Sees legislation as key step to addressing trade barriers
Washington. The Coalition for a Prosperous America (CPA) has endorsed H.R. 764, the Reciprocal Trade Act (RTA) recently introduced by Rep. Sean Duffy (R-WI). The RTA would expand the president’s ability to defend domestic US manufacturers and agricultural producers against foreign protectionism by raising individual product tariffs to match foreign tariff and non-tariff barriers.
“We are pleased to support the efforts of Rep. Duffy and the Members of Congress who have co-sponsored this important legislation,” said CPA Chairman Dan DiMicco. “The Reciprocal Trade Act will provide much-needed leverage for President Trump as he confronts unfair trade. Congress should move swiftly to pass this bill.”
Currently, US tariffs are the lowest in the world despite high trade barriers in other countries. The RTA would provide the president with leverage to compel reductions in foreign trade barriers by increasing US tariffs.
The Reciprocal Trade Act specifies that, after appropriate consultations with Congress, the president can negotiate and enter into agreements committing foreign countries to lower their trade barriers. It also allows the president to impose reciprocal tariffs on countries that refuse to lower their tariffs and non-tariff barriers.
“We’re very supportive of the Reciprocal Trade Act,” said Michael Stumo, CEO of the CPA. “The executive branch should have as much leverage as possible to act when other nations take advantage of America’s wide-open consumer market while restricting access to their own market. Every country wants to sell into the US market, and that gives us negotiating strength. In the past, the United States unilaterally reduced tariffs with the expectation that other countries would do the same. But they have not. This bill would provide a strong tool to motivate reciprocity.”
