ATPA Extension Remains Possible Before Scheduled Expiration
Provided by Jeff Levin - Saul Ewing LLP
With four days to go before the scheduled expiration of the Andean Trade Preferences Act (ATPA), the legislative fate of the program remains very much up in the air. It remains possible the program will be extended before it expires under current law (which extends duty-free treatment for eligible products which make entry prior to midnight, June 30, 2007). As we previously noted, an extension bill was introduced earlier this year by House Ways and Means Committee Chairman Charles Rangel (D-NY) and Trade Subcommittee Chairman Sander Levin (D-MI). The Ways and Means Committee is scheduled to conduct a “mark-up” of that bill tomorrow, June 27. It is possible the bill, H.R. 1830, or some variation of the bill, which sets forth a 27-month “no-strings” attached extension of the ATPA for all four beneficiary countries (Bolivia, Colombia, Ecuador and Peru) will clear both houses of Congress prior to the June 30 deadline.
Possible, but by no means certain. Several obstacles remain. In order to guarantee expedited action on the bill, it may be moved under a suspension of the House rules. However, that would require approval of a two-thirds majority rather than a simple majority. Even if the bill is approved in the House, the Senate remains a formidable challenge, especially as the rules of that body allow a single Senator to block action on any legislation. And, a very powerful single Senator, Senate Finance Committee Ranking Member Charles Grassley (R-IA), has loudly espoused an objection to any extension for Bolivia and Ecuador.
The smart money remains on a retroactive extension, perhaps for only a year. But developments may unfold rapidly over the remainder of this week. In the meantime, members should anticipate duties will have to be paid – or perhaps merely deposited - on subject entries made on or after July 1 (even if those duties are subject to a refund at a later time).
On a related note, it now seems, in light of yet another failure by the major trading partners to garner traction for WTO talks this past week, that Congress will not renew the president’s trade promotion authority (TPA, otherwise known as “fast track” authority), which is also scheduled to expire as of the end of this month.
|
