incredibly important to me and my district and my constituents. i represent the heavy agricultural district and manufacturing district whose jobs and economic success rely on market access account of the building and opportunities to send our great american products all across the globe. knowing that, i don't think it should be a surprise to anyone here that i've been incredibly frustrated that another year has passed without kind of a proactive substantive policy on

trade and progress on the an enforceable trade agreements from the biden administration. i know you, ambassador tai, you are in the senate yesterday or the day before the senate finance committee, and i know there was frustration over there. there was a political article that said the ambassador plays defense as the senate rips into the trade agenda. in that article •-ellipsis senators on both sides of the aisle criticized for not initiating the trade agreements with foreign partners. opting instead for frameworks that lack the same market access professions and enforcement mechanisms as traditional. we've talked about this a little bit before. we sit here two years into this job we don't have an fta with kenya or with taiwan. we don't allow them to take

advantage and to set the playing field for the disadvantage of u.s. businesses and workers. i am also a member of the new select committee on china which has raised awareness in a bipartisan way that what we see every day in the indo pacific region is the growing threats of china and considering that, having an insufficient trade engagement in that region. i believe it is unacceptable. and i know you mentioned as a look at it today i believe the framework is actually getting weaker. take the digital pillar as an example. they've chosen to engage in a framework that lacks tangible policy and avoids congressional consultation or approval, and i'm hoping to hear your views on that and i worry that we are not countering were providing strong enough alternatives to the

growing pressure of nonmarket economies. instead of increasing the leadership in the indo pacific region, countering the influence into leaning in on opportunities like digital trade to set global rules and standards that would put countries like china at a disadvantage we are missing an opportunity to use trade as an offense of tool. and so i mentioned those things again as we look at every conversation as a part of the select committee on china when we talk to our like-minded whether it's japan, south korea, australia they are craving our leadership economically and i just i express my frustration and concerns about two years in and we've not made any progress on these things. so with that, i'd love to hear your specific ideas or comments whether it prevents alternatives to china's pressure in the indo

pacific region. >> it's good to see you and let me say a couple things before i get to your specific question. i hear your frustrations and i'd like to make two points. one is you are seeing a key part of the trade that it's not the traditional trade agenda and that is out of a recognition that a lot of the challenges we are facing today, whether it is the supply chain challenges, whether it is the challenges that we are facing from nonmarket economy practices like those from the prc to russia's invasion of ukraine that a lot of these have roots in the traditional trade approach that has brought us to where we are today. so yes, we are not preserving traditional fully liberalizing trade agreements because we see those as a part of the problem that we are trying to correct. so, your frustrations are affirming that yes we are not preserving the traditional trade

agenda. but what i would like to point out to you, and i would be delighted to spend more time with you as well is to have you see those things that we are doing, that we are putting forth a trade agenda to try to correct for exactly some of the challenges that you have highlighted especially with respect to the nonmarket economic policies and practices that have really made the playing field extremely tilted and we will have to adapt and respond to as long as the practices are there. i am delighted that you are as a member of the ways and means committee i think there are two of you with that are on the china select committee. i'm looking for an opportunity to come up to brief the committee and get to know you better. let me get to the economic framework. you are absolutely right our partners in the region are thirsting for engagement with us on economic matters.

that is what we are bringing through the framework including the digital engagement. we have got very robust, very enthusiastic participation from 13 partners in the region, 12 of whom are actively engaging with us through two rounds of negotiation. and i'm happy to spend more time with you there as well but our vision is for an economic engagement in the indo pacific that is first of all durable and well supported at home and second of all that promotes the shared interest of that we have with all of our partners around adapting to a very disrupted global economy that will bring more resilience, more sustainability and inclusiveness to all of our economies by working together and i would be delighted to spend more time with you and explain how what we are doing here connects with those goals. >> i would appreciate your willingness to meet with the select committee. the last point i would make is what the ccp fears the most is

bipartisan support engagement in the indo pacific region we look forward to working with you on it. ms. sanchez is recognized. >> thank you, transmitting and ranking member neil for the opportunity to discuss the biden administration's 2023 trade agenda and i want to thank you for returning to brief us about the efforts to advance the worker center trade agenda and for your always willing to be accessible and available. you let the administration along with calling for its much-needed reform and i want to commend you for the stance you've taken to the defense of the national security while ensuring a commitment to a rules-based trading system. i also want to highlight your leadership for the strong environmental commitments and labor standards through the rapid response mechanism under the u.s. mca.

as a former labor lawyer, i am proud of that our efforts have led to an unprecedented number of union elections and the facilities. to that end, the u.s. mca model includes the updates that many of us here in congress want to see reflected across the trade agreements of the western hemisphere. ambassador tai, you stated the american partnership for economic prosperity will build upon the strong core of trade agreements in the hemisphere yet the united states is not effectively enforced several existing agreements with countries in the region including member states of the dominican republic. i was hoping maybe you could speak to the administration's views on the best way to improve labor enforcement under cap and would it be practical to with congressional approval to update the labor standards and include the rapid response mechanism like we see in the u.s. mca?

>> it's wonderful to see you. i appreciate the question because we do care about our partnerships with them our neighbors in the western hemisphere. in terms, you will recall it is one of our pre- may 10th agreements and there were enhancements and improvements like the ones we made in the u.s. mca in the earlier version two labor and environmental provisions and enforceability of those. so, to your point about the opportunity for leveling up if you will, it is something that we think about and a number of different ways with respect to that particular agreement. on the americas partnership, let me touch on that briefly. we know that in our own a hemisphere we have the most

existing traditional free-trade agreement that we have are in this hemisphere and yet the partners with whom we have those agreements continue to want something different and more from us and i think it really does reflect the changing nature of the world economy and the needs that we have around promoting resilient, sustainability and inclusiveness, so whether it is with partners with whom we have an fta already or those that we do not come of the progress we are advancing right now and the trade agenda is not meant to address those items. to the question about how to revisit some of these pieces in the context of the americas partnership, i'd be delighted to explore that with you. i think there's a lot of potential. we are really focused on our regional resilience in a new way and i think that there's a lot of opportunity. >> thank you. so, i'm wondering if you foresee any tension between states that

are party to both and the compliance with the differing agreements if one has a strict standard. >> i've been thinking about it differently in terms of the americas partnership there are 11 of us right now, so that's the united states plus ten. of those 108 of them have free-trade agreements. the two of them do not. we didn't want to make them a disqualifying factor because we want to think about the region as a whole. we want to advance an agenda here that is complementary to the existing arrangements that we have and this is an area as we get into more detail that i would be very happy to continue to work with you on. >> i have one last question. my time is short so i will submit it for you to respond to in writing. thank you for your time and again for always being willing to be accessible for questions or input.

i yield back. >> the gentleman from pennsylvania is recognized. >> thank you, mr. chairman and ambassador tai for testifying today. i've noticed the biden administration has a bad habit of redefining things that don't fit your agenda. for example, last year the administration redefined the definition of the recession. now the administration is redefining what is considered a free-trade agreement, ustr has also been working to redefine congresses role in developing trade arrangements as exhibited the involvement. you're also redefining what consultation with congress means. before our senate finance counterparts yesterday, you told multiple senators that you've been in close consultation with congress as you negotiate critical agreements with japan and the eu but i want people to know, my constituents to know what activities the ustr is

defining as close consultation. apparently you believe that close consultation is leaving documents in a skiff for members to review but not share with constituents and then holding to staff level zoom hearings. i don't believe that is sufficient consultation to move forward with signing any critical mining agreement that our constituents have not been allowed to see. i know many of my colleagues have raised and will continue to raise similar concerns and i hope that it conveys the point that congress finds this wholly inadequate consultation with congress. pivoting from definitions, i want to raise a few constituent specific trade matters the first relates to gsp and i hear from so many constituent companies about how they've been an effective tool for them to strengthen their supply chains, to create high-paying jobs at home and overseas attitude of interest in sustainability.

i know congress is responsible for the renewal, but i would like to ask what tools does ustr have at its disposal or what tools could congress provide as a part of the renewal to ensure that any new eligibility criteria in the gsp promotes a race to the top both across and within the countries but also avoids farming the users like i've heard from that are meeting or exceeding the programs development totals or goals i should say, i'm sorry. >> i like your question although the lineup was a little bit brutal. let me just say on consultations look, i am here before you right now. let me just commit to desire to be here as much as possible on issues and if you have specific concerns with respect to the critical minerals, which i'm sure you will, please always feel free to reach out. i'm taking the feedback and we

will commit to do better as well. on gsp, look i think that gsp ought to reflect the state of modern u.s. trade policy practice. we have anna established bipartisan, bicameral consensus in u.s. trade policy that trade includes labor and the environment. this is something that i carried with me and all of my conversations with my counterparts around the world to say that you should be like us and acknowledge that trade is more about just goods crossing the border but it is about economic engagement and making our economies work together. so, in terms of -- >> to reflect both labor and environmental criteria it should reflect that race to the top and yes it should be usable but that

is because at heart it is a development tool and -- >> there's an additional u.s. mca enforcement challenge that the pennsylvania company is facing that i just want to bring up as well. as you know, canada committed to ensuring the u.s. home shopping programming could distribute in the country under annex 15 of u.s. mca. i understand president biden's meeting with of the pre- minister trudeau this weekend i'm asking for your commitment to work on this enforcement issue with my office and we will also be following up by the way with a formal letter that has a huge impact on the pennsylvania-based company qvc. >> i know this issue well and i would be happy to work with you on it. >> thank you, ambassador. >> the gentleman from new york is recognized. >> thank you very much for being here. also thank you for being so responsive to our concerns on behalf of our constituents about the ill-advised property tax in

canada that's imposed on the underutilized properties. it was intended to address a problem with foreign interest purchasing large swaths of land in both toronto and vancouver and then holding that and taking supply off the table, increasing the cost of housing and the availability of housing or decreasing the availability of housing so i just want to thank you for that. china and russia are involved in a big land grab in africa for rare earth elements, cobalt, copper and lithium. these are essential elements to developing electric vehicles and semiconductor manufacturing. they are the primary inputs for future global economic growth.

so today it's a global gold rush for these minerals. combined, china owns about 80% of these minerals followed by the united states. each refined materials or imports from china. production of electric vehicle batteries worldwide china has 553 gigawatt hours the united states has 44 gigawatts hours. according to the snp global, global lothian ion capacity will more than double by 2025. china will have 65.2%, germany will have 11.3%. the united states, 6.3%.

there are 200 battery factories being built between now and 2030. 148 of them will be in china, 21 in europe and 11 in the united states. there's a lot of talk here and generally in the congress about being tough on china. while that is true i think we have to be tougher on ourselves about china. the biden administration i think is responding to that with both of the inflation reduction act and also the chips and science act to incentivize re- shoring, call it what you will. my concern is giving dominance in the continent of africa and in the area of electric vehicle

lothian ion and manufacturing. is that too little too late relative to the united states trying to catch up and what is the vision with the inflation reduction act and the chips and science act relative to that competition? >> thank you so much, congressman. i agree with you and i really appreciate you highlighting all of the data and statistics to demonstrate the dominance of the prc in the global marketplace in a lot of these areas. let me address the question with respect to africa first which is i tend not to think about it as, first i don't think it's too little too late. first of all, we can't think like that. but also i just don't think it's true. with respect to africa, where i would like to start in terms of our partnership with africa is to ground it in our partnership

being inherently valuable for being good partners, a good partner to africa. in terms of the demographics of africa, the use of its population, the growth in terms of its population as well as all of its other resources, africa has a potential to become the engine to drive not just its own growth as a continent in the next decades, but a driver of global economic growth. our connections with africa historically and in terms of our people and our communities, diaspora communities that are recent and have been here for hundreds of years are part of the strength and connectivity into the reason why we should be partnering with africa in the first place. to the point in terms of industrial competition, looking at some of these critical supply chains and where the industries of today and the future are growing up, you are absolutely

right it needs to be a combination of policy approaches that we take that involve investing here at home but also working out how to secure supply chains that are more resilient that make us less vulnerable and open up more opportunities for us and our partners to be able to thrive in the global economy as it continues to evolve so you are right absolutely that in terms of the investments that we make but also in terms of the adaptations to the trade policy we've got to find a way to make our industrialization and trade visions work together, and that is absolutely what we are focused on. >> thank you mr. chairman and ambassador tai for being here today. i'm from iowa. the breadbasket to the world. a second largest exporter of agricultural goods, number one

when it comes to greens and export. it's been a challenge for us. it's been a struggle to watch this administration that we are sort of in a trade deficit right now when it comes to agricultural goods. for the first time in decades and we haven't seen any new markets being opened. i will say this i do appreciate your work on the gmo issue. we've got to get it resolved. this is paramount to the midwest and agricultural markets. and i can't tell you if you can pass along information to the administration is that we are not to fly over. we actually do a lot of good things to the economy in the agricultural breadbasket of america and it just seems like we get neglected because it never mentions us but that's not what i want to talk about. i want to talk about continuing section 301 tariffs on amino acid that expanding those to include lysine and thorazine. the african swine fever hit

china and the hog population the demand for amino acids that went into their food plummeted and the excess was dumped here right in america. to the detriment of amino acid producers in iowa and across the country, the united states and china are the major amino acid producers but if this dumping goes unchecked, the american industry will be devastated into go out of business so this is critical to the supply chain and off shoring and actually fighting against the geopolitical rival in china. so my ask to you is will you commit to continue to work on section 301, keep it and then also expanded to include such things like like a scene and pharaoh and i as he and? >> i've now been to your great state of iowa and in fact visited the iowa state fair last summer with secretary vilsack so i just want to say iowa isn't a flyover for me.

i know how strong iowa is for our agricultural economy and i care very deeply and i'm always inspired and in impressed by the farmers and agricultural producers in your state. let me say one thing on the market access, we have been expanding market access for the producers, and our agricultural economy we know is one of the strongest producers in the world. as we adapt our trade policies, we will not forget you. we are not forgetting you and i have a list with me that i want to run through right now of all of the market openings that we continue to do for the farmers, ranchers, producers and especially the champion industries of the small ones in family farmers and producers as well. on the amino acids, let me say this because i think i just want to highlight in terms of the 301 program, it's a very important program for us.

it's important for us to bring a responsible strategic approach to it. as a result, we have an ongoing review of the section 301 action where we opened a portal and invited a stakeholder comment. i trust that the amino acid producers in iowa have participated in that process and we have committed to running a serious deliberative process where we do everything to do right by the entire economy so let me just highlight for you that that is going on and we take that very seriously. we are happy to do what is right. the right thing for the economy. so what are the conditions that

should the case at the right time to tear down some of these tariffs, tariff barriers and opening a lot of these markets for iowa farmers. >> thank you for paying attention to that hearing and not relying on that reported by politico which is not always nice. but, supposed to sound like my words. what i want to say is there is no allergy to pushing on our partners to reduce their barriers. the problem is the traditional approach as a whole of economy which has led to a lot of the vulnerabilities we are facing today. i am looking for partners from congress, trading partners from her stakeholders to think about how we can use a tool like tariff liberalization to advance the greatest cause of resilience, sustainability and inclusiveness and or trading relationships. we can harness this tool to

promote those goals i'm all for per. >> my time is up china continues to build economic relations. they have 10 new treat free trade agreements in this last five years. they're not trading for 120 countries, we are falling behind. that is a real problem for the american farmer fred thank you yelled back. >> from alabama is recognized for quick think it mr. chairman welcome ambassador. first i was to thank you for coming to my hometown of selma, alabama to trace the footsteps of john lewis is a civil rights soldiers -- foot soldiers and 50th anniversary of the blood he sunday. i know you personally see the office as a mechanism to promote human rights and civil rights around the globe. i hope the pilgrimage to selma is an inspiring experience for you. i also need to thank you secretary blinken and ambassador for the entire by demonstration for your tireless efforts to hold the mexican government accountable for the illegal

facilities in port in mexico. just yesterday i joined a letter with the rest of the alabama delegation to the mexican ambassador demanding answers for alabama workers and materials which is headquartered in birmingham, alabama. ambassador i know both of us are strong supporters of the u.s. and ca and the updated labor environment and enforcement provisions that we negotiated and secured a new agreement. i am very concerned present lopez is seriously threatening the progress and goodwill that has been established since the implementation of usmc eight. think arty know the answer to this. i was hoping to get your commitment to stay engaged on this issue and to send a very clear message this illegal seizure is not acceptable. ask yes, ma'am. >> thank you pretty soon i also represent the steelworkers in my districts.

i was a supporter of section 232 steele terrorists because i know china and other bad actors overseas are actually dumping steel on the global market and is an effort to kill the u.s. steel industry but this has a dramatic devastating action. but, we have to make sure that we are enforcing it correctly or dousing of the administration is negotiating a global arrangement on the steel and aluminum with the eu so we can find a long-term solution to the steel overcapacity while also partnering with our allies to promote the production of a more environmentally steel like that producing alabama. could you tell me how those negotiations are progressing? what happens they walk away from the table to the 232 tariffs go back in the u.s. -- in the eu? >> congressman i will respond to that question backwards for yes. let me take it off the eu and

say if we do not succeed the 232 tariffs come back on eu steel and aluminum and the retail tory tariffs across the board on a lot of her agricultural products in particular come back and swell. i do want to let you know that since the top of your question, but i have very strong partnership with my european counterpart the executive vice president. we have committed to staying in touch every single month this year to ensuring our team stays on track to meet the deadline of october 31 that we have imposed on ourselves a successful completion of these negotiations. the vision is exactly as you have described it. which is to update aurora steel and aluminum trade create a framework that promotes fair trade which has been so devastating to us and market-based economies and also to push for plainer production

and trade as we look to the future. it has to do both of these things. they are quite challenging in terms of getting her to systems to mesh. i want to assure you we are working very hard. i remain very optimistic their teams will get us there. >> thank you so much for all of your engagement on these issues. we can tell you workers are really, really worried about the seizure and hope the unite states will continue to put pressure on the mexican government, thank you. thank you, good to see you. public would speak speak kind and polite and sweet.

that's the only way will ever accomplish your demonstrates the trade is the priority. we've worked with use of former ways and means staff person. i think i know you are inclined to do. you believe trade is critically important. not just to agriculture which is traded defendant is the lifeblood of the region i hail from. you understand how important it is on the u.s. economy. in future growth. for all of president trump's shortcomings and for all of the

reasons i'm people were not crazy about his personality or his leadership style, president trump was totally committed to trade. and a boston made trade a priority. other countries took very seriously. that is why we were able to come together in a bipartisan way and actually accomplish something for the united states, for our workers, for our producers and manufacturers. i hate that you do not have that because i think his wasted talents for a hated more for the country because we are getting whipped on the playing field. i cannot stand to see america lose win the game is rigged, people are cheating, but worst of all when we do not even show up to the game.

that is how i feel about where we are today. dina, and just about every other competitor country is taking market share every day from the united states and from our great farmers, ranchers, manufacturers et cetera. it is because we do more talking and we are looking in various ways to get debt to gdp down that's a threat to everything. we noticed a sonic got to question it's a broad rod abased

a question on the impact of trade to our economy into our growth. how important is traded to growing our economy? >> i would be delighted to. i would like to let you know i was not an west to exit recently but i did make a trip to houston and got to go to the rodeo. it was really quite something to see. the spirit of your people in texas across the board he got to see something they are there aspects of the hearing today that remind me a little bit of what is on the rodeo. >> probably the calf scramble. [laughter] excellently speak to your specific question. let me put it this way, trade has the potential to be a tremendous tool for growth and development. if it is done the right way.

we have pursued trade policies that have expanded the price certainly. if you want to look at the gdp and from your budget perspective. what we found over time is the way we pursued our trade policy is to too much on the big picture. the distributional effects of trade we have seen benefits clustered in separate places they have not flowed broadly enough. in terms of our trade policies now, are to try to bring corrective aspects to trade by continuing to do trade but by continuing to push ourselves to do it better. >> thank you and i am out of time to comment so i won't. thank you. what's a gentle lady from washington for a quick thank you, mr. chairman. thank you so much ambassador it's great to see you. mr. chairman i want to start in

asking m's consent to enter into the record a letter for members of the washington state delegation raising concern with japan's additional gaming market in compliance with existing digital trade commitments for carts without objections order progress thank you, mr. chairman. speaking of digital investors i know you have been working very much on the digital economy as part of the endo pacific economic framework. this is an area or we have been behind. the world is deeply impacted by technology and so it is important that we have trade revisions that reflect that include nondiscriminatory treatment of digital products, privacy protections, restrictions on data locations, and bands on internet shutdowns. it is important have binding and enforceable rule. and i deduced also very closely connected in making sure we

continue to five job growth in the u.s. in promoting human rights around the and this is an area where we've been behind. the world is deeply impacted by technology so it is important we have trade provisions that reflect that including nondiscriminatory treatment of digital products, privacy protections, restrictions on source code protections, it is important we have enforceable rules and i think this is also closely connected to making sure we are continuing to provide an engine for job growth in the us and promoting american values like democracy and human rights around the world and it's clear that every industry is impacted by digital from agriculture to manufacturing, all depend on digital tools and transfer of data to stay competitive so i

wondered if you could speak a little bit about how work on digital rules could benefit small businesses, help workers and strengthen human rights. >> this is near and dear to your heart and your areas of expertise. our engagement on digital is one of the most important things we are doing in terms of pushing the trade conversation into new areas. not only are we behind but the international trade practice and conversation is lagging behind the reality of the economy we are living in where so much of it has already been affected by the digital transformation. i also wanted to highlight and build on an aspect of your question which is how do we

engage on the digital economy and digital trade in a way that is positive and affirmative in a way that is looking forward and acknowledging the fact that our entire economy is touched by digitalization and that is a really important part of how we are approaching the digital economy including the economic framework which is acknowledging that the way we engage with our partners and lay the groundwork and brought up a blueprint for digital trade negotiations how to reflect more than the interests of our biggest stakeholders. it has to reflect the interests of small companies, the lifeblood, the backbone of the economy not just ours but others but also the interests of our workers, our environment, our content creators all have in this

economic ecosystem. this is also an area as we talked about before where our ability as negotiators to take forward steps is going to be impacted by and limited by how far you as legislators have been able to go in terms of establishing regulatory frameworks that are critical to the digital economy. one example is privacy legislation. we know that the rights to privacy of individual people and consumers in the digital economy is an important right to be weighed against in how we formulate our rules but without that legislation here in the united states there's a limit to how much we can do in these negotiations because we've got to leave room for all of you to make this decision first so

this is an area where communication is critical. i'm looking forward to working with you as much as possible. >> i'm a big proponent of federal data, consumer data privacy legislation. i also wanted to bring up taiwan which others brought up, key ally to the united states and partner in defense trade in the indo pacific region, taiwan is the second largest expo market for indo farmers and aircraft and digital products built in washington state so our economic partnership with taiwan is not as extensive as it could be. we talked about ways to strengthen that so i encourage you to think boldly about how to strengthen economic ties with taiwan as you proceed with the current initiative. i yield back. >> thank you for being here

today, the biden administration's timid approach to trade initiative is concerning, bold leadership is a necessity to ensure americans succeed on the world stage. any weaknesses by the united states will be exploited by our adversaries, mainly china. our trade agenda must provide that future agreements create new import and export opportunities to the benefit of american businesses and workers. i think you would agree with that. this administration is taking no steps towards reviving a bipartisan trade promotion authority has expired, without tpa we leave a vacuum in international marketplace that china is capitalizing on. all free-trade agreements have been improved and implanted through tpa. it would be a mistake to turn a blind eye to tpa while the international marketplace is being actively manipulated by allies and competitors for their own priorities. other nations, even our allies are not looking out for american interests. it is on us to go after market

share and create access for our products around the world. if we fail to create a robust trade agenda americans are at a disadvantage and china grow stronger. epa supports us job growth, exports of made in america products and better trade agreements make it more competitive globally. that being said with my limited time today i want to focus on digital service taxes with you. i'm concerned with the biden administration disarming the 3 oh one investigations while other countries are charging digital service taxes today. today i'm more concerned about the administration's action because it is uncertain where we go now that our leverage has been stripped away. 30/38 oecd nations already have in place or plan to have in place additional service tax, france has expressed the need to press ahead with digital

service tax because implementation challenges facing them. other countries are growing impatient as well. my colleague mister estes brought up a serious question and concerns with you and the response was not sufficient enough in my eyes, in the explanation. us cr is the tip of the sphere when us companies are facing and is committed to retreatment abroad. what is ustr's plan b if color one talks fail, if they haven't already failed so far. would you reinstate section 301 investigations on those 30 countries ests? >> i have engaged on this as well. i disagree with much of what you laid out at the beginning but that be responsive to this question. i don't think you have any unilateral disarming. our dses are suspended.

that means they can be unsuspended. i want to take the opportunity because you laid so much groundwork to correct for the record a couple of things you stated. it is not true that all ftas have gone through congress under tpa. the jordan fta was passed by congress without tpa in place and tpa does not always guarantee that fta makes its way through, look no further than the tpp, tpp never made its way through. so this is all to say that pursuing failed trade policies does not guarantee that we become stronger. what i'm looking for is bipartisan partnership on advancing trade policies that make the united states more resilient. our economy more sustainable and our results more inclusive

and if congress and this committee can show me the money and show me there is bipartisan work that we can do together, then let's do that together. >> with all due respect, what you are implying is it is congress's fault we don't have trade limits, nothing the administration is putting forward, is there energy behind the space, you been here a number of times in saying we would love to move forward and you can work with us on that. help us with that. >> meet me with recognition around the kind of world we are living in right now, where we are as an economy, where we are strong, where we are vulnerable and meet me on the terms that we need to do things differently, not everything, don't throw the baby out with the bathwater but meet me on the terms that we work together on adapting to the reality that we live in and that is the path

to having the kind of bipartisan congressional executive partnership that i think we are all interested in having. i'm not casting blame. i'm just saying trade policy at the intersection of congressional requires all of us to at least share the vision in terms of where we are going and if we can do that, that is where we all come together and get something done to be on team united states. >> this committee has been well known for working together with an administration that wants to work on trade deals. that would be a great message for the administration to here as well. >> miss miller is recognized. >> thank you, chairman smith. you certainly on the hot seat today. i always enjoy working with you and want to continue working with you as we move forward, you know that i made a trip

very early, i was so wet behind the ears in congress, to china, and realize how important trade was to my state and my country. immediately i wanted to be on the ways and means committee and trade and as some things happen, i'm very grateful to be there. i've been disappointed with the biden administration's lack of progress on re-strengthening our position in the global trade economy. i've heard from so many allies that the key trade program isn't enough and as we elevate our competition with china in key regions of the world it is important for the us to advance trade policies that feature real incentives such as market access and tariff cuts. these incentives are critical if we want to link supply chains with our partners and allies and if we want to give

companies an incentive to move supply chain's out of china. i just traveled to cambodia and singapore and heard directly from their prime minister. singapore is a fantastic trading partner of the united states but cambodia is hungry for us trade and investment. unfortunately we are doing too little too late. we also are doing too little too late. china is outmaneuvering us by implanting the largest free-trade agreement in history with the regional comprehensive economic partnership and trying to join cp tpp. we need to run faster than china and ensure that american workers can compete globally. as i ask you a question, what are you doing to counteract the tariff advantage the chinese products have over us product in the indo pacific and is there other trade agreements out there?

>> nice to see you and i always enjoy working with you as well. you said something early on in your question about market access and tariff cuts leading to better supply chains and i think that that's an area where we are going to have to disagree, i lead an agency with a bunch of experts that get way in the weeds of and the guts of all the trade agreements the we negotiate. i think there is work we can do. to come appear to this committee and more broadly, explain how tariff cuts and the rules for accessing those preferences have worked in different sectors. in certain sectors we've seen them in the textiles area for instance, the combination of the tariffs and tariff cuts and

rules of origin have created strong supply chains. in agriculture as well, we tended to do better on rules of origin and tariff cuts to favor our producers but across the industrial areas, what we have seen is the combination of tariff cuts and those rules of origin have led to a deindustrialization and erosion of capabilities. this is just to say that -- >> a lot of words. >> it is a lot of words. it matters to people on this committee how trade agreement works. what is inside of a trade agreement matters in terms of what the result is going to be for your economy and we've seen very uneven results. those tariff advantages in the

asia-pacific have driven already on top of the liberalization program supply-chain to be deeply clustered inside the chinese economy. for our approach is not just to further liberalize. our approach needs to bring disciplines and strategic changes to the trade program to make those supply chains more resilient. are supply chains need to be more -- >> i want to move on to ecuador, guiana, and mexico. so many of the countries want to improve their commercial ties with us as well and just as in the indo pacific china is all over the place and they want to be our trading partners. do latin american companies often raise market access and gsp renewals as a priority in bilateral talks with you and other administrative officials, do you believe gsp renewal would improve your ability to negotiate with these countries? >> let me reaffirm i am for the

reauthorization of gsp in a way that brings it in line with our current trade practice. in terms of the partners you just highlighted they are really important partners to us, they are our neighbors, our allies and i think what i would like to do is just say that when i talk to them i want to hear from them what it is they want from economic engagement with the united states. they want to be more closely tied to us, integrated with us and they want to be able to develop their economies in a way that we can rely on each other. how we get there -- how we get there is the next question and does gsp get us there? may get us part of the way but i would like to push all of you in terms of thinking outside the box. where can we improve our trade programs to serve those interests that we are trying to

accomplish as opposed to relying on traditional trade practices that have been spotty in terms of results. >> we need to meet and go through these things. i yield back. >> ambassador katherine tai, it is wonderful to see you today, welcome back to the ways and means committee. i want to bring up taiwan. last fall at a hearing in this committee i expressed support for a free-trade agreement between the us and taiwan. such an agreement should include enforceable standards for labor him environment, intellectual property and other priorities for members of congress and stakeholders in the us and taiwan. thank you for your focus on our trade relationship with taiwan for the initiative on 21st-century trade. this is a step towards deepening economic relations but i believe this should be a

first step towards a comprehensive fta with direction and approval from congress between the us and taiwan. i understand you had an agreement on 5 areas you call early harvest. could you please elaborate on the status of the remaining 6 trading areas on the negotiating mandate, specifically the remaining areas will be negotiated together or further divided. will ustr continue to provide at -- transferred updates to congress and the timeline for completing the initiative. >> we are excited about our trade initiative with taiwan and we are making good progress. you are right that we started with 5 core areas, scoped in light of our desire to deepen and expand our economic engagement with taiwan which is

already quite significant, taiwan is one of our top 10 trading partners. we are making very good progress in terms of the first set and we've scoped another 5 or 6 elements which will follow. i don't have specifics for you in terms of scheduler timeline except to say that we continue to be encouraged by the progress we are making a looking forward to working on those additional areas with taiwan and we will keep you and others updated as we continue to make progress. >> thank you for that. on another topic, i'm the cochair of the bipartisan congressional creative rights caucus and i represent a southern california district, the hub of our country's economy and copyright industries. in 2,020 when the copyright industries employed 9.6 million workers accounting for 6% of all private employment at almost half of all the workers

in the us digital economy. i strongly agree with the principle that the afl-cio recently laid out in its policy agenda on the digital economy and trade which states the trade policy must address the stolen or unlicensed use of copyrighted content on digital platforms. i believe the worker must ensure our trading partners protect intellectual property rights and i'm disappointed that thus far these protections have not been prioritized in the administration's initiatives include the indo pacific economic framework, given that is the case, can you tell me how ustr is insuring trading partners provide adequate protection for copyrights in the digital environment like, for instance, will countries be asked to join the world intellectual property organization internet treaties which ensures creators can control and manage works online?

>> our toolbox on intellectual property is expansive. mind to actual property and innovation office is always in one part of the cycle on the notorious markets report, that ends up being an important tool in terms of tracking how intellectual property rights are observed, respected in our partner countries where the problems are and tracking progress when they make progress. in the indo pacific economic framework, right now, we are deeply engaged on digital conversation that also takes into account content creators who have rights and interests in the digital economy. let me leave that in terms of things that are more specific to that, i will have to come back to you.

i do not believe we are pressing our partners on participation but happy to continue that conversation with you. >> thank you. i hope you will encourage them to do that and i yield back. >> thank you, chairman, thank you ambassador, for being here. we are talking about intellectual property and when we waive intellectual property rights, we have inventors, creators that develop and manufacture in the united states, situations talking about the vaccines, giving that intellectual property away, that is a disincentive for people in the united states to want to produce and create if they are concerned their own government will take their intellectual property rights away and i believe there's ways to produce our products in

another land under our control which is important for a lot of reasons especially when it comes to health. we know that right now we are in a huge deficit dependent upon china for medical prescriptions, generic drugs, they control it, they control the world. it leaves us vulnerable, it is a national health security issue and national security issue. if we turn over the intellectual property are pharmaceutical or vaccine to another country that doesn't produce it with the same quality as we have seen from china, 250 people happening in the united states, 15 years ago. we turn that over to another company to make it, they taint that product and we have a problem. the fda isn't over there trying to make sure of things, they are not in their every day.

we are testing the drugs we get from other countries, not the right dose, all these things are happening. if we in any way, shape, or form are giving away our intellectual property, it leaves us vulnerable. i see you raising your eyebrows. maybe you are not on that. to get into and get classified brief, i yield back. >> i was making faces because i was trying to track how you were describing giving away intellectual property. at the wto last year, happy to clarify some of that. in terms of your presentation around our reliance on api, let

me affirm i agree that that's a critical supply-chain we need to work to fix. the answer isn't just about ip but does connect to this tariff conversation as well. the decisions our producers have prioritized which is to chase cost efficiency at the expense of resilience and options in terms of supply as part of the change we need to bring to trade policy. all the things we agree on, hope we will find a way to work together. i'm engaged on medical issues, they are really important and i look forward to looking forward to this conversation with you on this. >> the chair recognizes the gentleman from north carolina. >> thank you. i think you can sense the

frustration on this side of the day us because it does not appear we are moving the needle on trade. you come highly spoken of from members who worked with you previously. i think you are too nice a person to be in the job urine. you are handicapped because of administrative folks you have to report to etc. that are handicapping you in your job. negotiators are sometimes tough and mean people, not nice people like you. if you look what happened with us, handcuffing the united states because we worry more about green things, all the other distractions, the paris climate accord, we handcuff ourselves and give china the ability to build 27 more coal plants. if you want to look at what we are doing to the united states we are giving an open door to china.

it is just a fact, critical rare-earth metals, tear them up and get them from china, we have them in our own country, puts us absolutely at a disadvantage which i feel sorry for you, you are stuck in the middle of that. let me get to the other issues, and absolute frustration because you see this country swirling down the drain because we are so distracted with different issues the china doesn't give a damn about because they don't give a damn about, they are swarming over the rest of the world with influence. the taiwan free-trade agreement, i come from the second largest pork producing -- pigs are a big deal for us, pork is a big deal for us. with taiwan, we've seen exports

declined 35% since 2021 in a time when taiwan's influence went up, and he will help me understand that. why have we heard our own pork producers at a time taiwan is increasing their importation? >> i can assure you i know to be nice to members of the ways and means committee, i've never been faulted for being too nice. >> you have too nice a smile. >> i also don't need you to feel sorry for me, please don't. >> i feel you are in a tough spot because this administration above you has shown no interest. >> let me take off the nice a little bit. i don't need your pity, i stand up for the american people and i represent the interests of the united states. let me go to your specific

question on what your frustrations around our trade policy. i'm hearing it from the side of the dais. i said in the backseat. you are staying well on message and -- >> it is a good message, a true message. >> you have completely missed the point. you are from a great state, textile producing state. that should inform a prospective in terms of where our trade policies have been strong and trade policies have bled out our critical industries and i consider textiles to be a critical industry. on rare earth, let me tell you a couple things. rare earth are important because significant applications, clean technology industries. >> we are not getting it from our own country.

>> we are not producing rare earths anymore, we used to. i litigated a case of the wto ten years ago which we won but hasn't put us in a better place and gets us into a wto conversation. i won't go down that rabbit hole right now. but predatory chinese practices, we should be working together on that but blaming each other and not being able to come to an agreement on what is important for the us economy, that is holding us back. >> i don't disagree at all. one other question. i don't disagree with you. we are throttling ourselves was a cosponsor of the resolution, disapproval which would rollback regulation that suspends tariffs on chinese solar products that circumvented us trade laws throughout four southeast asian countries and hope the biden

administration will reverse the policy so congress isn't forced to act to protect american jobs and subsidize chinese products out. can you ask plane the rationale behind the decision? >> do i have grace from the chairman to go a little beyond time? on the solar issue we are in a bind and let me see if you and i have common cause here as well. with other industries we have a growing, innovative, strong solar industry which we lost. when we lose industries like that, not to say we are not producing but not producing at scale, not producing enough. when we are in a bind like this we end up fighting ourselves. are industries fight each other, and we end up fighting

ourselves with scraps we are in a hard place. where i would like partnership with you, to figure out the hard work in how we get to a better place in areas where we need to build back, but also can we look forward and anticipate the other industries where we are at risk of using and eroding, to prevent that from happening. >> why we behind this position, >> positioning the workarounds. >> and this is quite split. >> thank you for being here.

we don't agree on everything across the aisle here but i want to associate myself with the last comment that mr. murphy made. i share his concern regarding chinese, solar, circumvention of tariffs. i disagree with the position the administration took on this and i am leading the effort on the last issue that mr. murphy raised. i disagree are too nice. i think you are just nice enough. let me first of all say where i come from, the term free-trade, with manufacturing in our farmers have seen trade deals come and go and never meet promises that they were sold under, and after being a good

example where we saw autoworkers lose their jobs and have those jobs show up in mexico sometimes making $13 a day undercutting american workers. there were big promises under nafta the didn't materialize. for that reason i'm equally enthusiastic about us mca. i didn't know i could get to a place that i could support it but i was enthusiastic and supporting it because it right the wrongs of some of the past trade deals and provides an important framework. i was proud of the work democratic leadership, particularly mr. neil did to improve the trade agreement in late stages of the negotiation. that was the game changer for many of us including labor response mechanisms. that's a lifeline for workers in mexico. in plants like the general motors plant which you are

familiar with, our ability to stand up against protectionist unions, companies operating in mexico taking advantage of workers, really remarkable. last month i was in mexico, met with many of the workers who are fighting for their rights including workers at the vu manufacturing plant. these brave workers are in a battle fighting for better wages, better working conditions, safer working conditions despite significant threats of intimidation and bullying for company leadership. to assure the workers at vu and all across mexico, ustr, us government is going to do everything we can to help them exercise new rights that are guaranteed to them. >> 100%, ustr, this committee

also stand behind the tools we have in the us mca which critically empower workers and and in favor of workers? >> it was raised before so i won't go deep into it but sticking up for our corn growers as mexico is trying to circumvent the agreement signed in order to protect their interests, we need to make sure it doesn't happen. i want to share concern about the new frameworks that the administration is pursuing. what we saw was a good example of how we ought to build a framework, high standards type

of agreement that provides us access to markets that we need but also elevate standards of those workers in other places. we are seeing violence against organizers in guatemala, honduras and columbia and they don't have the recourse that would be protected under us mca. rather than fixing existing trade agreements, one comes from sanchez, we have an opportunity to elevate our relationship in that region. we need the enforceability that we see on us mca and i would like to see us pursue improvements to agreements to achieve that and i wonder if you might comment on that. >> i know your interest in that. it makes sense. i don't know about doing

upgrading work like that needing to be mutually exclusive. let's talk. >> i yield back. >> ambassador katherine tai, in your recent testimony you dodged questions whether the administration was taking a trade negotiation course beating out congress, before signing them. and and and can seem time and again, the unprecedented lack of transparency. and when it comes to trade that's not always the case and that is why it is surprising when running into this transparency whether it is critical agreements, potatoes or citrus from my state

congress needs to be informed. shouldn't be importing chinese citrus to the detriment of us producers. i had a bill that would ban the importation of chinese citrus because of the challenges not just from a production standpoint, i intend to do that later this year. what is your office doing to promote american citrus? >> a lot we are doing to promote american citrus, and we've gotten approval and american grapefruits to vietnam. that's one example of something we been doing with usda. another area, we have been working closely with seasonal produce growers in the southeast, by setting up a

committee to provide us with recommendations that affect their interest. i care about farmers and producers including citrus growers. with respect to the important export opportunities, happy to talk about them. >> does the chinese communist party allow for the same regulations that domestic producers have to adhere to in the united states? labor, epa, the things the mystic producers are abiding by? >> the eager question, it is fair. >> it is citrus -- >> you are talking about citrus but it is linked to this larger issue. >> not -- they infect american

citrus and other diseases that are detriment to the health and safety and welfare of our growth. don't understand why that is funny. the chinese citrus, farmers and ranchers, every single day. because of greening and the diseases brought in from china, i am concerned about importation of chinese citrus to the detriment of production, because the majority of citrus the goes into juice comes from the state of florida. >> let's work closely with usda and there's a conversation that needs to be had the doesn't need to be oppositional. >> i'm interested in your china strategy as it relates to

supply chains, and >> the challenges from the economic policies and practices. what we have in place, the section 301 actions from four years ago, and taking in the comments. and whether it is in large civil aircraft, economic coercion, the lack of reciprocity to link to your previous question which

includes the citrus rate. there's a lot for us to do and we need to bring our best game and i'd be interested to work with you on making sure and put stakeholders in the best position to compete. >> my time is expired. >> missed any is recognized. >> thank you for being here, 3 questions for you. it is important. my district is not only the number one acted district in the northeast, but the number one dairy producing district and they rely on a consistent access to international markets, we are mostly canadian

border with new york that are can the negotiated with trading partner to the north. can you provide an update for the settlement panel, with american dairy farmers, and what is issuing to our dairy farmers. >> >> under the us mca was on the dairy dispute and it is precisely because dairy has been contentious between us and canada made promises in the us mca the dairy farmers would have that are accessed which we've not seen translated into reality. we litigated that case, won it and canada made some changes to claim it brought itself into

compliance, into that additional access that our dairy farmers deserve, that we requested and moved into panel phase the second time. this time, i had my lawyers work closely with our stakeholders to fashion a case that we have a lot of confidence in. >> reclaiming my time, how far are we going to go to reinforce this and it would be considered retaliatory measures? >> and when we expect the panel decision, and look to translate these rights.

>> i appreciate that. >> i would like to follow up on the letter we sent. this is about the european union to impose significant restrictions on steel scrap exports by changing its regulations. steel scrap is critical to my constituents who rely on it to be among the lowest costs in the world and in upstate new york, the proposed eu regulations distort global scrap prices and reduce domestic supply of scrap, putting them at significant disadvantage compared to competitors around the world. and steel scrap exports would be detrimental to the american steel industry. >> i care deeply how the american -- >> do you think it would be detrimental to the steel

industry the eu proposed regulation? >> i'm not fully briefed on this particular, we have so many channels of work with the eu. >> i want to get you to the third question, usc are engaging the eu members on this matter because we want to make sure we are not excluded from this and you are on top of this. >> i entered this already and if we are not already doing so. >> my district is home to wayne county which ranks among the top apple producing counties in the nation. how will the indo pacific framework workforce enough to market access with countries in the region surrounding the sanitary measures, looking at these countries, there's no market access here, this is

significant, the top producing county in the nation. what are we doing on that? can we count on your commitment to work with this and get some access? right now between australia, no market access, tariffs, no market access and indonesia, thailand, vietnam, is that something we can count on you to get access for this potentially huge economic growth area for upstate new york? >> the indo pacific pillar, agricultural negotiation that goes directly to spf issues, science and risk-based regulatory processes precisely to improve market access, some of the countries, we have fdas with and we have seen even when we pushed tariffs 20 it doesn't translate into market access because of these barriers. that is scoping the work we are doing, we are happy to keep you

updated on our progress. >> appreciate you getting this done. >> ambassador katherine tai, thank you for being with us today and remaining in close contact with the government of ethiopia to pursue reinstatement for the trade preference program. as we work with the diaspora. as they implement the peace agreement, i would like to stress the importance of economic recovery with devastating conflict and the covid pandemic. and fostering the growth of burgeoning manufacturing, stable employment for tens of thousands of ethiopian workers they sought her medicine growth that provide thousands of jobs to ethiopian women. since ethiopia was delisted these jobs are disappearing and

i'm concerned ethiopia is denied, the longer they are denied access to push the nation deeper into poverty destabilizing the country and weakening our bipartisan bilateral relationship. i know you delivered a targeted list of benchmarks they have to meet, including de-escalating the conflict to assistance addressing human rights violations, provide an update where we are, and out of sight review under consideration? >> out of cycle review is available as part of the program and you know about the list of benchmarks, ethiopia and had the opportunity to meet with prime minister abe in washington in december this is something we work on closely with the state department, we have a special envoy for the horn of africa, and in terms of

the latest, i would be happy to have my team send over to yours where things are today. >> appreciate your commitment to the wto and the belief that it's a force for good. without its stated nature, the work in the last administrative meeting on fisheries and covid 19 vaccines, despite challenges the wto can work under these conditions, sending mixed messages on support for the wto and commitment to abide by decisions and rules even if we don't like the outcome of individual cases. he worked hard on reform, update us under this. >> i would be delighted to. we do so much work on reform, more not more people know if issues can get technical at all of this is happening in geneva which is far from washington dc. i know how you care about it,

whether it is on committee processes or negotiation function, my team shows up to every meeting with new ideas, to reform by doing and put ourselves out there as a model for reform to not just talk about it too but behave in a way we would like members to behave which is to be engaged with the wto, not something we go on autopilot about and forget about. on dispute settlement, we are on phase 3 in terms of driving interest-based negotiation, and inclusive process that brings in all the wto members with a goal in mind that for real reform to happen at the wto we can negotiate that change, has to be accepted by everyone.

i would be delighted to facilitate a follow-up for you and others on the committee to learn what we are doing. >> one last question. given ustr is not seeking congressional approval through the traditional way like ipf for critical minerals agreements and constrained on what we offer on negotiations, are we not being ambitious enough on environment and labor standards? >> you will always find we will be ambitious because we speak on behalf of the united states and pushing for what we see as right and our vision for a better version of globalization. your point about the congressional role, this is near and dear to my heart, where all the various interactions with members of

this committee, i have been effective in conveying my interest in demonstrating that there are things that we can do that we can do on a bipartisan basis and there is a robust role for congress. i'm not afraid of those conversations. i'm happy to build those with you and others. >> this fischbach is recognized. >> i would like to say, congresswoman tenney brought up the northern border, my entire district is a border with canada, that's important to me. i appreciate the update. i won't make you give it again since -- i also did want to thank you for pressing mexico as relates to the unscientific man of the gmo, i want to say

for the record that complications can be helpful. a formal dispute resolution process which was already used effectively for the canadian dairy issue. it's time to utilize -- i urge you to do so because it has been mentioned a couple times. i appreciate the work on the enforcement side but i want to address something broader and more consequential. i was reading through your written testimony and saw words like framework arrangement and initiative but i failed to see a single mention of ustr pursuing the word agreement. my district in western minnesota is a top agricultural producing region in the country and the rural economies of my district depend on those products being exported to markets around the world. half of everything we produce in western minnesota is headed overseas.

this lack of ambition in pursuing new agreements for agate exports is putting farmers in my district at a disadvantage. for the first time the us is such to be a net importer of agricultural goods. i urge you to be more aggressive in pursuing export opportunities for farmers in my district across the country. getting more specific, i hear about nontariff trade barriers that go after producers in my district export into the market. the eu's user geographic indicators to monopolize generic cheese name or taiwan's pork exports. resolutions of these exports note but it won't promise full trade agreements but will help correct that. what we do with other issues of nontariff barriers, with

agricultural goods? >> thank you for the question. i have an a plus agricultural trade team and had my chief agricultural negotiator, the first week of january, he hit the ground running, he is what we needed on top of a head of myakka office, very dedicated team. nontariff trade barriers come up, we reach into usda, we pursue those with the specific country when they come up. i'm delighted to let you know there are a number of wins we have over the last two years with our peak on farmers, beef producers and also growers.

sps and science-based risk-based negotiations in the indo pacific context and others are key to the aspect of nontariff barriers, that they face and working very robustly, for example the east african community issued their first joint notification which we welcomed, we have wins with ecuador when they declined to implement a ban on powdered work imports and the wto as well, my team, part of our robust geneva work that goes on the song, is very robustly engaged on spf issues and other nontariff barrier issues with focus on the agricultural sector. >> appreciate your response.

>> pursuing new agreements for agricultural goods. and i yield back. >> gentleman from utah. >> ranking member, thank you for being here. every question, those are special opportunities to focus on, i'm no different. utah is a unique crossroads positions in the western united states and the mountain region, a huge opportunity to weed on trade with former governor and

ambassador to china, governor huntsman junior, there's a huge interest in this. gsp is a huge interest. we talked a little bit about it. you talked about do you overall supported? the refunding and reauthorization of gsp is important for so many reasons. an enforcement mechanism that exists. there's a competitive nature to china that is essential in my opinion helps to reduce the costs of goods. could you share a little bit? one of my constituents leveraged this program, great success. since 2018 their share of imports fell 90% to 15%, much of their product divided among several countries. we seen good data come from it. inspiring at the end of 20/20, they and hundreds of businesses across the country and us importers have paid close to $2 billion in tariffs on eligible

imports. expired in 2020, i am new to this committee, it was not reauthorized last year, you expressed support for, there is broad bipartisan support, could you highlight some positives that could come from this and share some context on what the committee needs to think through the potential reauthorization? >> the more i think of governor huntsman's many titles. >> it is hard to keep him. >> closer to where i did. it is a strong case for gsp, the bedrock trade and debarment programs, they have come to rely on. that might be one additional dynamic that wasn't already listed, robust list of reasons

for having the gsp program in place. .. terms of my commentary, i think if congress can update it it is a helpful tool for all of us in many different ways. >> there are things that would be a barrier to the administration and ustr being supportive of this. >> i think tha >> i think that if our teams are not already in conversation i know they have beenn intermittently over the last two years when there has been talk around it. we will continue to stand ready to work with all of you. >> with regards to the wto arbitration dispute, there's serious national security implications here. i've taken a note of a series of disconcerting developments from the wto related to our national security and the challenge by china to the u.s. export controls on semiconductors and multiple other wto rulings against the united states.

wto has no authority in matters of national security and members on this new stem from the behind ustr is rejection of the conclusions that can you update us on anymore context of how you thinking about this another dispute related to national security? >> certainly. i think this gets to an area where i think congressman beyer mentioned a little bit feeling like i sent mixed messages. you can be strong on this principle that national security decisions taken by government by governments in their sovereign authority shouldn't be subject toho wto panels taking them apat from the trait perspective. and at the same time before the reform of the wto including its dispute settlement system. so again i i want to credit m2 ambassador for carrying the flag, being very strong on our

position with respect to whether wto and its of jurisdiction should properly be while leaning in to over foreign program on how to make the wto of work better for us, certainly, and for all of its membership. >> i will conclude, export controls are critical to maintaining a competitive edge. we have to be firm and strong on thisis particularly with respect to china. this sensitive technologies does not end d up in the hands of her adversaries and it's so clear up with his adversaries are. thank you. i yield back. >> mr. evans is recognized. >> ambassador tai, good to see you. i commend you and the administration foror making workers' rights an essential element of our trade agreement. so i applaud you for the leadership in the biden administration. i only have really one comment. comment from philadelphia, the most diverse city for many

african nations, my focus is to expand the african connection, especially in philadelphia, pennsylvania, understand the importance of what it means. as a matter fact i very good french about the name of stan who is very active in the african community in the commonwealth of pennsylvania. so i share with you that we are willing to work anywhere we can on expansion, not just -- i just want at this, ted thank you for all you do. i yield back, mr. chairman. >> recognize ms. steel. >> thank you, mr. chairman and thank you, ambassador tai. it's come how many hours you here's a really appreciate that. and trade is highly important for my home state of california. california companies exported over $185 billion worth of billion dollars worth of goods in 2022. one every of concern is for

california agricultural exports. we've been hearing this all day. the ustr must continue to protect our farmers and agriculture industry. and i know you're been answering this, you know, how hard you're working so please continue to fight against, and other areas. so we really fighting in california. i have just one concern here is the indo-pacific region has two major free trade agreements, the ccp controlled china is already in regionalin cooperation econoc partnership, the world largest free-trade agreement, and as applied to join the cc tpp comprehensive progressive agreement for transpacific partnership. and currently united states is not part of neither agreement. when the united states leads we get strong bipartisan trade

agreements that can outlast us all. how does the united states counter the ccp's growing trade and economic influences around the world? and in the pacific region, if we are on the sidelines? and how can we counter the ccp's influence without trade deals that require congressionals approval? >> so thank you for all of those comments, congresswoman steele. on the ccp's participation in trade agreements in the asia-pacific region, we know how deeply entangled the supply chains are in that region with china. and we know that our partners want us engaged in the region, not to force them to choose between two of their largest

trading partners and the most important trading partners, but so that we can, and provide them with a choice. so we are engaged if that is the indo-pacific economic framework. in terms of how do we compete, i would say this, i think a large part of how we compete with that second largest economy in the world is by putting forward a vision and following through on how the united states is a good partner. what we stand for, what our principles are, what our vision is for the kind of economic engagement that we have which is that we provide each other all with more choices. not to further restrict or to make a vulnerable our partners economies. that is inform all of our work in this area. the other part of your question around the congressional involvement, i would say that there has been a lot that's

happened in the congress in the past five to eight years on trade. some of those things go to show how difficult itth can be to get bipartisan consensus around europe but there is a strong and edited here around with succeeded in accomplishing that bipartisan consensus. most recently on usmca. i appreciate this opportunity you have given me to reinforce that at ustr on behalf of the biden administration we are for trade. it is about how we can do trade right and how we can improve the ways we do trade for aquaculture producers but also for our industrial producers, for our workers and our companies so we can make ourselves stronger. think of the way we've done it before has more often split as from each other. we are absolutely see ourselves as a country that leads economically as well, as of the

core of our leadership is around that affirmative vision. >> let me ask you ama quick question regarding indo-pacific economic framework, that taiwan is one of of the really big partner, trade partner for the united states, taiwan was not included. and at the same time everybody, i think everybody asked here that what's the progress here? because we had been hearing but it's not quite, i i cannot rey say it's transparent, but we want to see the progress because it's just up in the air we i've been reading and we have been studying. so can you just give us a quick answer for that? >> i would be delighted to and my team aw- follow-up with your staff as well. we just published the summary of the proposals we made to tie want in a round of negotiations which is about six weeks ago. -- to taiwan trip we made very good progress and so we're

looking forward to come back to you with an update very soon. >> thank you so much. i yield back. >> ms. van duyne. >> thank you very much, chevy. thank you, ambassador tai i really do appreciate come here today. i would like to start by saying i do not envy your job. as you know very well, , our tre agenda is important for the strength around the world a and yet this administration does not seem to have an agenda. i appreciate your response to congressman murphy, but it's not just congressman murphy by the way to a shown sympathy for your position. we've been talking trade partners around the globe and they have all praised your skills. people said they feel bad because it seems like you have been sidelined this administration, that you'd want to be moreillsecni aggressive ig these trade agreements which were prevented from doing that. plus they could join the chip and the number of my colleagues in mexico, on the heels of an cuddly concerted activities by the government and coaching on

the rights of private and more specifically u.s. businesses. i'll give you an example. balkan corporation had their deep water port seized. i've got videos. you are probably seen the videos, but seized because a state owned mexican company did not like the terms of the contract negotiation. and yet a court order, it seems as if this government has done nothing, our government, our administration has done nothing to respond to that abuse prevention of the trade relationship between texas and mexico is a critical actions like this are detrimental pic i appreciate you saying you are going to be a strong voice and when you speak, people listen. and that you're standing up for the united states. where are you in mexico? are you standing up for the working families in iowa, nebraska, and south dakota whose livelihood is being threatened because president obrador is falsely attacking them and the

quality and their safety standards of their produce? which is in direct violation of usmca. are you standing for the u.s. businesses who are encouraged to invest in mexico with a believe this investment would permit the much-needed help and much-needed jobs and much-needed security to the people of mexico? but instead these companies have been abused and lied to by the mexican government with little or no response from this administration who is a a chae with enforcing our trade t agreements. i would love to know your response to those claims, that will mexico is clearly, clearly not abiding by the terms of usmca, it's actually it's the u.s. is hot because we're quote, misinterpreting the conditions of the contract. and i would love to also know are you standing up for the u.s. while mexico is partnering with china and mexican drug cartels are being empowered and enriched

to bring thousands of pounds of deadly drugs, fentanyl specifically, into our country that's targeting our youth and murdering of 100,000 american lives, all the while making hundreds of millions of dollars? where's your voice in that? >> thank you for the opportunity to weigh in. yes, we know balkan as a company very well andnd we have been vey close touch with them and with the members of congress whose districts and states are affected and a deeply invested in vulcans success. so here i would say that we are in very can touch with -- >> i'm glad to hear that. >> on corn -- >> i do want -- [talking over each other] >> okay, thank you. i appreciate knowing you were in touch with them but trade is a tool -- >> you asked me for staying up for them andng the answer speedi appreciate that but --

[talking over each other] >> like to believe get an answer because i'm one minute and five seconds left. trade is a tool to improve some of the workforce conditions and forced this is ethical business practice the nation's across our globe. extend our global influence and partnerships as opposed topp usg come having to use military intervention specifically with theon china. are we effectively utilizing our trade relations with china to achieve these results? doesn't china used slave labor? it's a yes or no question. >> do youst want me to answer ts one? under sure i feel like you want me -- >> does china used slave labor. >> was i'm happy for you to continue. >> i'm asking you. you here at the hearing. this china used slave labor? >> all indications are desperate okay. so are u.s. companies benefiting from forced slave labor? >> all indications are desperat. >> do you recognize the genocide of the week are slaves being committed c in china? >> all indications just that

that is happening? >> okay. so how many coal plant is tiny building each week? >> i don't know the answer that's notns a yes or no questin so i speak i didn't say -- i spy i defer to you to the point i would like to make. >> also wise china being subjected to the consumer pressure same constraints the u.s. is in the paris accords. >> could you repeat the question? >> why is china not subject to the same constraints thatt the u.s. is in the paris climate records? >> which constraints are those? >> i get back my time. thank you very much. >> mr. panetta is recognized. >> thank you, mr. chairman. madam ambassador, thank you for beingas here, and it's great to see you having grown into this role tremendously, so i appreciate that, especially considering how busy you have been. obviously, looking abroad with ipab and eight avenue since the enforcement that also looking

forward with our industrial policy at home and how it's been fueled by incented for electric vehicles and clean energy and actually supercharging investment in the united states which will inevitably spill over into our regional trading partners canada andra mexico. i do believe in regards to our trade policy i think we've got to take more of a serious look at our regional partnership in using trade to our strategic advantage, especially, especially when we compete with china. because what i think we know u.s. has the biggest most innovative companies. mexico has a very wide and inexpensive labor pool, and canada has manyan natural resources. i read this lady and i believe this, where north america goes, the world will follow. but i think in order to do that we all got to pull in the same direction. so i was on that trip with ms. van duyne to mexico and have to tell you i was a little

disturbed by some of the comments by the president of mexico, but more so by his recent actions, a a populist d national president has proven that he may be in our boat but he may not be rowing in the same direction. looking at he's taken steps to weaken mexico's electoral agency, he's banning gmo corn for nonscientific and non-health purposes. he's occupying the privates property of bulk materials in mexico. and is even talked about taking steps to get involved in our congressional elections. obviously as you know i have many agricultural companies that have investment in mexico. so my question to you is, what action and assurances can you, the united states trade representative, provide to my companies in my district that they're near showing investment in mexico is safe and secure? >> we will do everything we can using the tools c of the usmca d

tools that are outside of the usmca to secure a positive investment environment in mexico. at the end of the day though i think we do have to recognize that mexico is a sovereign nation, and their leaders have the right to make decisions that we may see are not in their best interest. but you're absolutely correct about the a nature of the relationship that we have r with mexico. we are neighbors, thanks to geography will always be neighbors, which means that we're committed to using whether they are powers of persuasion of whether they are tools of enforcement to right the ship and to make t sure we are rowing in the same direction. >> thank you, madam ambassador. going to the other side of the world let's talk jackson-vanik. as you know was originally proposed to promote free movement in response to some

restrictions on jewish immigration. but since the fall of the soviet union kazakhstan hasec been subject to this requirement which is been lifted for other soviet states including russia. freeing kazakhstan of the jackson-vanik outdid requirement will bring it closer to the western world. i think that's clear and out of russia and china's sphere of influence. ambassador tai, the state department as you know what supportive of repealing jackson-vanik for cassock stand. what is your position on that? >> -- kazakhstan. >> my position is pntr is in the jurisdiction of the u.s. congress. m mr. panetta, it means a lot to me to know that your supportive, and i would be interested in working with you and others as you work on pntr for kazakhstan. >> look forward to working with you. thank you for that commitment to working together on removing jackson-vanik from kazakhstan.

what you support reinstating gsp for ecuador? >> do you mean as part of the reauthorization? >> yes. >> yes, i think it would be, again, i am interested in working with all of you as you work towards reauthorization. >> look forward to working with you. thank you. i yield back. >> gentleman from ohio is recognized. >> thank you, mr. chairman and thank you, ambassador. it's a pleasure to speak with you. one thing about being the last person on the list, so many of the questions get asked. my dear friend to my left asked one of us can ask you about ecuador, but a little, just a little bit. i grew up in the 1980s and grew up in a very rural town, farming was very big. as i represent agriculture, so i do a support applaud you guys on the work you're doing as my colleague to the left mentioned, our meeting with the mexican president was very interesting,

to say the least. so our corn growers in my district are important. got to open up those markets. but living in that small town i also saw many of the factories closed down. i was almost going to quote the old billy joel song, allentown, you know, to my dear friends from pennsylvania that of all left us, but living in allentown for the pennsylvania we never found. i just want make sure that as a look at our trade policies, i think one of your former colleagues uses a we want to sing from the same hymnal. we just have to make sure we are singing from the same page. a couple of items i just wanted to touch on. we look at rare earth materials. there's really nothing about rare earth. it's just where we can get a permit for a lot of these rare earth materials, and also get the financing to develop them. secondly, as we do this rush to the renewable energy, wehe haveo

be cognizant in the fact and that's i'm glad jimmy brought it up but we've got to look at our regional partners when it comes to developing lithium. if anybody has a google or youtube video of cobalt viney, the environmental practices there are tremendous. the youth labor, child labor. and the fact that 14 out of the 16 companies that have the mines are all chinese, so as we move to this economy we've got to be very cognizant of that. i'm going to divert real quick like i do have one question i want you to babel entered into this much time as you can. some foreign e-commerce companies have been reported to as avoiding u.s. tariffs by selling directly to american consumers under de minimis, okay? it is estimated that use imported about 128 billion in de minimis shipments last minimus shipments last year. this treatment gives foreigngnr. e-commerce companies of make up on many of our u.s. retailers we are paying millions of dollars

in tariff for the exact same products. however, it's a balancing act are trying to level the playing field without raising costs obvious to american consumers during the inflationary times. regarding the foreign trade zones like the one i have in my district in central ohio, it definitely impacts my district. do you think the u.s. should level the playing field for domestic manufacturers by enduring de minimis as applied to shipments fromo u.s. foreign trade zones? >> congressman, i think i agree with everything you like that in your entire presentation. let me come to your specific question on leveling the playing field for american producers, and i'm sorry, i think, at this point in the hearing, the specific proposal was by applying de minimis, that's right. let me just say this, i think

that i understand why it happened in 2015 when i was up here when we expanded de minimis. i think that the way it does operate has raised really legitimate questions around whether or not there are loopholes and exploitation and abuse other than how it was intended. and so i'm absolutely always interested in leveling the playing field on and on this in particular i would be very interested in following uper wih you to look at the specific proposal you're suggesting. >> if you would, would very much appreciate that. i have also again following up on my call it to the left, we did have an opportunity and i will tell you and i don't know when you served exactly on this committee, , but the chairman ad ranking member i think you have really done a great job of trying to get out and talking to real people with our field hearings. and obviously the trade trip we just didn't look at you from many different countries. they are eager for american leadership around the world.

and so it's important that this committee work continually in the bi-partisanly we have in the past to make sure we all again are singing from the same page, the same hymnal. i yield back, mr. chairman. >> mr. fitzpatrick is recognized. >> thank you, mr. chairman. thank you, ambassador tai, being here. ambassador tai, 15 advised us that you and the administration of begin negotiations with the eu andio japan, possibly others, designed to skirt the requirement and the irate requiring critical mineral inputs for batteries that come from the united states or other countries, that the united states has free-trade agreement with. obviously i think we are all clear here the agreements that are being sought are not free-trade agreements. only congress can pass fte's. last week i has secretary yellen if she was aware that both japan and germany withheld semiconductors from u.s. automakers in favor of the own automakers. she indicated she was not aware

of that. i also pointed out japan's extensive use ofen nontariff barriers that make it almost impossible for the u.s. to export otters to japan. i informed her that cars exported to the eu and create a 10% tariff compared compared to 2.5% tariff on european auto import into our country. perhaps most importantly, we made her aware that china itself is thee biggest supplier of battery technology and production to both japan and the eu, which means allowing these foreign battery product to take advantage of the ira's risk benefits, benefiting china. domestic investment and american jobs obviously in my estimation will be cleared impacted by the administration's attempts to circumvent the fta requirements enacted by congress so i have a few questions. first, i and i know are not alone in this, and concern as to what, if anything, american is

getting out ofic these negotiations. do you believe the u.s. automakers receive, will u.s. automakers receive tariff relief and better market access? or are these negotiations really a feel-goodia exercise? >> congressman, you raise a really legitimate questions and concerns regarding the bigger picture where we are, and also where we're trying to get to, which is to t be in a stronger position, especially in thisro industry. no on the specific types of benefits are talking about. those are not things that are automakers will see a result of the types of things when negotiating right now. but what i too say is, what if you feel stronglyy about is the european union, japan being important allies in building towards more secure supply chains in the larger picture and in the more medium-term.

i take your point on the specific question that you've asked but also one to say that in terms of a vision towards nearshoring and friend children more secure supply chains, that these are some of our strongest partners for doing that work. >> thank you. the main concern is given how integrated change materials are specifically the battery components from these countries. what are we doing as as a co? what's the administration's plan to ensure these times entities, many of them controlled by the ccp, the supply european and japanese battery makers don't benefit from the? >> i think part of the issue that we have is, given what we are which is not an ideal place and given where we want to go to, there's this which we can flip toli get from where we areo where we want to go to. and so in a number of areas we confront this allon the time in terms of how we are thinking about the u.s.-china tradenk

relationship. a lot of it is as about how we envision ade transition from whe we are today to where we're trying to get to that can be effective and that will work, given all of the needs of our industries and where we are. so i think that's my best way of responding to your question, which is what we need to do is figure out whether or not the things we're doing right now makes sense in step one in the longer transition thatp will te probably more medium-term timeframe to successfully complete. >> mr. chairman, i yield back. >> iq. ambassador tai, thank you for your testimony, taking all the questions. we look forward to partnering withwi you and working in a bipartisan fashion to make sure we address our supply chains and, of course, the aggression of china. appreciate you being here and looking forward to working with you. please be advisedea that members have two weeks to submit written

questions to be answered later in writing. those questions and your answers will be made part of the formal hearing record. with that, the committee stands adjourned. [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations]

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violence dominate the headlines and with the top issues addressed by students in this year's cspan's studentcam video documentary contest. almost 3000 students from 40 states entered for the first time in history of the competition students were asked to envision themselves in the position of power by sharing with her top priorities would be if they were newly elected members of congress. our panel of the c-span judges evaluated each entry based on the presentation, research and tangible solutions. >> if i were a newly elected men of congress by first priority be to implement support and counseling in schools across the nation. >> videoconferencing at the digital technology to connect patients with healthcare providers. >> invasive species are huge problem that info with other conservation effort. >> we're happy to announce at this year's first and grand prize winners. our first prize winner in the middle school division is benjamin, student at liberty middle school in ohio for his

documentary losing generation, about the opioid crisis. the first prize when in high school eastern division goes to teresa vang was a student at east chapel hill high school in chapel hill, north carolina, for documentary money talks, inside the inflation surge. the first prize winners in high school central division are sophia smith and jacob sabic students at jenks high school in jenks, oklahoma, for the documentary unearthing the option about environmental concerns and the future of death care in the united states. the first prize winner in the high school western division is carson collins a homeschooled student in austin, texas, for his documentary a perilous purchase, chinese communist party ownership of u.s. land. our $5000 grand prize winrs are parim shah and nimay sharma, eighth grade students at dr. martin luther king, jr. middle school in germantown, maryland,. >> out of almost 3000 participating students in

c-span's 233 studentcam competition you guys are this year's grand prize winners. >> that's very good. yeah. i'm speechless but thank you so much. y w the top prize for the documentary where's my data, data privacy and real-world impact. >> if i were newly elected member of code is my top priority would be to finally ensure that americans have control over their data come how its how to choose and who it is given to. but we can't consider the internet. >> everyday millions were able to communicate with distant relatives, , shop remotely and learn online all for free. but are usually free services? corporations like mad and google use numerous platforms with millions of users to collect vast amounts of personal data. we found they track users precise location, messages you send and purchases you make and a plethora of additional data.

and companies can then provide this information to advertisers who show us personalized ads. >> this would be like someone following you every single day as you walk down the street watching what you do, where you go, for how long and with whom you are with. >> from all of us that c-span we would like to express our gratitude to the teachers, parents, and mentors who supported and encouraged their students throughout the competition. congratulations to all of the winners, and be sure to stay tuned the cop 21 winning entri will air on c-span starting april you can also watch every winning studenocumentary anytime online at studentm.org. >> a quick look at today's live programming on the c-span neorks. on c-span at 10 a.astern the house is back for general speees. and members begin work on a bill

aimedt lowering energy costs by increasing oil and gas production. on c-span2 at 10 a.m. the senate is considering amendments to legislation that reals the authorization for use of military for ainst iraq. and on c-span3 at 10 a.m. at aring on the collapse of sico valleyan with testimonyro officials with the federal deposit insurance corporation, the federal reserve andhe treasuryeptment. at 2:30 p.m. attorney general merrick garland testifies on president biden 2024 budget request f t justice department. you can find these events and more live on the c-span now that you out or online at c-span.org. >> c-span is your unfiltered view of government we are funded by these television companies and more including cox. >> homework can be hard but squatting in a diner for internetwork is even harder. that's why we are providing a lower income students to affordable internet, soom