Washington, D.C. – Today, House Budget Chairman Jodey Arrington (TX-19) introduced the Axing Nonmarket Tariff Evasion (ANTE) Act to prevent highly subsidized, state-owned entities from evading U.S tariffs by setting up production in other countries. This unfair trade practice threatens American competitiveness and security when such entities – like Chinese carmakers – are able to evade U.S. tariffs by using other countries as a launching pad.
This legislation is being led in the Senate by Senator Jim Banks (R-IN)
"For far too long, adversaries like Chian have engaged in unfair trade practices, cheated the American economy, and cost the U.S. millions of jobs. President Trump understands the existential threat this global trade imbalance poses and has the political courage to address it head-on through his reciprocal trade policy, but Congress must do its part as well. The ANTE Act will stop highly-subsidized, state-owned businesses from using third countries as backdoors to evade President Trump's tariffs and help ensure a level playing field for American producers and manufacturers," said Chairman Arrington
"Communist China shouldn't be able to dodge U.S. tariffs by slapping a 'Made in Mexico' label on their products. My bill closes loopholes and stops the CCP from cheating American workers and manufacturers," said Senator Banks
"China and other non-market economies have become experts at finding loopholes to exploit our trade laws and undermine our manufacturing base." said Roger Atkins, President National Tooling and Machine Association. "Congress must pass the Axing Non-market Tariff Evasion Act to crack down on China's investments in third countries used to avoid U.S. tariffs. We applaud Representative Arrington's leadership introducing this bill allow the President to take action and protect American manufacturing."
"Tariff evasion has become a cottage industry in Chian, a strategy they have perfected and now export around the world." said Angela Gibian, Interim President & CEO, Forging Industry Association. "The Axing Nonmarket Tariff Evasion (ANTE) Act will allow the President to follow these trade violators wherever they go, updating trade laws to impose tariffs on investments made by non-market economies in third countries. On behalf of the Forging Industry Association, we call on lawmakers to move Congressman Arrington's bill without further delay."
"The Axing Non-market Tariff Evasion Act is critical to cracking down on tariff evasion by China." said Kym Conis, Managing Director, American Mold Builders Association. "Congress cannot act fast enough on Congressman Arrington's legislation that will allow the President to apply tariffs on imports on Chinese investments in third countries. Beijing has expanded its strategy to evade tariffs by subsidizing manufacturing around the world – this bill helps the Presidentcrack downon those trade violators around the world propped up by the Chinese Communist Party."
Background:
Highly subsidized entities controlled by non-market economies are setting up production in third countries to avoid U.S. tariffs levied to address foreign unfair trade practices.
Tariff evasion threatens the competitiveness of American businesses if highly subsidized state-owned companies can simply avoid U.S. tariffs by investing in another country and flood our nation with artificially cheap products.
The Axing Nonmarket Tariff Evasion (ANTE) Act would provide the U.S. Trade Representative (USTR) with an additional tool that would prevent tariff evasion in a proactive and targeted manner.
This legislation would provide USTR with additional authority to investigate whether a planned or existing investment from a nonmarket economy, subject to Section 301 tariffs, into a third country, not subject to Section 301 tariffs, is established or
being established to export to the U.S. and evade these tariffs.
If USTR determines that tariff evasion is occurring, it would have the ability to apply an existing Section 301 tariff on a nonmarket economy to the planned or existing investment in the third country.
