Menendez Leads Finance Dems in Introducing Bill to Establish Independent Oversight, Increase Accountability, Transparency at Chief US Trade Agency
Aug 06 2020
WASHINGTON, D.C. – U.S. Sen. Mark R. Warner (D-Va.) joined Sen. Bob Menendez (D-N.J.), Congressman Bill Pascrell, Jr. (N.J.-09) and a number of colleagues in introducing bicameral legislation to establish an Inspector General (IG) for the Office of the United States Trade Representative (USTR) to provide independent oversight, and increase transparency and accountability at the agency which has recently come under increased scrutiny over reports and allegations of political favoritism, inconsistent policy implementation and conflicts of interest.
“Americans deserve honest and transparent trade policy,” said Sen. Menendez. “Recent reports of political favoritism, opaque decision-making, and conflicts of interest highlight just how dangerous it can be when an Administration hides public business from the American people. This bill will help ensure that trade policy is determined by our country’s economic interests – and no one else’s.”
“Sunlight remains the ultimate disinfectant, and that is especially true when it comes to our trade policy,” said Rep. Pascrell. “Our nation’s trade policies impact virtually every aspect of our economy and so Americans deserve to know that they are being formulated free of tainting influences and double-dealing. The opaqueness and outright corruption of Trump’s regime has revealed the need for a watchdog in all corners of our government. Our bill will ensure our trade policy will not be wielded for personal or political gain.”
In a June hearing, Sen. Menendez confronted USTR Robert Lighthizer over allegations that President Trump asked Chinese President Xi to make agricultural purchases to help him in the election. "Because if it's true, it shows how clear it is that the administration doesn't really have any intention of actually solving our trade problems with China,” Menendez said.
USTR’s Section 301 China tariff exclusion process has raised concerns over its lack of transparency, inconsistent decision-making, and political favoritism. Further, in June, Bloomberg reported that two USTR employees who helped negotiate USMCA may have violated federal law barring conflicts of interest when they offered their services as private-sector advisers to future clients while still on the federal payroll.
USTR is one of the only cabinet-level agencies without an IG, which means decisions that impact billions of dollars in trade are currently without the same degree of oversight as other federal agencies.
The legislation is co-sponsored by all the Democratic Finance Committee members, Sens. Ron Wyden (D-Ore.), Sherrod Brown (D-Ohio), Sheldon Whitehouse (D-R.I.), Catherine Cortez Masto (D-Nev.), Ben Cardin (D-Md.), Tom Carper (D-Del.), Bob Casey (D-Penn.), Debbie Stabenow (D-Mich.), Michael Bennet (D-Colo.), Maria Cantwell (D-Wash.), and Maggie Hassan (D-N.H.). Reps. Sanford Bishop (Ga.-02), Peter DeFazio (Ore.-04), Alcee Hastings (Fla.-20), Marcy Kaptur (Ohio-09), Jim McGovern (Mass.-02), Frank Pallone (N.J.-06), Jose Serrano (N.Y.-15) and Judy Chu (Calif.-27) are cosponsoring the companion bill in the House.
- Establish a statutory IG for the United States Trade Representative under the Inspector General Act of 1978, similar to IGs for the Departments of Commerce, Defense, State, Justice, Treasury, etc. to perform independent oversight, improve transparency and accountability, and crack down on waste, fraud, and abuse;
- Require the president to appoint an individual to serve as USTR IG, subject to advice and consent of the Senate, not later than 120 days after enactment; and
- Direct the USTR IG to commence an audit of the Section 301 China tariff exclusion process within 180 days of enactment.
A copy of the bill can be found here.
Jan 16 2020
WASHINGTON, D.C. – U.S. Sens. Mark R. Warner and Tim Kaine (both D-VA) released the following statement applauding Senate passage of the U.S.-Mexico-Canada Agreement (USMCA):
“USMCA is an important, bipartisan win for Virginia. Expanding access to Canadian agricultural markets will open up new opportunities for Virginia farmers. Holding Mexican companies to higher labor and environmental standards will help level the playing field for American workers and companies. And efforts to streamline and modernize cross-border shipments will help the thousands of Virginia companies that already export to Mexico and Canada. This bill will help local economies in all corners of Virginia, and we were proud to vote for its passage today.”
Organizations that have announced their support for USMCA include: Virginia Chamber of Commerce, United Steelworkers Local 8888, Virginia Poultry Federation, Farm Credit of the Virginias, Virginia Port Authority, Virginia Maritime Association, Virginia Cattlemen’s Association, Virginia Farm Bureau, Virginia State Dairymen’s Association, Virginia Pork Council, Volvo Trucks New River Valley plant, UPS, STIHL Inc. in Virginia Beach, Virginia Hispanic Chamber of Commerce, and Eastman.
Jan 07 2020
WASHINGTON – Today, U.S. Sen. Mark R. Warner (D-VA), member of the Senate Committee on Finance, addressed the United States-Mexico-Canada Agreement (USMCA) before voting in favor of the deal during a Finance Committee vote. In his opening remarks, Sen. Warner expressed optimism for the deal’s positive impact on Virginia’s farmers, but noted his concern regarding the Trump Administration’s erratic approach to trade, and the impact that these strained interactions could have on our nation’s relationship with key allies and partners abroad.
“I’m optimistic that this trade agreement will help American farmers, ports, manufacturers, retailers, and workers. As others have pointed out, the deal addresses issues like digital trade, that NAFTA couldn’t fully anticipate and decreases market barriers to agricultural products that have been huge points of concern for Virginia farmers,” said Sen. Warner in the committee hearing. “Overall, I’m hopeful that this agreement will provide the consistency and stability that the business community needs. At the same time, I worry that the process that led us to this point may result in reduced U.S. credibility and trust from our allies and closest trading partners. Throughout the negotiation process, the President’s efforts to levy tariffs on Canada and Mexico, and to make repeated threats to withdraw from NAFTA or to heedlessly close the border with Mexico, have exemplified the troubling and erratic approach to trade issues that we’ve seen from the Administration.”
He continued, “Alienating our closest allies with the misuse of national security tariffs is counterproductive and endangers American security. That is why Senator Toomey and I have offered the Bicameral Trade Authority Act, to curb abuses of 232 authority. I’m hopeful that with ratification of this deal will offer an opportunity for this committee to reexamine those efforts in a bipartisan fashion.”
The United States-Mexico-Canada Agreement was officially signed by the three participating countries on November 30th, 2018. In the wake of pressure from Democrats, led by Speaker Pelosi, the Trump Administration announced on December 9th the addition of new labor protections and enforcement provisions. Soon after, Sen. Warner announced his support of the USMCA, which intends to replace the North American Free Trade Agreement (NAFTA). The USMCA, which passed the House of Representatives by a 385-41 vote, awaits consideration in the Senate.
Sen. Warner’s remarks are available below:
Thank you, Mr. Chairman.
As we all know, strong trading relationships improve our nation’s economy. I’m optimistic that this trade agreement will help American farmers, ports, manufacturers, retailers, and workers. As others have pointed out, the deal addresses issues like digital trade, that NAFTA couldn’t fully anticipate and decreases market barriers to agricultural products that have been huge points of concern for Virginia farmers.
I want to add congratulations to Ranking Member Wyden, Senator Brown and our House colleagues, because now this agreement finally includes strong labor protections to ensure that companies in our partner nations are held accountable and that American workers can compete on a level playing field.
Overall, I’m hopeful that this agreement will provide the consistency and stability that the business community needs.
At the same time, I worry that the process that led us to this point may result in reduced U.S. credibility and trust from our allies and closest trading partners. Throughout the negotiation process, the President’s efforts to levy tariffs on Canada and Mexico, and to make repeated threats to withdraw from NAFTA or to heedlessly close the border with Mexico, have exemplified the troubling and erratic approach to trade issues that we’ve seen from the Administration.
Our trade relationships are a key form of diplomacy, allowing us to increase U.S. influence abroad and deepen our relationships with foreign partners in ways that benefit not just American prosperity but U.S. security and leadership. Alienating our closest allies with the misuse of national security tariffs is counterproductive and endangers American security. That is why Senator Toomey and I have offered the Bicameral Trade Authority Act, to curb abuses of 232 authority. I’m hopeful that with ratification of this deal will offer an opportunity for this committee to reexamine those efforts in a bipartisan fashion.
Finally, and I made an agreement with the ranking member not to raise this issue during these considerations but I do want to take note that I have serious concerns with the inclusion of safe harbor language modeled on section 230 of the Communications Decency Act. Congress is beginning, at this point, an important bipartisan debate about whether section 230 is working as intended. And many, including many prominent civil rights groups, believe that section 230 has allowed internet intermediaries to ignore misuse of their platforms by bad actors. This is an issue that I think needs our attention and that I hope we can revisit in a bipartisan way. Again, I commend everybody who worked on this.
WASHINGTON – U.S. Sens. Mark R. Warner and Tim Kaine (both D-VA) today applauded the news that the Chinese government will lift the import ban on U.S. poultry products that has been in place since 2015, effective immediately.
“For years, we have raised concerns about China’s unfair ban on U.S. poultry products and today’s announcement that the ban will be lifted, effective immediately, is great news for Virginia poultry producers,” said the Senators. “While we’re pleased by today’s news that this unreasonable and arbitrary policy will be reversed, we remain deeply concerned that the Trump Administration still appears to lack a comprehensive strategy to deal with China’s unfair trade practices and the long-term threats to U.S. jobs and national security posed by China’s rampant intellectual property theft and economic espionage. We strongly urge the President not to lose sight of those important goals, or the pain the Administration’s tariffs continue to cause for many of Virginia’s businesses, workers and consumers.”
In July 2017, Sen. Warner and Sen. Kaine sent a letter to U.S. Secretary of Agriculture Sonny Perdue, urging the Trump Administration to push the Chinese government to end its ban on the sale of American poultry products. In February of this year, Sen. Warner and eight other bipartisan Senators sent a letter to U.S. Trade Representative Robert Lighthizer, calling on the Trump Administration to reach a trade agreement with China lifting the ban on U.S. poultry and other barriers to U.S. agriculture products while also addressing issues such as Chinese intellectual property theft, forced technology transfer, and unfair subsidies for state-owned enterprises.
WASHINGTON – U.S. Sens. Mark R. Warner and Tim Kaine (both D-VA) released the following statement after China announced that it will instate additional retaliatory tariffs starting September 1 in response to President Trump’s plans to impose additional levies on Chinese goods:
“Time and time again, we have warned President Trump against escalating a trade war with China. Trade wars yield no winners and hurt consumers and producers all over the Commonwealth, especially the farmers and small business owners who count on Chinese demand for products grown in Virginia. We’re even seeing devastating second-order effects of this trade war, with the possibility that fires in the Amazon are being deliberately set to clear land for soybean exports to China. While the U.S. must absolutely crack down on China for its illegal trade practices, we can’t afford to do so in an incoherent and erratic way. Today’s announcement shows once again that the Trump Administration’s bizarre trade policies destabilize the economy, put the livelihoods of many Americans at risk, undermine global stability, and fundamentally fail to hold China accountable for its unfair practices.”
According to an announcement by the Chinese finance ministry, China’s tariffs will range from five to ten percent on items such as agricultural products, apparel, chemicals, and textiles, in addition to a 25 percent tariff on automobiles and a five percent tariff on automobile parts. These levies are scheduled to take effect on September 1 and December 15, matching the dates of the President’s most recent tariffs.
Sens. Warner and Kaine have continuously warned the Trump Administration about how its haphazard approach on trade hurts Virginia’s families, businesses, and economy. According to the Virginia Department of Agriculture and Consumer Services (VDACS), China is the Commonwealth’s number-one agricultural export market for soybeans. In 2018, Virginia exported more than $58 million soybean products to China – an 83 percent decrease from 2017.
WASHINGTON – U.S. Sens. Mark R. Warner and Tim Kaine (both D-VA) released the following statement after President Trump announced his plan to impose an additional 10 percent tariff on $300 billion worth of Chinese goods beginning September 1:
“We continue to have grave concerns regarding this Administration’s nonexistent trade strategy. Let’s be clear: trade policy should not be done through tweet; it should be through thoughtful collaboration with our allies to address China’s unfair trade practices. Instead, today’s erratic reversal on trade will only raise prices for Virginians and give China motivation to retaliate, which would further hit Virginia's already-hurting agricultural producers even harder. For years, China has been one of Virginia’s top agricultural customers, but escalating the trade war will only continue to threaten a critical industry that’s borne the brunt of this incoherent strategy.”
Sens. Warner and Kaine have continued to warn the Trump Administration about how its haphazard approach on trade hurts Virginia’s families, businesses, and economy. According to the Virginia Department of Agriculture and Consumer Services (VDACS), China is Virginia’s number-one agricultural export market for soybeans. In 2018, Virginia exported more than $58 million soybean products to China – an 83 percent decrease from 2017.
Jul 11 2019
WASHINGTON – U.S. Sens. Mark R. Warner and Tim Kaine (both D-VA) have joined Sen. Brian Schatz (D-HI) in cosponsoring legislation to protect the decennial census from partisan whims aimed at intimidating respondents and curbing participation. The Census Improving Data and Enhanced Accuracy (Census IDEA) Act will help safeguard the integrity of the 2020 census by ensuring that any proposed changes to the count are adequately studied and researched prior to being added to the questionnaire. This follows a United States Supreme Court decision on June 27 that blocked the Trump Administration from adding a citizenship question to the 2020 census, citing insufficient justification for adding the question.
“The census is a critical undertaking in our democracy that helps determine the number of representatives and federal dollars given to states. Additionally, many businesses rely on census population data to decide where to open new stores, buy advertising, or deploy wireless broadband infrastructure. Therefore, it’s extremely important that we ensure the accuracy of the count and prevent it from being shaped by political motives,” said the Senators. “This bill will ensure that any additional question be presented with enough time for Congress to review its effects and help keep the census an independent tool for the American people.”
Last year, Commerce Secretary Wilbur Ross proposed adding a question to the census that would ask respondents about their citizenship status, likely preventing individuals from responding and thus drastically undercounting people in many immigrant and Latino communities. The Census Bureau’s own estimates indicate that the inclusion of a citizenship question would prompt a 2.2 percent drop in census responses – including an 8 percent drop in participation by households with at least one non-citizen. Following the Supreme Court’s decision to block this question, the Justice Department moved to replace its team of lawyers on the case – a move that was also rejected on Tuesday by a federal judge who cited a lack of satisfactory reasons for the swap.
In order to ensure the integrity of the census, the Census IDEA Act would:
- Prevent last-minute operational changes that have not been properly researched, studied, and tested at least 3 years prior to the next decennial census date;
- Ensure that subjects, types of information, and questions that have not been submitted to Congress according to existing law are not included;
- Require biannual reports on the U.S. Census Bureau’s operation plan, including the status of its research and testing; a report on the agency’s operational plan 5 years prior to the next decennial census; and require that these reports be publicly available on the Bureau’s website;
- Direct the U.S. Government Accountability Office to determine and report to Congress that the subjects, types of information, and questions on the decennial census have been researched, studied, and tested to the same degree as previous decennial censuses; and
- Apply the provisions of this bill only to the decennial census, and not the mid-decade census or the American Community Survey.
Sens. Warner and Kaine, who sponsored this bill last Congress, have opposed politically motivated efforts to change longstanding practices in asking about citizenship status and have advocated for robust funding for the 2020 census. Last month, Sen. Warner joined Sen. Schatz and 27 other Senators in calling for Secretary Ross to meet the administration’s previously set deadline of July 1 to begin printing materials for the 2020 Census.
The Census IDEA Act has the support of the American Anthropological Association, American Civil Liberties Union, American Sociological Association, Asian Americans Advancing Justice, Coalition on Human Needs, Common Cause, Consortium of Social Science Associations, Japanese American Citizens League, NAACP LDF, NALEO Educational Fund, National Education Association, National Employment Law Project, National LGBTQ Task Force Action Fund, National Urban League, NETWORK Lobby for Catholic Social Justice, Leadership Conference on Civil and Human Rights, Service Employees International Union, Society for Research in Child Development, and Union of Concerned Scientists.
Other cosponsors of the Census IDEA Act include U.S. Sens. Tammy Baldwin (D-WI), Michael Bennet (D-CO), Sherrod Brown (D-OH), Richard Blumenthal (D-CT), Ben Cardin (D-MD), Dick Durbin (D-IL), Catherine Cortez Masto (D-NV), Tammy Duckworth (D-IL), Kirsten Gillibrand (D-NY), Kamala Harris (D-CA), Angus King (I-ME), Amy Klobuchar (D-MN), Gary Peters (D-MI), Jack Reed (D-RI), Jacky Rosen (D-NV), Tina Smith (D-MN), Tom Udall (D-NM), and Chris Van Hollen (D-MD).
Jun 28 2019
WASHINGTON – U.S. Sen. Mark R. Warner (D-VA) today joined Sen. Brian Schatz (D-HI) and 27 other senators in calling for Commerce Secretary Wilbur Ross to meet the administration’s previously set deadline of July 1 to begin printing materials for the 2020 Census and move forward without adding a politically motivated question about citizenship.
Their call comes a day after the U.S. Supreme Court ruled that the Trump administration’s rationale for adding the question “appears to have been contrived.” President Trump also announced on Twitter yesterday that he had asked his lawyers to delay the Census.
“By continuing to pursue the citizenship question, you will further delay and jeopardize the Census Bureau’s ability to conduct a full, fair, and accurate decennial census as required by the U.S. Constitution and the Census Act,” the senators wrote in a letter to Secretary Ross. “We urge you to stop all efforts to add a citizenship question and allow the Census Bureau to proceed with preparation for a 2020 census without a citizenship question on the questionnaire.”
The full text of the letter is available here and below:
Dear Secretary Ross:
In light of the U.S. Supreme Court’s ruling in Department of Commerce v. New York State, we urge you to uphold the rule of law and respect the Court’s decision. By continuing to pursue the citizenship question, you will further delay and jeopardize the Census Bureau’s ability to conduct a full, fair, and accurate decennial census as required by the U.S. Constitution and the Census Act. We urge you to stop all efforts to add a citizenship question and allow the Census Bureau to proceed with preparation for a 2020 census without a citizenship question on the questionnaire.
As a constitutionally mandated activity, the decennial census is a cornerstone of our democracy. We have one chance to get the count right and must complete the task on time to meet constitutional and legal requirements for congressional apportionment and redistricting. The 2020 Census is less than half a year away, and any unnecessary delay in operations would impact the ability of the Census Bureau to count every person in our country. We urge you to remove the citizenship question, and we look forward to your response.
Warner & Hawley Introduce Bill to Force Social Media Companies to Disclose How They Are Monetizing User Data
Jun 24 2019
WASHINGTON – Today, U.S. Sens. Mark R. Warner (D-VA) and Josh Hawley (R-MO) will introduce the Designing Accounting Safeguards to Help Broaden Oversight And Regulations on Data (DASHBOARD) Act, bipartisan legislation that will require data harvesting companies such as social media platforms to tell consumers and financial regulators exactly what data they are collecting from consumers, and how it is being leveraged by the platform for profit.
“For years, social media companies have told consumers that their products are free to the user. But that’s not true – you are paying with your data instead of your wallet,” said Sen. Warner. “But the overall lack of transparency and disclosure in this market have made it impossible for users to know what they’re giving up, who else their data is being shared with, or what it’s worth to the platform. Our bipartisan bill will allow consumers to understand the true value of the data they are providing to the platforms, which will encourage competition and allow antitrust enforcers to identify potentially anticompetitive practices.”
“When a big tech company says its product is free, consumers are the ones being sold. These 'free' products track everything we do so tech companies can sell our information to the highest bidder and use it to target us with creepy ads,” said Sen. Hawley. “Even worse, tech companies do their best to hide how much consumer data is worth and to whom it is sold. This bipartisan legislation gives consumers control of their data and will show them how much these 'free' services actually cost.”
As user data increasingly represents one of the most valuable, albeit intangible, assets held by technology firms, shining light on how this data is collected, retained, monetized, and protected, is critical. The DASHBOARD Act will:
- Require commercial data operators (defined as services with over 100 million monthly active users) to disclose types of data collected as well as regularly provide their users with an assessment of the value of that data.
- Require commercial data operators to file an annual report on the aggregate value of user data they’ve collected, as well as contracts with third parties involving data collection.
- Require commercial data operators to allow users to delete all, or individual fields, of data collected – and disclose to users all the ways in which their data is being used. including any uses not directly related to the online service for which the data was originally collected.
- Empower the SEC to develop methodologies for calculating data value, while encouraging the agency to facilitate flexibility to enable businesses to adopt methodologies that reflect the different uses, sectors, and business models.
The DASHBOARD Act is the second tech-focused bill Hawley and Warner have partnered on. The first was Hawley’s Do Not Track Act, which would be modeled after the Federal Trade Commission’s (FTC) “Do Not Call” list and allow users to opt out of non-essential data collection.
Jun 13 2019
WASHINGTON – U.S. Sens. Mark R. Warner (D-VA), Vice Chairman of the Senate Select Committee on Intelligence, and Marco Rubio (R-FL), member of the Senate Select Committee on Intelligence, expressed deep concern that the Trump Administration may concede on important national security matters related to the development of fifth-generation wireless telecommunications technology (5G) in order to achieve a favorable outcome on trade negotiations. In a letter to the U.S. Department of State and the Office of the U.S. Trade Representative, the Senators underscored the threats posed by Chinese telecommunications equipment to network security, data privacy, and economic security across the globe, and emphasized the need to keep trade negotiations separate from any changes in policy concerning national security threats posed by Huawei.
“Allowing the use of Huawei equipment in U.S. telecommunications infrastructure is harmful to our national security,” the Senators wrote. “In no way should Huawei be used as a bargaining chip in trade negotiations. Instead, the U.S. should redouble our efforts to present our allies with compelling data on why the long-term network security and maintenance costs on Chinese telecommunications equipment offset any short-term cost savings.”
Sens. Warner and Rubio reiterated their support for existing U.S. efforts to convey the long-term security risks posed by Chinese telecommunications firms to allies and partners abroad. However, the Senators expressed concern that this message is being undermined by President Trump, whose Administration reversed a seven-year ban on ZTE last year in defiance of a Commerce Department recommendation, and who in late May indicated that Huawei could be included in a future trade deal. In the letter, the Senators also emphasized that any modifications of Huawei’s Temporary General License must be pursued in a risk-based way, separate from trade negotiations, and without undermining national security.
As a former telecommunications executive who introduced bipartisan legislation on 5G, Sen. Warner continues to be a leading voice on the national security risks posed by Chinese-controlled telecom companies. In December, Sens. Warner and Rubio urged Canadian Prime Minister Justin Trudeau to reconsider Huawei’s inclusion in Canada’s fifth-generation network. In January, Sens. Warner and Rubio teamed up to introduce legislation to combat tech-specific, national security threats posed by foreign actors like China, and establish a whole-of-government strategy to protect the U.S. from technology theft. Additionally, Sen. Warner led legislation with Sen. Wicker to provide $700 million for rural telecommunications providers in order to offset the costs of removing equipment from vendors that pose a security threat, such as Huawei.
The full text of the letter appears below. A copy of the letter is available here.
Dear Secretary Pompeo and Trade Representative Robert Lighthizer:
We are writing to express our deep concern that the Administration may concede on important national security matters related to Huawei Technologies, Inc. and the adoption of fifth-generation wireless telecommunications technology (5G) in order to achieve a favorable outcome in the Administration’s trade negotiations.
As Members of the Senate Select Committee on Intelligence (SSCI), we have strongly supported efforts by our diplomats, military, and intelligence personnel to persuade allies and partners around the world that Huawei and other Chinese telecommunications firms present a long-term legitimate security threat to their network security, data privacy, and economic security. As you know, Chinese telecommunications equipment poses a threat that intelligence and military officials assess will only become more acute as energy infrastructure, transportation networks and other critical functions move to 5G networks and as millions more Internet of things (IoT) devices are connected.
Despite the best efforts of our government to convince other countries to keep Huawei components out of their 5G infrastructure, our message is being undermined by concerns that we are not sincere. For example, Europeans have publicly expressed fears that the Administration will soften its position on Huawei in the United States to gain leverage in trade talks, as the Administration did in June 2018 when the seven-year ban on ZTE was reversed and a new settlement agreement reached at the urging of President Xi over the recommendation of Commerce Department leadership. The President himself reinforced these fears in late May, stating:
“Huawei is something that’s very dangerous. You look at what they’ve done from a security standpoint, from a military standpoint. It’s very dangerous. So it’s possible that Huawei even would be included in some kind of a trade deal. If we made a deal, I could imagine Huawei being possibly included in some form of or some part of a trade deal.”
Allowing the use of Huawei equipment in U.S. telecommunications infrastructure is harmful to our national security. In no way should Huawei be used as a bargaining chip in trade negotiations. Instead, the U.S. should redouble our efforts to present our allies with compelling data on why the long-term network security and maintenance costs on Chinese telecommunications equipment offset any short-term cost savings. Any modifications to Huawei’s Temporary General License must be pursued in a risk-based way, separate from any trade negotiations, and consistent with national security considerations. Successfully identifying and mitigating these security risks requires sustained coordination and alignment with our international partners, particularly the Europeans who represent key parts of the 5G supply chain, and India, which is poised to be the single-largest telecommunications market. Conflating national security concerns with levers in trade negotiations undermines this effort, and endangers American security.
We appreciate your attention to this important matter of national security and request that you keep us apprised of your efforts.
May 31 2019
WASHINGTON - Today, U.S. Sens. Mark R. Warner and Tim Kaine (both D-VA) released the following statement following President Trump’s announcement that, beginning on June 10, the U.S. will impose a 5 percent tariff on Mexican imports. According to the Trump Administration, if Mexico does not stop immigrants from crossing the Southwest border, tariffs could incrementally increase to 25 percent by October 1 and remain at that level until the migration stops.
“President Trump’s escalating trade war will force families to pay more on everyday items and put 133,000 trade-supported Virginia jobs at risk. What this Administration fails to understand is that, just as Trump's family separation policy failed, hiking tariffs on Mexico won’t deter families escaping violence and instability in their native countries from crossing our border,” said the Senators. “Last year, Virginians saw the impact of retaliatory tariffs imposed by Mexico after this Administration imposed damaging steel and aluminum tariffs. Mexico continues to be an important trade partner for the Commonwealth, and strong-arming our allies will only hurt Virginians without solving our immigration challenges.”
Mexico is Virginia’s sixth-largest overall agricultural export market, according to the Virginia Department of Agriculture and Consumer Services (VDACS). In 2018, Mexico purchased more than $111 million in Virginia exports – a 3 percent decrease from 2017, a decline attributable in part to reckless trade and tariff Trump Administration policies. To ease the burden on Virginia businesses, manufacturers and consumers, Sen. Warner introduced and Sen. Kaine cosponsored bipartisan legislation that would restore Congress’ constitutional trade responsibilities. Sen. Kaine has also introduced legislation to limit the Trump Administration’s ability to levy tariffs without Congress.
Sens. Warner and Kaine have been vocal about the economic effect of the Trump Administration’s haphazard approach on tariffs. In April, the Senators slammed President Trump after threatening – and later walking back – his threat to close the U.S.-Mexico border. To tackle the root causes of migration, the Senators introduced legislation to provide a coordinated response to the humanitarian crisis in the Northern Triangle countries that have forced families to seek refuge in the U.S. They have also urged the Trump Administration to reverse its plan to cut national security funding to El Salvador, Guatemala, and Honduras.
Statement of Senate Intel Vice Chair Mark R. Warner on WH Executive Order to Ban Chinese Telecom Gear
May 15 2019
WASHINGTON – U.S. Sen. Mark R. Warner (D-VA), Vice Chairman of the Senate Select Committee on Intelligence, released the following statement after President Trump signed an executive order to ban American telecommunications firms from installing foreign-made equipment that could pose a threat to national security:
“This is a needed step, and reflects the reality that Huawei and ZTE represent a threat to the security of U.S. and allied communications networks. Under current Chinese security laws, these and other companies based in China are required to provide assistance to the Chinese state. This executive order places a great deal of authority in the Department of Commerce, which must ensure that it is implemented in a fair and responsible fashion as to not harm or stifle legitimate business activities. It should also be noted that we have yet to see a compelling strategy from this Administration on 5G, including how the Administration intends to work cooperatively with our allies and like-minded nations to ensure that international standards set for 5G reflect Western values and standards for security and privacy. Nor do we have a stated plan for replacing this equipment from existing commercial networks – a potentially multi-billion dollar effort that, if done ineptly, could have a major impact on broadband access in rural areas. A coherent coordinated and global approach is critically needed as nations and telecom providers move to implement 5G.”
As a former telecommunications executive and entrepreneur, Sen. Warner has been a leading voice in the Senate regarding the national security risks posed by Chinese-controlled telecom companies. He is the lead sponsor of the Secure 5G and Beyond Act – legislation to require the President to ensure the security of next-gen mobile telecommunications systems and infrastructure in the United States. He also introduced a bipartisan bill in January to help combat tech-specific threats to national security posed by foreign actors like China. Additionally, Sen. Warner called on the Trump Administration last week to promote U.S. leadership and strengthen diplomatic efforts around the development of a secure 5G architecture that challenges Huawei’s monopoly over the next generation of telecoms networks.
WASHINGTON – U.S. Sens. Mark R. Warner and Tim Kaine (both D-VA) released the following statement after President Trump escalated the ongoing U.S. - China trade war by imposing a 25 percent tariff on $200 billion worth of Chinese exports. In retaliation, China announced that it is raising tariffs on $60 billion of U.S. products beginning on June 1.
“It’s been more than a year since President Trump first launched a haphazard, ill-planned trade war with China that raised taxes on a number of Virginia commodities. The escalation means continued uncertainty for Virginia’s soybean farmers, who continue to brace for the worst every time the word ‘tariffs’ is said in the Oval Office. With the Trump Administration slapping China with additional tariffs and China planning to hit the U.S. right back, there seems to be no solution in sight,” said the Senators. “It’s one thing to be tough on China’s unfair and illegal trade practices, but the longer this disastrous lack of a strategy continues, the more it’ll cost and the more of an impact it will have on Virginians’ bank accounts.”
Sens. Warner and Kaine have raised concerns about how President Trump’s ongoing trade war could hurt Virginia businesses and families. According to the Virginia Department of Agriculture and Consumer Services (VDACS), China is Virginia’s number one agricultural export market for soybeans. In 2018, Virginia exported more than $58 million soybean products to China – an 83 percent decrease from 2017.
Menendez, Warner Urge Trump Admin Not to Cede Leadership in Developing Global Rules for Artificial Intelligence
May 13 2019
WASHINGTON – Senator Bob Menendez (D-N.J.), Ranking Member of the Senate Foreign Relations Committee, and Senator Mark R. Warner (D-Va.), Vice Chairman of the Senate Select Committee on Intelligence, sent a letter to Secretary of State Mike Pompeo calling attention to China’s efforts to be the leading country driving the development of standards and norms related to Artificial Intelligence (AI). The Senators urged the Secretary to strengthen the Trump Administration’s diplomatic efforts around emerging technologies to make certain the United States leads in setting international standards and norms for the AI field in ways that are congruent with our nation’s interests and values.
“Without an engaged United States, and close coordination with our allies, we have limited ability to set global standards for AI development and use, with potentially disastrous consequences,” wrote the Senators. “China, as an authoritarian regime that uses AI tools to monitor its citizens and parse through vast troves a data, is a significant threat to the personal freedoms of individuals around the globe.”
Menendez and Warner concluded the letter by asking Secretary Pompeo to articulate “the U.S. vision for global standards, norms, and mechanisms for the use of artificial intelligence,” and posing a series of questions about critical issues relating to AI.
A copy of the letter can be found here and below:
Dear Secretary Pompeo:
We write to urge you to ensure the United States takes a leading role in developing international standards and norms for new and emergent innovations shaping the next generation of information technologies, in particular Artificial Intelligence (AI). Other countries are already shaping this conversation in ways that may be detrimental to U.S. interests. For example, later this month China is convening and hosting a UNESCO Conference on AI, underscoring China’s continued efforts to shape the debate and set the standards surrounding the future of AI. Even our allies are leading in this space, with the EU releasing guidelines for ethical AI development.
Emerging technologies such as AI represent the cutting edge of innovation and will facilitate critical advances in a wide range of fields, including health care, education, information processing, logistics, and security. At the same time, these technologies will present enormous challenges, whether in job displacement, algorithmic discrimination, privacy, or cybersecurity (as adversaries exploit these tools, too). The United States has long played a formative role in developing AI technologies. In recent years, however, China has made significant progress in developing AI, with a stated goal of superseding the United States in this field by 2030. China’s efforts, according to a study conducted by the Allen Institute for Artificial Intelligence, are ahead of schedule, with the Institute highlighting that China has “surpassed the United States in published papers on artificial intelligence” and is “poised to overtake” the United States in terms of cited papers on the subject over the next few years. Disturbingly, some of America’s most prominent technology companies have opened major AI research centers in China, potentially giving China’s military and intelligence arms access to cutting-edge technology. China’s continued robust investment in the field of AI has the potential to provide a strategic rival a critical technological edge.
China’s organization of the UNESCO conference on AI is yet another indication of its efforts to fundamentally shape global standards governing the future of AI and to drive the debate in the international community around an approach that uses AI tools to infringe on the rights of individuals throughout the globe and aid authoritarian regimes in suppressing its citizens. Technologies are shaped by the values and norms that undergird their development. While a generation of ICT technologies developed by the U.S. and its allies have been shaped by our shared values and norms of openness, pluralism, fair competition, rule of law, security, and free expression, China’s development of AI has been shaped by fundamentally different values and norms, in service of objectives such as surveillance, censorship, and social control.
As I know you appreciate, it is critically important that as China attempts to capture primacy in the field of AI the United States works with our partners and allies to assert a position of leadership within the international community on this issue. Without an engaged United States, and close coordination with our allies, we have limited ability to set global standards for AI development and use, with potentially disastrous consequences. China, as an authoritarian regime that uses AI tools to monitor its citizens and parse through vast troves a data, is a significant threat to the personal freedoms of individuals around the globe.
Due to the issues raised by China’s efforts to set international standards in the field of AI that are not congruent with our interests and values, I am concerned the United States is not doing enough to promote United States leadership in establishing the norms and global governance for AI and other emerging technologies. Consequently, I ask that you please respond to the following questions regarding U.S. efforts in the AI field:
- What is the U.S. vision for global standards, norms, and mechanisms for the use of artificial intelligence, grounded in our values, including democracy, personal liberties, and the protection of human rights?
- What U.S. efforts are currently underway to promote this vision for the use of artificial intelligence?
- What should U.S. expectations be for leading U.S.-based firms and researchers when it comes to work in China on projects that violate human rights?
- Does the current export control regime adequately prevent the export of AI technology and technical assistance to human rights violators?
- Should Congress consider an update to the Alien Tort Claims Act, allowing foreign citizens (such as Uyghurs) to seek remedies in U.S. courts for human rights violations directly aided by the actions of U.S. firms or researchers?
- What standards for AI are you promoting in international fora?
- What is the current diplomatic engagement strategy by the Department of State to promote and promulgate those standards, including through participation in appropriate international fora and meetings?
- How is the United States working with allies and partners on the development of AI tools?
Moving forward, I hope to see the United States further strengthen its efforts in the AI field to ensure that we do not cede leadership on this issue to China. AI is rapidly becoming one of the most strategically important domains of the next generation, serving as an enabling technology to a range of future innovations and across disparate fields; it is vital to the security of the United States and our allies that we play a primary role in shaping AI to serve in the best interests of liberty, prosperity, and the promotion of human rights. I ask that you please respond to my questions by May 20th. I look forward to your response.
WASHINGTON – A day ahead of the one-year anniversary of Facebook CEO Mark Zuckerberg’s congressional testimony, U.S. Sens. Mark R. Warner (D-VA) and Deb Fischer (R-NE) have introduced the Deceptive Experiences To Online Users Reduction (DETOUR) Act, bipartisan legislation to prohibit large online platforms from using deceptive user interfaces, known as “dark patterns” to trick consumers into handing over their personal data.
The term “dark patterns” is used to describe online interfaces in websites and apps designed to intentionally manipulate users into taking actions they would otherwise not take under normal circumstances. These design tactics, drawn from extensive behavioral psychology research, are frequently used by social media platforms to mislead consumers into agreeing to settings and practices advantageous to the company.
“For years, social media platforms have been relying on all sorts of tricks and tools to convince users to hand over their personal data without really understanding what they are consenting to. Some of the most nefarious strategies rely on ‘dark patterns’ – deceptive interfaces and default settings, drawing on tricks of behavioral psychology, designed to undermine user autonomy and push consumers into doing things they wouldn’t otherwise do, like hand over all of their personal data to be exploited for commercial purposes,” said Sen. Warner, a former technology executive who is Vice Chairman of the Senate Select Committee on Intelligence. “Our goal is simple: to instill a little transparency in what remains a very opaque market and ensure that consumers are able to make more informed choices about how and when to share their personal information.”
Dark patterns can take various forms, often exploiting the power of defaults to push users into agreeing to terms stacked in favor of the service provider. Some examples of such actions include: a sudden interruption during the middle of a task repeating until the user agrees to consent; a deliberate obscuring of alternative choices or settings through design or other means; or the use of privacy settings that push users to ‘agree’ as the default option, while users looking for more privacy-friendly options often must click through a much longer process, detouring through multiple screens. Other times, users cannot find the alternative option, if it exists at all, and simply give up looking.
The result is that large online platforms have an unfair advantage over users and potential competitors in forcing consumers to give up personal data such as their contacts, messages, web activity, or location to the benefit of the company.
“The tech industry has gone unchecked for far too long. Bold action is needed on a wide scale to change the incentives in Silicon Valley with our well-being in mind, especially when it comes to kids,” said Jim Steyer, CEO of Common Sense. “This bill gets to the root of the issue – the use of manipulative and deceptive design features that trick kids and other users into giving up valuable and private information, and hook them into spending more time than is healthy online. Common Sense strongly supports Senators Warner and Fischer on this bipartisan effort to hold tech companies accountable for these practices that only harm consumers.”
“Dark patterns are among the least humane design techniques used by technology companies in their scramble for growth at all costs. They use these measures to offer false choices that confuse or trap users into over-sharing personal information or driving compulsive use – especially from the most vulnerable users, including kids,” said Tristan Harris, Co-Founder of the Center for Humane Technology. “A system-wide rethinking of technology policy and design is in order, so CHT fully supports Senators Warner and Fisher in this bipartisan effort to place significant constraints around the ability to deceive users online. The creation of a special standards body is especially crucial to the protection of consumers, as they keep lawmakers more up-to-date and able to iterate laws at pace with the rapid change of technology.”
“We support Senators Warner and Fischer in protecting people from exploitive and deceptive practices online,” said Fred Humphries, Corporate Vice President of U.S. Government Affairs at Microsoft. “Their legislation helps to achieve that goal and we look forward to working with them.”
“People are ensnared by ‘dark patterns’ of manipulation on the Internet every day, and ending these practices is a key part of protecting people online. We need to better understand the systems that manipulate people online, and empower users to fight back. We applaud Senator Warner and Senator Fischer for introducing this legislation to curtail these troubling practices,” said Alan Davidson, Vice President of Global Policy, Trust and Security at Mozilla.
“EPIC appreciates Senator Warner and Senator Fischer’s important work to safeguard consumer privacy,” said Caitriona Fitzgerald, Electronic Privacy and Information Center (EPIC) Policy Director.
The Deceptive Experiences To Online Users Reduction (DETOUR) Act aims to curb manipulative dark pattern behavior by prohibiting the largest online platforms (those with over 100 million monthly active users) from relying on user interfaces that intentionally impair user autonomy, decision-making, or choice. The legislation:
- Enables the creation of a professional standards body, which can register with the Federal Trade Commission (FTC), to focus on best practices surrounding user design for large online operators. This association would act as a self-regulatory body, providing updated guidance to platforms on design practices that impair user autonomy, decision-making, or choice, positioning the FTC to act as a regulatory backstop.
- Prohibits segmenting consumers for the purposes of behavioral experiments, unless with a consumer’s informed consent. This includes routine disclosures for large online operators, not less than once every 90 days, on any behavioral or psychological experiments to users and the public. Additionally, the bill would require large online operators to create an internal Independent Review Board to provide oversight on these practices to safeguard consumer welfare.
- Prohibits user design intended to create compulsive usage among children under the age of 13 years old.
- Directs the FTC to create rules within one year of enactment to carry out the requirements related to informed consent, Independent Review Boards, and Professional Standards Bodies.
The full bill text is available here.
Sen. Warner has been raising concerns about the implications of social media companies’ reliance on dark patterns for several years. In 2014, Sen. Warner asked the FTC to investigate Facebook’s use of dark patterns in an experiment involving nearly 700,000 users designed to study the emotional impact of manipulating information on their News Feeds.
Sen. Warner is recognized as one of Congress’ leading voices in an ongoing public debate around social media and user privacy. Last year, Sen. Warner called on the social media companies to work with Congress and provide feedback on ideas he put forward in a white paper discussing potential policy solutions to challenges surrounding social media, privacy, and data security. In addition to the DETOUR Act, in the coming weeks and months, Sen. Warner will introduce further legislation designed to improve transparency, privacy, and accountability on social media.
WASHINGTON – U.S. Sens. Mark R. Warner and Tim Kaine (both D-VA) are sounding the alarm after President Donald Trump threatened to close the U.S.-Mexico border to stop immigrant families from crossing the southwest border, no matter the economic impact.
“Despite being thousands of miles away from the Southern border, Virginia has a lot to lose economically if we close our doors to one of our greatest trade partners,” said the Senators. “Mexico is one of Virginia’s most important agricultural customers, purchasing more than $111 million in exports and supporting thousands of jobs. We’ve consistently supported strategic investments in border security, but let’s be clear: closing the border altogether isn’t a viable solution. That is a reckless approach that could jeopardize thousands of jobs in Virginia, lead to increased prices for Virginia families, and wreak havoc on the Commonwealth’s economy.”
Trade with Mexico supports 133,000 jobs in the Commonwealth. According to the Virginia Department of Agriculture and Consumer Services (VDACS), Mexico is Virginia’s sixth-largest overall agricultural export market. In 2018, Mexico purchased more than $111 million in Virginia exports – a 3 percent decrease from 2017, a decline attributable in part to haphazard trade and tariff policies implemented by the Trump Administration. The pork industry alone accounted for $64 million of Virginia’s agricultural exports in 2018.
WASHINGTON- U.S. Senator John Cornyn (R-TX), along with Senate Select Committee on Intelligence Chairman Richard Burr (R-NC) and Vice Chairman Mark Warner (D-VA), introduced the Secure 5G and Beyond Act. This legislation would require the President to develop a strategy to ensure the security of next-gen mobile telecommunications systems and infrastructure in the United States, as well as to assist allies in maximizing the security of their systems, infrastructure, and software. Senators Susan Collins (R-ME), Tom Cotton (R-AR), Marco Rubio (R-FL), and Michael Bennet (D-CO) are original cosponsors.
“Our telecom systems continue to advance at a rapid rate, and it’s critical that we develop a strategy to protect potential vulnerabilities from being exploited by our adversaries,” said Sen. Cornyn. “I’m proud to partner with my colleagues on this legislation to ensure we can defend our national security interests as we develop future technologies.”
“It’s imperative we not only understand the revolutionary value of next-gen communications, but also the security measures required to ensure the deployment of safe and secure 5G networks,” said Sen. Burr. “I’m proud to work with my colleagues on this important legislation, which will bring together a variety of industry experts, further protect Americans’ privacy rights, and better equip our nation with a comprehensive strategy as we continue to be a global leader in technology.”
“5G promises to usher in a new wave of innovations, products, and services. At the same time, the greater complexity, density, and speed of 5G networks relative to traditional communications networks will make securing these networks exponentially harder and more complex,” Sen. Warner said. “It’s imperative that we have a coherent strategy, led by the President, to harness the advantages of 5G in a way that understands – and addresses – the risks.”
Background on the Secure 5G and Beyond Act:
- Requires the President to create an inter-agency strategy to secure 5th generation and future generation technology and infrastructure in the United States and with our strategic allies.
- Designates NTIA as the Executive Agent to coordinate implementation of the strategy in coordination with: the Chairman of the FCC, the Secretary of Homeland Security, the Director of National Intelligence, the Attorney General, and the Secretary of Defense.
- Ensures that the strategy does not include a recommendation to nationalize 5th generation deployment or future generations of mobile telecommunications infrastructure in the United States.
Warner, Kaine, Colleagues ask Trump Trade Official to Explain Latest Tariff Decision that Could Hurt American Businesses
Oct 18 2018
WASHINGTON, D.C. – Today, U.S. Senator Tim Kaine led ten of his colleagues in sending a letter to the Trump Administration’s lead trade official asking why the Administration’s latest round of Tariffs on $200 billion of imported Chinese goods did not include exclusions to protect American businesses. For earlier rounds of tariffs, exclusions apply in cases where an American business needs a specific product from a tariffed country that is not made anywhere in the United States and the inability to access that product would cause severe economic harm to a U.S. business.
“We write to raise concerns regarding the recently implemented 10 percent tariffs on $200 billion of imported Chinese goods (Round 3) pursuant to Section 301 of the Trade Act of 1974. Specifically, we have concerns about the United States Trade Representative’s (USTR) decision not to include an exclusions process in this latest round of tariffs. The decision not to include an exclusions application process will have a negative impact on American businesses and American consumers,” the Senators wrote.
The Senators note that in prior tariff rounds the USTR recognized the potential harmful effects on a U.S. business and jobs if exclusions were not in place and ask USTR Ambassador Robert Lighthizer why the same consideration was not extended to the most recent round of tariffs. Given those concerns, they concluded with several questions for Ambassador Lighthizer:
· Does the Administration intend to offer an exclusions application process?
· If so, how will that process be implemented?
· If not, what is the rationale for providing no exclusions process in Round 3 of the 301 tariffs when Rounds 1 and 2 included one?
Senators joining Kaine on the letter include Tom Carper (D-DE), Jeanne Shaheen (D-NH), Mark Warner (D-VA), Dianne Feinstein (D-CA), Chris Coons (D-DE), Patty Murray (D-WA), Maggie Hassan (D-NH), Heidi Heitkamp (D-ND), Michael Bennet (D-CO), and Doug Jones (D-AL).
A full copy of the letter can be found here and below.
Dear Ambassador Lighthizer:
We write to raise concerns regarding the recently implemented 10 percent tariffs on $200 billion of imported Chinese goods (Round 3) pursuant to Section 301 of the Trade Act of 1974. Specifically, we have concerns about the United States Trade Representative’s (USTR) decision not to include an exclusions process in this latest round of tariffs. The decision not to include an exclusions application process will have a negative impact on American businesses and American consumers. Given the 10 percent tariff is scheduled to rise to 25 percent on January 1, we urge you to immediately reconsider this decision.
China has engaged in unfair trade practices that harm American workers. Those practices must be addressed to ensure that our workers can compete on a fair playing field. However, without an exclusion process, the ability to compete fairly may be unnecessarily impacted for U.S. workers and manufacturers that rely on global supply chains. Goods that are covered by Round 3 of the 301 tariffs should be given the same access to exclusions as were in Round 1 and Round 2. In the September 18, 2018 Federal Register, USTR acknowledged this potential harm and laid out a process to apply for exclusions, writing:
“During the notice and comment process, a number of interested persons asserted that specific products within a particular tariff subheading only were available from China, that the imposition of additional duties on the specific products would cause severe economic harm to a U.S. interest, and that the specific products were not strategically important or related to the ‘Made in China 2025’ program. In light of such concerns, the Trade Representative determined to establish a process by which U.S. stakeholders may request that particular products classified within a covered HTSUS [Harmonized Tariff Schedule of the United States] subheading be excluded from the additional action.”
That same consideration has not been extended to the most recent round of tariffs. It should. While Rounds 1 and 2 covered $50 billion in goods, Round 3 covers $200 billion alone.
The 301 investigation, under the Trade Act of 1974, was initiated to investigate whether, “China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation are unreasonable or discriminatory, and burden or restrict U.S. commerce.” Round 1 and Round 2 included products mostly related to technology and included an exclusions process. Round 3 includes items such as backpacks, dog leashes, gift wrap, shampoo, and outdoor recreation products, that Americans use each day and should, therefore, at least include an exclusions process as Round 1 and Round 2 did.
Therefore, please provide answers to the following questions:
· Does the Administration intend to offer an exclusions application process?
· If so, how will that process be implemented?
· If not, what is the rationale for providing no exclusions process in Round 3 of the 301 tariffs when Rounds 1 and 2 included one?
Given our concern on the impacts of this decision on American consumers and businesses, we ask you to reconsider this decision. Thank you for your prompt attention to this matter.
WASHINGTON — U.S. Sen. Mark R. Warner (D-VA), Vice Chairman of the Senate Select Committee on Intelligence, and U.S. Sen. Marco Rubio (R-FL), a member of the Committee, urged Canadian Prime Minister Justin Trudeau to reconsider Huawei’s inclusion in any aspect of Canada’s 5G development, introduction, and maintenance. A letter from the two Senators to the Prime Minister follows comments made by Head-Designee of the Canadian Center for Cyber Security Scott Jones regarding Huawei.
The entry of Chinese state-directed telecommunications companies like Huawei into the Canadian market could seriously jeopardize the relationship between U.S. and Canadian carriers, depriving North American operators of the scale needed to rapidly build out 5G networks.
The full text of the letter is below. A copy of the signed letter is available here.
Dear Prime Minister Trudeau:
We write with grave concerns about the possibility that Canada might include Huawei Technologies or any other Chinese state-directed telecommunications company in its fifth-generation (5G) telecommunications network infrastructure. As you are aware, Huawei is not a normal private-sector company. There is ample evidence to suggest that no major Chinese company is independent of the Chinese government and Communist Party—and Huawei, which China’s government and military tout as a “national champion,” is no exception.
Based on what we know about Chinese state-directed telecommunications companies, it was troubling to learn that on September 20, 2018, the new Head-Designee of the Canadian Center for Cyber Security Scott Jones told the House of Commons Standing Committee on Public Safety and National Security that banning Huawei is not needed, in response to a question about why Canada has not come out against Huawei as other Five Eyes allies have. Specifically, he claimed that Canada has “a very advanced relationship with our telecommunications providers, something that is different from most other countries,” adding, “We have a program that is very deep in terms of working on increasing that broader resilience piece especially as we are looking at the next-generation telecommunications networks.”
In contrast to Mr. Scott’s comments, however, three former senior Canadian national security officials warned earlier this year against the inclusion of Huawei in Canada’s 5G network. One of them—Mr. Ward Elcock, former Deputy Minister of National Defence—told the Globe and Mail on March 18, 2018, “I have a pretty good idea of how signal-intelligence agencies work and the rules under which they work and their various operations,” concluding that, “I would not want to see Huawei equipment being incorporated into a 5G network in Canada.”
While Canada has strong telecommunications security safeguards in place, we have serious concerns that such safeguards are inadequate given what the United States and other allies know about Huawei. Indeed, we are concerned about the impact that any decision to include Huawei in Canada’s 5G networks will have on both Canadian national security and “Five Eyes” joint intelligence cooperation among the United States, United Kingdom, Australia, New Zealand, and Canada. As you know, Australia effectively banned Huawei, ZTE, and other Chinese state-directed companies from its nation’s 5G networks by excluding firms that “are likely to be subject to extrajudicial directions from a foreign government” and therefore pose unacceptable risks to national security. Moreover, the United Kingdom’s Huawei Cyber Security Evaluation Centre Oversight Board’s 2018 annual report to Britain’s national security adviser found that “identification of shortcomings in Huawei’s engineering processes have exposed new risks in the UK telecommunications networks and long-term challenges to mitigation and management.”
Further, the strong alignment between the United States and Canada in spectrum management has meant that American and Canadian carriers in many cases share complementary spectrum holdings, jointly benefiting from economies of scale for equipment designed for regionally harmonized frequencies. The entry of suppliers such as Huawei into the Canadian market could seriously jeopardize this dynamic, depriving both Canadian and American operators of the scale needed to rapidly build out 5G networks.
Given the strong statements by former Canadian national security officials as well as similar concerns out of the U.S., Australia, and the United Kingdom, we hope that you will reconsider Huawei’s inclusion in any aspect of Canada’s 5G development, introduction, and maintenance. Should you have any questions about the threat that Chinese state-directed telecommunications firms pose to your networks, we urge your government to seek additional information from the U.S. Intelligence Community.
Thank you for your attention to this matter.
Warner & Kaine Slam Trump’s Trade War Escalation that Threatens Additional $899 Million in Virginia Exports
Sep 18 2018
WASHINGTON, D.C. – Today, U.S. Senators Mark Warner and Tim Kaine criticized President Trump for escalating the trade war with China by placing an additional $200 billion in tariffs on Chinese goods, which the Chinese government has recently matched with $60 billion in tariffs on American goods. The U.S. Chamber of Commerce has warned that this move will threaten an additional $899 million in Virginia exports. Warner and Kaine have long supported tougher trade negotiations, especially with countries like China that violate U.S. laws, but do not believe a trade war where Virginia farmers, manufacturers, and families pay the highest price is a responsible approach.
“Global trade wars threaten everything from Virginia’s emerging craft brewery industry to soybean farmers and now the coal fields. We have pushed President Trump for months to stop his foolish antics, form a coalition with like-minded allies he is currently alienating like Canada and Europe, and jointly confront China with a coordinated strategy to find an acceptable deal. This escalating trade war is going to cost many Virginians their jobs at a time when they will see rising prices for the goods they buy every day. While we agree that we should be targeting the theft of U.S. intellectual property by China, imposing across-the-board tariffs that stick hardworking American consumers with the costs is the wrong approach. Once again, we call on this Administration to stop using as collateral some of our most vital local industries in order to pursue a reckless and dangerous trade policy,” the Senators said.
According to the Chamber, Virginia’s hardest hit products from the new retaliatory Tariffs are:
- Soybeans - $361 million of soybeans are exported annually to China. For a comprehensive list of Va. soybean production, click here.
- Bituminous Coal (Not Agglomerated) - $105 million are exported annually to China
- Corrugated Paper Waste (Scrap unbleached) - $50 million exported annually to China
For months, Warner and Kaine have spoken out against President Trump’s escalating trade war and encouraged substantive negotiations. The Virginia Department of Agriculture and Consumer Services (VDACS) has confirmed that China is the Commonwealth’s biggest export market for agricultural goods and suggested President Trump’s tariffs could hurt Virginia businesses and employees. President Trump has tweeted that “trade wars are good.”
Warner, McEachin, Six VA Delegation Members Write to ITC Chairman with Serious Concerns on Newsprint Tariffs
Jul 17 2018
WASHINGTON – Congressman A. Donald McEachin (VA-04) led a letter signed by seven members of the Virginia Delegation to United States International Trade Commission Chairman Johanson expressing serious concerns about tariffs that are impacting Virginia newspapers. This letter was signed by Senators Kaine and Warner as well as Representatives Beyer, Comstock, Connolly, Goodlatte, and Scott:
“We support efforts to fight illegal trade practices and guarantee a level playing field for American companies. However, we are concerned the tariffs on uncoated groundwood paper from Canada will cause long-term harm to domestic newsprint manufacturers and consumers. There are nearly 200 daily and weekly newspapers in Virginia. An increase of up to 35 percent in costs due to these tariffs cannot be absorbed by newspapers and printers; current tariffs are already reducing the frequency and size of publication for many newspapers. This leads to higher prices for readers, businesses and advertisers and is already causing a loss of jobs in the printing and publishing industry at the local level. If these tariffs become permanent, these harmful trends will become ever more pronounced,” wrote the Members of Congress. “Local newsgathering is also jeopardized by these tariffs, which is where so many small Virginia communities will be affected: they rely heavily on their local papers for coverage, and those papers are already struggling to operate on razor-thin margins. Our democracy cannot function unless citizens are informed and engaged; without strong community newspapers, that kind of engagement would be vastly more difficult.”
WASHINGTON – In response to President Trump’s abuse of Section 232 to unilaterally impose tariffs on steel and aluminum imports from our closest allies, the Senate today voted 88-11 to re-assert Congress’ constitutional role in U.S. trade policy. U.S. Sen. Mark R. Warner (D-VA), who is a leading sponsor of bipartisan legislation requiring the White House to seek Congressional approval before issuing tariffs designated in the interest of national security, applauded today’s move.
“President Trump’s ill-considered steel and aluminum tariffs will make it more expensive for Virginians to buy something as big as a new car or as small as a can of beer. They’re also causing unnecessary pain and uncertainty for Virginia’s ag producers as our allies impose retaliatory tariffs on U.S. exports of soybeans, pork, and more,” said Sen. Warner. “I believe that we should hold China accountable for unfair trade practices, and I support strong trade enforcement rules that protect American workers. But the President should not be relying on a law intended to uphold national security in order to impose tariffs on our strongest allies.”
Added Senator Warner, “A majority of Senators from both parties have sent a message to President Trump that using ‘national security’ as a pretext to impose tariffs on steel and aluminum from our closest allies is unacceptable. While today’s vote was non-binding, it’s a good first step in re-asserting Congress’ constitutional responsibility on trade policy. We must act in order to make sure that Americans can keep buying affordable products and selling our goods abroad.”
Today’s vote was a procedural motion on what’s known as a “motion to instruct,” directing Senators working to reconcile differences between separate funding packages passed by the House and the Senate to push for the inclusion of language that would give Congress a say in the White House’s national security tariffs. One way lawmakers could comply with the motion to instruct would be to adopt language closely mirroring legislation introduced by Sen. Warner along with Sens. Bob Corker (R-TN) and Pat Toomey (R-PA) that would require the president to submit to Congress any proposal to adjust imports in the interest of national security under Section 232 of the Trade Expansion Act of 1962. President Trump has used this provision to impose steel and aluminum tariffs that target imports from some of the United States’ closest allies like Canada, Mexico, and the European Union. As a result, businesses that make products containing these materials, such as Virginia craft beer producers, expect to see increased production costs that will likely mean higher prices for Virginia consumers.
In addition, several countries have announced they plan to impose retaliatory tariffs on key Virginia agricultural exports in response to the Administration’s trade policy. Just last week, as retaliation for the President’s trade moves, Beijing slapped a 25 percent tariff increase on imports of several U.S. products, including soybeans and pork. Given that the Chinese are the world’s leading consumers of pork, and the country purchases nearly one-third of all U.S. soybean production, the maneuver is expected to further hurt pork producers and soybean growers in Virginia who were already reeling as a result of President Trump’s trade policies.
The bill, which has 16 bipartisan Senate co-sponsors, has been endorsed by more than 270 business and agricultural groups, including the Virginia Chamber of Commerce. A longer list of organizations supporting the bill is available here.
WASHINGTON, D.C. – Today, U.S. Senators Mark Warner and Tim Kaine released the following statement on President Trump’s trade war, which has resulted in China imposing tariffs today on Virginia goods:
“China engages in unfair trade actions that must be addressed, but today, President Trump’s mishandling of the trade situation caused China to officially retaliate against the U.S. by placing tariffs on $34 billion worth of American goods. And who will be hit the hardest? Virginia farmers, manufacturers, and consumers. The trade war that President Trump created moves us further away from a solution, punishes American workers, and raises prices on the products families rely on. President Trump needs to resolve this irresponsible dispute quickly before he does irreparable damage to Virginia’s agricultural industry and economy.”
Despite clear warnings from China that they would retaliate with high tariffs on soybeans, Virginia’s number one agricultural export, President Trump placed tariffs on China at 12:01 am on Friday, July 6. China quickly responded today with tariffs on $34 billion of American goods, including soybeans, beef, cotton, and dairy. Soybean production in Virginia accounts for roughly $187 million in economic output, which helps supports thousands of jobs in the Commonwealth. The Virginia Department of Agriculture and Consumer Services (VDACS) has confirmed that China is the Commonwealth’s biggest export market for agricultural goods and suggested President Trump’s tariffs could hurt Virginia businesses and employees. China is also imposing tariffs on more than 500 other American goods exported to the country. President Trump has tweeted that “trade wars are good.”
Warner and Kaine spoke out for months asking President Trump to avoid the tariffs that China imposed today.
Warner Joins Baldwin, Van Hollen and Schumer Letter Calling for Public Review of SEC’s Outdated Stock Buyback Rules
Jun 28 2018
WASHINGTON, D.C. – Amid concerns surrounding the accelerating pace of stock buybacks in U.S. capital markets, U.S. Senators Tammy Baldwin (D-WI), Chris Van Hollen (D-MD) and Minority Leader Chuck Schumer (D-NY) are leading their colleagues to call on U.S. Securities and Exchange Commission (SEC) Chairman Jay Clayton to open a public comment period to review the SEC’s current rules around stock buybacks, which haven’t been updated in over a decade.
In 1982, the SEC finalized rule 10b-18 which, for the first time, allowed public companies to buy back their stock without fear of being charged with stock market manipulation. Since that time, there has been a 40,000% increase in stock buybacks. The Republican tax bill has only fueled this trend. So far this year, corporations have announced more than $480 billion in stock buybacks, overwhelmingly benefiting top executives and wealthy shareholders, and leaving middle class workers behind.
In the letter to Chairman Clayton, the Senators stated, “We write with concerns about the accelerating pace of stock buybacks in U.S. capital markets. The Securities and Exchange Commission (“SEC” or “the Commission”) last updated Rule 10b-18, which governs stock buybacks, in 2003. Since that time, there have been significant changes in executive compensation practices, shareholder activism, and investing technology. Therefore, we respectfully request that the Commission begin a process to review how companies are conducting buybacks under Rule 10b-18 and whether corporate insiders are exploiting buybacks to sell shares received as executive pay at inflated prices.”
“While we are troubled by the magnitude of stock buybacks and the consequences for employees and communities, we are even more disturbed by the dramatic increase in stock sales by corporate insiders following the announcement of a buyback. This phenomena means it is imperative that the SEC revisit the evolution of Rule 10b-18 to ensure that corporate executives are not using the rule inappropriately to enable advantageous sales of their own stock while ignoring the needs of their companies’ workers,” the Senators continued.
U.S. Senators Sherrod Brown (D-OH), Cory Booker (D-NJ), Elizabeth Warren (D-MA), Ron Wyden (D-OR), Mark Warner (D-VA), Sheldon Whitehouse (D-RI), Kirsten Gillibrand (D-NY), Jack Reed (D-RI), Richard Blumenthal (D-CT), Edward Markey (D-MA), Mazie Hirono (D-HI), Ben Cardin (D-MD), Dianne Feinstein (D-CA), Angus King (I-ME), Brian Schatz (D-HI), Jeff Merkley (D-OR), Joe Donnelly (D-IN) and Maggie Hassan (D-NH) also signed the letter.
The full letter is available here.
An online version of this release is available here.
Jun 28 2018
WASHINGTON – U.S. Sen. Mark R. Warner (D-VA), Ranking Member of the Senate Banking Subcommittee on Securities, Insurance, and Investment, released a statement after the Securities and Exchange Commission (SEC) today voted to adopt amendments to eXtensible Business Reporting Language (XBRL) requirements for operating companies and funds:
“This is a long-overdue move that will improve the quality and accessibility of XBRL data, lowering costs for filers and investors. This is just one of several steps that the SEC should take to modernize existing reporting requirements.”
In July 2015, Sen. Warner and Sen. Mike Crapo (R-ID) sent a letter calling on the SEC to implement in-line XBRL.
Sen. Warner has been a longtime advocate for improving data access and transparency. The Digital Accountability and Transparency (DATA) Act, bipartisan federal financial management and transparency legislation authored by Sen. Warner, was signed into law in May 2014, requiring the development of government-wide financial data standards to make it easier to compare federal spending across federal agencies.