Still Time for Senate to Pass GSP/ATPA Extension (But Bill Has Become a Target for Holds)
According to U.S. government sources, objections raised in the Senate by Senators Shelby, Sessions, and Snowe to the House-passed bill (H.R. 4284) to extend the Generalized System of Preferences and Trade Preference Act/Andean Trade Promotion and Drug Eradication Act (ATPA/ATPDEA) through December 31, 2010 appear to have been resolved.
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Three Holds Appear to Have Been Resolved, But Another Has Surfaced
Although the Shelby, Sessions, and Snowe holds and objections placed on H.R. 4284 appear to have been resolved as of December 17, 2009, another hold has developed. The Associated Press and other media reported on December 18, 2009 that there is a hold on the bill due to the controversy surrounding a custody battle over a child in Brazil. (Brazil is a GSP beneficiary country.)
Still Time for Passage by Senate, as It Remains in Session for Health Care Bill
Although the House has "adjourned" for the year, the Senate remains in session to consider health care. Various sources indicate that the Senate may stay in session until Christmas Eve (or possibly after) if needed to resolve issues with the health care bill. As a result, there is still time for Senate to pass H.R. 4284 (if all Senators remove their holds and objections from the measure). The Obama administration has indicated its support for a GSP and ATPA/ATPDEA extension.
(The House had passed H.R. 4284 on December 14, 2009.)
H.R. 4284 Would Extend GSP and ATPA/ATPDEA for One Year, Without Change
H.R. 4284 would extend GSP and ATPA/ATPDEA, without change, through December 31, 2010.
For ATPA/ATPDEA, the extension would apply to Colombia, Ecuador, and Peru, the ATPDEA regional fabric tariff preference level (TPL), and the ATPDEA brassiere provision. H.R. 4284 would also extend through December 31, 2010 (from December 31, 2009) authority for the President to take certain bilateral emergency tariff actions with respect to ATPDEA apparel. H.R. 4284 would move up the deadline for a report on ATPA/ATPDEA, including compliance with eligibility criteria., to June 30, 2010 (from April 30, 2011).
(H.R. 4284 would fund the GSP and ATPA/ATPDEA extensions by extending the merchandise processing fee (MPF) and certain other Customs user fees for 3-4 months. H.R. 4284 would also make certain revisions to provisions on corporate estimated taxes in Section 202(b) of the Corporate Estimated Tax Shift Act of 2009.)
House Ways and Means to Work on Preference Program Reform in 2010
Representative Levin (D), Chairman of the House Ways and Means Committee's Trade Subcommittee has stated he wants to undertake a comprehensive review of all aspects of preference programs in 2010. He expects the review to consider how well existing eligibility criteria are working and whether improvements or additions are needed (for example, with regard to the environment) and whether all the nations that need assistance are getting it.
The Senate similarly has expressed in interest in Preference Program reform.
(GSP (i.e., A, A*, and A) for most beneficiary countries, i.e., other than those listed as African Growth and Opportunity Act beneficiary countries, is scheduled to expire on December 31, 2009, unless a law extending it is enacted. Similarly, the ATPA/ATPDEA is scheduled to expire on December 31, 2009 (for Colombia, Peru, and Ecuador).
For AGOA beneficiary countries, both the GSP program (i.e., A, A*, and A) and the AGOA-GSP program (i.e., D) expire on a later date - September 30, 2015.)
1Various press and trade association reports had indicated that Senate passage of H.R. 4284 was being jeopardized by objections raised by Senators Sessions and Shelby over GSP eligibility for sleeping bags made in Bangladesh and Senator Snowe regarding passage of a small business bill. (According to one source, in early December 2009, Senator Shelby and/or Senator Sessions sent a letter to the Administration requesting that the issue of GSP eligibility for sleeping bags from Bangladesh be addressed.
(See ITT's Online Archives or 12/15/09 news, 09121505, for BP summary of the House passage of H.R. 4284.
See ITT's Online Archives or 11/18/09 news, 09111805, for BP summary of the Administration's expression of support for GSP and ATPA/ATPDEA renewal.
See ITT's Online Archives or 11/20/09 news, 09112010, for BP summary of recently introduced House trade reform bill which would modify GSP and AGOA, create new preference program, etc.)
H.R. 4284 available at http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=111_cong_bills&docid=f:h4284ih.txt.pdf.