Update on Prospects for GSP Reinstatement, Extension of ATPDEA Beyond Feb 12
The Andean Trade Preference Act/Andean Trade Promotion and Drug Eradication Act (ATPA/ATPDEA) will expire on February 12, 2011 for Colombia and Ecuador, unless a law extending it is enacted.
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On December 29, 2010, the President signed into law a H.R. 6517, the Omnibus Trade Act, which extended ATPA/ATPDEA for Colombia and Ecuador1 through February 12, 2011, from its original expiration date of December 31, 2010. ATPA/ATPDEA was not extended for Peru; its eligibility expired on December 31, 2010 (Peru has a free trade agreement with the U.S.).
(See ITT’s Online Archives or 12/30/09 news, 09123005, for BP summary of the enactment of a one year extension of ATPA/ATPDEA thorough 2010.)
GSP for most beneficiary countries (A, A+, and A*), i.e., other than those listed as African Growth and Opportunity Act (AGOA) beneficiary countries, expired on December 31, 2010. See ITT’s Online Archives or 01/04/11 and 12/27/10 news, 11010418 and 10122711, for BP summary of CBP’s instructions on GSP’s expiration.)
House, Senate Committees Are Discussing ATPDEA Extension, GSP Reinstatement
According to Congressional sources, the House Ways and Means and Senate Finance Committees are discussing the extension of ATPDEA and reinstatement of GSP, but details are not available.
Issues Facing GSP Reinstatement May Include Senate “Hold,” Length, Etc.
Some of the issues that may be facing GSP reinstatement include: (i) the possible continuation of a “hold”2 by Senator Sessions on GSP legislation due to his opposition to its duty-free benefits for certain sleeping bags, (ii) the need to find an appropriate legislative vehicle, (iii) the time period of its extension, (iv) etc.
Unknown Whether Trade Preference Reform Will Move This Congress
In 2010, the House Ways and Means and Senate Finance Committees worked on trying to reform the trade preferences programs (including GSP and ATPDEA). It is not yet known what kind of effort will be made toward trade preference reform in the 112th Congress. (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.)
1The extension for Ecuador is through February 12, 2011 unless the President reports to Congress that Ecuador does not satisfy ATPA/ATPDEA beneficiary criteria.
2A “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.