The bargaining surrounding these trade initiatives affect much more than political positioning.
During a House Ways and Means hearing last week on current trade policy, U.S. Trade Rep. Katherine Tai promoted the benefits of free trade agreements.
At the same time, Tai pointed out concerns surrounding digital trade, describing current trade agreements as out-of-date, citing how Congress has not enacted regulations, specifically for data privacy, which are required by other countries and some U.S. states.
Her chief complaint is centered around how, absent legislation in the U.S. to formalize terms of establishing digital security frameworks for trade, the U.S. will lag behind other countries in terms of uniform protections for internet user data. This will ultimately limit the ability for American small businesses to benefit from tax incentives in international trade agreements that they cannot participate in without a convention of these protections.
The Biden administration has been considering allowing European companies to utilize U.S. subsidies for technology-related tax credits. The administration says allowing these subsidies could position the U.S. to secure greater bargaining power on executing an agreement for sharing and securing critical mineral supply chains.
NSBA and its council, the Small Business Exporters Association, are closely monitoring this situation and the evolution of our nation’s trade policy. Follow us for the latest and check back here for developments.