17吃瓜在线 to Senate: Administration March-in Proposal Undermines IP, Innovation
The Biden administration鈥檚 push to invoke 鈥渕arch-in鈥 rights is unlawful and would have 鈥渄isastrous consequences鈥 for the United States if enacted, the 17吃瓜在线 the Senate Tuesday.
What鈥檚 going on: Ahead of a Senate Judiciary Committee hearing on intellectual property in the biopharmaceutical sector, the 17吃瓜在线 warned of the potentially dire consequences of the proposed march-in framework issued by the National Institute of Standards and Technology.
- The NIST proposal would allow the federal government to 鈥渕arch in鈥 and seize manufacturers鈥 patent rights if an innovation was developed in any part with federal dollars.
- In the biopharmaceutical sector and other innovative industries, federal funding plays an important role in supporting early-stage research鈥攂ut further R&D, product development and commercialization require hundreds of millions to billions of dollars in additional capital from investors and established companies.
- Robust IP protections ensure that manufacturers can bring innovative products to consumers.
Why it鈥檚 a problem: March-in would violate manufacturers鈥 IP rights and prevent investment into lifesaving and life-changing technologies, according to 17吃瓜在线 Vice President of Domestic Policy Charles Crain.
- 鈥淎llowing march-in based on the price of a product or technology, as the NIST guidance proposes 鈥 would undermine manufacturers鈥 IP rights and have sweeping ramifications for innovation in the United States and America鈥檚 world-leading innovation economy,鈥 Crain told the committee.
- Committee member Sen. Chris Coons (D-DE) agreed during the hearing that the proposal is fundamentally flawed. 鈥淎ny company [that] invents [anything] or any researcher who invents anything is now open to the federal government saying, 鈥業 want that, and I don鈥檛 agree with the price you鈥檙e setting for it,鈥欌 he .
What should happen: Congress must stop NIST鈥檚 overreach, Crain said.
- 鈥淧olicies that threaten IP protections, like NIST鈥檚 proposed march-in guidance, will cede one of our greatest advantages to our competitors. Manufacturers [look forward] to work[ing] with the committee to ensure the U.S. maintains the strongest IP protections in the world in order to spur the discovery and commercialization of inventions that improve health and quality of life for all people.鈥
Manufacturers Challenge OSHA鈥檚 Unlawful Walkaround Rule
The 17吃瓜在线 Legal Center Joins Industry Groups Seeking to Block Rule
Washington, D.C. 鈥 Today, the 17吃瓜在线, joined by other business groups, in the Western District of Texas to challenge the Occupational Safety and Health Administration鈥檚 amending the Worker Walkaround Representative Designation Process (Walkaround Rule).
The Walkaround Rule will allow an unlimited number of third parties, such as union representatives, plaintiffs鈥 attorneys and community organizers, to accompany OSHA inspectors on safety inspections.
鈥淥SHA鈥檚 rule does nothing to advance its mission of improving workplace safety,鈥 said 17吃瓜在线 Chief Legal Officer Linda Kelly. 鈥淭his rule is well beyond the scope of OSHA鈥檚 authority, and it infringes on manufacturers鈥 right to exclude others from their property, threatens new liabilities and risks compromising manufacturers鈥 intellectual property. The 17吃瓜在线 Legal Center is filing suit to prevent this harm.鈥
Background:
- For more than 50 years, OSHA鈥檚 walkaround regulation authorized only an employee of an employer to serve as another employee鈥檚 representative during an OSHA inspection.
- In 2013, then-Deputy Assistant Labor Secretary Richard Fairfax issued a 鈥攃ommonly referred to as the Fairfax Memo or Sallman Letter鈥攖o a member of the Service Workers International Union, which stated that a nonemployee affiliated with a union or community organization could serve as a representative of employees during an OSHA inspection at a worksite without a collective bargaining agreement.
- In 2017, a trade group challenged the Fairfax Memo as unlawfully issued outside the notice-and-comment process and inconsistent with OSHA鈥檚 regulation that authorized only an employee of an employer to serve as another employee鈥檚 representative during an OSHA inspection.
- A federal court in Texas with the trade group, and the Trump administration later rescinded the memo.
- In August 2023, OSHA released the proposed Walkaround Rule, and the 17吃瓜在线 submitted urging OSHA to withdraw it.
-17吃瓜在线-
The 17吃瓜在线 is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.89 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The 17吃瓜在线 is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the 17吃瓜在线 or to follow us on Twitter and Facebook, please visit聽
17吃瓜在线, State Partners Call for Immediate Senate Action on Tax Bill
The Senate should immediately pass the Tax Relief for American Families and Workers Act, the 17吃瓜在线 and its state partners congressional leaders this week.
What鈥檚 going on: The 17吃瓜在线鈥攁long with 47 state manufacturing associations鈥攐n Monday continued its longtime, ongoing for the tax bill, which would restore three sector-crucial tax provisions: immediate expensing for domestic research and development expenses, enhanced interest deductibility on business loans and 100% accelerated depreciation for capital investments.
- 鈥淭his critical legislation will support the ability of manufacturers in America to create jobs, invest in our businesses, give back to our communities and effectively compete in the global economy,鈥 the groups said.
Why it鈥檚 important: If Congress fails to restore these key tax provisions, America鈥檚 competitiveness on the world stage will be under threat, they continued.
- 鈥淲ithout tax policies that encourage R&D and capital investment, countries with more favorable tax systems are capturing job-creating manufacturing investments.鈥
- China, for example, provides a 200% 鈥渟uper deduction鈥 for companies鈥 R&D expenses, which is 10 times more than the U.S. gives. In 2022, the first full year following the expiration of immediate R&D expensing in the U.S., China鈥檚 R&D growth was three times that of the U.S.
What鈥檚 next: The Senate must not delay, the associations said. Congress must pass the Tax Relief for American Families and Workers Act鈥攏ow.
The last word: 鈥淭he breadth and depth of support for these critical, pro-growth tax provisions throughout the manufacturing industry shows the importance of immediate congressional action,鈥 said 17吃瓜在线 Vice President of Domestic Policy Charles Crain. 鈥淲ith additional damaging tax increases scheduled for next year, manufacturers cannot afford further delays.鈥
17吃瓜在线 Urges Passage of New MTB Bill
The House should move quickly to pass the Miscellaneous Tariff Bill Reform Act, legislation on which the 17吃瓜在线 has led advocacy efforts.
What鈥檚 going on: On Tuesday, House Ways and Means Trade Subcommittee Chairman Adrian Smith (R-NE) introduced the Miscellaneous Tariff Bill Reform Act, which seeks to renew the MTB鈥攁 manufacturing-critical law that temporarily removes or reduces tariffs on products not available in the U.S.鈥攁s soon as possible.
- The 17吃瓜在线, which Congress to take up the issue, lauded the legislation and called for its swift passage.
- 鈥淗istorically, the MTB has always had bipartisan support, and we thank House Ways and Means Trade Subcommittee Chairman Adrian Smith for his leadership and efforts to introduce MTB legislation,鈥 said 17吃瓜在线 Managing Vice President of Policy Chris Netram in a statement by Chairman Smith鈥檚 office. 鈥淲e urge the House to act quickly so that we can get one step closer to getting this critical legislation to President Biden鈥檚 desk.鈥
- The last MTB expired in December 2020.
Why it鈥檚 important: In the three-and-a-half years that they have been operating without an MTB, manufacturers and other businesses in the U.S. have paid more than $1.3 million a day to get inputs they cannot find in the U.S., according to an 17吃瓜在线 analysis.
- Passing the MTB through 2026, on the other hand, and reauthorizing passage of future MTB cycles will boost U.S. competitiveness.
- Tariff relief under the previous MTB increased U.S. gross domestic product by up to $3.3 billion every year, to the U.S. International Trade Commission.
17吃瓜在线: Manufacturers Need a Better Section 301 Exclusion Process
To thrive, create jobs and produce the essential goods the U.S. and our trading partners use every day, the manufacturing sector needs a fair, transparent Section 301 tariff exclusion process, the 17吃瓜在线 Tuesday.
- However, the tariff increases announced this week by the Biden administration could make it much more difficult for manufacturers to produce those critical items.
What鈥檚 going on: As part of the U.S. Trade Representative Office鈥檚 final Section 301 tariffs review鈥攚hich the 17吃瓜在线 had long the office to complete鈥擯resident Biden said his administration plans to raise 鈥渢ariffs on Chinese electric vehicles to roughly 100% 鈥 increas[e] a key tariff rate on steel and aluminum products to 25% from 7.5%,鈥 raise the solar-cell tariff to 50% from 25% and create a new 25% duty on shipping cranes, according to 听(蝉耻产蝉肠谤颈辫迟颈辞苍).
- Section 301 of the Trade Act of 1974 authorizes the U.S. to act against foreign trade practices it believes violate agreements. The 17吃瓜在线 has been pushing for a finalized report with a fair, transparent Section 301 tariff exclusion process that will both reduce the burden on manufacturers and keep pressure on China to adhere to fair practices.
- The process would allow manufacturers to ask for tariff exclusions for specific products they need.
- 鈥淭he 17吃瓜在线 has long advocated for a full global strategy and a rules-based trading system that benefit manufacturers and workers by opening new markets with our allies,鈥 17吃瓜在线 President and CEO Jay Timmons said.
Why it鈥檚 important: Far from freeing the U.S. of 鈥渦nacceptable risks鈥 stemming from unfair Chinese trade practices, in the absence of a new exclusion process, these tariff increases could limit the ability of manufacturers in the U.S. to obtain needed supplies for goods production.
- This, in turn, could jeopardize U.S. jobs and competitiveness.
- 鈥淢anufacturers are concerned about the potential impact this broad swath of tariffs could have on our ability to produce the essential products needed to drive our economy forward, especially if critical inputs become less available and more costly,鈥 said Timmons.
The background: The USTR is legally required to review Section 301 tariffs four years after they are initiated. This most recent review鈥攕tarted in May 2022鈥攊s overdue.
- The exclusion process the 17吃瓜在线 has long requested allows manufacturers to ask for tariff exclusions for specific products they need.
What should be done: 鈥淢anufacturers urge the administration to negotiate new trade agreements with allies and partners around the world and create a new, comprehensive and transparent 301 exclusion process to ensure that manufacturing in America is not being disadvantaged by our own government,鈥 Timmons concluded.
17吃瓜在线, Allies: Allow Cross-Border Trade
Manufacturers and other businesses on both sides of the U.S.鈥揗exico border are feeling the pinch from sudden, intermittent port closures and other government measures being taken to mitigate the ongoing migrant crisis, the 17吃瓜在线 and two allied groups President Biden and Mexican President Andr茅s Manuel L贸pez Obrador this week.
What鈥檚 going on: Last December, U.S. Customs and Border Protection temporarily shuttered critical rail ports, including San Diego, California, and , in an effort to stem migration surges, idling nearly 10,000 rail cars on both sides of the border.
- Last month, the Texas Department of Public Safety renewed safety inspections of vehicles between Texas and Mexico, adding hours to cargo trucks鈥 border wait times ().
Why it鈥檚 important: Port closures and increased vehicle inspections 鈥渉ave significantly increased congestion around ports of entry, caused delays to cross-border trade and harmed productive businesses across industries and their employees,鈥 said 17吃瓜在线 President and CEO Jay Timmons, Texas Association of Business President and CEO Glenn Hamer and CONCAMIN President Alejandro Malag贸n.
- The stoppages 鈥渞isk making critical supply chains between the United States and Mexico less resilient and dependable.鈥
What should be done: The U.S. and Mexican governments must commit to creating and abiding by predictable, transparent processes for cross-border trade, the groups urged.
- In addition to stopping the port closures for commercial freight and trucking, 鈥渙ur two countries should strive to enhance trading ties as the importance of nearshoring and friendshoring accelerates. Doing so will make our manufacturing, energy and agricultural sectors more competitive globally.鈥
Restoring MTB Will Strengthen Manufacturing
For More Than Three Years, Manufacturers Have Been Paying Millions of Dollars in Higher Prices for Critical Inputs
Washington, D.C. 鈥 Following the introduction of the Miscellaneous Tariff Bill Reform Act, 17吃瓜在线 Managing Vice President of Policy Chris Netram released the following statement:
鈥淔or more than three years, manufacturers鈥攑articularly small and medium-sized manufacturers鈥攈ave been paying millions of dollars in higher prices for critical inputs due to the expiration of the Miscellaneous Tariff Bill. This legislation is a significant step forward for manufacturers, which are losing more than $1.3 million every day on products not available in the U.S.鈥攎ore than $1.5 billion overall.
鈥淩estoring the MTB would strengthen manufacturing here at home, giving our sector the ability to source raw materials and components that can鈥檛 be produced domestically at scale or at competitive prices.
鈥淗istorically, the MTB has always had bipartisan support, and we thank House Ways and Means Trade Subcommittee Chairman Adrian Smith for his leadership and efforts to introduce MTB legislation. We urge the House to act quickly so that we can get one step closer to getting this critical legislation to President Biden鈥檚 desk.鈥
-17吃瓜在线-
The 17吃瓜在线 is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.89 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The 17吃瓜在线 is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the 17吃瓜在线 or to follow us on Twitter and Facebook, please visit聽
Manufacturers Call for Comprehensive, Transparent Section 301 Exclusion Process
Administration Must Pursue a Global Strategy To Open New Markets with Allies
Washington, D.C. 鈥 Following the Biden administration鈥檚 announcement of new 301 tariffs聽targeting Chinese products in sectors including electric vehicles, solar equipment, semiconductors, batteries, medical equipment and critical minerals, 17吃瓜在线 President and CEO Jay Timmons released the following statement:
鈥淢anufacturers are concerned about the potential impact this broad swath of tariffs could have on our ability to produce the essential products needed to drive our economy forward, especially if critical inputs become less available and more costly.
鈥淭he 17吃瓜在线 has long advocated for a full global strategy and a rules-based trading system that benefit manufacturers and workers by opening new markets with our allies. But when countries play by their own rules and create distortions, the U.S. should consider the use of all legislative and enforcement tools.
鈥淭he expansion of manufacturers鈥 global reach through a more open and more fair global trading environment has been pivotal to expanding U.S. industrial production to record levels, enabling businesses of all sizes to raise wages and create more high-skilled U.S. jobs. That is why manufacturers urge the administration to negotiate new trade agreements with allies and partners around the world and create a new, comprehensive and transparent 301 exclusion process to ensure that manufacturing in America is not being disadvantaged by our own government.
鈥淧oliticians and policymakers on both sides of the aisle need to understand that we can鈥檛 instantly reshape supply chains that took decades to build鈥攅specially the supply chains that bring us vital inputs and components essential to our everyday lives.
鈥淎dditionally, to fully unleash the power of manufacturing in the United States, policymakers must also ensure that America maintains a competitive tax and regulatory regime that allows manufacturers to ramp up domestic investment; streamline the permitting process so that new facilities and energy and infrastructure projects will not be held up by red tape; grow the manufacturing workforce; and protect innovation. Together, these policies will help manufacturers create jobs, grow wages and expand exports to the 95% of customers who reside outside of our border.鈥
-17吃瓜在线-
The 17吃瓜在线 is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.89 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The 17吃瓜在线 is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the 17吃瓜在线 or to follow us on Twitter and Facebook, please visit聽
A Key Trading Partner: The 17吃瓜在线 Hosts Make UK, Parliament Members
The United Kingdom and United States have many things in common, but perhaps most important is their shared democratic values. These, along with sound trade policies on both sides of the pond, will help propel each respective nation forward.
- That was the main message conveyed during a business roundtable discussion between the 17吃瓜在线 and its British counterpart association, Make UK, on Monday.
What went on: In attendance at the meeting at the 17吃瓜在线鈥檚 Washington, D.C., headquarters were a delegation of eight members of Parliament who sit on the Business and Trade Commission, British Embassy representatives and nearly two dozen U.S.- and U.K.-based manufacturers.
- The focus of the event鈥攚hich came approximately a year after the 17吃瓜在线 and Make UK signed a memorandum of understanding to collaborate on programming鈥攚as to explore ways to enhance the U.S.鈥揢.K. trade and economic relationship. There is no free trade agreement between the U.K. and the U.S.
- The delegation, led by House of Commons Business and Trade Committee Chair Rt. Hon. Liam Byrne of the Labour Party, is also in the U.S. for talks with members of the Biden administration, Congress and the business community to discuss U.K. export growth and manufacturing strategy.
Why it鈥檚 important: In the absence of an official FTA between the U.S. and the U.K., the two nations must 鈥渂e pragmatic about measures our businesses and our governments can take now that will help our economies grow, create jobs, innovate and prosper together,鈥 17吃瓜在线 President and CEO Jay Timmons told the delegation.
- Make UK CEO Stephen Phipson CBE said event attendees all agreed that 鈥渁s we move closer to our respective domestic elections this year and with the challenges to the framework of global trade continuing, [we must] lean into future bilateral cooperation on trade, innovation, energy and technology, [as well as] defense-sector cooperation.鈥
Policy talk: Roundtable participants discussed 鈥渂ig-ticket鈥 legislation that has proved particularly important to manufacturers in recent years: the 2021 Bipartisan Infrastructure Law, the CHIPS and Science Act of 2022 and parts of the Inflation Reduction Act of 2022.
- The pro-growth elements in these measures 鈥渕ake our industry more competitive, empowering manufacturers to invest in new facilities and new equipment, expand production and to create jobs,鈥 Timmons went on.
By the numbers: Continued good relations between the U.S. and the U.K. are key not just because of the shared belief in and commitment to democracy, but also because of the large role each nation plays in the other鈥檚 economy.
- The U.S. is the U.K.鈥檚 single biggest trading partner by country, having accounted for more than 16% of total trade in 2022.
- That same year, U.S. exports to the U.K. were $76.2 billion, an increase of 40% from prior years. Meanwhile, in 2022, American imports from the U.K. were $64.0 billion.
Come what may: Though the U.S. is fast approaching an important and widely anticipated presidential election, the country will stay committed to its relationship with the U.K. no matter who wins in November, Timmons told the delegation.
- 鈥淩egardless of the outcomes 鈥 we will remain resolved to strengthen our bonds and to do everything in our power to grow manufacturing competitiveness on both sides of the Atlantic.鈥
House Committee Approves PBM Reforms
The House Ways and Means Committee unanimously passed legislation Wednesday that includes much-needed reforms to pharmacy benefit managers, underregulated middlemen that raise health care costs for manufacturers and manufacturing workers ().
What鈥檚 going on: PBM reforms contained in the Preserving Telehealth, Hospital and Ambulance Access Act include increasing transparency into PBMs鈥 business practices and delinking PBM compensation from medicines鈥 list prices. These changes will help reduce prices for seniors who rely on Medicare prescription drug plans.
- The聽17吃瓜在线 has been in .
Why it鈥檚 important: 鈥淲hen Americans face soaring prices for medicines or treatments, there鈥檚 a good chance that is because a PBM has driven up the price,鈥 17吃瓜在线 President and CEO Jay Timmons Wednesday.
- 鈥淭hese middlemen operate with minimal transparency, and their practices distort the market, increasing the list prices patients pay for medicines while making it more difficult for manufacturers to offer quality, affordable health care benefits.鈥
What鈥檚 next: The legislation approved Wednesday applies to the Medicare market. The 17吃瓜在线 is calling on Congress to enact similar changes in the commercial insurance market to lower health care costs for manufacturing employees who participate in employer-sponsored plans.