House Backs Preference Package, but Final Senate Approval Still Needed
The House passed its preference package with an overwhelming 397-32 majority on June 11. Rep. Collin Peterson, D-Minn., joined Republicans in opposing the bill. The House then initiated the process to send the legislation back to the Senate. The latest version of the House legislation (here) includes different offset provisions than the bill produced by the Senate. Therefore, another vote is required in that chamber before Senate leadership can ultimately send the bill to the president's desk for his signature.
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It may still take the Senate some time to process and vote on the revised legislation, but it’s likely been “pre-cleared” by Senate leadership, said David Spooner, a trade lobbyist and lawyer with Barnes & Thornburg, in a June 11 interview. The House bill includes renewals for the African Growth and Opportunity Act, the Generalized System of Preferences and two Haiti tariff preference level programs. The update version, which passed the House on June 11, tacks on the tariff changes for performance outwear, as well as the GSP Update Act and the Affordable Footwear Act, all of which were passed as part of the Senate preference legislation.
The Coalition for GSP applauded the House action. “The inclusion of a provision that could expand product coverage going forward will allow more American companies to take advantage of the GSP program in the future,” said the coalition in a statement. “After nearly two long years, we urge all Senators to support this preferences bill without changes so that GSP renewal legislation can be enacted into law as soon as possible." GSP expired last in mid-2013. This legislation will authorize the GSP program through Dec. 31, 2017.
The Footwear Retailers and Distributors praised the movement on AGOA in a press release (here). “This bipartisan legislation is critical to U.S. footwear companies currently sourcing from Africa and those who are looking to source there in the years to come," said Matt Priest, president of the association. "We expect the Senate to move quickly to pass AGOA and the President to sign it in the coming days. As countries like Ethiopia are becoming increasingly important as a supplier of footwear to the U.S., the value of this vital trade program will only increase.”