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Home > Top Story Archive >June 4, 2009

Top Story

The following story is from the June 4 issue of International Trade Reporter
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Agencies and Departments

GAO Report Sought on Former U.S. Officials
Representing Foreign Clients in Trade Cases

Several House Democrats have asked the Government Accountability Office (GAO) to open an investigation into the activities of former U.S. trade officials who, they say, now advise foreign clients “in a manner adverse to the interests of domestic producers.”

The members said in a letter to the GAO on June 1 that U.S. taxpayers make substantial investments in the training and salaries of government officials and trust that they will uphold the public's interests.

“American taxpayers should not find their hard-earned money used in ways that ultimately jeopardize the interest of those producers who are struggling to survive in an increasingly competitive world market,” the letter said. “These individuals should be helping to promote growth and opportunity, not undermine it.”

The House members called on the GAO to conduct a study of the activities of former administration officials in two phases: first, covering those individuals involved in pending trade matters and second, examining the activities of former trade staff and officials over the last 15 years.

The letter, which asked the GAO to prepare a “comprehensive” report for Congress, was signed by Reps. Louise Slaughter (N.Y.), chairwoman of the House Rules Committee; Michael H. Michaud (Maine); Tim Ryan (Ohio); Gene Green (Texas); Marcy Kaptur (Ohio); Phil Hare (Ill.); Dennis J. Kucinich (Ohio); and Betty Sutton (Ohio).

Slamming the Revolving Door

Slaughter said in a prepared statement that “we need to slam the revolving door so that government employees do not walk out of their office and into lobbying positions where they may work against the best interests of American workers and industries. I hope that a detailed GAO probe into this issue will shed some light on this questionable practice.”

The House Democrats named, in particular, four Bush administration officials: James J. Jochum, former assistant secretary of commerce for import administration; Marguerite E. Trossvein, former deputy chief counsel for import administration at the Commerce Department; Stephen J. Claeys, former deputy assistant secretary of commerce for import administration; and David M. Spooner, former assistant secretary of commerce for import administration.

All those individuals, according to the House members, have chosen to represent foreign producer interests, either directly or through importing parties, on a Section 421 case at the U.S. International Trade Commission involving imports of Chinese tires (26 ITR 555, 4/23/09).

“The use of the knowledge, expertise and contacts they gained during government service is now being adversely applied to U.S. interests,” the members' letter to the GAO said. “We believe that an examination of the activities of these and other former trade staff and officials is merited to determine whether additional limitations on their post-government employment activities are necessary.”

A press release issued by Michaud's office said that the Chinese government, moreover, has been aggressively seeking to influence the outcome of the Section 421 case at the ITC through methods including “inappropriate contacts” with ITC officials (26 ITR 615, 5/7/09)(26 ITR 647, 5/14/09).

The ITC is scheduled to hold a hearing on the tire safeguard Section 421 case (Certain Passenger Vehicle and Light Truck Tires from China, Inv. No. TA-421-7) on June 2. Sens. Sherrod Brown (D-Ohio), Evan Bayh (D-Ind.), Bob Casey (D-Pa.), Arlen Specter (D-Pa.), and Blanche Lincoln (D-Ark.); Reps. Slaughter, Robert Aderholt (R-Ala.), Tom Cole (R-Okla.), Carolyn Kilpatrick (D-Mich.), and Ryan; United Steelworkers International President Leo Gerard and USW International Vice President Tom Conway are scheduled to participate.

By Gary G. Yerkey

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