House Trade Subcommittee staffers are working “to make sure” that the Caribbean Basin Trade Partnership Act gets a vote before Sept. 30, when the program expires, a Democratic trade staffer said Sept. 15. She said that the Generalized System of Preferences benefits program will not be voted on this month. Several Republicans on the House Ways and Means Committee had said they wanted GSP to hitch a ride with CBTPA, including the committee's top Republican, Rep. Kevin Brady, R-Texas.
With only 20 days left before expiration, lead sponsor Rep. Terri Sewell, D-Ala., said she hopes her colleagues will support a clean reauthorization of the Caribbean Basin Trade Partnership Act, and that she fears that trying to move this bill with a Generalized System of Preferences benefits program expansion and renewal will cause delays. She said that the most recent report on the program from the Office of the U.S. Trade Representative said all eight countries are in compliance with their obligations, including labor rights.
The multifront tariff war hurts American consumers and businesses, as well as America's standing in the world, argues Rep. Stephanie Murphy, a moderate Democrat from Florida who serves on the Trade Subcommittee of the House Ways and Means Committee. Murphy, who was interviewed during an online event hosted by the Washington International Trade Association Sept. 9, said she believes returning to 10% tariffs on some categories of Canadian aluminum undermines U.S. credibility in trade.
The AGOA Action Coalition told the House Ways and Means Committee that it is staunchly against allowing apparel and textiles to be covered for all Generalized System of Preferences benefits program countries. The group, which publicized its Sept. 3 letter, argued that all the African clothing production nurtured by the duty-free access under the African Growth and Opportunity Act would be put out of business if Pakistan, Cambodia, Indonesia and the Philippines are granted duty-free access in apparel, as “margin-hungry sourcing managers” would choose these more competitive factories. They noted that AGOA participant country textile exports were $1.4 billion, compared with $4.9 billion from Indonesia.
The Court of International Trade on Sept. 2 declined to order the release of an importer’s entries that were detained by CBP on country of origin concerns, finding the uncertainty around its own contradictory line of cases on substantial transformation was a factor in denying the bid for a preliminary injunction.
The top Republican on the House Ways and Means Committee said he thinks renewing the Caribbean Basin Trade Partnership Act this month is very important. Rep. Kevin Brady, R-Texas, didn't say whether it could move as a suspension bill or as part of a continuing resolution package, but said either way, he would support it.
Market access negotiations needed to return India to the Generalized System of Preferences benefits program may be mostly “sorted out,” India's Economy Minister Piyush Goyal said in a speech to the U.S.-India Strategic Partnership Forum Sept. 1. His office summarized some points about the deal, which was described as foundational, in a series of tweets. U.S. Trade Representative Robert Lighthizer “and I agreed that we can look finalising before the election, but otherwise soon after the election,” he said. “The entire package is nearly ready and can be finalised at any time. India is open to signing tomorrow on what we have agreed on.”
Although bills renewing the Caribbean Basin Trade Partnership were offered in the last Congress without action, and this year's bill has been waiting 11 months, Senate Finance Committee Chairman Chuck Grassley, R-Iowa, said advocates of the program shouldn't worry it will expire at the end of September. Grassley, in response to an International Trade Today question during a conference call with reporters Aug. 27, said renewal is probably something that can pass the Senate by unanimous consent.
After the first high-level review of the phase one trade deal, the principals talked about progress and ensuring the success of the U.S.-China trade agreement, but some believe the happy talk can't obscure that China and the U.S. are disentangling their mutual dependency in tech goods and services. “There is a re-alignment that is happening in real time,” Rideau Potomac Strategy Group President Eric Miller said in an Aug. 25 phone interview, the day after the call. U.S. and Chinese trade officials reemphasized their commitment to the phase one agreement during the Aug. 24 call, the Office of the U.S. Trade Representative said.
There are no plans to automatically extend Section 301 tariff exclusions, U.S. Trade Representative Robert Lighthizer said in answers to written questions from senators on the Finance Committee and members of the House Ways and Means Committee. When he was asked repeatedly by members of Congress if the exclusions would be extended automatically to help small businesses struggling due to the COVID-19 recession, he said no and that “USTR has not decided whether to possibly extend again the exclusions extended until the end of 2020.” Lighthizer testified at the hearings in June (see 2006180029 and 2006170008).