14 Associations Send Letter to Congress Urging Extension of ATPA/ATPDEA
On November 18, 2010, 14 retail, textile, and apparel associations1 sent a letter to Congress urging it to renew the Andean Trade Preference Act/Andean Trade Promotion and Drug Eradication Act (ATPA/ATPDEA) as soon as possible during the lame duck session.
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ATPA/ATPDEA will expire on December 31, 2010 (for Colombia, Peru, and Ecuador), unless a law extending it is enacted.
(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 also expire on December 31, 2010, unless a law extending it is enacted.)
Associations Want 2 Year Extension and Approval of Colombia FTA
The letter states that the ATPA/ATPDEA program should be renewed for at least two years, preferably longer. Gains from trade with the region are at risk if the current Andean program is allowed to lapse.
(According to the letter, exports of U.S. yarns are up 74% for the first 7 months of 2010 over the same period in 2009. U.S. fabrics have enjoyed nearly 20% growth during that same period.)
The letter also urges Congress to pass the Colombia FTA "at the first available opportunity."
House, Senate Committees Still Support GSP, ATPDEA Extension; Timing TBD
According to a Congressional source, the House Ways and Means and Senate Finance Committees are still supportive of an extension of the GSP and ATPA/ATPDEA programs before they expire at the end of the year; however, the legislative vehicle for the extensions, as well as the timing of the extensions, are still to be determined.
(Sources have previously expressed the opinion that due to time constraints, any such legislation is likely to be a straight extension, rather than a reform of these trade preference programs.)
“Late” Extensions Have Previously been Retroactive to Date of Expiration
Given the time constraints facing Congress, it is difficult to know if extension legislation will be enacted before the programs expire on December 31. Note that in the past, extensions that occurred after expiration (sometimes many months after) have been retroactive to the date of expiration (resulting in the refund of any paid-in duties).
1American Apparel & Footwear Association (AAFA)
American Fiber Manufacturers Association (AFMA)
Carpet and Rug Institute (CRI)
Georgia Traditional Manufacturers Association (GTMA)
INDA, Association of the Nonwoven Fabrics Industry
National Cotton Council (NCC)
National Council of Textile Organizations (NCTO)
National Retail Federation (NRF)
Outdoor Industry Association (OIA)
Retail Industry Leaders Association (RILA)
South Carolina Manufacturers Alliance (SCMA)
Sewn Products Equipment & Suppliers of the Americas (SPESA)
Travel Goods Association (TGA)
US Association of Importers of Textiles and Apparel (USA-ITA)
(See ITT’s Online Archives or 11/17/10 news, 10111729, for BP summary of over 100 associations and firms sending a letter urging Congress to extend GSP before December 31, 2010.)