Truth About Trade and Technology reports on a Wall Street Journal article about a showdown brewing between the White House and Capitol Hill over how to best address China's undervalued currency and other alleged unfair trade practices. Though little progress was made on the issue during the recent semiannual economic summit between the U.S. and China, at least one bill sponsored by Senators Schumer and Graham, which is due to be made public in mid-June, is reported to have a chance of passing. Earlier versions of the Schumer-Graham bill had proposed imposing a 27.5% import tariff on all Chinese goods in response to China's failure to boost the yuan's rate. (Truth about Trade and Technology, dated 06/06/07, available at www.truthabouttrade.org/print.asp?id=7674)
On December 20, 2006, President Bush signed H.R. 6111, the Tax Relief and Health Care Act of 2006, into law. The Act includes trade provisions which:
The International Trade Commission (ITC) has issued a final report to the President in connection with its investigation of proposed modifications to the Harmonized Tariff Schedule (HTS) that are expected to take effect on January 1, 2007.
According to Washington Trade Daily, Senate Finance Committee Chairman Grassley has stated that he will not move legislation to reauthorize the Generalized System of Preferences (GSP) program - slated to expire on December 31, 2006 - because some beneficiary countries, particularly India and Brazil, are holding up the Doha Round of World Trade Organization talks. The article also states that Ways and Means Chairman Thomas last month suggested that GSP and all other U.S. trade preference programs be allowed to expire. (WTD, dated 05/17/06, www.washingtontradedaily.com )
The Washington File reports that the Bush administration is sending trade negotiators to China to discuss that country's progress on improving enforcement of intellectual property rights (IPR). A meeting is scheduled to take place on March 1, 2006 and is intended to gather information on the Chinese government's efforts to combat piracy of U.S. copyrighted material. (Washington File Pub 02/24/06, available at http://usinfo.state.gov/xarchives/display.html?p=washfile-english&y=2006&m=February&x=20060224163828tjkcollub0.347027&t=livefeeds/wf-latest.html )
The Office of the U.S. Trade Representative (USTR) has issued a press release announcing the conclusion of an agreement between the U.S. and Mexico on tequila. USTR notes that under the agreement, exports of tequila from Mexico to the U.S. will continue without interruption. (USTR Press Release, dated 01/17/06, available at http://www.ustr.gov/assets/Document_Library/Press_Releases/2006/January/asset_upload_file897_8762.pdf.)
On January 11, 2006, President Bush signed into law H.R. 4340, the "U.S.-Bahrain Free Trade Agreement Implementation Act" (Act).
The White House has issued a press release stating that on December 22, 2005, President Bush approved the continued designation of the following 36 countries as eligible for tariff preferences under the African Growth and Opportunity Act (AGOA):
U.S. Customs and Border Protection (CBP) has posted to its Web site a notice announcing the opening of the tariff-rate quota (TRQ) on mixes and doughs as provided for in HTS Chapter 19, Additional U.S. Note (AUSN) 3 for the period October 1, 2005 through September 30, 2006.
The Wall Street Journal reports that despite the threat of steep tariffs and other trade barriers, retailers are still flocking to China to buy garments. Some hope to buy before more protectionist barriers kick in on some clothing categories. Others plan to source in China during "window periods," the time after one safeguard quota ends, and another on the same category begins. The article adds that foreign buyers should have more room to buy from China in 2006, as quotas imposed in 2006 would be calculated from a larger 12-month base, due to the sharp rise in imports during the first five months of 2005. (WSJ, dated 05/27/05, www.wsj.com )