Washington, D.C. — The United States’ trade enforcement authorities require modernization to align with the needs of a globally connected economy, according to a new report from the Center for American Progress. The proposed updates aim to enhance the effectiveness of the Biden administration’s investments in American industry, thereby bolstering key sectors and improving the competitiveness of American workers.
The current trade enforcement mechanisms are criticized for their slowness, rigidity, and lack of coordination with international partners. These limitations have reportedly hindered effective trade actions, adversely affecting workers and the broader industrial base.
The report suggests several recommendations for modernizing the U.S. trade toolkit. Key proposals include:
- Collecting duties on finished goods that incorporate component parts subject to trade remedies.
- Developing new authority to manage trade in critical sectors vis-a-vis nonmarket economies without needing to demonstrate injury.
- Creating options for alternative remedies that better serve national interests when traditional tariff protection is insufficient.
- Launching a mechanism to tie tariff protection to commitments from industry to invest in long-term domestic competitiveness.
“It is paramount to the success of the United States’ industrial policy that its trade enforcement toolkit is updated to the realities of the modern world,” said Ryan Mulholland, senior fellow for international economic policy at the Center for American Progress and author of the report. “This report offers new ideas to ensure the United States’ trade remedy tools meet the needs of American workers and American industry competing against nonmarket practices and predatory exporters.”
The full report titled “Revitalizing U.S. Trade Remedy Tools for an Era of Industrial Policy in an Interconnected World” by Ryan Mulholland is available for further reading.
For more information or expert commentary, contact Sarah Nadeau at [email protected].
