U.S. Chamber of Commerce 1615 H Street, NW Washington, DC 20062-2000

From: Will Leahy, Manager, China Policy

To: Asia Task Force, China AmChams

Consumer Safety Update

Legislation:

Earlier today, Senator Dick Durbin (D-IL), chairman of the Senate Appropriations Subcommittee on Financial Services and General Government, introduced legislation to strengthen the Food and Drug Administration’s (FDA) ability to monitor and inspect goods that enter the United States from abroad by imposing a fee on companies and countries exporting food products to the United States. The legislation would:

 Require the FDA to collect user fees on imported food products. Revenues would be used for inspections of food imports and food safety research. While the bill would give the Administration the responsibility for determining the dollar amount of the fee, it would limit it to a maximum of $20 per line item.  Require the FDA to dedicate a portion of this funding for research on testing technologies and methods that would accurately detect the presence of pervasive contaminants such as E. Coli and listeria.  Require the FDA to establish an Imported Food Certification Program. Under this program, foreign governments and firms interested in exporting food products to the United States would be required to apply for certification. Entities would only be certified if they meet standards equivalent to those of the United States for food safety, inspection, labeling, and consumer protection and agree to allow regulators to inspect foreign facilities. Regulators would have the ability to pull certifications if companies or countries failed to comply and detain products if they failed to meet U.S. standards. It is likely that Rep. Rosa DeLauro (D-CT), Chairwoman of the House Appropriations Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies, will introduce similar legislation in the House. She and Durbin have been frequent critics of the FDA’s limited inspection capabilities, and have called for the signing of a food safety Memorandum of Understanding between the U.S. and China (a copy of their letter to the FDA and relevant agencies can be found on DeLauro’s web site).

Senator Amy Klobuchar (D-MN), a member of the Senate Commerce Committee, will likely introduce legislation bolstering the Consumer Product Safety Commission’s (CPSC) authority and resources. Klobuchar held a field hearing in Minnesota July 9 on the issue of child safety, in particular focusing on the recent recall of 1.5 million toy trains made in China. In addition, she has called for the Senate Commerce Committee to hold a hearing July 18 on imports from China (more information on the hearing can be found below).

It is likely that Rep. Bobby Rush (D-IL), will introduce similar legislation in the House. Rush is chairman of the Energy and Commerce subcommittee on Commerce, Trade and Consumer Protection, and has stated publicly that one of his priorities as chairman is to overhaul the CPSC’s underlying, enabling statute (more information can be found on Rush’s web site).

Representatives Mark Kirk (R-IL) and Rick Larsen (D-WA), co-chairmen of the U.S.-China House Joint Working Group, are also likely to introduce legislation on the issue dealing with toys and processed foods, though the exact scope of the legislation remains unclear.

Other Congressional Reactions:

Senator Chuck Schumer:

Chuck Schumer (D-NY) has called recently for the creation of an “Import Czar” to oversee all matters pertaining to consumer protection from Chinese imports, including coordinating the efforts of more than a half dozen agencies currently charged with consumer safety related to imports.

In addition, the execution of Zheng Xiaoyu, former head of China’s State Food and Drug Administration, elicited strong criticism from Schumer. In a press release, Schumer stated that:

“If China thinks that its issues with food and product safety are going to be fixed with these types of executions, it shows how much they just don’t get it. China’s surreal response to a very real problem demonstrates just how far it has to go before the U.S. can trust Chinese imports. It is increased oversight and serious inspections [that] will move us in the right direction.”

Upcoming Hearings:

Two consumer safety-related hearings will be held next week in response to the recent spate of recalls of food and other products manufactured in China:

The first hearing, entitled “Diminished Capacity: Can the FDA Assure the Safety and Security of the Nation’s Food Supply?” will be held on July 17th by the House Committee on Energy and Commerce, Subcommittee on Oversight and Investigations.

More information on the hearing, as well as information on the video webcast, can be found on the committee web site.

The second hearing will be a full committee hearing held July 18 by the Senate Commerce Committee, entitled “Safety of Chinese Imports: Oversight and Analysis of the Federal Response.”

This hearing will focus on the consumer impact of and federal agency responses to unsafe Chinese imports. It will have two panels- the first composed of witnesses from relevant government agencies (the FDA, CPSC, etc.), the second from consumer advocacy groups such as Consumers Union.

The Chamber plans to submit written testimony, which it will distribute upon submission.

In addition, Chamber staff will cover both hearings and report on relevant developments.

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