Miller Highlights Discriminatory Trade Practices During Ways and Means Hearing

Washington, D.C. - Congresswoman Carol Miller (R-WV) and her colleagues on the Ways and Means Trade Subcommittee participated in a hearing to discuss realistic goals and outcomes for the upcoming 14th World Trade Organization (WTO) Ministerial Conference (MC14), which will be held March 26-29 in Yaoundé, Cameroon. President Trump has expressed support for a limited set of tangible outcomes, including agreeing to a permanent moratorium on customs duties on electronic transmission (e-commerce moratorium) and approving the Investment Facilitation for Development Agreement. MC14 also will provide an opportunity for the United States to push for resolution of longstanding unfair trade practices related to trade in agricultural goods, including agricultural public stockholding. During the hearing, Congresswoman Miller highlighted discriminatory trade practices US tech companies are facing abroad and touched on her ongoing efforts to repeal the Jackson-Vanek Amendment and grant Permanent Normal Trade Relations (PNTR) to Central Asian countries. A video and full transcript can be found below.

Congresswoman Miller began by highlighting discriminatory trade practices US tech companies are encountering from our allies, including the European Union, Korea, and Canada. She then questioned the witness, Mr. Stephen Ezell, Vice President for Global Innovation Policy, Information Technology & Innovation Foundation, on the value of further moratoriums in addressing these practices as well as further actions Congress could take to support US tech companies.

"Thank you, Chairman Smith, for hosting this hearing and to our witnesses for being here today.

The importance of cementing the E-Commerce Moratorium goes without saying. U.S. companies will unfairly bear the brunt of any tariffs that are imposed on transfers of data, and it is important our negotiators act quickly to ensure this does not occur.

U.S. tech companies are already suffering from harmful digital policies outside the scope of the E-Commerce Moratorium. Our tech companies are already facing harmful non-tariff barriers such as exorbitant fines and fees, harmful competition policies, data localization requirements, digital service taxes, and local content requirements.

These barriers are imposed by some of our supposed closest allies and fellow WTO members. including the European Union, Korea, and Canada and they blatantly discriminate against US companies.

These policies have already threatened innovation and growth on the global stage and inherently go against the principles of the WTO and the E-Commerce Moratorium.

"Mr. Ezell, do you believe there is value in seeking similar moratoriums at the WTO on the imposition digital non-tariff barriers? Are there other avenues at the Ministerial or post-Ministerial to push back against these policies?" asked Congresswoman Miller.

"Well, I think and, at the WTO, it's imperative that our trade policy makers use both instruments as a platform to document and to speak out against these types of discriminatory digital trade practices against US companies, as you said. This is a global contagion.

One concern is that when the United States is not taking a leading role in shaping global digital trade rules, as indicated by us in the previous administration, pulling out of the JSI is that we cede leadership to Brussels and Beijing. And we have seen the Brussels effect, where countries around the world, from Turkey to Brazil to Indonesia, are adopting E-like policies, like DMA policies that designate U.S. Firms as gatekeepers and subject them to onerous regulatory requirements.

So, we need to do several things. First, we need to take the lead in setting rules and making it clear at the WTO that you cannot discriminate against digital products. That said, we're going to have to, we could use other formal tools, we could request formal consultations or bring a WTO dispute. So this is a forum where we can bring cases and disputes against foreign companies that are discriminating against our firms.

But as I said previously, I think that we're going to have to look outside the WTO if we're going to really make progress against the European Union, North Korea, in attacking some of these discriminatory digital trade practices, we may need to bring a Section 301 case directly against the European Union, saying that their policies, like the DMA, the DSD, are discriminatory against US companies. What I'm saying is we can pursue a WTO track. We should do so. But I think it's going to require bilateral activity by USTR if we're going to get real action from our trade partners to ameliorate these practices," responded Mr. Ezell.

Congresswoman Miller concluded by highlighting Uzbekistan's progress in joining the WTO and her ongoing efforts to repeal the Jackson-Vanek Amendment and grant Permanent Normal Trade Relations (PNTR) to Central Asian countries. She then questioned the witness, Ms. Kelly Ann Shaw, Partner, Akin, on the likelihood of PNTR being granted to Uzbekistan following their accession to the WTO.

"Thank you. I would now like to highlight Uzbekistan's progress in joining the WTO.

I have long advocated for lifting the Jackson-Vanek Amendment for Uzbekistan and other Central Asian countries and granting them Permanent Normalized Trade Relations (PNTR).

Granting Uzbekistan and other Central Asian nations PNTR will give American companies surety to invest in the region and move our supply chain away from China in key sectors such as critical minerals.

Uzbekistan is eager to partner with the United States. President Trump has already secured key deals with them, including the sale of 22 Boeing aircrafts.

A predicate for lifting Jackson-Vanek for Uzbekistan and other Central Asian nations is that these nations join the WTO. Kazakhstan successfully joined the WTO in 2015 and Uzbekistan is making great strides.

Uzbekistan has finalized 30 bilateral market access negotiations with WTO members and has had several meetings at the Working Group level. This highlights their commitment to following the principles of the WTO and readiness to become players [on the world stage].

Ms. Shaw, do you think Uzbekistan's successful accension into the WTO, which will hopefully occur this year, can be used as a pathway to granting PNTR for Uzbekistan and other Central Asian nations?" asked Congresswoman Miller.

"Very quickly, and good morning, Congresswoman. Thank you for the question.

Absolutely. For Uzbekistan, I welcome their accession to the World Trade Organization. PNTR comes with meeting the standards of WTO membership, and as soon as they are able to meet those standards, I think the United States should move forward in granting them PNTR," responded Ms. Shaw.

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