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.
On September 22, 2011, the Senate passed H.R. 2832, a bill to reinstate the GSP program retroactive to its expiration date and renew and revise Trade Adjustment Assistance. The Senate-passed version would raise the MPF and then decrease it, and require it to be prepaid and then reconciled for a certain 2012 time period. While Senate sources state that the prepayment period is needed due to Senate budget rules, one trade source notes that these MPF provisions may be further amended to work in a more normal fashion in the Korea Free Trade Agreement implementing legislation.
In a statement praising the Senate’s passage of H.R. 2832, the U.S. Trade Representative (USTR) states that the Senate’s passage is “an important step toward renewal of the Generalized System of Preferences and enactment of Trade Adjustment Assistance reforms and the pending trade agreements with South Korea, Panama, and Colombia,” According to the USTR, discussions continue with congressional leadership on how these bills will move through the legislative process. The USTR notes that the FTAs, along with TAA, are an integral part of the President’s plan to create U.S. jobs and he looks forward to their prompt passage.
The Office of the U.S. Trade Representative announced on that on September 20, 2011, senior officials from the U.S. and Pakistan met to evaluate progress under the U.S.-Pakistan Trade and Investment Framework Agreement (TIFA). The officials discussed market access, the U.S. Generalized System of Preferences (GSP), trade promotion efforts, intellectual property rights, and sector-specific investment challenges. In addition, the U.S. officials agreed to work with Congress to enact Reconstruction Opportunity Zones (ROZ) legislation, and Pakistan provided an overview of its efforts to export mangos to the U.S. saying that additional work must be done.
U.S. Trade Representative Kirk and Indian Minister Sharma met on September 22, 2011 to discuss ways to strengthen the growing bilateral trade and investment relationship, including through more active engagement under the U.S.-India Trade Policy Forum (TPF). They discussed steps that both governments would take in the coming months to lay the groundwork for a successful meeting of the TPF in early 2012. Minister Sharma also expressed appreciation for the progress made by the Senate on GSP legislation.
On September 22, 2011, Senator Brown (D-OH) introduced a new China currency bill, the Currency Exchange Rate Oversight Reform Act of 2011 (S. 1619)1. Among other things, the new bill would clarify that countervailing duty law can be used to address currency undervaluation and trigger tough consequences for countries that fail to adopt appropriate policies to eliminate currency misalignment. Proponents of the bill pledged to push for a vote on the floor of both the House and Senate before the end of 2011.
On September 22, 2011, the Senate passed H.R. 28321, a bill to reinstate the GSP program retroactive to its expiration date, after amending it to include Trade Adjustment Assistance. Note that the bill, as amended, now appears to include two Merchandise Processing Fee provisions. See future issue for additional details.
The Office of the U.S. Trade Representative has announced that the African Growth and Opportunity Act Implementation Subcommittee is requesting written comments by October 11, 2011 for the annual review of the 2012 eligibility of sub-Saharan African countries to receive the benefits of the African Growth and Opportunity Act (AGOA).
On September 21, 2011, the Senate continued its consideration of amendments to H.R. 2832, the House-passed bill to reinstate the GSP program retroactive to its expiration date and raise the Merchandise Processing Fee. Additional amendments and the bill itself (as amended) are scheduled to be voted on September 22, 2011.
On September 20, 2011, the Senate began its formal consideration of H.R. 2832, the House-passed bill to reinstate the GSP program retroactive to its expiration date and raise the Merchandise Processing Fee.