President Submits Implementing Bills for Pending FTAs to Congress
On October 3, 2011, the President submitted to Congress the implementing legislation for the pending free trade agreements with Korea, Colombia, and Panama1 and called on Congress to pass them, along with H.R. 2832, which contains GSP and TAA renewal and MPF changes. The Administration's goal is to have the legislation passed by October 13, 2011, the date of Korean President Lee's visit to the U.S.
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Congress Has 90 Days to Vote on FTA Bills, No Amendments are Allowed
According to the USTR, under Trade Promotion Authority already granted by Congress, the FTA legislation may not be amended, and Congress has 90 days to hold up-or-down votes on each bill. The bills are expected to first be voted on by the House, then by the Senate.
Colombia FTA Bill Contains Retroactive Renewal of ATPDEA thru July 2013
According to a statement by U.S. Trade Representative Kirk and Senate Finance Committee Chairman Baucus (D-MT), the Colombia FTA implementing legislation includes a retroactive renewal of the Andean Trade Preference Act/Andean Trade Promotion and Drug Eradication Act (ATPA/ATPDEA) from February 12, 2011 (when it expired) through July 31, 2013.
House Ways and Means to Hold Markup of FTA Implementing Bills on Oct 5
The House Ways and Means Committee has announced that it will hold a markup of the FTA implementing bills on October 5, 2011 so they can be considered as soon as possible by the full House.
House to Consider FTA Bills Consecutively, in Tandem with GSP/MPF/TAA Bill
House Speaker Boehner (R-OH) stated that now that all three agreements have been transmitted, they will be a top priority for the House. The House will quickly begin the required process to consider these bills and intend to vote on them consecutively and in tandem with Senate-passed GSP/MPF/TAA legislation (H.R. 2832).
(On September 22, 2011, the Senate passed House-passed H.R. 28322 after amending it to include a provision to renew and revise Trade Adjustment Assistance, as well as a provision to raise the MPF and then decrease it, and require it to be prepaid and then reconciled for a certain 2012 time period. This new and different MPF provision was stated to be needed due to Senate budgetary rules. However, the Korea FTA implementing legislation would raise the MPF provision for formal entries to 0.3464% ad valorem (from 0.21% ad valorem) for the period December 1, 2015 through June 30, 2021.3)
House Committee Grants Rule for Consideration of GSP/MPF/TAA Bill
On October 3, 2011, the House Rules Committee granted a rule to advance House consideration of H.R. 2832.
According to Rules Committee Chairman Dreier (R-CA), the submission of the three pending FTAs, as well as Rules Committee action on H.R. 2832, should set the stage for their ultimate approval in the very near future.
FTA Implementing Legislation and Supporting Documents Available from USTR
The USTR’s Web site contains copies of the implementing legislation and supporting documentation for the Korea, Colombia, and Panama FTAs.
1Korea (H.R. 3080, S. 1642), Colombia (H.R. 3078 and S. 1641), and Panama (H.R. 3079 and S. 1643).
2H.R. 2832, as passed by the House on September 7, 2011, would retroactively renew the Generalized System of Preferences program and raise the MPF for formal entries to 0.3464% ad valorem (from 0.21% ad valorem) for the October 2011 through June 2014 period.
3Edited on 10/07/11 to take out the phrase ", and one trade source thinks that the KORUS's bill's version is the more likely outcome."
See ITT’s Online Archives 11092611 for summary of USTR’s statement that discussions on the timing for House consideration of H.R. 2832 were ongoing.
See ITT’s Online Archives 11090818 for summary of House passing H.R. 2832.
See ITT’s Online Archives 11071320 for summary of draft KORUS bills, that included renewal of GSP and ATPA/ATPDEA, an increase to the MPF, etc.
See ITT’s Online Archives 11092309 for summary of Senate passage of H.R. 2832.
White House announcement available here
House Speaker Boehner’s statement available here.
Senate Finance Chair Baucus press release available here
USTR statement available here