Bipartisan Trade Remedy Legislation Proposed

U.S. Senators Sherrod Brown (D-OH) and Todd Young (R-IN) introduced bipartisan legislation aimed at strengthening U.S. trade laws and combating unfair trade practices, a move seen as a bolstering response against China's global economic tactics.

The "Leveling the Playing Field 2.0 Act" is set to build upon the success of the original 2015 Act, while addressing the evolving landscape of international trade.

The proposed legislation will introduce the concept of “successive investigations” to the U.S. trade remedy system, a strategy meant to more effectively tackle repeat offenders and serial cheaters, a move that could help to level the playing field for American workers. This new provision aims to ensure that American industries are better protected from bad actors aiming to exploit loopholes in U.S. trade law.

In addition to enhancing U.S. trade remedy laws, the legislation responds to China’s Belt and Road Initiative, which provides Chinese government subsidies for products made in countries around the world, a move seen as an attempt to distort global market dynamics.

“China is always coming up with new ways to distort the global market, cheating Ohio companies out of business and Ohio workers out of jobs," said Brown, emphasizing the importance of innovative tools to ensure fairness in global trade.

"Our bipartisan bill will protect American jobs and combat China’s unfair trade practices," added Young, highlighting the intent to counteract China's market distortion tactics.

The proposed bill has gathered significant bipartisan support, with co-sponsorships from Senators spanning both the Democratic and Republican parties. A companion bill has also been introduced in the U.S. House of Representatives.

High-profile industry figures, such as Tom Conway, President of the United Steelworkers (USW), and Kevin Dempsey, president and CEO of the American Iron and Steel Institute (AISI), have publicly voiced their support for the legislation.

The Brown-Young legislation is seen as an enhancement of the 2015 Leveling the Playing Field Act, which led to key wins for Midwest companies. The new bill aims to increase the effectiveness of U.S. trade remedy system in curbing circumvention efforts designed to undermine domestic industries.

The proposed Leveling the Playing Field 2.0 Act will offer the Department of Commerce more tools to counteract anti-free market practices, notably from China. The new measures include expedited timelines for successive investigations, a more robust approach to dealing with subsidies provided by a government to a company operating in a different country, and clear timelines for preliminary and final determinations in trade disputes.

The bill is expected to offer considerable relief, particularly in the steel industry, which accounts for around half of all unfair trade cases.