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June 14, 2012 – 12:56 a.m.

Former Trade Chief Attempts to Be Dealmaker in Tariff Dispute

By Alan K. Ota, CQ Staff

As U.S. trade representative during the George W. Bush administration, Rob Portman worked to ease tensions between the United States and its trading partners.

Now, as a Republican senator representing Ohio, Portman is in the middle of a trade fight within the GOP that pits conservative anti-earmark crusaders against tax writers and some senior lawmakers.

The standoff has prevented the completion of a new package of miscellaneous tariff provisions — legislation that Congress has cleared periodically to allow U.S. companies cheaper access to a range of products said to be unavailable from domestic manufacturers.

Portman and Sen. Claire McCaskill, a Missouri Democrat, are promoting a bipartisan plan aimed at ending the fight triggered by conservative South Carolina Sen. Jim DeMint, who equates the tariff breaks, which are typically requested by individual lawmakers, with earmarks.

“The idea is to move this on its own as soon as possible. The current process is deadlocked,” Portman said.

With DeMint in attack mode, only two Republicans — Susan Collins of Maine and James M. Inhofe of Oklahoma — have sought tariff provisions this year on behalf of constituents. “Most of our guys are not making requests now. They are waiting for a new process to be put in place,” said John Thune of South Dakota, chairman of the Senate Republican Conference.

Without GOP-sponsored provisions in a miscellaneous tariff package, it could prove difficult for Senate Finance Chairman Max Baucus, D-Mont., and Democratic leaders to find the 60 votes needed to advance the measure on the floor.

But some Republicans are complaining that DeMint’s position could leave the GOP open to criticism for blocking legislation that is important to business. Tax writers have suggested that DeMint was intruding on their turf.

Portman and McCaskill propose to break the impasse by routing requests for tariff modifications through the U.S. International Trade Commission (ITC) rather than through lawmakers’ offices. Legislation they introduced on Wednesday calls for the commission to review requests, including referrals from members of Congress, and send recommended tariff changes to Congress later this year and again in 2015 and in 2018.

DeMint proposed something similar (S 1162) last year, suggesting that the ITC send tariff legislation to Congress every other year. He endorsed Portman’s proposal, saying companies would “no longer have to hire a lobbyist and come grovel before a member of Congress to get relief.”

Baucus has not weighed in on what Portman and McCaskill are proposing. Democratic aides questioned the need for such a process, arguing that the provisions of miscellaneous tariff legislation are already vetted by the ITC. “The existing process is as open and transparent as they come. . . . The system isn’t broken,” said a Finance Committee aide.

Meanwhile, many requests await action. Majority Leader Harry Reid of Nevada, responding to the needs of a Las Vegas manufacturer of promotional products, wants to cut tariffs on drinking glasses that cost 30 cents or less. Baucus would like to set aside some tariffs on glass and acrylic snow globes in order to help Mother Moose Enterprises in Missoula.

Golf club manufacturers have the backing of Democratic Sens. John Kerry of Massachusetts and Dianne Feinstein of California for tariff reductions on components that they import. Sen. Benjamin L. Cardin, D-Md., wants relief for spice extracts used by McCormick & Co. in Baltimore.

Former Trade Chief Attempts to Be Dealmaker in Tariff Dispute

Inhofe, one of DeMint’s most conservative colleagues, is seeking tariff reductions on fishing reels imported by companies including Tulsa-based W.C. Bradley, which makes Zebco fishing products.

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