Committees Approve Draft FTA Bills with MPF Increase, GSP, ATPDEA, Etc.
On July 7, 2011, the House Ways and Means and Senate Finance Committees held “mock” mark-ups and approved without amendment1 draft implementing bills for the Korea, Colombia, and Panama free trade agreements, which include an increase in the merchandise processing fee for formal entries and retroactive renewal of the Generalized System of Preferences (GSP) and Andean Trade Preference Act (ATPA)/Andean Trade Promotion and Drug Eradication Act (ATPDEA).
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Senate Draft Bills Include TAA, House Draft Bills Do Not, Administration Want to Work with Congress
The Senate Finance Committee version of the Korea FTA (KORUS) draft implementing bill includes a modification and renewal of Trade Adjustment Assistance, but the House Ways and Means Committee version does not. Following the “mock” mark-ups, the U.S. Trade Representative indicated the Administration’s willingness to work with Congressional leaders to advance a “balanced trade agenda” that includes the pending FTAs and TAA.
Senate Finance Chair is Open to Other Options for Extending TAA
In his opening remarks, Senate Finance Chairman Baucus (D) noted that he included TAA in the KORUS draft implementing bill for the “mock” mark-up, but that he remains open to other options for extending TAA, as long as they provide certainty that the bipartisan TAA deal will be enacted in tandem with the FTAs.
Ways & Means Draft Bills Include MPF Increase, GSP & ATPA Renewal
In addition to establishing the necessary conditions for the FTA to enter into force, House Ways and Means’ draft implementing bills include provisions to, among other things:
- Increase the merchandise processing fee (MPF) on formal entries to .3464% ad valorem (from .21%); and
- Renew GSP and ATPA/ATPDEA through July 31, 2013 retroactively to their most recent expiration dates2.
Finance Draft Bills Include MPF Increase, GSP & ATPA Renewal
In addition to establishing the necessary conditions for the FTA to enter into force, Senate Finance’s draft implementing bills include provisions to, among other things:
- Increase the MPF on formal entries to .343% ad valorem (from .21%);
- Renew GSP and ATPA/ATPDEA through July 31, 2013 retroactively to their most recent expiration dates2; and
- Modify and renew TAA.
Ways and Means, Finance Reject Amendments to Address Colombia Labor Plan
During their "mock" mark-ups, both Committees rejected Democratic amendments to address the Colombia Labor Action Plan in the draft Colombia FTA implementing bill.
Draft FTA Implementing Bills, SAAs Available on Committee Web Sites
The draft FTA implementing bills and the Statements of Administrative Action (SAA) are available on the respective Committee Web sites. The Senate Finance Committee draft bills, SAAs, etc. are available here. The House Ways and Means Committee’s draft bills and SAAs are available here.
(Both Committees considered the FTA draft implementing bills (including their GSP, ATPDEA, and TAA renewals) during "mock" mark-ups because Congress cannot offer amendments to the final implementing bills submitted by the Administration under TPA3 procedures.Committee mock markups are the only opportunities for Congress to offer amendments to the Administration’s proposals. Following Administration review of any amendments that the Senate Finance and House Ways and Means Committees approve on the draft implementing bills, final versions of the implementing bills will be submitted to Congress for an up-or-down vote (i.e., no amendments).)
1The Senate Finance Committee considered the Chairman’s “modified” versions of the draft FTA implementing bills.
2GSP 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. ATPA/ATPDEA for Colombia and Ecuador expired on February 12, 2011.
3Also known as fast track, which expired on July 1, 2007.
Senator Baucus press release on mark-up available here
House Ways and Means Committee press release on mark-up available here
USTR statement available here