H.R.2393 - Protect American Beef Act. (119th Congress)
Summary
H.R.2393, the "Protect American Beef Act," aims to impose a 70% tariff on imported Australian Wagyu beef, semen, and conventional embryos. The bill argues that Australia has an unfair competitive advantage due to a favorable exchange rate and trade agreement, allowing them to capture a significant portion of the U.S. Wagyu market. The bill seeks to establish a reciprocal trade agreement with Australia concerning Wagyu beef.
The bill authorizes the President to negotiate with Australia to reduce trade barriers on U.S. Wagyu beef. If negotiations fail, the President can impose duties on Australian Wagyu beef equivalent to the barriers faced by U.S. exporters in Australia.
The bill also outlines factors the President should consider when taking action, including tariff classifications, duty rates, physical characteristics of the beef, and the extent to which Australian trade practices impede or distort trade.
Expected Effects
If enacted, this bill could increase the price of Wagyu beef in the United States, potentially benefiting American Wagyu producers. It could also strain trade relations with Australia and potentially lead to retaliatory tariffs on other U.S. exports.
Consumers may face higher prices and reduced choices for Wagyu beef. The bill could also prompt Australia to seek alternative markets for its Wagyu beef, impacting global trade flows.
Ultimately, the bill's impact will depend on the President's actions and Australia's response. The effectiveness of the tariff in protecting American producers and the broader economic consequences remain uncertain.
Potential Benefits
- Could protect American Wagyu beef producers from foreign competition.
- May lead to increased investment and job creation in the American Wagyu industry.
- Could incentivize Australia to negotiate a more reciprocal trade agreement.
- Potentially strengthens the American agricultural sector.
- May reduce reliance on foreign imports for a specific agricultural product.
Most Benefited Areas:
Potential Disadvantages
- Could increase the price of Wagyu beef for American consumers.
- May strain trade relations with Australia, potentially leading to retaliatory tariffs.
- Could limit consumer choice by reducing the availability of Australian Wagyu beef.
- May disproportionately benefit a small segment of the agricultural sector at the expense of broader trade relationships.
- Could be viewed as protectionist and set a precedent for similar tariffs on other imported goods.
Most Disadvantaged Areas:
Constitutional Alignment
The bill's authority to impose tariffs falls under Congress's power to regulate commerce with foreign nations (Article I, Section 8, Clause 3). The President's role in negotiating trade agreements is also constitutionally recognized.
However, the bill's potential impact on consumer prices and trade relations raises questions about whether it truly promotes the "general Welfare" as stated in the Preamble. The constitutionality of retaliatory tariffs from Australia would depend on their adherence to international trade agreements and U.S. law.
Overall, the bill appears to operate within the enumerated powers of Congress, but its broader impact on the economy and international relations warrants careful consideration.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).