WASHINGTON –U.S. Senator Bill Cassidy, M.D. (R-LA) today outlined his plan to hold China accountable through his Foreign Pollution Fee and addressed the need to protect Louisiana ricers and shrimpers from foreign competitors during U.S. Trade Representative (USTR) nominee Jamieson Greer’s confirmation hearing before the U.S. Senate Finance Committee.
“You have been concerned—expressed skepticism—about the need for binding dispute mechanisms at the WTO, but my rice producers and others have won decisions at the WTO on commitments by other countries on agricultural subsidies, and yet they’re not enforced. And so, are my agricultural people just out in the cold? … Help my rice producer here. How are we going to handle that?” asked Dr. Cassidy.
“Senator, I think you’re exactly right, and that’s part of the reason why I show skepticism sometimes about the WTO,” replied Greer. “We have to have enforcement, and at the end of the day, what that means is USTR has to go to the country and enforce the law, and sometimes that means imposing tariffs on them.”
“About 40 percent of the imported shrimp to the United States come from India. Now the EU, Japan, and the U.S. finds illegal antibiotics in their shipments. And there’s also allegations that they use forced labor at every step of the supply chain… Would you commit to putting a— slapping a tariff on the shrimp if we can show that it’s being imported under those circumstances?” asked Dr. Cassidy.
“If we have an investigation and it shows their unfair trading practices, you can certainly impose a tariff or other measures if that trade practice isn’t remedied. I think it’s really important to work with you and the shrimpers because if they feel like they’re not getting the relief they need from trade remedies or other venues, then we need to explore whether it’s section 301, or other tools, to make sure that we’re detecting the unfairnesses and addressing it,” said Greer.
When discussing Cassidy’s Foreign Pollution Fee Act, Greer recognized the unlevel playfield that requires the use of tariffs to hold other countries accountable for unfair trade practices.
“[O]ne thing I am concerned about is that China is not using, not enforcing environmental regulations… [I]t lowers their cost of manufacturing by not enforcing those environmental regulations by 20 percent, and our industry moves there because they just lowered their manufacturing costs by 20 percent by dumping their air pollution on us. Now if this is classical economics, you would tax the externality, and I have proposed a fee on the carbon-intense product from countries which do not enforce internationally accepted norms on pollution control. Any thoughts upon that?” asked Dr. Cassidy.
“I think you’ve articulated the problem statement very well. I think there’s an unlevel playing field, and I think that other countries take advantage of total lack of environmental regulations,” said Greer.
Background
In December, Cassidy and U.S. Senator Lindsey Graham (R-SC) released a new discussion draft of their Foreign Pollution Fee Act to level the playing field with Chinese manufacturing and expand American production. In addition, the Steel Manufacturers Association, which represents 70 percent of the nation’s steel production, called on President-elect Trump and Congress to institute a foreign pollution fee.
The Foreign Pollution Fee Act was a key topic at Cassidy’s Louisiana Energy Security Summit last fall. The summit featured ten panels that explored protecting U.S. interests from unfair trade practices, Louisiana’s low-emission manufacturing advantage, and the role of natural gas in strengthening U.S. geopolitical influence. Panelists included the CEOs of Entergy, First Solar, Buzzi UnicemUSA, Orsted, and Aluminum Technologies, former Trump administration officials, and leaders from Louisiana trade associations and major energy and Fortune 500 companies.
In 2023, the Louisiana Senate and House of Representatives unanimously adopted a resolution urging Congress to pursue an industrial manufacturing and trade policy to counter competition from China.
On Louisiana shrimp and rice, Cassidy introduced two bills last Congress to protect both industries against China and India’s dumping of cheap agricultural products into U.S. markets. The Prioritizing Offensive Agricultural Disputes and Enforcement Act and the India Shrimp Tariff Act will protect the Louisiana agricultural industry while ensuring that food that appears on U.S. store shelves meets U.S. health standards.
Last year, Cassidy worked to secure $27,152,411.00 for Louisiana fisheries, shrimpers, and fishing communities affected by natural disasters between 2017 and 2022.
In April 2024, Cassidy advocated for Louisiana shrimpers and rice producers at a U.S. Senate Finance Committee hearing with USTR Ambassador Katherine Tai. He pressed her on progress USTR is making to prevent shrimp dumping from Asia. Cassidy also highlighted a whistleblower report on the safety of shrimp imported from India.
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