Dear Friends,
We have our work cut out for us in our fight to improve our economy for working families, tackle climate change, and protect human rights. There is no one area that intersects with these issues more than our trade policies.
When I became chair of the trade committee, my commitment was to do things differently, to use our trade policies to improve human rights, labor conditions, and to fight the climate crisis on a global level (which is the only way we can).
It was a busy last week hearing from experts about how our trade policies can be leveraged to prevent the use of forced labor abroad, reduce greenhouse gas emissions, and level the playing field for American businesses and workers.
The first of these discussions was about a loophole in our trade laws that allow foreign actors, particularly China, to ship massive numbers of goods directly to American customers to avoid import duties and oversight on imported goods. That practice is putting American businesses at a competitive disadvantage cost-wise as the number of packages we receive in the United States has skyrocketed to over two million daily packages—a number that will only climb in the coming years.
Because there is little way of telling whether these packages contain products made through forced labor, intellectual property theft, or are otherwise dangerous, this loophole makes it easier for people to import illegal goods and harmful products. I will continue to work to identify the best ways to close this loophole.
Next, I hosted a hearing to investigate general Chinese trade practices that undercut American workers and businesses, violate human rights, and hurt our environment. It is unacceptable that China blatantly disregards human rights by using forced labor to produce textiles and other goods. I will continue fighting to pass legislation that addresses these human rights violations and ensure that American corporations are not complicit by using these products in their supply chains.
And on Friday, I led a panel focused on an exciting opportunity the United States has to level the playing field for our businesses and to be a leader in encouraging other countries to reduce their greenhouse gas emissions. Currently, most products made in America adhere to much higher environmental standard than many other countries. But we don’t want those businesses to be undercut by those abroad that emit more carbon and put us at a competitive disadvantage.
We can address this issue by imposing fees on foreign goods—termed a Carbon Border Adjustment—to compensate for their lower costs due to lower carbon and environmental standards. That way, our businesses are rewarded for their higher costs associated with stronger environmental standards, while also encouraging our partners around the world to do the same. Legislation to put this practice into place has been introduced, and our partners in the European Union are looking into adopting similar policies as well—making this an especially opportune moment for progress.
Each of these topics are important areas where I want to use my leadership of the trade committee to help shape the trade practices of the country. Our trade agreements and laws have a real impact on our economy, the way people are treated, and our climate efforts. I will continue to champion reforms that help our communities thrive. I will be sure to keep you updated as my work continues.