The U.S. faces a critical opportunity in the coming days to determine how best to boost trade with Africa as the Obama administration prepares to host 50 African heads of state for the U.S.-Africa Leaders Summit from Aug. 4-6, said U.S. Trade Representative Michael Froman in remarks before the Brookings Institution on July 29. The House and Senate will also host hearings on the African Growth and Opportunity Act (AGOA) on July 29 and July 30 (see 14072537). Froman said the administration is collaborating with Congress to renew AGOA and the expired Generalized System of Preferences. AGOA, which entered into force in 2000, is due to expire at the end of fiscal year 2015 and many beneficiaries of the program are pushing for early renewal in order to preserve existing supply chains. “Since 2000, U.S. goods exports to sub-Saharan Africa increased fourfold, from $6 billion to $24 billion,” said Froman. “Last year, U.S. exports to sub-Saharan Africa supported nearly 120,000 jobs here in the United States. Given that Africa is home to the world’s fastest-growing middle class and six out of the top 10 fastest-growing economies in 2014, it’s easy to see why global companies like GE, Caterpillar, and Procter & Gamble increasingly view engaging with Africa not as a choice, but as a necessity.”
The American Apparel and Footwear Association (AAFA) led a delegation of industry representatives to Capitol Hill during the week of July 21-25 to discuss the "Preservation of the First Sale customs valuation program", the expired Generalized System of Preferences and Miscellaneous Tariff Bill laws, and other issues, said AAFA in a press release. While the AAFA didn't specify which lawmakers the delegation met with, it said they consulted with congressional leadership, as well as members of the Senate Finance and House Ways and Means Committees. AAFA will lead other visits to the Capitol in the coming weeks and months, said the release.
The Bangladeshi government and industry have so far failed to complete worker rights and labor improvements necessary for reinstatement into the Generalized System of Preferences (GSP), said the Office of the U.S. Trade Representative on July 2 after concluding a review of progress in the country. The Obama administration removed Bangladesh from the GSP program in June 2013, urging the country to improve labor conditions through an action plan.
The International Trade Commission recently posted the first changes to the 2014 Harmonized Tariff Schedule. Revision 1 to the 2014 HTS implements changes in AGOA eligibility and clarifies a list of exemptions to the Merchandise Processing Fee (MPF) that was added in January (see 14010221). It also adds new statistical suffixes for golf cart and all-terrain vehicle tires, gas stoves, refrigerator-freezers, ribbon cable connectors, magnets, and wheels and tires for various equipment and machinery, among other products. A record of the changes is (here). All of the changes in Revision 1 took effect July 1.
The House is working to pass Customs Reauthorization legislation and a Miscellaneous Tariff Bill before the 114th Congress convenes in January, said House Ways and Means Chairman Dave Camp, R-Mich., in a June 19 speech hosted by the Global Business Dialogue. Camp, who will forgo a reelection bid this year, also vowed to address African Growth and Opportunity Act renewal legislation, as well as a Generalized System of Preferences (GSP) bill. “We’ve made considerable progress on a bipartisan, bicameral renewal of the GSP program, but we’re not there yet, particularly because of concerns about using our traditional offset,” said Camp. GSP renewal legislation was held up last July due to opposition to a pay-for mechanism in the bill (see 13073016).
MINNEAPOLIS -- The Senate appears increasingly unlikely to move forward on Trade Promotion Authority (TPA), Generalized System of Preferences (GSP) renewal and Miscellaneous Tariff Bill (MTB) bills prior to November mid-term elections, said Rep. Erik Paulsen, R-Minn., at the American Associations of Exporters and Importers annual conference on June 17. The lame duck session after the elections may facilitate passage of these pieces of legislation, but the trade agenda might also be pushed to the next Congress, he indicated.
The Trans-Pacific Partnership (TPP), Trade Promotion Authority (TPA) and the Generalized System of Preferences (GSP) were listed as the top policy issues expected to have a positive impact on the clothing business, said respondents in a U.S. Fashion Industry Association survey. TPP, GSP and TPA, which would give Congressional pre-approval to the executive branch for trade agreement negotiations, were the only issues to garner a majority of responses saying that passage or renewal would positively impact business. Other areas of trade policy, including the African Growth and Opportunity Act (AGOA), the Transatlantic Trade and Investment Partnership (TTIP) and customs reauthorization legislation were largely viewed as "Hard to say/Neutral" in the survey.
Acting Deputy U.S. Trade Representative (USTR) Wendy Cutler will meet with senior Japanese negotiator Takeo Mori from June 9-10 to discuss automobile trade barriers in the Trans-Pacific Partnership, the Office of the USTR said in its weekly schedule. Cutler on June 10 will then deliver a keynote speech to a conference jointly hosted by Center for Strategic and International Studies and the Japan External Trade Organization. The speech will focus on economic integration in the Asia-Pacific region, said USTR in the release.
New lobbyist registrations on trade-related issues include:
CBP's adoption of final interim regulations to reflect Treasury Department Decisions and legislation affecting eligibility for African Growth and Opportunity Act (AGOA) preferential treatment, will make a number of changes to the agency's regulations. The updates will be effective June 26. Some of the more substantial changes include: