GSP for Most Countries & ATPDEA to Expire Dec 31 Unless Extended
The Generalized System of Preferences (GSP) 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, 2010, unless a law extending it is enacted.
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(For AGOA beneficiary countries, both the GSP program (i.e., A, A*, and A+) and the AGOA-GSP program (i.e., D) remain in effect through September 30, 2015.
In addition, the Andean Trade Preference Act/Andean Trade Promotion and Drug Eradication Act (ATPA/ATPDEA) will expire on December 31, 2010 (for Colombia, Peru, and Ecuador), unless a law extending it is enacted.
House, Senate Committees are Discussing GSP and ATPDEA Extension
According to a Congressional source, the House Ways and Means and Senate Finance Committees are discussing an extension of the GSP and ATPA/ATPDEA programs. Due to time constraints, any such legislation is likely to be a straight extension, rather than a reform of these trade preference programs.
(See ITT’s Online Archives or 03/10/10 news, 10031005, for BP summary of Senate Finance leaders’ early 2010 plans for trade preference reform, etc.)
GSP Eligibility of Sleeping Bags Could Again Be an Issue
In 2009, prior to the enactment of a one-year extension of the GSP and ATPA/ATPDEA programs, sources had reported that Senate passage of the GSP extension legislation was threatened by objections raised by Senators Sessions (R) and Shelby (R) over GSP eligibility for sleeping bags made in Bangladesh.
(In April 2010, the International Trade Commission released a report on the economic effect of possibly removing sleeping bags in HTS 9404.30.80 from GSP, which found that imports of the subject sleeping bags declined by 35% during 2005-2009. Then in July 2010, the U.S. Trade Representative denied a petition to remove GSP eligibility for sleeping bags classified under HTS 9404.30.80 as part of its 2009 annual GSP review. See ITT’s Online Archives or 07/02/10 and 04/21/10 news, 10070221 and 10042131, for BP summaries.)
New bill would remove GSP eligibility for sleeping bags. On September 22, 2010, Senator Sessions introduced S. 3823, a bill to remove sleeping bags in HTS 9404.30.80 from GSP preferential treatment. In his press release announcing the introduction of S. 3823, Senator Sessions (R) notes that his legislation could be attached to a broad authorization of the GSP program that the Senate is expected to consider in 2010.
(See ITT’s Online Archives or 09/23/10 news, 10092305, for BP summary announcing the introduction of S. 3823. See ITT’s Online Archives or 08/10/10 news, 10081017, for BP summary of H.R. 5940, a House bill to remove GSP eligibility for sleeping bags in HTS 9404.30.80.)
(See ITT’s Online Archives or 12/30/09 news, 09123005, for BP summary of the President’s extension of GSP and ATPA/ATPDEA through December 31, 2010.)