A Senate bill recently reintroduced by U.S. Senators Gary Peters (D-MI) and Richard Burr (R-NC) aims to help enforce trade laws for small and medium-sized businesses facing dumping and unfair subsidies that can flood American markets with cheaper goods being propped-up by foreign governments and companies to make it harder for U.S. companies and agricultural producers to compete.
“Michigan cherry growers spent millions of dollars to elevate how they were being undermined by unfair trade practices — at a time when they were already losing profit because of trade abuses. They — and other commodity growers and small industries — deserve a level playing field,” Sen. Peters said. “I’ve been encouraged by conversations I’ve had with the Biden Administration about the need to self-initiate trade investigations. This bipartisan legislation is needed to ensure small businesses and industries are protected against unfair foreign competition.”
The Self-Initiation Trade Enforcement Act would set up a permanent task force at the within the Commerce Department’s International Trade Administration (ITA) with the purpose of investigating dumping and subsidies on imported goods. The bill would create a team solely focused on studying trade data and listing potential disturbing trade patterns for formal investigation, with an emphasis on cases impacting small and medium-sized businesses.
“Michigan specialty crop growers continue to face unfair competition from foreign governments and companies, but building a case and challenging a foreign country is an extremely expensive undertaking,” said Michigan Farm Bureau President Carl Bednarski.
“Tart cherries, blueberries, cucumbers, squash and asparagus are just a few of the industries being undercut by unfair trading practices. Michigan Farm Bureau applauds Sens. Gary Peters and Richard Burr for tackling this issue head-on and introducing legislation that can help our growers initiate formal complaints against unfair, foreign competitors.”
The Commerce Department has the authority to launch investigations into these practices, but rarely does so. Most investigations are only initiated after formal complaints are submitted by companies or industry representatives, which can come with costs small and mid-sized businesses may not have.
Along with the costs associated with lodging formal complaints, many businesses fear retaliation from governments in places where they sell their products.
“Michigan farmers grow the world’s highest quality fruits and vegetables,” said Ben LaCross, a Leelanau County cherry farmer, and a member of the Michigan Farm Bureau Board of Directors
“But foreign governments have targeted U.S. farmers by subsidizing their crops and sending them to market in the U.S. This is an unfair trade practice, and it harms Michigan’s farmers. Sen. Peters continues to fight for Michigan’s farmers by introducing this legislation. Its passage is a critical first step towards protecting America’s fruit and vegetable farmers.”
