McCaskill: Lax Enforcement of Trade Laws Hurting Missouri Companies

Continuing her fight to ensure Missouri companies get fair treatment under U.S. trade laws, U.S. Senator Claire McCaskill today wrote to administration officials calling on their agencies to better enforce the laws already on the books. McCaskill’s letter comes on the heels of several recent articles in the St. Louis Post Dispatch highlighting how Chinese companies are evading U.S. tariffs imposed in response to illegal trade practices.

According to the recent news, Chinese companies were penalized with higher duties under U.S. trade law for illegally dumping cheaply made nails on the U.S. market, making it hard for Missouri companies to compete. However, they are now allegedly using third party countries to ship goods to the U.S. and avoid these fees. McCaskill wrote to the director of the United States Immigration & Customs Enforcement (ICE) and the Commissioner of Customs and Border Protection (CBP) expressing outrage that the federal government is failing to enforce penalties related to this practice.

“I am extremely frustrated that foreign companies are still flouting U.S. law, despite repeated protests from U.S. companies. As you know, the United States has one of the most open economies in the world, and U.S. companies believe they can compete with anyone on a level playing field. However, the federal government has trade laws to ensure that the playing field is level,” McCaskill wrote.

U.S. companies often spend years and thousands of dollars in legal fees to prove their foreign competetors’ illegal practices before federal trade bodies. Once they prove those allegations, “countervailing duties” (or protective tariffs) are assessed. Two agencies, U.S. Immigration and Customs Enforcement (ICE) and Customs and Border Protection (CBP) are responsible for making sure that the tariffs are, in fact, collected. However, many reports indicate that foreign companies, particularly Chinese companies, are engaged in widespread evasion of these duties. ICE and CBP have not prioritized enforcement of duties.

McCaskill said the lack of attention and enforcement from U.S. trade officials is bad for American businesses and pledged to continue Missouri companies’ fight for fair consideration.

“Situations like this cause American businesses to lose confidence in U.S. trade policies and the federal government as a whole,” she wrote.