International Trade Law News

Today's mark-up of H.R. 5264, the Trade Preference Extension Act of 2008, by the House Ways and Committee took an interesting last-minute twist. Rather than extending the Andean Trade Preference Act (ATPA), Caribbean Basin Initiative (CBI) and Generalized System of Preferences (GSP) programs until September 30, 2010 as originally proposed, Chairman Rangel (D-NY) agreed to amend the bill by extending only the Andean Trade Preference Act until the end of this year. ATPA expires on February 28th.

The Ways and Means Committee subsequently agreed to approve the amended language of H.R. 5254 by a voice vote. The bill is expected to be considered by the full House during the week of February 25th.

House Republicans balked at the proposed two-year extension of ATPA since they want the House to vote on the U.S.-Colombia Free Trade Agreement as soon as possible.

As a result of this compromise, the extension of the CBI and GSP programs will have to wait until new legislation is introduced or is included in some other legislative vehicle later this year.

The text of the amended version of H.R. 5264 can be found here.

Labels: ATPA, GSP

The House Ways and Means Committee will meet at 11 a.m. on February 14, 2008 to mark-up H.R. 5264, the Trade Preference Extension Act of 2008. As previously reported, H.R. 5264 would extend the Andean Trade Preference, Caribbean Basin Initiative and Generalized System of Preferences programs, all of which are scheduled to expire this year, until September 30, 2010.

Update: The hearing has been changed to 9 a.m. on February 14th.

Labels: Congress, GSP

House Ways and Means Committee Chairman Charles B. Rangel (D-NY) last week introduced H.R. 5264, the Trade Preference Extension Act of 2008, a bill that would extend three trade preference programs scheduled to expire this year.

H.R. 5264 would would extend the following trade preference programs until September 30, 2010:

• Andean Trade Preference Act (ATPA) – Expires on February 29, 2008. ATPA was enacted in 1991 to combat drug production and trafficking in the Andean countries of Bolivia, Colombia, Ecuador and Peru. The program offers trade benefits to help these countries develop and strengthen legitimate industries. ATPA was expanded under the Trade Act of 2002 and is now called the Trade Promotion and Drug Eradication Act. ATPA provides duty-free access to U.S. markets for approximately 5,600 products.

• Caribbean Basin Initiative (CBI) – Expires on September 30, 2008. The following nineteen countries benefit from Caribbean Basin Initiative (CBI) : Antigua and Barbuda, Aruba, Bahamas, Barbados, Belize, British Virgin Islands, Costa Rica, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Netherlands Antilles,Panama, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Trinidad and Tobago.

• Generalized System of Preferences (GSP) – Expires on December 31, 2008. GSP provides preferential duty-free entry for more than 4,650 products from 143 designated beneficiary countries and territories. H.R. 5264 also addresses a number of issues with the textile provisions of the African Growth and Opportunity Act (AGOA) and the competitive need limitation waiver provisions of GSP.
  

The renewal of ATPA benefits is particularly important to Peru and Colombia, countries that the U.S. has entered into free trade agreements with. However, the U.S.-Peru Trade Promotion Agreement (TPA), which was passed by both countries in 2007 will not take effect until both countries adopt the appropriate implementing regulations. While it has typically taken approximately eight months for the U.S. to implement most other free trade agreements after they were passed into law, reliable sources have indicated that the U.S.-Peru TPA will not take effect until January 1, 2009. The U.S. Congress has not yet passed the U.S.-Colombia FTA and prospects for its passage in Congress this year look dim . Renewing ATPA benefits for Bolivia and Ecuador have faced resistance in Congress because of the anti-U.S. actions both countries have taken in the past few years.

Labels: Free Trade Agreements, GSP

The Office of the U.S. Trade Representative (USTR) yesterday announced the results of the 2006 Annual Review of the Generalized System of Preferences (GSP). As a result of the review, USTR terminated GSP eligibility for 21 products and granted waivers of the competitive need limitations on 115 products.

The 21 products were removed from the GSP program because they "can compete effectively in the U.S. market". Among the products that will be removed from GSP eligibility are: brake and brake parts and ferrozirconium from Brazil; kola nuts from Cote d’Ivoire; gold jewelry and brass lamps from India; wiring harnesses from the Philippines; gold jewelry from Thailand; and methanol from Venezuela. The 2006 import value of the products removed from GSP eligibility was approximately $4.8 billion. Total U.S. imports from beneficiary developing countries under the GSP program in 2006 were $32.6 billion, a 22% increase over 2005.

A PDF document containing a complete list of the products that were removed and added to the GSP program (and their corresponding HTS numbers can be found at the following link.

Labels: GSP, USTR

The Office of the United States Trade Representative (USTR) has announced in Monday's Federal Register that it will conduct a 2007 Generalized System of Preferences (GSP) Product and Country Eligibility Practices Review. Petitions to modify the list of products that are eligible for duty-free treatment under the GSP program and to modify the GSP status of certain GSP beneficiary developing countries because of country practices must be submitted to USTR by June 22, 2007 . The deadline for competitive need limitation (CNL) waivers are due on November 16, 2007.

Labels: GSP, USTR

The United States Trade Representative has announced in the January 22, 2007 Federal Register that Bulgaria and Romania are no longer eligible for Generalized System of Preferences (GSP) benefits due to their accession to the European Union on January 1, 2007.

Labels: Customs, GSP