Ways and Means Hears Trade on Pending FTAs, ATPDEA, China Currency

NAM Urges ATPA/ATPDEA Extension for Colombia, More FTAs

In his written statement, the witness representing the National Association of Manufacturers noted that Congress recently extended the Andean Trade Preferences Act/Andean Trade Promotion and Drug Eradication Act (ATPA/ATPDEA) preferences for Colombia through February 12, 2011 and urged the House Ways and Means Committee to act quickly to extend such preferences to Colombia for a longer period. (Note -- ATPDEA was also extended through February 12, 2011 for Ecuador.)

The written statement also encouraged the Administration to pursue further trade agreements, including the Trans-Pacific Partnership (TPP) agreement, as well as a possible Asia-Pacific Free Trade Area, Free Trade Area of the Americas (FTAA), Western Hemisphere tariff-free economic zone, etc.

(Note - GSP for most beneficiary countries (A, A+, and A*), i.e., other than those listed as African Growth and Opportunity Act beneficiary countries, expired for goods entered or withdrawn from warehouse after midnight, December 31, 2010.)

Pending FTAs Have Provisions to Resolve Certain Express Delivery Service Concerns

Also testifying at the hearing were representatives from the express carrier, automobile, services, manufacturers, and agriculture private sectors.

In a written statement, the express courier witness noted that the three pending FTAs have provisions that address and resolve a number of the Express Delivery Services industry’s concerns with aspects of the current customs regimes and postal laws in each country.

In their written statements, the other trade and business witnesses generally expressed support for the pending FTAs (although the automotive witness’ statement addresses only the U.S.-Korea FTA (KORUS FTA)).

Chairman Urges Consideration of the Pending FTAs in Next Six Months

While he welcomed the President’s announcement of a clear timetable for resolving the outstanding issues surrounding the South Korea FTA, Camp expressed the hope that the President would lay out such a timetable for the other pending FTAs in his State of the Union address. Camp further expressed the belief that all three of the pending FTAs should be considered in the next six months.¹

KORUS FTA Implementing Legislation Expected in Coming Months

Representative Levin (D), the Committee’s Ranking Member, stated that the KORUS FTA has been substantially improved and the implementing legislation should be available in the coming months for consideration and approval.

(In a recent speech, U.S. Trade Representative Kirk stated that the Administration’s goal is to have the U.S.-Korea Free Trade Agreement approved by Congress by July 1, 2011, a symbolic date as the European Union’s FTA with Korea goes into effect then. See ITT’s Online Archives or 01/18/11 news, 11011818, for BP summary of the USTR’s remarks.)

Trade Subcommittee Chair Claims Enough Votes to Pass Panama FTA

In his remarks at the hearing, Trade Subcommittee Chairman Brady (R) noted that Panama has addressed all U.S. concerns and that the Panama FTA is ready to go. According to Chairman Brady, there are currently enough votes to pass the Panama FTA.

Chairman Brady also noted that a similar situation exists for Colombia and that the Colombian government has made improvements in the areas that were of U.S. concern (e.g., labor rights, human rights, violence, etc.).

Ranking Member Urges Action on China Currency and Other Issues

Ranking Levin also expressed the hope that the Ways and Means Committee can continue the work it began in the previous Congress regarding currency, as well as China’s other trade-distorting practices.

Additional FTA Hearing Featuring USTR Expected in the Future

Representative Camp (R), Chairman of the House Ways and Means Committee, stated that he hopes to have the U.S. Trade Representative appear at another hearing on the pending FTAs in the near future.

¹Prior to the end of the 111th Congress, Representative Brady stated that the goal of the new Republican House is to move the pending FTAs in the first six months of 2011. At that time, Brady noted that there were certain issues, such as whether or not the 60-day fast track “clock” has stopped on the U.S.-Colombia FTA, whether all three pending FTAs need to be resent to Congress, etc., that needed to be worked out. (See ITT’s Online Archives or 12/14/10 news, 10121420, for BP summary of Brady’s remarks.)

(See ITT’s Online Archives or 01/19/11 news, 11011855, for BP summary announcing this hearing.)

Hearing materials, including written witness statements, are available on the Ways and Means Web site (http://waysandmeans.house.gov/) under Hearings.