Section 301 of the Trade Act of 1974 (Trade Act) aims to tackle unfair foreign practices that impact U.S. commerce. It serves as a means to address unjustifiable, unreasonable, or discriminatory actions by foreign governments that hinder or limit U.S. trade. Under the Section 301 provisions of the Trade Act, interested parties can petition the U.S. Trade Representative to investigate and respond to foreign government acts, policies, or practices that affect American commerce.
SECTION 301 PETITION FILED
The United States Trade Representative (USTR) recently announced a probe into concerns that the People’s Republic of China (PCR, China) is targeting the maritime, logistics, and shipbuilding sectors. This probe into China’s maritime industry comes after a review of a petition filed with the USTR by five national labor unions. “The petition presents serious and concerning allegations of the PRC’s longstanding efforts to dominate the maritime, logistics, and shipbuilding sectors, cataloguing the PRC’s use of unfair, non-market policies and practices to achieve those goals,” stated United States Trade Representative Katherine Tai. “The allegations reflect what we have already seen across other sectors, where the PRC utilizes a wide range of non-market policies and practices to undermine fair competition and dominate the market, both in China and globally.”
NATIONAL U.S. LABOR UNIONS SEEK RELIEF
The five labor unions are requesting the USTR to investigate the acts, practices, and policies of China that target maritime, logistics, and shipbuilding sectors. “The Government of China’s drive to dominate the global shipbuilding, maritime, and logistics sector is built on non-market policies that are far more aggressive and interventionist than any other country. As a result, China has seized market share, suppressed prices, and created a worldwide network of ports and logistics infrastructure that threaten to discriminate against U.S. ships and shipping companies, disrupt supply chains, and undermine vital national security interests,” alleged the unions in their March 12, 2024 petition.
The petitioning unions include:
- United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial Service Workers International Union, AFL-CIO CLC (“USW”)
- International Association of Machinists and Aerospace Workers (“IAM”)
- International Brotherhood of Boilermakers, Iron Ship Builders, Blacksmiths, Forgers and Helpers, AFL-CIO/CLC (“IBB”)
- International Brotherhood of Electrical Workers (“IBEW”)
- Maritime Trades Department, AFL-CIO (“MTD”)
USTR SEEKS PUBLIC COMMENTARY
As part of its investigation into China’s policies in the maritime sector, an inter-agency Section 301 Committee will host a public hearing. The Committee requests public comments in connection to their investigation. Comments must be submitted on the USTR Comments Portal no later than May 22, 2024. The public hearing is scheduled for May 29 at 10:00 AM EST at the U.S. International Trade Commission Building.
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