Sen. Joe Donnelly, D-Ind., on Oct. 31 introduced the Competitive Need Limitations Modernization Act of 2017, which would peg Generalized System of Preferences 504(d) waiver approvals to present-day production statistics. Under the 504(d) process, not the standard waiver process, CNL waivers are automatically granted for a list of products not made in the U.S. as of Jan. 1, 1995, but only if a CNL would be based solely on imports of a good from a specific country exceeding 50 percent of the value of total imports of that good into the U.S. during any calendar year after 1995. Donnelly’s bill would instead make the granting of 504(d) waivers contingent on the absence of domestic production in any of the three calendar years preceding the date of import. The bill would also change the yearly deadline for the executive branch to issue and revoke CNL waivers, from July 1 to Oct. 15.
Sen. Maria Cantwell, D-Wash., introduced legislation to designate certain footwear as eligible for the Generalized System of Preferences for the first time in the program’s more than 40-year history, following the May introduction of companion House legislation by Rep. Adrian Smith, R-Neb. (see 1705260035). Like its House counterpart, S. 2032 would qualify footwear classified in more than 20 tariff schedule subheadings in Chapter 64 for GSP treatment. Introduction of the bill drew praise from the American Apparel and Footwear Association. “Expanding [GSP] to cover shoes will support and grow well-paying American jobs, from design and marketing to logistics and retail,” AAFA CEO Rick Helfenbein said in a statement. “Duty reduction means U.S. footwear companies can reduce costs that can instead be invested in American workers, product innovation, and savings that can be passed on to consumers.” AAFA Executive Vice President Steve Lamar in a separate statement urged quick Senate passage of the footwear bill and overall GSP renewal legislation.
Thirty-eight House lawmakers wrote an Oct. 27 letter urging House Ways and Means Committee Chairman Kevin Brady, R-Texas, and ranking member Richard Neal, D-Mass., to advance long-term Generalized System of Preferences renewal legislation “as quickly as possible,” with a looming program expiration date of Dec. 31. Led by Reps. Ralph Norman, R-S.C., and Jim Himes, D-Conn., the lawmakers said GSP slashed about $730 million in tariffs last year, and nearly two-thirds of GSP imports were raw materials, components and machinery, helping U.S. manufacturers and workers compete in a “tough global economy.”
The Labor Department is requesting comments to inform development of the government’s 2018 edition of the List of Goods Produced by Child Labor or Forced Labor and possible updates to the List of Products Produced by Forced or Indentured Child Labor, as needed, Labor said. Labor is requesting that commenters provide information to Labor’s Office of Child Labor, Forced Labor, and Human Trafficking by 5 p.m. Jan. 12, 2018. Further, DOL seeks comments to inform the 2018 edition of the Worst Forms of Child Labor report, an annual review that fulfills a statutory mandate tasking the labor secretary with reporting findings with regard to Generalized System of Preferences countries’ implementation of international commitments to eliminate the “worst forms of child labor,” DOL said.
House Ways and Means Committee Republicans remain undecided about whether a miscellaneous tariff bill would advance with a Generalized System of Preferences renewal bill, but they indicated a hope to pass both by the end of the year. “I have not yet made a decision on [any packaged MTB/GSP] trade bill, but those two issues are vitally important,” committee Chairman Kevin Brady, R-Texas, said during an Oct. 25 Christian Science Monitor breakfast. “I expect us to conclude those this year.”
The Office of the U.S. Trade Representative will have a “heightened focus” on finishing ongoing Generalized System of Preferences reviews and the Trump administration will start a three-year process to assess each GSP beneficiary country’s compliance with statutory eligibility criteria, USTR announced. The new effort to ensure beneficiary countries meet GSP eligibility benchmarks will complement the current USTR petition-receipt-and-public-comment process for country practice reviews, "which will remain unchanged," USTR said. The first assessment will examine Asian GSP beneficiary countries, and the administration will review GSP beneficiary countries in other parts of the world during the second and third years, USTR said. The review of Asian beneficiary countries will include India, a USTR spokeswoman said in an email. Trade associations recently petitioned for India's removal from GSP, citing unfair restrictions on U.S. dairy and medical device exports (see 1710190022). Any GSP compliance issues could result in a self-initiated executive branch “full country practice review” of the nation’s continued eligibility for the program, USTR said.
The House Ways and Means Trade Subcommittee on Oct. 25 will hold a hearing to focus on potential temporary tariff relief for imports not made in the U.S. through the miscellaneous tariff bill (MTB) process, the committee announced. The committee is preparing legislation to implement MTB recommendations made by the International Trade Commission in August (see 1708080068), the committee said. “After a full, transparent investigation under the new process, the independent International Trade Commission recommends to Congress more than 1,800 petitions for inclusion in an MTB bill that will help our businesses, benefit our consumers, and grow our economy,” subcommittee Chairman Dave Reichert, R-Wash., said in a statement. “This hearing provides an opportunity for us to discuss these important benefits in advance of imminent House consideration of the MTB to deliver tariff relief to our manufacturers.” There's been some discussion of moving a Generalized System of Preferences renewal along with MTB legislation (see 1709120021).
Groups filed petitions to the Office of the U.S. Trade Representative through Oct. 17 requesting changes in the status of country and tariff treatment under the Generalized System of Preferences, including a petition to add 16 HTS subheadings of garment products from Cambodia and two petitions to remove India from the program altogether.
International Trade Today is providing readers with some of the top stories for Oct. 10-13 in case they were missed.
The Senate Foreign Relations Committee on Oct. 5 cleared legislation to require greater publicizing of and technical assistance for foreign use of the African Growth and Opportunity Act (AGOA), after the House Foreign Affairs Committee on Sept. 28 passed companion legislation. The bills, introduced by Sen. Ben Cardin, D-Md., and Rep. Ed Royce, R-Calif., would require the executive branch to maintain a public website to disseminate AGOA information, including information and technical assistance already provided at U.S. Agency for International Development regional trade hubs. The bills also say the president should provide capacity building training to promote diversification of African products and value-added processing, as well as capacity building and technical assistance funding to help African companies and institutions comply with U.S. counterterrorism policies and initiatives.