Senate Passes One Year Extension of GSP and ATPA (President Expected to Sign)

The House passed H.R. 4284 on December 14, 2009. H.R. 4284 will now go to the President for his signature. The Obama Administration has already voiced support for a GSP/ATPA extension.

(A hold on H.R. 4284 placed by Senator Lautenberg (D), due to a custody case involving a child in Brazil, had been preventing the measure from coming up for a vote on the Senate floor. However, on December 22, 2009, it was reported that Senator Lautenberg removed his hold on H.R. 4284, allowing the Senate to pass H.R. 4284.)

GSP and ATPA/ATPDEA Would be Extended 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 and Senate 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 nations that need assistance are getting it.

Senators Baucus and Grassley of the Senate Finance Committee have stated that they remain committed to reforming U.S. trade preference programs and improving the programs to help alleviate poverty in least developed countries by facilitating sustainable economic growth. As part of their reform efforts, the Senators plan to examine key elements of the programs, including their duration, eligibility criteria, product coverage, graduation, rules of origin and enforceability. Reform legislation is expected to be introduced in 2010.

(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, and ATPA/ATPDEA (for Colombia, Peru, and Ecuador) are scheduled to expire on December 31, 2009, unless H.R. 4284 is enacted.

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.)

(See ITT's Online Archives or 12/18/09 news, 09121810, for most recent BP summary on GSP/ATPA extension, including details of H.R. 4284.

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.

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.)

H.R. 4284 available at http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=111_cong_bills&docid=f:h4284ih.txt.pdf.

Senate Finance Committee press release (dated 12/22/09) available at http://finance.senate.gov/press/Bpress/2009press/prb122309.pdf.