No Agreement Yet on Legislation to Extend GSP, ATPA/ATPDEA
According to trade sources, Congressional leaders have not yet reached agreement on legislation to extend the Generalized System of Preferences Program (GSP) or the Andean Trade Preference Act/Andean Trade Promotion and Drug Eradication Act (ATPA/ATPDEA) beyond their December 31, 2009 expiration dates.
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.
Administration Has Acknowledged "Difference of Opinion" on Length of GSP Extension
At a November 17, 2009 House Ways and Means Committee hearing on reforming preference programs such as GSP and ATPA/ATPDEA, the USTR General Council stated that the Obama Administration was aware that there may be differences of view on the most appropriate length of a possible extension of GSP, but that it favored an extension at this time that was consistent with the sound operation of the program.
GAO Has Also Noted Differences in Views on Renewal Period
At that same hearing, the Government Accountability Office testified that preference beneficiaries and U.S. importers feel that short program renewal periods discourage longer-term productive investments, while some U.S. officials believe that periodic program expirations can be useful as leverage to encourage countries to act in accordance with U.S. interests such as global and bilateral trade liberalization.
In November, Senate Finance Chair Predicted GSP, ATPA Renewal Before Expiration
In a November 10, 2009 speech, Senate Finance Committee Chairman Baucus predicted that GSP and the Andean trade preference programs would be extended before they expire on December 31, 2009. He expected the extensions to be short-term, but longer than six months.
Congress Still Working on Legislation to Reform GSP and Other Trade Preference Programs
Both the House Ways and Means and Senate Finance Committees have stated that they are working on legislation to reform the GSP and other trade preference programs. The first bill on the subject, H.R. 4101 was recently introduced by Representative McDermott, and would extend and reform GSP and the African Growth and Opportunity Act, and create a new preference program for non-AGOA least developed countries. H.R. 4101 would also allow the President to grant duty-free treatment to certain excluded products such as textiles and apparel, watches, etc. under these three programs.
Senate Hearing on Trade Preferences Likely in 2010
The Senate Finance Committee was scheduled to hold a hearing on U.S. preference program reform on November 19, 2009, but that meeting was postponed. Although a new date for the hearing has not been announced, the hearing is likely be held next year.
(The Generalized System of Preferences program (i.e., A, A*, and A) for most beneficiary countries, i.e., other than those listed as African Growth and Opportunity Act (AGOA) beneficiary countries, will expire on December 31, 2009, unless a law extending it is enacted. In addition, the ATPA/ATPDEA is scheduled to expire on December 31, 2009 (for Colombia, Peru, and Ecuador).)
(See ITT's Online Archives or 11/13/09 news, 09111315, for BP summary of hearing announcement.
See ITT's Online Archives or 11/20/09 news, 09112010, for initial BP summary on H.R. 4101.
See ITT's Online Archives or 11/18/09 news, 09111805, for BP summary on witness testimony at the House Ways and Means Committee preference reform hearing.
See ITT's Online Archives or 11/11/09 news, 09111105, for BP summary of the announcement of the House Ways and Means Committee trade preference program hearing.)