Bioeconomy Research and Development Act of 2021
Floor Speech
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Mr. GARAMENDI. Madam Speaker, pursuant to the rule, I rise to offer the Garamendi-Johnson amendment No. 89 to the America COMPETES Act.
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Mr. GARAMENDI. Madam Speaker, I yield myself such time as I may consume.
Madam Speaker, my amendment No. 89 is the Ocean Shipping Reform Act, H.R. 4996, which the House passed under suspension of the rules on December 8, 2021.
I introduced this legislation with Congressman Dusty Johnson of South Dakota last summer to provide the first major overhaul of the Federal rules for the global ocean shipping industry in nearly a quarter century. We did this because American exporters have a serious and, in some cases, an existential problem.
Many exporters cannot get a container to ship their goods. For those who can get a container, they cannot get it on a ship.
Last Friday, a farmer in my district pleaded for help. His business depends upon exporting his crop. He had worked with the normal forwarding and shipping companies to no avail. His words were: ``I will be out of business. I will lose my market. Help me.''
For months, I have heard similar words from the wine, almond, walnut, beef, and other industries. I know that my colleague, Congressman Johnson, has heard the same.
The Ocean Shipping Reform Act is the solution to this problem. And the House has already acted, passing our bill by a strong bipartisan vote of 364 yeas to 60 nays.
All but two members of the House Democratic Caucus voted for our bill, and I am looking for them now to vote on this in a positive way. Seventy percent of the Republican Conference also voted aye.
In short, this is among the most bipartisan bills considered in the House this Congress, and it has the potential to get signed into law.
Congressman Johnson and I are offering our Ocean Shipping Reform Act as an amendment to the America COMPETES Act, the House counterpart to the U.S.-China competition bill passed by the Senate last summer.
The world has changed greatly since Congress last reformed the Federal law governing the global ocean shipping industry. In late 2001, the People's Republic of China was granted permanent normal trade relations with the United States, the so-called most-favored-nation status, following that country's admission to the WTO. The United States' trade imbalance with the People's Republic of China grew from approximately $83 billion in nominal dollars in 2001 to a trade imbalance of over $310 billion in 2020, increasing nearly every year.
Our bipartisan legislation in this amendment would better support American exporters by ensuring reciprocal trade to help reduce the United States' longstanding trade imbalance with export-driven countries.
There has also been considerable consolidation among the foreign- based ocean carriers, coinciding with the continued decline of the U.S.-flagged international fleet in favor of foreign flags of convenience. A handful of foreign-flagged ocean carriers now dominate the global ocean shipping industry. Many of these foreign-flagged carriers are effectively controlled by foreign governments: China, Taiwan, and South Korea.
In 2021, as Americans endured monumental port congestion and supply chain problems, the largest foreign-flagged ocean carriers saw their profits more than triple over the previous year. Last year, the China Ocean Shipping Company, COSCO, reported annual profits nine times greater than the company's earnings in the previous year.
Madam Speaker, I am here today to say, once again, that foreign exporters' access to the American market and our consumers is a privilege. It is not a right.
American agricultural exporters and other businesses are willing to pay to ensure that their products reach the emerging market in the Asia-Pacific region. In turn, companies looking to off-load foreign- made products at West Coast ports must provide opportunities for American exports.
In 2019, America exported more than $21.7 billion in agricultural products. Our farmers, ranchers, and producers in the Central Valley of California and throughout the State have worked for decades to unlock foreign export markets. That hard-won access to those valuable foreign markets, particularly in East Asia and the Indo-Pacific, is now threatened by the ocean carriers' anticompetitive and likely illegal business practices.
Congress must ensure reciprocity in trade with other countries to reduce the American trade imbalance, particularly with cheap imports from Asia. Even during the pandemic, trade must be mutually beneficial, and that is exactly what the Ocean Shipping Reform Act would ensure.
Dozens of agricultural exporters contacted my office, as I have already said, and the outright refusal of American exports is not conscionable.
Madam Speaker, I yield back the balance of my time.
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