Opinion, WVPA Sharing

Opinion: Federal Trade Agency could undermine Trump’s America-First Agenda without reform

By W.Va. Senator Glenn Jeffries

With President Donald Trump in office once again, there’s been a flurry of news about how he is reshaping the federal government to fit his vision. While his plans for agencies like the Department of Education have gotten the most attention, there’s a little-known agency that could play an outsize role in determining whether President Trump is able to fully realize his America-first agenda.

One federal agency with significant power to undercut President Trump’s agenda is the International Trade Commission (ITC). The ITC has vast authority over international trade, and they have consistently made decisions that are not in the best interest of the American people. Without reform, the agency could play a significant role in undermining President Trump’s trade policies. 

Congress delegated the ITC the authority, with the U.S. Department of Commerce, to penalize foreign entities that don’t play by America’s rules of fair trade. The ITC can direct the federal government to penalize companies for stealing American intellectual property and dumping subsidized goods into American markets. If a country like China infringes upon an American patent or heavily subsidizes exports to damage US domestic production, then the ITC has the power to remedy the situation with tariffs and import bans. 

On paper, the ITC looks like a strong trade enforcement tool to support American industry. However, they often sit idly by while countries like China steal our innovations and dump artificially cheap products into our markets. It’s time for the ITC to realize that lawlessness in trade steals rightful gains from American producers, hurting innovation and killing American jobs.

For example, the ITC recently refused to intervene on a Chinese steel producer dumping cheap steel into the US, threatening hundreds of manufacturing jobs in West Virginia. The ITC decision led to the closing of a steel plant, killing nearly 1,000 American jobs. Lawmakers from both parties condemned the federal agency’s decision and the wrongful loss of manufacturing jobs.

That’s not the only way the ITC hurts American businesses. Foreign patent trolls – foreign entities that acquire old patents and sue American companies for legal settlements – hijack the ITC’s patent litigation process. Bad actors flock to the ITC to sue honest companies, diverting essential resources towards litigation and settlements rather than innovation. They do so because of the ITC’s authority under Section 337 to ban the import of any goods it deems to be in violation of patent law, a dangerous prospect that causes many honest companies to settle. A notorious example of patent trolling recently came from Neodron, a foreign entity that sued a semiconductor company, which could have prevented over 90% of smartphones from being imported. Luckily, the case was terminated, but many companies aren’t so lucky. With a high settlement rate, and patent trolling on the rise, it’s clear that the ITC’s willingness to hear out bogus patent cases hurts American industry. 

Fortunately, there are two primary ways to significantly improve these self-inflicted agency harms. First, the ITC can make improvements by upholding a meaningful “domestic industry” requirement for standing to ensure actual US companies with jobs and economic output – not patent trolls – are able to use this trade enforcement tool appropriately. Moreover, President Trump can urge his allies in Congress to pass the bipartisan Advancing America’s Interests Act (AAIA). This legislation would increase the bar required to bring cases before the ITC, forcing the ITC to prioritize the  “domestic industry” standard and American’s best interest when deciding cases. 

In short, an ITC that aligns with the goals of the Trump Administration will be one that recognizes the importance of American businesses as drivers of economic prosperity. It will support, rather than inhibit, the innovation and growth that makes the U.S. a global leader. With sensible reforms, we can ensure that the ITC promotes American interests, strengthens our economy, and aligns with the “America First” vision.

Glenn Jeffries is a West Virginia State Senator from the 8th District representing Putnam, Kanawha, Jackson, Roane, Clay, and Wirt counties. Glenn serves as Chairman of the Senate’s Committee on Economic Development.

Comments are closed.

Subscribe to Our Newsletter

Please enable JavaScript in your browser to complete this form.