GSP Extension Fails to Pass, ATPDEA Gets Six Weeks
On December 22, 2010, the Senate and House passed an amended version of H.R. 6517, the Omnibus Trade Act of 2010, which contains a six week extension of the Andean Trade Preferences Act/Andean Trade Promotion and Drug Eradication Act (ATPA/ATPDEA) and Trade Adjustment Assistance (TAA), but does not contain an extension of the Generalized System of Preferences (GSP) program.
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BP is checking on the status of the (second) Miscellaneous Tariff Bill (MTB) provisions and will update subscribers as new information is available. Subscribers should note that most of the duty suspensions and reductions contained in the second MTB were new provisions. (The first MTB contained more extensions of expired provisions than did the second MTB. See ITT’s Online Archives or 08/12/10 news, 10081218, for BP summary of the enactment of the first MTB.)
BP is also checking on reports that ATPDEA is not being extended for Peru. (The U.S.-Peru FTA entered into force on February 1, 2009, and last year, Peru was granted a one-year transition period for the ATPA/ATPDEA.)
(As originally passed by the House on December 15, 2010, H.R. 6517 contained 18 month extensions of the GSP program and ATPA/ATPDEA, hundreds of duty suspensions and reductions (the second MTB), an amendment and extension of TAA, etc.
However, that version of the bill died after Senator Sessions (R) placed a “hold” on the bill due to his opposition to GSP duty-free benefits for sleeping bags and other Senators objected to the TAA provisions for various issues, including moving a TAA extension without moving the U.S.-Colombia Free Trade Agreement.)
GSP Will Lapse on December 31, 2010
In a statement following Congress’ actions, the U.S. Trade Representative noted that the exclusion of the GSP extension from the version of H.R. 6517 passed by the House and Senate means that GSP for most beneficiary countries (A, A+, and A*), i.e., other than those listed as African Growth and Opportunity Act beneficiary countries, will lapse on December 31, 20101.
Administration Will Work with Congress to Secure Long-Term Extensions
USTR Kirk notes that while the extension of TAA and ATPA/ATPDEA is important and will allow these programs to continue for an additional six weeks, these programs require a long-term extension to ensure that they operate as intended.
According to the USTR, the Obama Administration will continue to work with Congress in an effort to secure a full, long-term reauthorization of GSP, ATPA, and TAA.
2011 Ways and Means Chair Wanted GSP and Further ATPDEA Extensions
Incoming House Ways and Means Committee Chairman Camp (R) issued a statement praising the continuation of the ATPA and TAA programs, but also noting that he would have rather passed longer-term extensions and was disappointed that the other provisions of House-passed H.R. 6517 died in the Senate.
Camp said that he looks forward to working in the 112th Congress on additional trade legislation, including enacting the trade agreements with Colombia, South Korea, and Panama.
1For 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.
(See ITT’s Online Archives or 12/17/10 news, 10121723, for BP summary detailing H.R. 6517 as originally passed by the House on December 15, 2010.
See ITT’s Online Archives or 12/22/10 news, 10122230, for most recent BP summary of the stalling of H.R. 6517 in the Senate due to GSP and TAA concerns.)
USTR statement is available here
Camp statement is available here