The Senate Finance Committee on March 14, 2017, held a hearing to consider the nomination of Robert Lighthizer to be the United States Trade Representative (USTR). Members sought assurances that the Administration would be attentive to their trade concerns regarding intellectual property (IP) rights, currency manipulation, and agriculture.

In an opening statement, Chairman Orrin Hatch (R-UT) said it is not clear that the prohibition against a USTR having "directly represented, aided, or advised a foreign entity" in "any trade negotiation, or trade dispute, with the United States" would apply to Lighthizer, who he said represented foreign clients in the late 1980s and early 1990s. He noted that waivers from that statute have been considered in the past without extraneous conditions.

Ranking Member Ron Wyden (D-OR) suggested that Democrats may not cooperate with a waiver unless Republicans are willing to advance legislation related to health care and pension benefits of miners. "Speaking for Democrats, we are willing to work with Republicans to provide a statutory exception for Mr. Lighthizer, but we also insist that Republicans work with Democrats to provide a lifeline to America's hardworking mineworkers who face losing their healthcare and retirement benefits," he said. Other Democrats observed that Lighthizer enjoys broad support in the Committee.

Chairman Hatch has long advocated for stronger protections for US IP rights, and expressed disappointment about the absence of cases brought under the WTO or trade agreements under the previous administration. He asked specifically whether Lighthizer would work to strengthen protections for US IP rights in India. Lighthizer said he expects there will be very rigorous enforcement.

Senator Robert Menendez (D-NJ) echoed Hatch's concerns, saying there is an opportunity for greater economic ties with India but concerns about the lack of protection for IP rights, which is a critical element for the technology, biotechnology, and pharmaceutical sectors. Senator Pat Toomey (R-PA) also expressed concern about IP rights, particularly with regard to biologics.

Senator Debbie Stabenow (D-MI) said she agreed with the President's intention to label China a currency manipulator and declaration that the Chinese are "grand champions" of the practice. Others in the Administration have suggested there is no urgency to label China a currency manipulator. Lighthizer said China has in the past been a substantial currency manipulator, in addition to other nations, but it is unclear if they are now.

Lighthizer confirmed to Senator Pat Roberts (R-KS) that he would be a champion for agriculture. Senator Charles Grassley (R-IA) sought assurance that the Administration will be cognizant of what is at stake for US agricultural interests if NAFTA is renegotiated. Senator John Thune (R-SD) said agricultural trade must be near the top of the agenda, and emphasized that Canada and Mexico are very important agricultural trading partners.

Lighthizer said the Administration's intention is to renegotiate NAFTA quickly. Under questioning from Senator Bill Cassidy (R-LA), Lighthizer said there is a general consensus that NAFTA needs to be renegotiated in a way that is mindful of interests that currently benefit under the agreement.

Appearing to reference the House border adjustability tax proposal, Senator Ben Cardin (D-MD), who has advocated a progressive consumption tax, said it is difficult to see the United States winning too many cases in the WTO with something that is an income tax but that we call a consumption tax.

Lighthizer's testimony and the statements of Chairman Hatch and Senator Wyden are attached.

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ATTACHMENTS

Hatch statement

Lighthizer statement

Wyden statement