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USTR explores trade policy for boosting supply chain resilience

The Office of the United States Trade Representative (USTR) is seeking input to inform the development of trade and investment policy initiatives that promote supply chain resilience.

Hannah Abdulla March 11 2024

A notice submitted by the USTR to the Federal Register explains resilient supply chains provide a range of sourcing options; adapt, rebound, and recover with agility following shocks; uphold labour rights and environmental protections; and strengthen the US manufacturing base and workforce.

To help achieve these objectives, the notice seeks information on developing sector-specific policy tools, strengthening domestic manufacturing and services, collaborating with like-minded trading partners and allies, and measuring resilience, among other topics.

“As President Biden emphasised during a recent meeting of the White House Competition Council, the pandemic disrupted supply chains, which drove up costs on every day goods for hardworking Americans. This is why a centrepiece of our work at USTR is developing innovative trade tools and strategies for connecting trade and other economic policy measures to advance supply chain resilience, while also reevaluating earlier policy approaches that prioritised efficiency to the exclusion of resilience,” said ambassador Katherine Tai.

“This request for public input will enable us to draw upon the perspectives and experiences of stakeholders and partners that we need to foster a more granular understanding of supply chain challenges across a range of sectors, and identify potential policy solutions.”

Last month, AAFA’s vice president of trade and customs policy Beth Hughes told the United States Trade Representative (USTR) the Section 301 China tariffs have proven to be an “ineffective” tool for tackling the US’ concerns with China’s policies and practices.

She advised the USTR to use other trade tools and measures that do not “harm” US companies and consumers to combat China’s so-called unfair practices and policies.

Meanwhile, a group of US Senators have floated a bill – The America’s Act – aimed at bolstering the US’ trade partnership with countries in the Western Hemisphere while lowering its reliance on China.

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