House Scheduled to Consider ATPDEA Extension on Feb 8, Nothing Pending for GSP

ATPDEA Would Expire on Feb 12 if Not Extended

ATPDEA will expire on February 12, 2011 for Colombia and Ecuador, unless a law extending it is enacted.

(On December 29, 2010, the President signed into law a H.R. 6517, the Omnibus Trade Act, which extended ATPA/ATPDEA for Colombia and Ecuador 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.).)

Bill Would Extend ATPDEA for Colombia and Ecuador Through June 30, 2011

The bill would extend ATPA/ATPDEA through June 30, 2011 (from February 12, 2011) for Colombia and Ecuador², a period of about 4 1/2 months.

The extension of ATPDEA would allow the ATPDEA regional fabric tariff preference level (TPL) and the ATPDEA brassiere provision to continue through June 30, 2011. The bill would also extend through June 30, 2011 (from February 12, 2011) authority for the President to take certain bilateral emergency tariff actions with respect to ATPDEA apparel.

GSP Expired on Dec 31, 2010, and ATPDEA/TAA Bill Does Not Address It

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.)

The ATPDEA/TAA bill scheduled to be introduced and considered by the House on February 8, 2011 does not address the reinstatement of the Generalized System of Preferences (GSP) program.

House, Senate Committees Have Been Discussing GSP Reinstatement

According to Congressional sources, as of late January 2011, the House Ways and Means and Senate Finance Committees had been discussing the reinstatement of GSP, but details were not available.

Issues Facing GSP Reinstatement May Include Senate “Hold,” Retroactivity, Etc.

Some of the issues that may be facing GSP’s reinstatement include: (i) the continuation of a “hold”³ by Senator Sessions on GSP legislation due to his opposition to its duty-free benefits for certain sleeping bags, (ii) the cost of reinstating the GSP program, (iii) whether the reinstatement would be retroactive to January 1, 2011 and the cost of making reinstatement retroactive; (iv) the need to find an appropriate legislative vehicle, (v) the time period of its extension, (vi) 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.)

¹This bill has not yet been introduced.

²BPis checking with Congressional sources on whether the ATPDEA extension for Ecuador would be conditional (i.e, in effect unless the President determines that Ecuador fails to satisfy ATPA/ATPDEA beneficiary criteria).

³A “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.

USTR press release on the benefits of ATPA and GSP is available here.