Congress to Recess without Action on Trade Items
Provided by Jeff Levin - Schmeltzer, Aptaker & Shepard, P.C.
The House of Representatives and U.S. Senate are expected to recess for the mid-term elections by tomorrow, September 30, without taking action on a series of trade matters that remain pending before one or both houses. These include the Peru Trade Promotion Agreement; a possible extension of the Andean Trade Preferences Act (ATPA) and the Generalized System of Preferences (GSP), both of which are scheduled to expire on December 31; and a miscellaneous tariff bill. Also on the Congressional plate are the Colombia Free Trade Agreement (which has been completed but not signed), a bill granting permanent normal trade relations with Vietnam, and a bill that would make certain adjustments to the African Growth and Opportunity Act.
Our contacts on Capitol Hill indicate that some, but not necessarily all, of these matters will be addressed in an anticipated “lame-duck” session that will be conducted after the November elections. At this time, the “lame-duck” session is scheduled to begin on November 13. However, the outcome of the elections will likely determine how long a “lame-duck” session will continue, and how much work will actually get done during that period. The general feeling is that the session will go on longer, and cover more ground, if the Republicans keep control of both the House and Senate.
On behalf of the Association, we have been working closely with a group of like-minded organizations to urge a “bridge” of preferential tariff treatment for imports from Peru and Colombia between the scheduled expiration of the ATPA and the implementation of the Peru and Colombia agreements. Neither of these agreements will be implemented prior to the first quarter of 2007, and probably several months later. We have been successful in spearheading this “coalition,” and bringing this issue to the attention of relevant policymakers (many of whom, quite honestly, were not aware that a potential “gap” could exist). While there are no guarantees that such “bridge” legislation will be approved during the lame-duck session, we are cautiously optimistic that some action will occur. The other two ATPA beneficiaries, Ecuador and Bolivia, are in a more “hazardous” position since they are not currently negotiating free trade agreements with the United States.
In the next week, we will be laying the groundwork for the work we need to do in advance of and during the presumed lame-duck session in order to protect the interest of the Association and its Members to the greatest extent possible. This will include targeted political action letters, especially with regard to the extension of ATPA treatment. In any case, Members are advised to act prudently in their commercial dealings with Peru, Colombia, Ecuador and Bolivia, and to maximize their entries from these countries prior to December 31.
We will, of course, keep members closely advised. In the interim, do not hesitate to contact Jeff Levin or Bob Bauer if you have any questions on any of these matters.
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