House Ways and Means Committee Chairman Charles Rangel, D-N.Y., introduced Feb. 7 a bill to extend three trade preference programs due to expire this year. The Trade Preference Extension Act of 2008 (H.R. 5264) would extend through Sept. 30, 2010, the Andean Trade Preference Act, the U.S.-Caribbean Basin Trade Partnership Act and the Generalized System of Preferences, which are currently set to expire Feb. 29, Sept. 30 and Dec. 31, respectively.
The bill would also make the following substantive changes to these programs.
GSP. The president would not be able to revoke a competitive need limitation waiver for an article unless the International Trade Commission determines that the revocation (a) will not reduce exports of that product below the amount entered during the year reviewed and (b) will not benefit one or more countries that are not GSP beneficiaries.
In addition, the president would be required to reinstate any CNL waivers revoked pursuant to the new “super-competitiveness” thresholds established in a law enacted in 2007 unless the ITC makes a similar determination. That law provides that the president should revoke any CNL waiver for a GSP-eligible product from a specific country that has been in effect for five years or more if U.S. imports of that product in the previous calendar year exceeded (a) 150 percent of the CNL or (b) 75 percent of all U.S. imports of that product. If enacted, this provision of Rangel’s bill could result in the restoration of GSP treatment for kola nuts from Cote d’Ivoire, methanol from Venezuela, ferrozirconium from Brazil, wiring harnesses from the Philippines, brakes and brake parts from Brazil and brass lamps from India.
ATPA. The ATPA would be extended for two years for all four beneficiary countries. Supporters of the U.S.-Colombia free trade agreement have expressed concern that an extension of this length could reduce pressure on lawmakers to approve the FTA.
AGOA. The bill designates Mauritius as a lesser-developed beneficiary developing country, which would make it eligible for certain textile and apparel-related benefits. The bill also allows retroactive duty refunds for certain goods entered on or after Oct. 1, 2005, a provision that would primarily benefit goods from Mauritius.
In addition, the bill would remove the “abundant supply” provision added to AGOA in December 2006. This provision sets forth special rules on determining whether fabrics or yarns are produced in commercial quantities in designated sub-Saharan African countries for use in qualifying apparel articles.
World Trade/Interactive
