And we're off with Katherine Tai's confirmation hearing... Chairman Ron Wyden kicks it off with a call for "smarter, stronger" US trade policy... "Four more years of mean tweets and chaos from the White House won't cut it..."
finance.senate.gov
finance.senate.gov
Here's five questions I'd like to see senators ask @USTradeRep nominee Katherine Tai:
bloomberg.com/news/newslette…
bloomberg.com/news/newslette…
Interesting shot fired by Mike Crapo in his opening statement re the Biden plan to hit the pause button on new trade deals. He's pushing for Biden to go forward with a deal with the UK. Now pointing to China and RCEP... He's calling for "energetic and effective" trade policy.
Crapo sounding a lot like a Republican of old for what it's worth. No Trumpism on trade in that opening statement.
Important point. But the bigger and more immediate barrier to a deal with the UK may be the expiry of trade promotion authority in a matter of weeks...
https://twitter.com/colinwilhelm/status/1364959628803588104
GOP congressman Kevin Brady now introducing a Biden nominee. That's pretty remarkable.
The bipartisan support for Tai raises an interesting question. I wonder who if anyone on the GOP side in the Senate will vote against her?
Tai with a reassurance to senators re concern that Biden team isn't going to be pushing aggressively enough for new deals...
Tai on Boeing/Airbus and need for a resolution:
"It is arguably one of the disputes that began to break the WTO dispute settlement system..."
"It is arguably one of the disputes that began to break the WTO dispute settlement system..."
Tai swats away the suggestion that the U.S. should unilaterally remove tariffs on imports from the EU authorized by the WTO. She points out that's basically how the WTO works...
That's re Airbus/Boeing dispute... So tariffs likely to remain in place until a deal.
Rob Portman: "Bob Lighthizer hasn't gotten enough love in the room today"
And asks question re industrial subsidies in China...
Tai answers that is part of figuring out how the U.S. competes with China. Huge issue. But doesn't offer an answer on whether she will push bilateral negotiation with China on subsidies.
Tai answers that is part of figuring out how the U.S. competes with China. Huge issue. But doesn't offer an answer on whether she will push bilateral negotiation with China on subsidies.
Portman: What do you want to do on WTO?
Tai: "The US was a founding member of the WTO... IT has always been a leader in Geneva. We cannot afford not to be a leader in Geneva and at the WTO"
Then basically says US needs to have hard conversations about whether WTO is working.
Tai: "The US was a founding member of the WTO... IT has always been a leader in Geneva. We cannot afford not to be a leader in Geneva and at the WTO"
Then basically says US needs to have hard conversations about whether WTO is working.
And now - before that conversation even got much more than started - we're on to beef and country of origin labeling...
One observation after about 90 mins of this:
Katherine Tai is very good at the stock answer in these things... "If confirmed I commit to working with you on..."
Katherine Tai is very good at the stock answer in these things... "If confirmed I commit to working with you on..."
I'm not sure we're learning a huge amount about the direction of trade policy in the Biden administration, though...
That said, a very smart answer from Tai right now about the need to make sure one set of workers isn't being sacrificed in the name of another in trade... Points out that farmers and agricultural workers felt they were being sacrificed in Trump trade wars.
The Biden team (and the new @USTradeRep spokesman) keen to emphasize the bipartisan support for Tai...
https://twitter.com/ustrspox/status/1364975198055723008
Totally agree with @AnaSwanson here: How do you do that? The story of trade policy through the ages has always involved sacrificing the interests of one small group for the greater good.
See the 19th century UK repeal of the Corn Laws...
See the 19th century UK repeal of the Corn Laws...
But Tai is very good at talking about this. We're now into the most interesting part of the hearing... We're moving beyond platitudes.
Sherrod Brown says Tai's opening statement brought "tears to the eyes of some of my staff" and praises her for hiring his former adviser, Nora Todd, as chief of staff.
That's interesting subplot. Brown has long been one of the most vocal trade skeptics in the Democratic party.
That's interesting subplot. Brown has long been one of the most vocal trade skeptics in the Democratic party.
Tai riffing now on how many workers have felt disconnected from trade policies directed by bureaucrats in Washington, Geneva and Brussels.
Pledges to "center" trade policy on how it affects workers.
Pledges to "center" trade policy on how it affects workers.
One other subplot: Sherrod Brown and Tai's predecessor, Bob Lighthizer, also had a close working relationship.
Lighthizer grew up in Ashtabula, Ohio...
Lighthizer grew up in Ashtabula, Ohio...
Brown asks how you regain trust of American workers on trade.
Tai: It starts with listening...
Tai: It starts with listening...
"The trade relationship with the UK is very important to the people of Oklahoma... They have a problem with chlorinated chicken. We have a problem with ecoli."
"It's a little cold in Montana to grow cotton..." says Sen. Daines. But let's talk about "pulse crops".
Tai commits to "having an awareness" of the importance of pulse crop trade with India.
Daines: Do you support reengaging with the TPP?
Tai: The "basic formula" of TPP (working with allies with China in mind) is still a "sound formula". But a lot has changed re awareness of pitfalls of trade policy we pursued in the past. So that's a damper on anyone pushing TPP.
Tai: The "basic formula" of TPP (working with allies with China in mind) is still a "sound formula". But a lot has changed re awareness of pitfalls of trade policy we pursued in the past. So that's a damper on anyone pushing TPP.
Daines: "We have three cows per person in Montana".
Interesting riff from Tai here on the role of government in economic policy/trade: "We in our system have been very trusting of the free market." But most recent years have offered lesson that US needs to revisit how it does econ and trade policy and deals with trading partners.
She says the goal is not to behave like China but to be clear-eyed in what you need to do to compete with China.
Senator Young offering some skepticism of Biden admin's propensity to announce reviews of policies.
Tai answers that she wants to move quickly.
Tai answers that she wants to move quickly.
Young pushing Tai on whether Lighthizer had the right mix (tariffs, basically) to encourage reshoring.
Tai dodges the question but offers that goals were right but that she wants to approach it in "more process-driven manner".
Tai dodges the question but offers that goals were right but that she wants to approach it in "more process-driven manner".
One interesting question hanging over all this:
How much of a role will Tai have in directing China policy in this administration? Lighthizer was a big voice in the Trump team and became the lead negotiator. Will Tai have the same role?
How much of a role will Tai have in directing China policy in this administration? Lighthizer was a big voice in the Trump team and became the lead negotiator. Will Tai have the same role?
We now have a question on soda ash from the senator from Wyoming...
And Tai fires back by revealing she knows her soda ash and the issues around processing.
She just made another friend on the committee...
She just made another friend on the committee...
Another observation:
Tai is very good at managing the senators and their questions. But I'm not sure I'm hearing a vision for trade policy grounded in tangible actions from her.
She's pledging good process and less chaos and a "worker driven" trade policy. But...
Tai is very good at managing the senators and their questions. But I'm not sure I'm hearing a vision for trade policy grounded in tangible actions from her.
She's pledging good process and less chaos and a "worker driven" trade policy. But...
Got pulled away at the end there. So missed any closing fireworks. Though I'm sure @snlester and @AnaSwanson caught them!
Prediction: Katherine Tai is going to be approved by a wide bipartisan majority (95-5?) and will be up and running on 17th street before the end of March.
Prediction: Katherine Tai is going to be approved by a wide bipartisan majority (95-5?) and will be up and running on 17th street before the end of March.
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