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Senate Republicans are poor custodians of the ‘America First’ agenda they claim to stand for. WASHINGTON, DC – APRIL 26: Senate Minority Leader Mitch McConnell (R-KY) departs a news conference following the Senate Republican policy luncheon at the U.S. Capitol on April 26, 2022 in Washington, DC. McConnell was asked about Billionaire Elon Musk’s purchase of Twitter and he said, “We’re all watching with a great deal of interest because there have been our share of complaints about the way it’s been running.” (Photo by Chip Somodevilla/Getty Images) As Congress comes back into session with a packed agenda, Senate Republicans are pursuing legislation that could undo former President Trump’s trade policies toward China.
Last year, the House and the Senate passed two different bills related to America’s China trade policy: the House passed the America COMPETES bill, and the Senate passed the U.S. Innovation and Competition Act (USICA).
The trade provisions in the COMPETES bill have been widely praised by institutions that share Trump’s economic approach to China. Despite being Democrat-sponsored legislation, COMPETES has earned praise from such institutions because, for one, it would close theso called de minimis loophole for Chinese imports. The de minimis loophole allows shipments with a declared value under $800 to enter the U.S. tariff-free, which Chinese importers have used to their advantage.
Furthermore, COMPETES would shore up the Miscellaneous Tariff Bill by making eligible for tariff reductions only those intermediate goods which go into final products produced in the United States.
There were plenty of reasons why Republicans objected to COMPETES, mostly related to the bill’s non-trade provisions. COMPETES would have created a special visa category for entrepreneurial immigrants, and exempted high-skilled immigrants (those with doctorates or master’s degrees) from caps on green cards for immigrants from specific countries, for instance. It also included progressive provisions to […]
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