A Course Correction is Needed to Ensure America’s Global Competitiveness
Just last week, we learned that the Office of the United States Trade Representative (USTR) plans to remove mentions of digital trade barriers facing U.S.-based companies in the upcoming 2024 National Trade Estimate (NTE) report. USTR’s move was surprising, given that this report is specifically designed to identify potential trade barriers and there has been no shortage of efforts to discriminate against American businesses and workers in this space.
In a vacuum, the USTR’s failure to raise these issues would be concerning and surprising. But given the many recent bold and egregious efforts by foreign entities and governments to discriminate against American companies, this latest failure to stand up for American interests abroad is even more alarming.
Already this year, the European Union has enacted the Digital Markets Act, which targets primarily American companies with the stated goal of providing non-U.S. companies and businesses a competitive advantage.
We have also watched U.S. Trade Representative Tai question if U.S.-based companies — which also happen to be powerful drivers for the American economy — can even be considered “really American.” Unsurprisingly, this attitude has opened the door for other countries to take advantage of this moment and lack of support from the administration.
Canada was quick to act and announced it would be imposing digital services taxes that run completely counter to our current trade agreement just days after Ambassador Tai’s comments. What’s worse, Canada admitted to doing so because the U.S. “explicitly tolerates” this kind of behavior.
To be sure, unless the administration pushes back against outsized foreign regulation and stands up for the U.S. platforms and businesses that play such a large role in bolstering our economy and driving American innovation, many countries and foreign powers will be following suit. A dangerous precedent could be in the process of being set, and countries around the world are watching. The time to change course is now.
