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Congress approves revised bill to extend GSP, ATPDEA

October 6, 2008
World Trade\Interactive

The House and Senate both approved last week an amended version of legislation (H.R. 7222) that includes a number of provisions concerning unilateral trade preference programs.

• one-year extension, without change, of the Generalized System of Preferences

• one-year extension, without change, of the Andean Trade Promotion and Drug Eradication Act with respect to Colombia and Peru

• six-month extension of ATPDEA benefits for Ecuador, with an additional six-month extension unless the president determines that Ecuador is not complying with the eligibility criteria

• six-month extension of ATPDEA benefits for Bolivia; an additional six-month extension is possible but only if the president certifies Bolivia’s compliance with the eligibility criteria

• duty-free entry for certain pants and other bottoms imported from the Dominican Republic

• repeal of the “abundant supply” provision in the African Growth and Opportunity Act

• Mauritius may use third-country fabric in the production of apparel that receives AGOA duty-free treatment when imported into the U.S.

• amendments to the Haiti Hemispheric Opportunity through Partnership Encouragement Act

The measure was cleared for President Bush’s signature after a compromise was reached concerning the extension of trade preferences for Bolivia and Ecuador. H.R. 7222 originally provided for a one-year extension of ATPDEA benefits for all four beneficiary countries, but some lawmakers had opposed that measure due to political and economic disputes with Bolivia and Ecuador.

Both GSP and ATPDEA are likely be reviewed in more detail by Congress in 2009, with possible changes to country and product eligibility. “My colleagues and I are concerned that our preference programs may help those who do not need or deserve our help,” explained Senate Finance Committee Chairman Max Baucus, D-Mont. “We are concerned that certain beneficiary countries boast globally competitive industries and wealthy owners. We are concerned that certain beneficiary countries show disdain for America’s foreign policies and do not provide adequate protections for the American companies operating in those countries. … Every policy requires review and reevaluation to make sure it works how it should, for whom it should. As chairman of the Finance Committee, I am committed with my colleagues to reviewing and reevaluating our trade preference programs to make them work better for Americans and our trading partners.”