Miller, Colleagues Send Letter to USTR Ambassador Tai on Lack of Digital Trade Efforts in the 2024 NTE

Washington D.C. – Congresswoman Carol Miller (R-WV) and 12 of her colleagues sent a letter to United States Trade Representative (USTR) Ambassador, Katherine Tai, expressing concerns over the lack of digital trade references in this year's National Trade Estimate (NTE). 

Click here for the full letter. 

Joining Congresswoman Miller in sending the letter are Representatives Ron Estes (R-KS), Adrian Smith (R-NE), Michelle Steel (R-CA), Lloyd Smucker (R-PA), David Schweikert (R-AZ), Beth Van Duyne (R-TX), Randy Feenstra (R-IA), Darin LaHood (R-IL), Claudia Tenney (R-NY), Mike Kelly (R-PA), Kevin Hern (R-OK), and A. Drew Ferguson IV (R-GA). 

On USTR's failure to consult Congress about the lack of references to trade barriers in the digital sector in the recent NTE: 

We write with deep concern about the recently released National Trade Estimate (NTE) on Foreign Trade Barriers, which does not include references to trade barriers in the digital sector and other sectors. This new approach of excluding these barriers is alarming and undermines the purpose for which Congress created the NTE, which is to identify and address foreign trade barriers. In addition to our substantive opposition to such an approach, we note with disappointment that USTR has failed to consult with Congress about this significant policy change, which we learned about through press reports before the release of this year’s NTE.

Digital trade is central to U.S. economic growth and innovation as well as U.S. global leadership. According to the U.S. Department of Commerce, U.S. companies earned $626 billion from digitally-enabled service exports in 2022. Moreover, the livelihoods of 3 million Americans depend on open trade channels in the digital and e-commerce sector. Unfortunately, these jobs and U.S. competitiveness are at risk from digital trade barriers around the world. Countless countries are actively seeking to knee-cap American technology firms in a variety of unfair, discriminatory, and trade-distorting ways. For instance, the Republic of Korea is considering discriminatory platform monopoly legislation, while many others, including Canada and France, are imposing digital services taxes targeted at American companies. It is in the national interest to take proper stock of these efforts so that we can mount an effective response.

Recognizing the importance of taking proper stock, Congress created the NTE in the Trade Act of 1974. Significantly, for our present purposes, the law requires an “an inventory of significant foreign barriers to, or distortions of, U.S. exports of goods and services, including...U.S. electronic commerce.” Operationalizing the principle that you can’t fight what you can’t see, the NTE has helped the United States knock down a wide range of trade barriers, including digital trade barriers, thereby supporting U.S. technological competitiveness abroad.

On USTR's explanation of scaling back references to digital trade barriers: 

We find USTR’s explanation that scaling back references to digital trade barriers warranted with respect to any barrier that is “an effort to regulate in the public interest” to be as curious as it is concerning. Immediately, the question comes to mind: the interest of what public? Certainly, the American public does not benefit from trade barriers that reduce our national competitiveness. Nor did the American public elect those foreign policymakers seeking to discriminate against U.S. firms. In fact, they elected Members of Congress to make policy on these issues. Perhaps the Office of the United States Trade Representative believes it capable of objectively ascertaining the interest of a foreign public. However, it is not in the interest of the United States to allow other countries deploy the “public interest” as a talisman to ward off legitimate critique.

If anything, the decision to change the standard of inclusion for digital barriers sets USTR on quite a slippery slope. Surely, any trading partner enacting a tax or regulation that unfairly harms American farmers, manufacturers, or workers will argue that its measure advances its “public interest,” but that excuse does not reduce the resulting harm to Americans! Coming on the heels of USTR’s recent pullback on longstanding digital trade priorities at the World Trade Organization and in ongoing negotiations of the Indo-Pacific Economic Framework trade pillar, this NTE decision further suggests the administration is uninterested in supporting American digital economy leadership.

Ultimately, a weaker stance on digital trade in this year’s NTE is a signal that USTR will no longer resist new foreign digital trade barriers, an even more expansive position than the current digital trade abdication. Therefore, we strongly encourage you to continue the NTE’s focus on digital trade barriers, consistent with your statutory mandate. This is critical to provide the American companies that depend on the free flow of these products the adequate protections to which they are entitled. We strongly encourage you to uphold your Congressionally authorized role and look forward to working with you to resolve this matter to ensure U.S. companies can continue to compete on the world stage, with confidence that the U.S. government will forcefully confront unfair trade practices imposed by foreign governments in all sectors of the economy.

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