29 Trade/Humanitarian Groups Ask USTR for Simple "Unified" Trade Preference Program (to Replace Existing Programs)

Groups Ask USTR for Early Renewal of Expiring Trade Preference Programs

The trade associations and other groups urge the USTR to seek timely renewal of expiring preference programs for those countries found to fulfill each program's eligibility criteria and to initiate review and reform of existing U.S. preference programs.

The groups support renewing the expiring preferences for eligible countries well before they lapse so that current sourcing relationships are not damaged by uncertainty and the discussion on reform is not hurried to meet the year-end deadline. Such expiration, or removal of more advanced developing countries from eligibility, effectively increases U.S. barriers to trade.

(For example, the Generalized System of Preferences (GSP), Andean Trade Preferences Act, and Andean Trade Promotion and Drug Eradication Act (ATPA/ATPDEA) are scheduled to expire on December 31, 2009; the U.S.-Caribbean Basin Trade Partnership Act (CBTPA) is scheduled to expire on September 30, 2010; and the African Growth and Opportunity Act (AGOA) is scheduled to expire on September 30, 2015.)

USTR Also Asked to Pursue Polices That Benefit World's Poorest Countries

The groups also ask the USTR to pursue policies that will benefit as many of the world's poorest countries as possible, without giving an advantage to one country or region at an expense to another. This would include addressing the unmet needs of some very poor countries while preserving the successes of current programs, such as the opportunities created under the African Growth and Opportunity Act.

Groups Submit Proposal for a Simple "Unified" Preference Program

The groups also presented the USTR with their suggestions for a new preference program that they say would preserve the best of existing programs and repair those provisions that have not been effective.

The key elements of the groups' proposal are as follows:

One unified preference program. The groups propose one simple, unified U.S. trade preference program that:

extends benefits to all developing countries, including advanced developing countries, that meet clear eligibility criteria;

contains consistent, transparent, predictable and enforceable rules for termination of country and product eligibility that also, when possible, are sensitive to opportunities to expand U.S.-beneficiary, and beneficiary-beneficiary trade;

includes a mechanism for public comment and a clear review process for continued participation with regular reporting to Congress on performance and trends in meeting eligibility criteria;

uses a simple rule of origin common to all products; and

remains in effect for a period long enough to encourage long-term investment and sourcing.

Enhanced benefits for poorer countries. The groups also propose enhanced benefits for least developed countries, sub-Saharan Africa and designated low middle-income countries, including:

extension of duty-free, quota-free market access for all products;

a less restrictive rule of origin for eligible sub-Saharan African countries;

targeted trade capacity building assistance for countries in need, including programs to help producers take advantage of preferences and resources dedicated to building local and regional capacity in sub-Saharan Africa; and

a requirement that all U.S. government foreign assistance policies and tools be aligned to support the development of strong economies and regional integration, where appropriate, to increase participation in local, regional and international trade.

¹Alliance to End Hunger, American Apparel and Footwear Association, Brazil- U.S. Business Council, Bread for the World, Business Council for Global Development, Business Roundtable, Center for Global Development, Coalition for GSP, Corporate Council on Africa, Emergency Committee for American Trade (ECAT), Fashion Accessories Shippers Association (FASA), The German Marshall Fund of the United States, The HELP Commission, The Hunger Project, Initiative for Global Development, International Food & Agricultural Trade Policy Council, National Foreign Trade Council, National Retail Federation, Oxfam America, Progressive Policy Institute, Retail Industry Leaders Association, Trade, Aid & Security Coalition (GlobalWorks Foundation), Travel Goods Association (TGA), U.S. Association of Importers of Textiles and Apparel, U.S. Bangladesh Advisory Council, U.S. Chamber of Commerce, U.S. - India Business Council, Women Thrive Worldwide, and World Vision

Letter to USTR (dated 04/21/09) available at http://www.apparelandfootwear.org/letters/PreferencesReformLetter-USTR.pdf.