US Senators push bill to counter unfair foreign trade practices

The legislation seeks to provide stronger tools to counteract trade circumvention tactics, particularly those linked to China’s Belt and Road Initiative (BRI), which subsidises China-based companies operating in foreign markets.

The bill was initially introduced in 2023 by Young and former Senator Sherrod Brown (D-Ohio) as an update to the original Leveling the Playing Field Act, enacted in 2015. That law addressed the persistent challenges posed by unfair trade practices, and the new bill expands on its foundation by introducing the concept of ‘successive investigations.’

American industries have been significantly impacted by what lawmakers describe as predatory trade behaviours from China. These include 'country hopping,' where Chinese-supported companies move portions of production to other countries to circumvent US trade duties, and subsidies under China’s Belt and Road Initiative that benefit production in other countries. Lawmakers argue that these practices have led to serious economic consequences for American workers and businesses.

The Leveling the Playing Field 2.0 Act aims to curb such actions by giving the US Department of Commerce enhanced authority to conduct anti-circumvention inquiries with stricter timelines and broader investigatory powers. The bill establishes ‘successive investigations’ under antidumping (AD) and countervailing duty (CD) laws, allowing expedited action against repeat offenders. It streamlines the process for filing trade complaints and sets clear deadlines for anti-circumvention inquiries. It also expands the Commerce Department’s authority to apply CVD laws to foreign subsidies provided to companies operating outside their home country. Additionally, it strengthens review processes within the International Trade Commission to assess links between prior and current trade disputes involving the same imported goods.

Advocates argue that closing loopholes in US trade laws will help prevent market distortions that harm domestic manufacturers in industries.

“Our bill will protect American jobs and combat China’s unfair trade practices. China has distorted the free market by dumping undervalued products and subsidising industries, actions designed to harm American businesses and workers. This legislation will help level the playing field to ensure the United States can outcompete the Chinese Communist Party,” Senator Young stated in a press release.

“For too long, foreign competitors like China have engaged in unfair trade practices that have undermined domestic industry and threatened our national security. This legislation provides more tools for the US to stop illegal dumping and subsidies that have made it impossible for domestic producers and workers to compete. I’m glad to introduce the Leveling the Playing Field Act 2.0 with Senator Young to protect American workers like Minnesota’s Iron Rangers,” said Senator Smith.

The bill has received backing from some of the major American industry groups.

Along with Senators Young and Smith, US Senators Tommy Tuberville (R-Ala), Amy Klobuchar (D-Minn), Lindsey Graham (R-SC), Ruben Gallego (D-Ariz), Tom Cotton (R-Ark), Tammy Baldwin (D-Wis), Roger Wicker (R-Miss), Jon Fetterman (D-Pa), Jim Banks (R-Ind), Elizabeth Warren (D-Mass), Eric Schmitt (R-Mo), Kirsten Gillibrand (D-NY), Bernie Moreno (R-Ohio), and Katie Britt (R-Ala) also co-sponsored the legislation.

ALCHEMPro News Desk (HU)