Two days before the scheduled February 29th date for the expiration of the Andean Trade Preferences Act (ATPA), the U.S. House of Representatives yesterday approved a 10-months extension of the program (i.e., through the end of 2008). The bill now goes to the Senate, where quick action will be needed to likewise approve the extension in order to prevent a lapse at the stroke of midnight Friday night. The bill passed by the House covers all four beneficiary countries (Bolivia, Colombia, Ecuador and Peru).
Quick Senate action to approve an extension bill today or tomorrow is considered promising, though not inevitable. For one thing, passage on this expedited timetable will most likely require “unanimous consent,” which means a super-majority of 60 votes in that body. In addition, notable players on the Senate side – including, most prominently Finance Committee ranking member Charles Grassley (R-IA) – have espoused vehement objection to the continuing inclusion of Bolivia and Ecuador in the preference program.
If the ATPA indeed expires as of the end of tomorrow, even if temporarily, U.S. importers will be required to pay or deposit normal “column 1” duties for otherwise eligible products from the four beneficiary countries, rather than being able to claim preferential duty-free treatment.
We will continue to keep Members advised.
