Press Releases

Washington, D.C. – House Budget Committee Chairman Jodey Arrington (TX-19) introduced H.R. 9724 - the Axing Nonmarket Tariff Evasion (ANTE) Act - legislation to defend the American economy from nonmarket entities using third countries to avoid U.S. trade enforcement.

“For far too long, adversaries like China have cheated the American economy and cost the U.S. millions of jobs by utilizing unfair trade practices. President Trump took decisive action to curb this, but more still needs to be done,” said Chairman Arrington. “The Axing Non-Market Tariff Evasion (ANTE) Act would proactively stop foreign, state-owned businesses from using third countries as a backdoor to evade U.S. tariffs and bolster the American economy in the process.”

“We appreciate Rep. Arrington’s leadership in introducing the Axing Non-Market Tariff Evasion Act. A strong domestic steel industry is necessary to support any of our country’s goals. China’s unfair trade practices are the number one threat to robust domestic production,” said Philip K. Bell, President, Steel Manufacturers Association. “Due to China’s Belt and Road Initiative, our members constantly play Whac-A-Mole attempting to combat dumping and trade cheating, as China moves production around the globe whenever the U.S. implements any action to level the playing field. This legislation provides our government tools to be more proactive in their fight against unfair trade practices. We look forward to working with you and your colleagues to support American workers and ensure our government can rapidly react to constantly evolving threats to our economy.” 

“Chinese companies have become experts at tariff evasion, finding ways around U.S. tariffs in place to support manufacturing in America,” said James Warren, Forging Industry Association. “The Axing Nonmarket Tariff Evasion (ANTE) Act will proactively target tariff evasion as China uses third-party countries to undermine American manufacturing. It is time our manufacturers stop playing defense, this bill will proactively give policymakers the tools they need to strengthen the manufacturing industrial base.” 

Background:

• Highly subsidized state-owned enterprises like SAIC Motor controlled by non-market economies like China are setting up operations in other countries not subject to trade enforcement tariffs to export to the United States and avoid duties. This tariff evasion threatens American businesses, which risk losing market demand to entities that don’t play by the rules. 
• While the U.S. has trade enforcement tools that address unfair nonmarket practices, there’s no trade law that addresses tariff evasion in a proactive and targeted manner. The Axing Non-Market Tariff Evasion (ANTE) Act would fill this void by amending Section 301 of the Trade Act of 1974 to require the U.S. International Trade Commission (USITC) to investigate whether a planned investment from a nonmarket economy, subject to Section 301 tariffs, into a third country, not subject to Section 301 tariffs, is being established to export to the U.S. and evade these tariffs.
• If USITC determines that tariff evasion is occurring, it must notify the Office of the U.S. Trade Representative (USTR) or Congress, which have the ability to apply the Section 301 tariff on the nonmarket economy to the specific third country investment, even before the investment goes into operation.
• The ANTE Act would allow the U.S. to proactively prevent nonmarket entities from using investments in third countries as a backdoor to avoid U.S. trade enforcement and defend American businesses against bad actors that seek to evade U.S. law.

Broad Support:

• In addition to the Steel Manufacturers Association and the Forging Industry Association, the following groups have endorsed Rep. Arrington’s ANTE Act:

• National Council of Textile Organizations
• National Tooling and Machining Association
• American Mold Builders Association
• Precision Metalforming Association

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