Do-Nothing Congress Slowed Retail Growth In 2023

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September 22, 2014 – was the date when activist Ralph Nader penned a letter to Speaker of the House John Boehner criticizing the 113th Congress for their lack of productivity. Mr. Nader said: “While millions of hardworking Americans are working more and more for less and less, you and your House of Representatives seem to have no problem working less and less for more and more.”

The Nader letter is more than 8 years old – but rings true today – as America’s current 118th Congressional session (having completed the first year of a two-year term) is actually performing worse than the 113th.

Results from the 2023 Congressional session exceeded a level that can be characterized as greater than dismal. One must, of course, include the four days and 15 votes for the Republican majority to elect a Speaker of the House, followed by the three weeks to search for a new Speaker – after the far-right ousted Speaker Kevin McCarthy for not being MAGA enough.

Back in 1948, it was President Harry Truman who called the 80th Congress the “Do-Nothing Congress” and the name stuck like glue. However, that being said, during their two years in power, the 80th Congress actually passed 906 public bills.

Three years ago, during the first year of the Democratically controlled 117th Congress, they passed 88 public bills as compared to this year’s 118th Republican controlled Congress where the count is a meager 34 public bills. Unfortunately, this very small 34 bill number doesn’t tell the whole story, and clearly demonstrates that retail trade is not a priority for Congress. Roughly 27% of the passed bills were veteran or military related; 17% were about naming buildings / re-appointments / or commemorative; 8% were related to American Indians; and 6% were related to hunting, fishing, or the outdoors. There was only one bill that was remotely connected to trade, and it was the U.S.-Taiwan Initiative passed on 6/12/23.

Reading what Congress.Gov plainly shows, you will find interesting items that count as “passed laws” like the ten below plus the two continuing resolutions just to keep the Government running.

Here are some of the 34 laws:

*The naming of the Veterans Affairs clinic in Gallup, New Mexico (10/2/23)

*The naming of the Veterans Affairs clinic in Indian River, Michigan (7/28/23)

*The Duck Stamp Modernization Act (12/19/23)

*Protecting Hunting Heritage and Education Act (10/6/23)

*The 250th Anniversary of the U.S. Marine Corps Commemorative Coin Act (7/26/23)

*Amending the Siletz Reservation Act to address hunting, fishing…(12/26/23)

*Amending the Confederated Tribes of Grand Ronde Community Reservation Act (12/26/23)

*Three laws that provided for reappointments of individuals as citizen regents at the Smithsonian Institution (12/21/23)

*PLUS – two laws just to keep the Government from shutting down (9/30/23 and 11/16/23)

Meanwhile, back at the ranch (so to speak), retailers are increasingly livid that commonsense laws about trade facilitation have yet to be touched by Congress or by the United States Trade Representative (USTR) or by the Executive Branch. Lack of passage of these retail trade bills causes consumer inflation and impacts retail profitability (at a time when interest rates are high and financing of retail inventory remains a challenge).

Of course, included in all this, are the Section 301 China tariffs that were created by former President Trump – but carried forward by President Biden. These tariffs have proven to serve no purpose other than to flame inflation. In fact, most of these “China” tariffs are still “under review” by the USTR – but remain caught up in the slow-as-molasses 4-year review process.

Congress was quick to launch the Uyghur Forced Labor Prevention Act, but amazingly slow to do anything about the flagrant use of (what is called) the Section 321 de minimis provision that allows companies like SHEIN / TEMU and others to ship direct-to-consumer in the USA – free of any duty or tariff or inspection. It’s a sad commentary that traditional brick-and-mortar retailers ship in bulk to the USA – have to deal with UFLPA cargo inspections, plus tariffs, plus duties – while direct-to-consumer shippers from China are able to avoid these issues.

Congress is also three years into not renewing the Generalized System of Preferences program (GSP) which has been in place (and renewed several times) since 1974. GSP allows companies to set up factories in third-world countries to help eliminate poverty by granting duty-free access to the USA as an offset to lack of productivity. Many retailers moved their production from China to GSP eligible countries a few years back only to see their duty relief held in limbo. When the Democrats were in control of Congress, they procrastinated. It was hopeful that under current Republican control the trade needle would have moved forward a bit, but this has not happened as yet.

Congress also failed to renew the Miscellaneous Tariff Bills (MTB’s) that allow items to be shipped in to America free of duty if they are not manufactured in the USA. Many of these specific items are for component parts used in domestic manufacturing. This loss of MTB purchasing power has been a major hurt to domestic producers and has also contributed to rising retail prices.

In addition to all the slow-walking trade bills, there have been numerous requests to Congress for early renewal of the Haiti Trade packages as well as the African Growth and Opportunity (AGOA) Act – both of which expire in 2025. Early renewal is encouraged for continued investment in these countries, but delayed renewal often halts new investment – because developers tend to distrust the renewal process.

Under the Biden Administration, government has been very cavalier about taking privileges away from AGOA countries as a means to support policies that the administration feels are important. Unfortunately, for retailers who make substantial AGOA investments into select countries, they were really shocked when the trade policy was revoked for Ethiopia.

Truth about what is happening (or not happening) on Capitol Hill often comes from interesting places. Republican Congressman Chip Roy (R-Texas) on November 15th delivered an incredibly honest and brazen statement on the floor of Congress.

He said: “For the life of me, I do not understand how you can go to the trouble of campaigning, raising money, going to events, talking to people, coming to this town as a member of a party that allegedly stands for something…and then do nothing about it. One thing: I want my Republican colleagues to give me one thing-one-that I can go campaign on and say we did. One!”

Congressman Roy was frustrated, but was also telling the truth and hoping that his speech would resonate with colleagues. That being said, about 100 years ago Will Rogers, the great humorist and political commentator also stated:

“Congress is so strange; a man gets up to speak and says nothing, nobody listens, and then everybody disagrees.”

American’s understand that the Halls of Congress can be a challenging place, but as the New Year begins – retailers will probably remain optimistic and certainly hope that something in the legislative world of international trade will change. However, that being said, the 118th Congress of the United States should take note – American retailers need your help….

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