President Trump’s Trade-Related Nominees Confirmed
Lauren M. Donoghue
Several nominees selected by President Trump for key positions that will participate in the development of U.S. trade policy during his administration have been confirmed.
• Department of State: On February 1, Rex W. Tillerson was confirmed as Secretary of State by a vote of 56-43. As the former Chief Executive Officer of ExxonMobil, and as we previously reported, Secretary Tillerson has substantial experience in dealing with governments and international business issues around the world.
• Department of the Treasury: On February 13, Steve Mnuchin was confirmed as Secretary of the Treasury by a vote of 53-47. During his confirmation hearing, Secretary Mnuchin said he will enforce trade policies that keep U.S. currency strong and create and protect American jobs.
• Department of Commerce: On February 27, Wilbur Ross was confirmed as Secretary of Commerce by a vote of 72-27. President Trump has said Mr. Ross will play a role in efforts to revise the North American Free Trade Agreement with Mexico and Canada.
President Trump’s nominee for U.S. Trade Representative, Robert Lighthizer, is awaiting consideration by the Senate Commerce, Science & Transportation Committee.
ITC to Conduct Fact-Finding Investigations on Digital Trade
Alex Carr and Kathleen L. Benner
The U.S. International Trade Commission (ITC) will conduct three investigations to examine the effect that barriers to digital trade have on the competitiveness of U.S. firms in international markets. These reports will further analyze and expand upon two previous ITC reports: Digital Trade in the U.S. and Global Economies, Part 1 (2013) and Digital Trade in the U.S. and Global Economies, Part 2 (2014). The first report, Global Digital Trade I: Market Opportunities and Key Foreign Trade Restrictions, will investigate recent developments and uncover regulatory and policy measures in other economic markets that may affect digital trade. The second and third reports will analyze the affect U.S. firms’ ability to supply or develop digital goods and services to consumers and firms abroad. The ITC will hold a public hearing on April 4 regarding the investigations and welcome written submissions for the record. The deadline for written submissions is April 21, 2017.
Legislation Introduced to Create a U.S. Chief Manufacturing Officer
Lauren M. Donoghue
On February 15, 2017, a bipartisan and bicameral group of lawmakers introduced legislation to establish the position of U.S. Chief Manufacturing Officer (CMO) in the Executive Office of the President. The U.S. Chief Manufacturing Officer would be responsible for coordinating manufacturing-related policies and activities across agencies and for developing a national manufacturing strategy. The bill’s sponsors noted that some legislative policies and executive actions have resulted in inconsistent and conflicting outcomes with respect to the growth of manufacturing in the United States and a high level of coordination and planning is needed to ensure that all actions and strategies lead to a clear path for growth. The bill was introduced by Manufacturing Caucus Co-Chairs Representatives Tim Ryan (D-OH) and Tom Reed (R-NY), along with Senators Chris Coons (D-DE), Susan Collins (R-ME), Steve Daines (R-MT), and Representative Dan Lipinski (D-IL).
New Developments for the Ex-Im Bank
William Clarkson
The last two years have not been kind to the Export-Import Bank (Ex-Im Bank). In June 2015, the export credit agency’s charter expired, preventing it from engaging in any new finance deals supporting U.S. exporters. Although Congress eventually voted to extend Ex-Im Bank’s charter in December 2015, the Ex-Im Bank still cannot approve any export financing or loans over $10 million. This is due to the fact that any transaction over $10 million must be approved by a quorum of the Ex-Im Bank’s Board of Directors, and three of the five Board seats remain vacant. While President Trump has been critical of the Ex-Im Bank in the past, recent statements from key Senate Democrats indicate that his position may be changing. Emerging from a February 9 White House meeting, Senator Heidi Heitkamp (D-ND) stated “{i}t’s great news he agreed and said he would nominate someone to serve on the Ex-Im Bank Board very soon so the agency, which has been stalled for a year, can fully function and keep supporting American workers and small businesses, including many in North Dakota, just as it has done for more than 80 years.”
Senator Joe Manchin (D-WV), who also attended the meeting, recounted President Trump saying, “I’ve changed my mind completely on that. I’ve seen how it functions and what it can do and we can’t compete if we don’t have a functioning Ex-Im Bank.” While Ex-Im Bank supporters should be encouraged by these statements, it remains to be seen whether President Trump will move forward quickly with a nomination and how that nomination will be received in the Senate, particularly by new Banking Committee Chairman Mike Crapo (R-ID).
