Seven senators who represent rice-growing constituents, led by Sen. John Boozman, R-Ark., are asking U.S. Trade Representative Robert Lighthizer to remove rice from the list of eligible products under the Generalized System of Preferences benefits program. The six senators from Arkansas, Mississippi and Louisiana along with Sen. John Cornyn, R-Texas, signed the Sept. 21 letter. “Over the past several years, we have seen an annual uptick in rice imports from countries that have GSP eligibility,” they wrote. “Coupled with our competitors’ high and rising domestic subsidies, these unfair advantages are having negative implications for our rice farmers, millers, merchants and allied businesses, who are losing domestic market share.”
House Ways and Means Committee Trade Subcommittee Chairman Earl Blumenauer, D-Ore., cast doubt on Congress voting to renew the Generalized System of Preferences trade benefits program before it expires, and on passing a new Miscellaneous Tariff Bill to cover imports in 2021 and 2022. He told an online audience at the Washington International Trade Association Sept. 23 that it's too soon to say whether a vote would be possible.
The Heritage Foundation, a conservative think tank, is arguing that not only does the Generalized System of Preferences benefits program need to be renewed this year, the length of authorization should be substantially lengthened. It is currently on a two-year authorization; Heritage says 10 years would make it more useful to American businesses that take advantage of the tariff relief, as making supply chain decisions takes time.
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.”