Global Business Briefing with House Ways and Means Committee Chief Trade Counsels Joshua Snead (R) and Alexandra Whittaker (D)

Tariffs, taxes and free trade agreements, what is on the congressional trade agenda for 2024? President-Elect Trump has been given the mandate to govern. And with this mandate comes his promises to heighten tariffs on both allies and adversaries alike. Known for his propensity to strike a deal, will this new year see a return to bilateral FTA’s? Regional trade agreements like the United States-Mexico-Canada Agreement (USMCA) and the African Growth and Opportunity Act (AGOA) are on deck for reauthorization and will provoke critical discussions around U.S. trade leadership. Members of our Corporate Council heard directly from both majority and minority Chief Trade Counsels from the House Subcommittee on Trade on what they expect to see on these topics and more in the new year.  

Here Are Some Top Takeaways from the Program

1. Challenges in U.S. Trade Policy

Concerns are mounting over the direction of U.S. trade policy, with gaps in impactful negotiations leading to uncertainty. The expiration of key trade programs like GSP and AGOA has disrupted manufacturers and exporters relying on preferential market access. Addressing these lapses is critical for restoring confidence in U.S. trade leadership. Additionally, enforcement under agreements like the USMCA has been criticized for its narrow focus on labor issues, leaving broader trade concerns such as intellectual property and market access insufficiently addressed. 

2. A Tool for Trade or a Burden on Business

With the President-Elect touting tariffs as a campaign promise, the practice of using this tool has entered the mainstream. Traditionally they have served as both a means to address specific trade imbalances and protect domestic industry. The private sector has consistently cautioned how tariffs on imports, such as agricultural goods and manufacturing inputs, can significantly raise costs for U.S. businesses, undermining their competitiveness in global markets. Farmers have faced particularly harsh consequences, with some struggling to remain profitable under retaliatory tariffs from trading partners. The incoming administration will have to strike a strategic approach to tariff policy—one that advances economic goals without fueling inflation or straining relationships with key allies. 

3. Sectoral and Regional Trade Opportunities

Sector-specific trade agreements offer a pragmatic approach to navigating the complexities of comprehensive deals. Focused on critical areas like medical supply chains, agriculture, and essential minerals, these targeted agreements provide immediate economic benefits and serve as stepping stones for broader collaborations. Southeast Asia, with its expanding markets and strategic alignment with U.S. goals, stands out as a key region for engagement. However, ensuring the long-term viability of these agreements requires harmonizing standards such as rules of origin to avoid fragmentation and promote consistent economic integration. 

4. Concerns About Chinese Investment

China's expanding economic influence in the Western Hemisphere, particularly through investments in Mexico, raises concerns about potential conflicts with the objectives of the USMCA. These investments pose security risks and challenge fair competition in the region. To address such challenges, trade agreements must carefully balance fostering foreign investment with protecting against undue external influence. Additionally, prioritizing U.S. investments in regions like Sub-Saharan Africa could yield significant economic and strategic benefits while offering a viable alternative to China's Belt and Road Initiative. 

5. Defining Legislative and Institutional Roles in Trade Policy

Balancing executive authority with legislative oversight is crucial in shaping effective trade policy. The use of executive tools, such as Section 301 and Section 232 tariffs, can streamline actions but risks circumventing necessary legislative input. Safeguarding the independence and credibility of the U.S. Trade Representative (USTR) is vital for maintaining consistent and effective trade negotiations. Additionally, modernizing trade agreements, including provisions like Buy American rules, is essential for addressing new challenges, supporting domestic manufacturing, and aligning with international trade obligations. 

Project summary

Global Business Briefing with House Ways and Means Committee Chief Trade Counsels Joshua Snead (R) and Alexandra Whittaker (D) | November 2024
Program Areas:	Corporate Diplomacy