Hearing with Commerce Secretary Ross HEARING

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Hearing with Commerce Secretary Ross HEARING Hearing with Commerce Secretary Ross ________________________________________ HEARING BEFORE THE COMMITTEE ON WAYS AND MEANS U.S. HOUSE OF REPRESENTATIVES ONE HUNDRED FIFTEENTH CONGRESS SECOND SESSION ________________________ MARCH 22, 2018 __________________ Serial No. 115-FC09 __________________ COMMITTEE ON WAYS AND MEANS KEVIN BRADY, Texas, Chairman SAM JOHNSON, Texas RICHARD E. NEAL, Massachusetts DEVIN NUNES, California SANDER M. LEVIN, Michigan DAVID G. REICHERT, Washington JOHN LEWIS, Georgia PETER J. ROSKAM, Illinois LLOYD DOGGETT, Texas VERN BUCHANAN, Florida MIKE THOMPSON, California ADRIAN SMITH, Nebraska JOHN B. LARSON, Connecticut LYNN JENKINS, Kansas EARL BLUMENAUER, Oregon ERIK PAULSEN, Minnesota RON KIND, Wisconsin KENNY MARCHANT, Texas BILL PASCRELL, JR., New Jersey DIANE BLACK, Tennessee JOSEPH CROWLEY, New York TOM REED, New York DANNY DAVIS, Illinois MIKE KELLY, Pennsylvania LINDA SÁNCHEZ, California JIM RENACCI, Ohio BRIAN HIGGINS, New York PAT MEEHAN, Pennsylvania TERRI SEWELL, Alabama KRISTI NOEM, South Dakota SUZAN DELBENE, Washington GEORGE HOLDING, North Carolina JUDY CHU, California JASON SMITH, Missouri TOM RICE, South Carolina DAVID SCHWEIKERT, Arizona JACKIE WALORSKI, Indiana CARLOS CURBELO, Florida MIKE BISHOP, Michigan DARIN LAHOOD, Illinois DAVID STEWART, Staff Director BRANDON CASEY, Minority Chief Counsel _________________________ Hearing with Commerce Secretary Ross U.S. House of Representatives, Committee on Ways and Means, Washington, D.C. ____________________________________ WITNESS The Honorable Wilbur Ross Secretary, Department of Commerce Witness Statement ___________________ Hearing with Commerce Secretary Ross House Ways and Means Chairman Kevin Brady (R-TX) announced today that the Committee will hold a hearing with Secretary of Commerce Wilbur Ross on trade matters within Commerce’s purview, particularly the section 232 determinations on steel and aluminum. The hearing will take place on Thursday, March 22, 2018 in 1100 Longworth House Office Building, beginning at 9:00 AM. In view of the limited time to hear the witness, oral testimony at this hearing will be from the invited witness only. However, any individual or organization may submit a written statement for consideration by the Committee and for inclusion in the printed record of the hearing. DETAILS FOR SUBMISSION OF WRITTEN COMMENTS: Please Note: Any person(s) and/or organization(s) wishing to submit written comments for the hearing record must follow the appropriate link on the hearing page of the Committee website and complete the informational forms. From the Committee homepage, http://waysandmeans.house.gov, select “Hearings.” Select the hearing for which you would like to make a submission, and click on the link entitled, “Click here to provide a submission for the record.” Once you have followed the online instructions, submit all requested information. ATTACH your submission as a Word document, in compliance with the formatting requirements listed below, by the close of Thursday, April 5, 2018. For questions, or if you encounter technical problems, please call (202) 225-3625. FORMATTING REQUIREMENTS: The Committee relies on electronic submissions for printing the official hearing record. As always, submissions will be included in the record according to the discretion of the Committee. The Committee will not alter the content of your submission, but we reserve the right to format it according to our guidelines. Any submission provided to the Committee by a witness, any materials submitted for the printed record, and any written comments in response to a request for written comments must conform to the guidelines listed below. Any submission not in compliance with these guidelines will not be printed, but will be maintained in the Committee files for review and use by the Committee. All submissions and supplementary materials must be submitted in a single document via email, provided in Word format and must not exceed a total of 10 pages. Witnesses and submitters are advised that the Committee relies on electronic submissions for printing the official hearing record. All submissions must include a list of all clients, persons and/or organizations on whose behalf the witness appears. The name, company, address, telephone, and fax numbers of each witness must be included in the body of the email. Please exclude any personal identifiable information in the attached submission. Failure to follow the formatting requirements may result in the exclusion of a submission. All submissions for the record are final. The Committee seeks to make its facilities accessible to persons with disabilities. If you are in need of special accommodations, please call 202-225-1721 or 202-226-3411 TTD/TTY in advance of the event (four business days’ notice is requested). Questions with regard to special accommodation needs in general (including availability of Committee materials in alternative formats) may be directed to the Committee as noted above. Note: All Committee advisories and news releases are available at http://www.waysandmeans.house.gov/ HEARING WITH COMMERCE SECRETARY ROSS Thursday, March 22, 2018 House of Representatives, Committee on Ways and Means, Washington, D.C. The committee met, pursuant to notice, at 9:04 a.m. in Room 1100 Longworth House Office Building, Hon. Kevin Brady [Chairman of the Committee] presiding. *Chairman Brady. The committee will come to order. Good morning. Today our committee is honored to welcome Commerce Secretary Wilbur Ross to testify on recent trade actions, particularly section 232 determinations on steel and aluminum. Mr. Secretary, thank you for joining us. And we look forward to your testimony, which is very timely, with tariffs set to take effect on aluminum and steel tomorrow. Congress takes our constitutionally-mandated oversight role over trade policy very seriously. I have had the opportunity to exchange views with you, with President Trump, and other administration officials recently on our shared urgent priority of addressing global over-capacity in aluminum and steel. Several members of this committee addressed that point in our hearing with Ambassador Lighthizer yesterday. We applaud the President for his leadership in insisting that we address this problem, and we know you have a key role. We are committed to working closely with you and the President to make sure we hit the target by dealing with the root problem of China's persistent distortive policies, while minimizing collateral damage to our economy. Mr. Secretary, your vast experience in international business, and particularly in the steel sector, have prepared you well. You understand the complexity of modern supply chains we must take into account when considering how any enforcement action will affect every part of our economy. As you know 108 House Republicans joined Chairman Reichert and me in writing President Trump shortly before the presidential proclamations were issued to urge him to take a targeted approach on any tariffs. We continue to highlight several priorities: keeping tariffs targeted so they don't affect fairly traded products or products that don't pose a national security threat; using a process to allow U.S. companies to petition for and promptly obtain exclusions for imports unavailable from U.S. sources or that don't pose a national security threat; grandfathering existing contracts so we don't unfairly drive up costs of projects underway; reviewing tariffs on a short- term basis to consider if a different approach would better serve the U.S. national interest; and, of course, setting a termination date. I welcome the President's commitment to flexibility and cooperation to our allies that trade fairly. The exclusion of Canada and Mexico is an important first step in such flexibility, and one that we strongly support. We can't jeopardize our ability to incentivize other countries to cooperate on addressing our shared concerns with China. And we don't want to encourage other countries to restrict our American exports. Instead, we have to tailor these tariffs so Americans have certainty as they continue to trade fairly, sell American-made products to customers all over the world, and hire more workers here at home. I know you will be hearing from many committee members today about specific improvements they want to the product exclusion process to avoid risking jobs in their districts. In particular, as these tariffs go into effect tomorrow, I urge you to allow consolidation of petitions; retroactive application of exclusions to the date the petition was filed; an exclusion period beyond the one year set out in your rules. I also oppose increasing tariffs on other products or countries as exclusions are made. These tariffs should be in place for the absolute minimum period, their effectiveness should be constantly studied. They should be sunset after a year. If they are not having the effect you intend, you should assess whether another policy would be more effective than continuing them. Tariffs are taxes, plain and simple, on American job traders and consumers. Their scope and their duration should never exceed what is needed to accomplish their goal. Along those lines I also want to address the potential for section 301 tariffs. I am just as frustrated -- I think we all are -- just as the administration is with China's blatant theft of America's intellectual property, and increasingly devious ways in which it steals or otherwise obtains our very best technology. But we need the right remedy,
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