GSP & TAA Concerns Have Reportedly Stalled GSP/ATPDEA, MTB Bill in Senate
Although the House passed H.R. 6517, a bill to extend the Generalized System of Preferences program and the Andean Trade Preferences Act/Andean Trade Promotion and Drug Eradication Act, implement hundreds of duty suspensions and reductions, etc., on December 15, 2010, opposition has to this point prevented the Senate from moving forward with H.R. 6517.
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.
GSP and TAA Issues Have Prevented Senate Consideration of H.R. 6517
Various press and congressional sources have indicated that Senator Sessions (R) has placed a “hold”1 on H.R. 6517 due to his opposition to GSP duty-free benefits for sleeping bags.
In addition, sources indicate that objections have been raised regarding the Trade Adjustment Assistance (TAA) provisions in H.R. 6517. Some have indicated that certain Senators object to moving forward with TAA without also moving forward with the U.S.-Colombia Free Trade Agreement.
Talks on GSP/ATPA Extension are Continuing
Sources indicate that discussions continue with parties trying to find a way forward to extend the expiring trade provisions.
GSP for Most Countries and ATPA Expire on Dec 31, 2010 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 beforehand.
(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.
In the Past, “Late” Extensions Have been Retroactive to Date of Expiration
Given the time constraints facing Congress (the 111th Congress is slated to end soon), 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).
(See ITT’s Online Archives or 08/08/02 news, 02080805, for 2002 CBP instructions on the retroactive renewal of the Standard GSP program, which was issued in August 2002 for the period of October 1, 2001 to December 31, 2006.
See ITT’s Online Archives or 08/08/02 news, 02080810, for 2002 CBP instructions on the retroactive renewal of the duty-free provisions of the ATPA, which was issued in August 2002 for the December 5, 2001 through December 31, 2006 period.)
1A “hold” is an informal practice by which a Senator informs his or her floor leader that he or she does not wish a particular bill or other measure to reach the floor for consideration. The Majority Leader need not follow the Senator's wishes, but is on notice that the opposing Senator may filibuster any motion to proceed to consider the measure.
(See ITT’s Online Archives or 12/20/10 news, 10122035, for previous BP summary on the placement of a “hold” on H.R. 6517 regarding GSP.
See ITT’s Online Archives or 12/17/10 news, 10121723, for detailed BP summary of House-passed H.R. 6517.)