“The Biden administration’s senseless about-face on bipartisan digital trade policies is another example of Joe Biden putting American interests last and allowing China to thrive,” said Congressman Jeff Duncan. “Despite disapproval from the National Security Council and without so much as a notice to the State Department, US Trade Representative Tai placed American jobs in jeopardy and bolstered authoritarian regimes.”
“We must ensure that the U.S. remains a global leader in digital trade and that American businesses continue to grow our economy, develop new technologies, and shepherd innovation,” said Congressman Joyce. “The Biden Administration’s decision to abandon these proposed trade policies gravely threatens businesses and consumers, and opens the door for foreign actors, like the Chinese Communist Party, to gain a competitive advantage. It’s time for Ambassador Tai to answer the questions posed in this letter and get back to work on behalf of the American people.”
Key Letter Excerpt:
“The decision to step back from negotiations not only undermines the competitive edge of U.S. companies and small businesses but also relinquishes leadership to strategic competitors who remain actively engaged in ongoing digital trade discussions. Authoritarian states like China aim to wield control over the internet and its informational access, while stringent regulators in the European Union limit the free enterprise of U.S. firms. The decision also establishes a troubling precedent that could extend well beyond digital trade priorities, impacting the enforcement of the United States-Mexico-Canada Agreement (USMCA) and potentially paving the way for the USTR to backtrack on advancing American trade interests in other domains.”
Background: Digital Trade transformed how Americans do business with the world by increasing choices for consumers, opportunities for American companies, and exponential growth for the US economy. This growth ensures America remains the global leader in creating digital products on online platforms and exporting digital services.
Unfortunately, Ambassador Tai and the Biden Administration’s October decision to cast aside longstanding and bipartisan digital trade principles serves to increase economic and national security risks—while encouraging authoritarian states to take the lead in writing the digital trade playbook.
Quotes:
Amb. Robert C. O’Brien (ret.), 27th National Security Advisor of the United States — “The USTR decision to not support the WTO’s digital trade principles will harm America’s tech competitiveness and our national security. With China moving every day to undermine the edge U.S. companies have, we need Washington to stand up and support the digital trade that is good for our economy and protects our technology.”
John Murphy, U.S. Chamber of Commerce Senior Vice President and Head of International — “American companies of all sizes and sectors are reaching customers overseas through digital trade. Already, more than two million American jobs depend on digital trade, which is turbocharging growth in American industries such as semiconductors, biopharma, medtech, financial services, and autos — even agriculture. Not only will USTR’s decision to withdraw support for digital trade undermine U.S. global leadership, it will deal a blow to the American workers whose livelihoods depend on selling American-made goods and services around the world.”
Grover Norquist, President of Americans for Tax Reform — “Americans for Tax Reform applauds House Republicans for leading the charge against the Biden administration’s reckless capitulation to foreign regulators. Since stepping foot in the Oval Office, President Biden has encouraged unelected bureaucrats in Brussels and elsewhere to treat American companies like piggy banks to the tune of tens of billions of dollars per year. Katherine Tai’s abandonment of longstanding digital trade principles is the latest step in Biden’s quest to fill foreign coffers at the expense of American companies. The free-market community is in broad alignment on this issue, with 30 groups signing onto a letter organized by ATR in opposition to Biden’s dangerous agenda. This important letter organized by Reps. Jeff Duncan (R-S.C.) and John Joyce (R-Pa.) shows that House Republicans will continue to fight against the Biden administration’s efforts to undermine America’s competitive edge on the world stage.”
David Williams, President of the Taxpayers Protection Alliance — “TPA applauds Rep. Duncan for leading this initiative and ensuring that American companies can succeed internationally. In today’s increasingly digital world, this means protecting U.S. companies from unfair restrictions imposed by foreign governments. A retreat of U.S. leadership, such as the USTR withdrawing support from the WTO’s digital trade principles, will inevitably lead to the proliferation of protectionism and authoritarian policies.”
Scott Talbott, Executive Vice President at Electronic Transactions Association — “Digital commerce is global. So much so that even the smallest of US merchants can instantly accept payments for their merchandise from around the world. It is crucial the US continue to be a leader in digital trade. We encourage all parties to work together to strengthen digital trade and allow for competitive markets to flourish.”
Bryan Riley, Director of the National Taxpayers Union Free Trade Initiative — “National Taxpayers Union strongly supports the joint letter led by Reps. Jeff. Duncan (R-SC) and John Joyce (R-PA) highlighting the importance of digital trade to the American economy. We echo their disappointment at the Biden administration’s retreat from support for strong digital trade rules. This retreat should not be allowed to serve as a precedent for U.S. digital trade policy moving forward.”
Dr. Edward Longe, Director of the Center for Technology and Innovation, The James Madison Institute — “Digital innovation is one of our country’s greatest superpowers. Because of this, our innovators are constantly under threat from envious nations around the world. USTR and the Biden administration need to have their backs, not walk away from the negotiating table and force Americans to fend for themselves.”
Martin Skroejer, Senior Director for Technology Competition Polity at SIIA — “USTR’s recent decision to abandon digital trade talks at the WTO was deeply misguided. Congress and the Administration have plenty of room to explore ways to regulate in response to challenges posed by the digital transformation without undermining U.S. economic and national security interests. The decision is having a direct impact on the information economy and has negatively impacted our closest allies and emboldened China. We applaud the efforts of Rep. Duncan and other Members of Congress to draw attention to this matter and seek transparency from the Administration.”
Christine Bliss, President of the Coalition of Services Industries —“The U.S. retrenchment on digital trade principles at the WTO is deeply troubling and undermines U.S. leadership in the digital economy and the ability of businesses and their workers to compete in the global marketplace. I commend Reps. Joyce, Duncan, and their colleagues for addressing the Biden administration’s failure to adequately consult and inform Congress and the interagency, and for seeking clarity on the unilateral decision to reverse support for long held U.S. digital policy positions in the WTO JSI e-commerce negotiations.”
Jonathan Small, President of Oklahoma Council of Public Affairs — “The Biden administration’s abandonment of American tech companies before the WTO mirrors his administration’s hostility to free market principles. While we hope the President changes course, one thing is clear: under Biden, American leadership is in retreat.”
Tom Schatz, President of Citizens Against Government Waste — “We applaud the efforts by Rep. Duncan to hold U.S. Trade Representative Katherine Tai accountable for abandoning U.S. digital trade policy at the World Trade Organization. Congress should demand that the Office of the U.S. Trade Representative reverse course and support the longstanding policy of protecting digital trade. Without these protections, U.S. companies could be forced to disclose source code for software applications, threatening intellectual property rights, pay taxes to and maintain data in other countries, which would place American jobs at risk.”
Steve DelBianco, President & CEO of NetChoice — “The USTR’s decision to pull out of e-commerce negotiations on free cross-border data flows, data localization and source code review abandons all the American businesses, innovators and workers that benefit from digital trade. It also encourages authoritarian states like China to take the lead in writing the digital trade playbook. American leadership is needed in digital trade to ensure freedom-loving nations and innovators are the leaders on global technology development. It is critical that the Biden Administration makes digital trade a priority to protect U.S. national security and economic growth.”
The letter was co-signed by Reps. Steel (CA), Fleischmann (TN), Fitzpatrick (PA), Latta (OH), Van Duyne (TX), Crenshaw (TX), Moore (UT), Pfluger (TX), Dunn (FL), Obernolte (CA), Pence (IN), Bucshon (IN), Mike Kelly (PA), Armstrong (ND), Balderson (OH), Dusty Johnson (SD), Guthrie (KY), Babin (TX), Steube (FL), Harshbarger (TN), Cline (VA), Carter (TX), Hudson (NC), Allen (GA), Bilirakis (FL), Curtis (UT), Walberg (MI), Timmons (SC), Miller-Meeks (IA), Fulcher (ID), Issa (CA), Fry (SC), Adrian Smith (NE), Weber (TX), Estes (KS), Hern (OK), Griffith (VA), Cammack (FL), Hinson (IA), Wittman (VA), Palmer (AL), Turner (OH), Norman (SC), Arrington (TX), Scott (GA), Carey (OH), Nunn (IA), and Waltz (FL).
The letter was supported by the U.S. Chamber of Commerce, National Taxpayers Union, Americans for Tax Reform, Competitive Enterprise Institute, NetChoice, Electronic Transactions Association, Taxpayers Protection Alliance, Coalition of Services Industries, TechNet, and Software and Information Industry Association.
