Announcements

Smith Introduces Legislation Renewing Key Trade Program to Reduce Input Costs for American Industry

Loading

Rep. Adrian Smith

Today, Ways and Means Committee Trade Subcommittee Chair Adrian Smith (R-NE) introduced the Miscellaneous Tariff Bill Reform Act with support from 19 Republican colleagues including 17 fellow Ways and Means Committee members.

Chairman Smith released the following statement:

“Renewing the Miscellaneous Tariff Bill is essential to reducing barriers for American manufacturing and agriculture, supporting jobs, private sector growth, and our overall economic competitiveness, while upholding Congress’ constitutional authority over trade,” said Chairman Smith. “While the Biden administration continues to place new hurdles in the path of American manufacturers, Congress must renew this historically bipartisan legislation which passed unanimously out the Ways and Means Committee in 2016. Fighting for American workers and industry demands we do everything we can to make U.S.-manufactured goods more competitive in both domestic and international markets. This legislation will deliver input cost relief to American producers, in turn benefiting consumers worldwide. I thank my colleagues for their support.”

The cosponsors include: Reps. Vern Buchanan (R-FL), David Schweikert (R-AZ), Darin LaHood (R-IL), Brad Wenstrup (R-OH), Jodey Arrington (R-TX), Drew Ferguson (R-GA), Ron Estes (R-KS), Lloyd Smucker (R-PA), Kevin Hern (R-OK), Carol Miller (R-WV), David Kustoff (R-TN), Michelle Fischbach (R-MN), Blake Moore (R-UT), Michelle Steel (R-CA), Beth Van Duyne (R-TX), Randy Feenstra (R-IA), and Mike Carey (R-OH), House Maj. Whip Tom Emmer (R-MN), and Ralph Norman (R-SC).

The legislation is supported by numerous stakeholder groups, including the National Association of Manufacturers (NAM) the American Chemistry Council (ACC), and CropLife America (CLA).

“For more than three years, manufacturers—particularly small and medium-sized manufacturers—have been paying millions of dollars in higher prices for critical inputs due to the expiration of the Miscellaneous Tariff Bill. The MTB Reform Act is a significant step forward for manufacturers, which are losing more than $1.3 million every day on products not available in the U.S.—more than $1.5 billion overall.

“Restoring the MTB would strengthen manufacturing here at home, giving our sector the ability to source raw materials and components that can’t be produced domestically at scale or at competitive prices.

“Historically, the MTB has always had bipartisan support, and we thank House Ways and Means Trade Subcommittee Chairman Adrian Smith for his leadership and efforts to introduce MTB legislation. We urge the House to act quickly so that we can get one step closer to getting this critical legislation to President Biden’s desk,” said NAM Managing Vice President of Policy Chris Netram.

“The “Miscellaneous Tariff Bill (MTB) Reform Act” is one of the most important pieces of trade legislation in several years. House consideration and passage of this MTB would not only significantly benefit U.S. domestic chemical manufacturing by reducing domestic production costs, but benefit nearly every economic sector in the country. The American Chemistry Council applauds House Ways and Means Trade Subcommittee Chairman Adrian Smith (R-NE) for taking this important step towards MTB consideration and passage which demonstrates real leadership in advancing a trade agenda that benefits consumers and all downstream users of chemical products,” said Chris Jahn, President and CEO of the ACC.

“CropLife America (CLA) is appreciative of Representative Smith’s leadership in this first step to re-establish an MTB process that is fully retroactive which allows for investments to support research and development of the important innovations and technology farmers need to grow the world’s food, fiber and fuel, and other pesticide professionals need to keep our communities safe from pests and disease,” said Alexandra Dunn, President and CEO of CLA. “We continue to work with other stakeholders to support the passage of a fully retroactive MTB that will benefit our members, U.S. farmers, and consumers.”

The MTB Reform Act would:

  • Approve duty-free treatment of products recommended under the 2019 application process created by the American Manufacturing Competitiveness Act through December 31, 2025, in order to support domestic manufacturers who participated in that process in a good faith manner.
  • Provide retroactive duty relief on those items, back to January 1, 2021.
  • Make technical changes to align exemptions with the most recent revision of the Harmonized Tariff Schedule.
  • Align MTB exclusions with our trade policy toward China, excluding products subject to Section 301 tariffs while allowing American manufacturers to continue accessing parts which had Section 301 exclusions as of December 31, 2020.
  • Reauthorize the ITC-based process for future Miscellaneous Tariff Bills, creating new opportunities for American manufacturers to apply for domestically unavailable inputs in 2025 and 2028.