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Trump's FART Act
#1
Exclusive: A leaked Trump bill to blow up the WTO

Jonathan Swan22 hours ago

[Image: 1530477343105.jpg]
Illustration: Lazaro Gamio/Axios

Axios has obtained a leaked draft of a Trump administration bill — ordered by the president himself — that would declare America’s abandonment of fundamental World Trade Organization rules.
Why it matters: The draft legislation is stunning. The bill essentially provides Trump a license to raise U.S. tariffs at will, without congressional consent and international rules be damned.
The details: The bill, titled the "United States Fair and Reciprocal Tariff Act," would give Trump unilateral power to ignore the two most basic principles of the WTO and negotiate one-on-one with any country:
  1. The "Most Favored Nation" (MFN) principle that countries can't set different tariff rates for different countries outside of free trade agreements;
  2. "Bound tariff rates" — the tariff ceilings that each WTO country has already agreed to in previous negotiations.
"It would be the equivalent of walking away from the WTO and our commitments there without us actually notifying our withdrawal," said a source familiar with the bill.
  • "The good news is Congress would never give this authority to the president," the source added, describing the bill as "insane."
  • "It's not implementable at the border," given it would create potentially tens of thousands of new tariff rates on products. "And it would completely remove us from the set of global trade rules."
Behind the scenes: Trump was briefed on this draft in late May, according to sources familiar with the situation. Most officials involved in the bill's drafting — with the notable exception of hardline trade adviser Peter Navarro — think the bill is unrealistic or unworkable. USTR, Commerce and the White House are involved.
  • In a White House meeting to discuss the bill earlier this year, Legislative Affairs Director Marc Short bluntly told Navarro the bill was "dead on arrival" and would receive zero support on Capitol Hill, according to sources familiar with the exchange.
  • Navarro replied to Short that he thought the bill would get plenty of support, particularly from Democrats, but Short told Navarro he didn't think Democrats were in much of a mood to hand over more authority to Trump.
White House response: Spokeswoman Lindsay Walters said, "It is no secret that POTUS has had frustrations with the unfair imbalance of tariffs that put the U.S. at a disadvantage. He has asked his team to develop ideas to remedy this situation and create incentives for countries to lower their tariffs. The current system gives the U.S. no leverage and other countries no incentive."
  • But Walters signaled that we shouldn't take this bill as anything like a done deal. "The only way this would be news is if this were actual legislation that the administration was preparing to rollout, but it’s not," she said. "Principals have not even met to review any text of legislation on reciprocal trade."
  • Between the lines: Note the specificity of Walters' quote above. Trump directly requested this legislation and was verbally briefed on it in May. But he hasn't met with the principals to review the text. 
Be smart: Congress is already concerned with how Trump has been using his trade authorities — just look at recent efforts by Republican Sens. Bob Corker and Pat Toomey and Democratic Sen. Michael Bennet to roll back the president's steel and aluminum tariffs.
  • The bottom line: As a smart trade watcher told me: "The Trump administration should be more worried about not having their current authority restricted rather than expanding authority as this bill would do."
Read the full text of the draft bill (Axios retyped the leaked document to protect our source):

Source:
https://www.axios.com/trump-trade-war-le...e0f83.html

Below I have copied the TEXT portion there are 5 pages:

Trump's FART Act:  Doh

SEC. 1. SHORT TITLE.
This Act may be cited as the "United States Fair and Reciprocal Tariff Act".
SEC. 2. FINDINGS.
Congress finds the following:
(l) The United States maintains an open market for goods, with relatively low tariffs, and has
long encouraged trading partners, both bilaterally and in multilateral fora, to liberalize their
markets;
(2) The United States is the world’s largest importer of goods;
(3) Trading partners of the United States in many instances impose significantly higher tariffs on
U.S. goods than the United States imposes on the same or similar goods imported from those
same countries;
(4) Trading partners of the United States in many instances impose significant nontariff barriers
that greatly undermine the value of negotiated tariff concessions;
(5) The lack of reciprocity in tariff levels and disproportionate use of ?nontariff? barriers by ?U.S.
trading partners facilitates foreign imports, discourages U.S. exports, and puts U.S. producers,
farmers, and workers at a competitive disadvantage;
(6) The lack of reciprocity in tariff levels and nontariff barriers contributes to the large and
growing U.S. trade deficit in goods, which is a drag on economic growth and undermines
economic prosperity;
(7) To date a number of U.S. trading partners have been unwilling, including in multilateral
negotiations, to reduce tariff and eliminate nontariff barriers applied to U.S. exports; and
(8) The President of the United States should have a wide array of tools to open the markets of
U.S. trading partners and encourage participation in negotiations to liberalize trade in goods on a
fair and reciprocal basis, including the authority to adjust tariff rates to reciprocal levels.

 SEC. 3 DEFINITIONS.
In this Act:
(1) Nᴏɴᴛᴀʀɪ
ʙᴀʀʀɪᴇʀ—The term "nontariff barrier" includes any government-imposed
measure or policy, other than a customs duty, that restricts, prevents, or impedes
international trade in goods, including import policies, sanitary and phytosanitary
measures,technical barriers to trade, government procurement, export subsidies, lack of
intellectual property protection, digital trade barriers, and government-tolerated
anticompetitive conduct of state owned or private firms; and
(2) Rᴀᴛᴇ ᴏ ᴅᴜᴛʏ—The term "rate of duty" means the rate of customs duty applied on
imports of a good, but does not include an antidumping or countervailing duty or a duty
applied under a preferential tariff arrangement.

SEC. 4 DETERMINATIONS AND AUTHORIZED ACTIONS.
(a) Dᴇᴛᴇʀᴍɪɴᴀᴛɪᴏɴ. If the President determines—
(1) that the rate of duty applied by a foreign country with respect to a particular good, when
imported from the United States, is significantly higher than the rate of duty imposed by
the United States on that good, when imported from that country; or
(2) that the nontariff barriers applied by a foreign country with respect to a particular good,
when imported from the United States, impose significantly higher burdens, alone or in
combination with any tariffs imposed by that country on that good, than the burdens of
the tariff and nontariff barriers, if any, imposed by the United States on that good, when
imported from that country,
the President may take action authorized under subsection (b).

(b) Tᴀʀɪ

Aᴜᴛʜᴏʀɪᴛʏ

(1) If the President makes a determination described in subsection (a), the President may take
either or both of the following actions—
(A)

negotiate and enter into an agreement with the foreign country that commits that
country to reduce the rate of duty or eliminate nontariff barriers on the good that
is the subject of the determination in subsection (a); or

(B)

impose a rate of duty on imports of that good from that country that is equal to the
rate of duty applied by that country on that good, in the case of determination
described in subsection (a)(1), or the effective rate of duty imposed by the
nontariff barriers, or combination of tariff and nontariff barriers, on the good, in
the case of a determination described in subsection (a)(2).

(2) In taking action under paragraph (1), the President shall consider—
(A)

the tariff classification of the goods in the United States and the foreign country;

(B)

The respective applied rates of duty of the United States and the foreign country
with respect to the good;

©

the physical characteristics of the good;

(D)

the end uses and existence of a competitive relationship between the good, as
exported from the United States to the foreign country and as imported from that
country to the United States;

(E)

the foreign country’s exports of that good to the United States and to the world;

(F)

in the case of a determination described in subsection (a)(1), the extent to which
the foreign country’s tariff on the good is impeding or distorting trade;

(G)

in the case of a determination described in subsection (a)(2),

 

(i)

the respective nontariff barriers applied by the United States and the
foreign country with respect to the good;

(ii)

the extent to which the country’s nontariff barriers, or combination of
tariff and nontariff banners, on the good are impeding or distorting trade;

(iii)

the identified purpose of the foreign country’s nontariff barriers on the
good, ifany, and the extent to which the nontariff barriers are more
restrictive than necessary to meet that purpose; and

(iv)

the degree of transparency in the process by which the foreign country
adopted the nontariff barriers; and

(H)

other factors. as the President determines appropriate.

(3) The President may impose a rate of duty lower than the rate described in paragraph
(l)(B), if the President determines that application of that lower rate of duty necessary and
appropriate.
(4) The U.S. Trade Representative, in consultation with the Secretary of Treasury, the
Secretary of Commerce, and other relevant agency heads, shall advise the President in
determining the effective rate of duty imposed on the good in the case of a determination
in subsection (a)(2).
(5) If, following action under paragraph (1)(B), the foreign country increases its rate of duty
on the good that is the subject of such action, the President may further increase the rate
of duty on imports of the good that is subject of the determination to the rate that is equal
to the rate of duty applied by that country.
(6) The President shall terminate any increase in the rate of duty applied under this section
effective on the date that the President makes a determination—
(A)

that the foreign country is no longer applying a rate of duty that is significantly
higher than the rate of duty that was imposed by the United States prior to any
action taken under this section, or imposing nontariff barriers that were the
subject of a determination under subsection (a)(1); or

(B)

that the increased rate is not in the economic or public interest.
(b) Before taking any action authorized under section 4(b)(l)(B) the President shall—
(1) not less than 30 days before an increase in the rate of duty is to take effect, publish a
notice of a determination, and the increase in the rare of duty, in the Federal Register;
and
(2) seek advice regarding the proposed action from the advisory committees established
under section 135 of the Trade Act of 1974.
© The President shall promptly publish in the Federal Register notice of any action taken
pursuant to section 4(b)(5) or 4(b)(6).

---

Bob... Ninja Assimilated Alien2    PLEASE  Worship   Spacecraft
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Quote:LilD (H)

other factors. as the President determines appropriate.

M.A.G.A.
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With a forked tongue the snake singsss...
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