NAWE testifies before U.S. Trade Representative

Carl Bentzel, President of the National Association of Waterfront Employers (NAWE), testified before the United States Trade Representative (USTR) during the public hearing on the Section 301 investigation into China’s targeted efforts to dominate the maritime, logistics, and shipbuilding industries. The hearing, held at the U.S. International Trade Commission, addressed concerns over China’s aggressive market tactics and their impact on U.S. economic security, supply chain resilience, and workforce opportunities.

In his testimony, Bentzel underscored the challenges posed by China’s state-subsidized maritime policies, which distort global competition and undermine American businesses and workers. Bentzel emphasized the need for decisive action to counter these unfair trade practices, stating:

"China’s strategy of flooding global markets with government-backed services and equipment has created an uneven playing field, disadvantaging U.S. terminal operators, logistics providers, and maritime workers. If left unchecked, these practices will further erode our domestic maritime capacity, leaving critical supply chains vulnerable and dependent on foreign interests."

Bentzel proposed recommendations on the implementation of penalties on Chinese-flag and built vessels to help minimize adverse impacts to the industry that could be caused because of the USTR penalty proposal. Specifically, Bentzel called for: penalties to be assessed per voyage as opposed to per visit to avoid port use consolidation, assessment of Harbor Maintenance Tax penalties and USTR penalties on U.S. cargo transshipped through Canada or Mexico to avoid cargo diversion from U.S. ports and urged exclusions for bulk/break bulk and smaller vessel operators that trade on smaller margin profitability.

Bentzel also requested that amounts collected through the penalty process be earmarked for policies that bolster domestic investment in the maritime sector to help the industry to transition to greater reliance on domestic manufacturing, and additional legislative effort to reinforce supply chain security.

Bentzel said, “NAWE supports the USTR and the Administration’s efforts to counterbalance these actions and restore the U.S. maritime industrial base. NAWE members would caution that thoughtful and careful planning must occur so that the implementation of USTR’s proposed actions does not disrupt the U.S. supply chain.”