22 June 2017 Ways & Means hears from Lighthizer on trade agenda Members of the House Ways and Means Committee on June 22, 2017, questioned United States Trade Representative Robert Lighthizer about the Administration's views on protections for intellectual property (IP), data flows, agricultural products, and other issues ahead of a planned renegotiation of the North American Free Trade Agreement (NAFTA) and the Administration's pursuit of other trade agreements. In May, Lighthizer notified Congress that the President will conduct negotiations with Canada and Mexico with respect to NAFTA and, following a 90-day period of consultations, negotiating rounds can begin as soon as August 17. Lighthizer, who testified before the Senate Finance Committee previously, said the Administration is involved in negotiations with all major trading partners over ways to lower trade barriers for US companies, workers, and agricultural interests. He additionally said, "We have also been active in identifying countries that have serious problems with protection of intellectual property, and we are reviewing and amending our action plans to ensure that we can identify violations and take appropriate enforcement actions." In an opening statement, Chairman Kevin Brady (R-TX) said given Administration opposition to a multilateral approach, lawmakers must work together on an "ambitious network of deals that break down barriers" and allow for sales of US goods abroad, including: The Transatlantic Trade and Investment Partnership (TTIP); trade deals with Japan, and the UK; the Trade in Services Agreement; the Environmental Goods Agreement; renewal of GSP; and a Miscellaneous Tariff Bill to help US exporters. During questioning, Brady emphasized the importance of maintaining trade relations in Asia despite the US pulling out of the Trans-Pacific Partnership (TPP), and mentioned the recent resolution (H. Con. Res. 54) expressing support for strengthening engagement between the United States and the Asia-Pacific Economic Cooperation. Ranking Member Richard Neal (D-MA) told Lighthizer he is seeking clarity on the Administration's position on a range of issues, from the specific objectives of a NAFTA rewrite, to the Administration's position on negotiating TTIP and an Environmental Goods Agreement, how the Administration will address currency manipulation, and the Administration's current thinking in the steel and aluminum national security investigations. He expressed particular interest in TTIP negotiations. Rep. Devin Nunes (R-CA) said members are all for looking for ways to improve NAFTA but expressed concern about retribution on the US agriculture industry, and Lighthizer said the Administration recognized that concern. Nunes also expressed concern about trading practices in India regarding almonds and other products. Lighthizer said the comment was timely given the upcoming visit from Prime Minister Narendra Modi. Rep. Nunes also used the opportunity to advocate for a border adjustment tax. Rep. Erik Paulsen (R-MN) said there are currently no enforceable trade rules specifically protecting data flows, leaving US companies vulnerable to digital manipulation by foreign governments, including through data localization, that undermine competition from US companies. Lighthizer said the Administration views inclusion of digital trade rules as a priority for the NAFTA renegotiation and other agreements. Paulsen further said that given the fact that NAFTA renegotiation will set the precedent for future negotiations, it is a tremendous opportunity to break down barriers to digital trade. Rep. Patrick Meehan (R-PA) raised the issue of patent protections in the biopharmaceutical area and asked how the Administration may address patent disputes. Lighthizer said the protection of IP in general will be a major issue under the negotiation, and noted that there have been cases in Canada where patent protections have been unfairly lost. Rep. George Holding (R-NC) said many members are interested in a bilateral trade agreement with the UK. Lighthizer said, at the right time, he believes the UK would like to have an agreement with the US but is on an extended timeframe given that they are in the midst of leaving the EU.
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