Senate Finance Committee Chairman Urges Retention of Export Trading Company Act Benefiting U.S. Exporters
According to a press release from the U.S. Senate Finance Committee, Chairman Chuck Grassley urged the retention of the Export Trading Company Act of 1982 (Act)-a law that helps U.S. exporter associations including corn refiner and pork producer groups.
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
According to the press release, the Act provides a limited antitrust exemption for exporter associations. Specifically, the Act:
allows U.S. exporters to work together to lower exporting costs by sharing information regarding foreign markets, negotiating freight rates, operating joint sales facilities, and engaging in other joint export activities.
makes it possible for industry groups to manage export quotas without fear of antitrust liability. The U.S. has agreements with some countries that import certain U.S. agricultural commodities that tariff rate quotas (TRQs) permitting the importation of these commodities be administered - for practical reasons - in the U.S. However, the U.S. government does not have the legal authority to manage export quotas. (For example, under the Act, the U.S. corn refining industry manages the TRQ for exports of U.S.-produced high-fructose corn syrup to Mexico.)
Antitrust Modernization Commission to Consider Whether to Recommend the Repeal or Sunset of the Act
According to the press release, the Antitrust Modernization Commission (AMC)-a 12-member government commission created in 2002-is considering whether to recommend to Congress and the President the repeal or sunset of the Act.
Senator Grassley's press release (dated 06/20/06) available at http://finance.senate.gov/press/Gpress/2005/prg062006.pdf
AMC notice (FR Pub 06/23/06) available at http://a257.g.akamaitech.net/7/257/2422/01jan20061800/edocket.access.gpo.gov/2006/pdf/E6-9931.pdf