U.S. Sen. Todd
Young, R-Ind., has joined a bipartisan group to introduce the Trade Security
Act, legislation which is intended to reform Section 232 of the Trade
Expansion Act of 1962 to better align the statute with its original intent
as a trade remedy tool for the president and Congress to respond to genuine
threats to national security.
“In keeping with
the original intent of Section 232, this bill makes common-sense reforms
that require the Department of Defense to justify the national security
basis for new tariffs under Section 232 and increase congressional oversight
of this process,” according to a statement released by Young’s office.
“Indiana is the
most manufacturing intensive state in the country, and Hoosiers continually
express their desire for Congress to exert its Constitutional role in the
232 process, which has the ability to detrimentally impact Hoosier farmers
and manufacturers if wrongly utilized,” Young said. “I’ll continue working
with Senator Portman and the Finance Committee to ensure Hoosiers have a
seat at the table for future trade discussions.”
A companion bill
has been introduced in the House.
“The Trade Security
Act reforms the Section 232 statute to ensure that (1) any Section 232
actions are based on a national security determination by the Department of
Defense; and (2) Congress has a larger role to play in 232 actions,” the
statement said.
The bill would
specifically do the following:
* Split the
existing Section 232 process into an investigation phase, led by the
Department of Defense, and a remedy phase, led by the Department of
Commerce. “Splitting these responsibilities, while guaranteeing consultation
between the two departments at all stages of the process, plays to each
department’s strengths to ensure that the statute is used for genuine
national security purposes,” the statement said.
* Relieve the
Department of Commerce of the responsibility to justify the national
security basis for new tariffs, and shift that responsibility to the
Department of Defense. “If a threat is found, the Department of Defense
would send its report to the president,” the statement said. “In the event
that the president desires to take action based on the finding of a national
security threat, the president would then direct the Secretary of Commerce,
in consultation with the Secretary of Defense and the U.S. Trade
Representative, to develop recommendations for how to respond to the threat.
After receiving the recommendations of the Secretary of Commerce, the
president would decide whether to take action.”
* Give Congress the
authority to disapprove of a Section 232 action by passing a joint
resolution of disapproval. “Currently, Section 232 contains a disapproval
resolution process limited only to the disapproval of actions on oil
imports, which was inserted into Section 232 in 1980 by Congress in response
to concerns about the misuse of the statute,” the statement said. “This bill
would expand the use of that disapproval resolution process to all types of
products. The reformed disapproval process will only apply to future Section
232 actions.”
* Require
consultation with Congress throughout the Section 232 process.