Senators Mark Begich, D-Alaska, and Roy Blunt, R-Mo., introduced on Dec. 17 the Generalized System of Preferences Update for Production Diversification and Trade Enhancement (UPDATE) Act (S-1839). The bill would remove “import sensitive” status for travel goods, such as luggage, backpacks and handbags, and enable those goods to enter the U.S. under Generalized System of Preferences (GSP) duty-free status, said the American Apparel & Footwear Association (AAFA) in a statement.
After Ministers of World Trade Organization (WTO) member states sealed a multilateral trade package on Dec. 7, a day later than the Bali summit was slated to conclude, U.S. political and industry leaders voiced widespread support. The package expedites customs procedure and reduces costs, shields food hoarding programs from legal dispute and institutes duty-free, quota-free access for least developed country export to wealthier markets, among other provisions, the WTO said (here). The package also delivers assistance to developing and least developed countries to update infrastructure and train customs officials, according to the WTO, adding that the package will increase trade flow and revenue through decreasing global trade costs by 10 percent to 15 percent. The world economic benefit may reach $1 trillion, said the WTO.
The Senate Armed Services Committee should reject a National Defense Authorization Act amendment that would require the Defense Department to source garments solely from a European-led manufacturing consortium formed to address labor conditions in Bangladesh, said Sen. Bob Corker, R-Tenn., in a Dec. 2 letter (here). The amendment requires DoD to source garments only from companies that have signed the Accord on Fire and Building Safety in Bangladesh, said Corker. Swedish retailer H&M spearheaded the creation of the accord and the deadline passed for company endorsement in May.
Certain Indonesian tin and Thai copper alloys, along with a host of other products currently eligible for duty free status in the Generalized System of Preferences (GSP), are in jeopardy of being removed from the GSP system, due to excessive proportionate import, said the U.S. Trade Representative (USTR). Should GSP eligible products from a specific country exceed 50 percent of total U.S. imports of that product, the product must be removed from GSP status, unless the president waives the competitive need limitations (CNLs).
The U.S. and Bangladesh signed on Nov. 25 an economic pact that provides an avenue to discuss actions needed to restore Generalized System of Preferences (GSP) status for Bangladesh, said a U.S. Trade Representative (USTR) spokeswoman. The Trade and Investment Cooperation Forum Agreement (TICFA) builds off a Bangladesh GSP Action published by the administration in July, said the spokesman, which seeks to increase Bangladeshi government inspection of manufacturing facilities and improve freedom of association (here).
International Trade Today is providing readers with some of the top stories for Nov. 19-22 in case they were missed.
The office of the U.S. Trade Representative (USTR) extended the deadline for submission of petitions to waive competitive need limitations (CNLs) under the Generalized System of Preferences (GSP) program. The deadline is extended to 5 p.m. Dec. 20 from the previous Nov. 22 deadline (see 13072614). Unless President Barack Obama waives the CNL, the president must terminate duty-free treatment for GSP eligible countries that either (1) exported a quantity of a GSP-eligible article having a value in excess of the applicable amount for that year ($160 million for 2013), or (2) a quantity of a GSP-eligible article having a value equal to or greater than 50 percent of the value of total U.S. imports of the article from all countries. There will be no CNL action taken while GSP remains expired (see 13111808).
American importers in September paid $56.5 million in tariffs on products previously eligible under the Generalized System of Preferences (GSP), according to the Coalition for GSP. The GSP program expired on July 31 following Congressional failure to pass renewal legislation (see 13080110). The September $56.5 million figure, compiled independently by the Coalition for GSP from International Trade Commission (ITC) tariff data, represents a $20,000 increase from the Coalition for GSP August tariff totals. Since expiration, U.S. importers have paid roughly $1.85 million in daily tariffs on products previously eligible under GSP, the coalition said. Considering GSP will have expired for 119 days after Nov. 19, that daily figure translates to $205.4 million in additional tariffs for U.S. importers. The tariff hike estimate, prior to the ITC release of September data, was in the $180-200 million range, according to Dan Anthony, director of research and government relations at the Coalition for GSP, speaking at a Nov. 15 National Foreign Trade Council (NFTC) roundtable discussion (see 13111808).
Congressional lawmakers should overhaul African Growth and Opportunity Act (AGOA) and the General System of Preferences (GSP) eligibility criteria to punish countries that put up trade barriers against U.S. products, said a group of U.S. domestic producers in two joint letters to Congress. Numerous beneficiary countries are implementing “blatantly protectionist” barriers that are in “flagrant violation of international obligations,” such as World Trade Organization agreements.
The July expiration of the Generalization System of Preferences (GSP) program has delivered an estimated $180-200 million in additional tariffs for U.S. importers, and there is no immediate, viable option to pass renewal legislation, said Dan Anthony, director of research and government relations at the Coalition for GSP, at a Nov. 15 National Foreign Trade Council (NFTC) roundtable discussion. Moreover, congressional dysfunction and budget concerns are threatening retroactivity inclusion in future legislation, causing significant consternation among Coalition for GSP importers, said Anthony.