1 UNITED STATES TRADE REPRESENTATIVE + + + + + 301 COMMITTEE + + + + + SECTION 301 TARIFFS PUBLIC HEARING + + + + + MONDAY AUGUST 5, 2019 + + + + + The 301 Committee met in the Main Hearing Room of the U.S. International Trade Commission, 500 E Street, SW, Washington, D.C., at 9:30 a.m., Arthur Tsao, Chair, presiding. PRESENT ARTHUR TSAO, Chair, U.S. Trade Representative BARBARA BANAS, U.S. Department of Agriculture SARAH BONNER, Small Business Administration WON CHANG, Department of Treasury TERESA HOWES, U.S. Trade Representative JESSICA HUANG, Department of Commerce AGATHA KOPROWSKI, Department of Treasury TRACY ROY, Customs and Border Patrol ARI SULBY, Department of State DAVID WEINER, U.S. Trade Representative ALSO PRESENT WILLIAM BISHOP, U.S. International Trade Commission TYRELL BURCH, U.S. International Trade Commission NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1323 RHODE ISLAND AVE., N.W. (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 2 WITNESSES PRESENT PETER ALFORD, PNP Supply, LLC CHARLES BERNARD, Eagle Metals, Inc. MARK BOYCE, Kemper AIP Metals, LLC DENNIS BURRESON, OGCC Member DIMITAR DIMITROV, Sofia Med SA FRANZISKA ERDLE, WVMetalle BRENDAN FITZPATRICK, DuroTerra KYLE GILSTER, Gellert Global Group RICH HUDGINS, California Cling Peach Board and California Canning Peach Association ARLIE JACOBS, Hempler Foods Group MICHAEL JEMISON, Heyco Metal, Inc. PHIL KAFARAKIS, Specialty Food Association DANIEL KENDALL, ABC Metals DAVID KLOTZ, Precision Metalforming Association JAMES MILLER, Franconia Industries, Inc. JEFFREY NYSTROM, Aurubis Buffalo, Inc. BRIAN O'SHAUGHNESSY, Revere Copper JASON REDD, Consorzio Per La Tutela Del Formaggio Pecorino Romano MIKE RODGERS, The Miller Company NANCY ROSENTHAL, Rotax Metals, Inc. JOHN SHAY, KME America, Inc. MICHAEL SILVEIRA, Olive Growers Council of California SEAN SIMMONS, Tuffaloy Products ROBERT STANG, Cheese Importers Association of America CHRIS SWONGER, Distilled Spirits Council of the United States RON TANNER, Di Bruno Bros. DALE TAYLOR, GBC Metals, LLC ROBERT TOBIASSEN, National Association of Beverage Importers PETER VITALIANO, National Milk Producers Federation MASSIMO VITTORI, oriGIn GARY VOGEN, Yara North America JESSICA WASSERMAN, Giovanni Rana USA NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1323 RHODE ISLAND AVE., N.W. (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 3 CONTENTS Panel 1 Dale Taylor, GBC Metals ...................... 10 Jeffrey Nystrom, Aurubis Buffalo. ............ 16 Daniel Kendall, ABC Metals ................... 21 David Klotz, Precision Metalforming. ......... 25 James Miller, Franconia, Industries .......... 31 Nancy Rosenthal, Rotax Metals ................ 35 Panel 2 Charles Bernard, Eagle Metals ................ 59 Dimitar Dimitrov, Sofia Med .................. 65 John Shay, KME America ....................... 68 Sean Simmons, Tuffaloy Prodcuts .............. 74 Franziska Erdle, WVMetalle ................... 79 Michael Jenison, Heyco Metal ................. 84 Panel 3 Mark Boyce, Kemper AIP Metals ............... 111 Mike Rodgers, The Miller Company ............ 117 Gary Vogen, Yara North America .............. 122 Brenden FitzPatrick, DuroTerra .............. 126 Peter Alford, Pnp Supply .................... 132 Brian O'shaughnessy, Revere Copper .......... 136 Panel 4 Peter Vitaliano, National Milk Producers Federation ............................. 163 Robert Stang, Cheese Importers Association of America ............................. 167 Jason Redd, Consorzio per La Tutela Del Formaggio Pecorino Romano .............. 173 Michael Silveira, Olive Growers Council of California .......................... 176 Phil Kafarakis, Specialty Food Assoc ........ 181 NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1323 RHODE ISLAND AVE., N.W. (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 4 CONTENTS Panel 5 Ron Tanner, Di Bruno Bros ................... 201 Jessica Wasserman, Giovanni Rana USA ........ 204 Massimo Vittori, Origin ..................... 211 Kyle Gilster, Gellert Global Group .......... 215 Panel 6 Chris Swonger, Distilled Spirits Council of the United States ................... 230 Robert Tobiassen, National Association of Beverage Importers ..................... 235 Rich Hudgins, California Cling Peach Board and California Canning Peach Assoc .... 241 Arlie Jacobs, Hempler Foods Group ........... 245 Adjourn ..................................... 263 NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1323 RHODE ISLAND AVE., N.W. (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 5 P-R-O-C-E-E-D-I-N-G-S 9:25 a.m. MR. BISHOP: Will the room please come to order? MR. TSAO: Good morning and welcome. The Office of the United States Trade Representative, in conjunction with the Interagency Section 301 Committee, is holding this public hearing in connection with the enforcement of U.S. WTO rights arising from the dispute brought by the United States against the European Union and certain EU member states addressed to the EU subsidies on large civil aircraft. Detailed information about this investigation is set out in our notice of April 12, 2019, which is published at 84 Federal Register 15028. A number of public comments in response to the April 12 notice requested that the Trade Representative consider additional products that were not included in the April 12 list for possible inclusion on a final list of products to be subject to the additional duties. NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1323 RHODE ISLAND AVE., N.W. (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 6 In response to these comments, and upon further analysis, the Trade Representative published a notice on July 5, 2019 that included a second list of products being considered for inclusion on a possible final list of products that may be subject to the proposed tariff action. The July 5 notice is published at 84 FR 32248. The purpose of today's hearing is to receive public testimony regarding products included in the July 5 list. The Section 301 Committee will carefully consider the testimony provided at this public hearing, and the written comments, including post-hearing rebuttal comments, and will then make a recommendation to the Trade Representative. As explained in our notice of April 12 and July 5, the selection of a final list of products will take into account the upcoming report of the WTO arbiter -- arbitrator on the appropriate level of countermeasures. Before we proceed with the testimony, I will provide some procedural and administrative NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1323 RHODE ISLAND AVE., N.W. (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 7 instructions. I will then ask the Agency representatives participating in today's hearing to introduce themselves. The hearing is scheduled for one day and will conclude this evening. We have six panels of witnesses with 31 individuals scheduled to testify today. The provisional schedule has been posted on the USTR website. We'll have a five-minute break between the panels and a 55-minute break for lunch. Each organization appearing at the hearing is limited to five minutes of oral testimony. After the testimony from each panel of witnesses, the Section 301 Committee will have an opportunity to ask questions. Committee representatives will generally direct their questions to one or more specific witnesses. Post-hearing comments, including any written responses to questions from the Section 301 Committee, are due by Monday, August 12, 2019. The rules and procedures for written submissions are set out in the July 5 Federal Register notice. NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1323 RHODE ISLAND AVE., N.W. (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 8 Given the number of witnesses and the schedule, we request that the witnesses, when responding to the questions, be as concise as possible. Witnesses should recall that they have an opportunity to provide more extensive responses in their post-hearing submissions. No cameras, video, or audio recording will be allowed during the hearing. A written transcript of this hearing will be posted on the USTR website and on a Federal Register docket as soon as possible after the conclusion of this hearing. If you have any questions about the facilities, please feel free to ask the guards at the front desk. Okay, we're pleased to have international trade and economic experts from a range of U.S. government agencies. At this time, I'd like to ask them to introduce themselves. Starting from me, my name's Arthur Tsao, I'm an Associate General Counsel at the U.S. Trade Representative's Office. MR. CHANG: Hello, good morning. My NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1323 RHODE ISLAND AVE., N.W. (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 9 name is Won Chang, Department of Treasury Trade Office. MR. SULBY: Ari Sulby, Department of State Trade Office. MS. HUANG: Jessica Huang, U.S. Department of Commerce, Office of Trade Negotiations. MR. WEINER: David Weiner, Office of Europe and Middle East at USTR. MS. BANAS: Good morning everyone, Barbara Banas, U.S. Department of Commerce. Pardon me, I'm looking at my colleague in Commerce. U.S. Department of Agriculture. Good morning, I need more coffee. MS. ROY: Tracy Roy, CBP, Chief of Trade Remedies, all of Trade Remedies for CBP. MR. BISHOP: Mr. Chairman, our first witness on this panel is Dale Taylor with GBC Metals, LLC. Mr. Taylor, you have five minutes. MR. TAYLOR: Members of the Committee,