WASHINGTON, DC - The House of Representatives today passed critical legislation to extend and improve existing trade preference programs. The bill, H.R. 6560, was introduced by House Ways and Means Committee Chairman Charles B. Rangel (D-NY) and Ranking Member Jim McCrery (R-LA) last week and passed the House with strong bipartisan support.
“This bipartisan bill helps reaffirm our commitment to trading partners and strengthen our existing trade preference programs," Chairman Rangel said. “These provisions will help create incentives for the purchase of U.S. goods, supporting businesses and workers here at home while also providing valuable benefits to workers and companies abroad. I want to thank Ranking Member McCrery for his partnership in writing this legislation and his support in its passage."
“This bill will enhance the already impressive benefits U.S. workers have realized from CAFTA, demonstrating how fair trade agreements are a winning proposition for American workers by creating incentives to expand U.S. exports," said Ranking Member McCrery. “CAFTA leveled the playing field for American-made products by going from one-way preferences to a two-way trade agreement. In 2004, before CAFTA, the United States had a trade deficit of more than $1.9 billion with the region. By 2007, that deficit had swung to a surplus of $3.7 billion. The extension and careful expansion of the preferences for countries not yet ready for a trade agreement is also a win-win for U.S. workers, manufacturers, consumers, and developing countries."
“This legislation passed the House notwithstanding the collapse of the WTO negotiations earlier today," continued Chairman Rangel. “It strongly reaffirms the commitment of this chamber - and of the United States - to ensuring that the poorest countries in Africa have a better opportunity to participate fully in the benefits (as well as the obligations) of globalization. The legislation also extends the GSP, a program for which there remains broad bipartisan support; however, there is also broad interest to reexamine the functioning of this program, including in light of the events of this week and differences in levels of economic development among GSP participants."
H.R. 6560 would:
* Establish a “2-for-1" textile and apparel program for the Dominican Republic. The bill would establish a “2-for-1" textile and apparel allowance program to be developed and administered by the Secretary of Commerce. Under the program, when producers purchase a certain quantity of qualifying U.S. fabric (2 square meter equivalents or “SMEs") for apparel production in the Dominican Republic, they will receive a credit (equivalent to 1 SME) that they can use to ship apparel to the U.S. duty-free.
* Extend GSP for one year. The legislation would extend the Generalized System of Preferences (GSP) through December 2009.
* Repeal “abundant supply" provision from AGOA. H.R. 6560 would also repeal the “abundant supply" provision under the African Growth and Opportunity Act (AGOA). The existing provision has inadvertently made it difficult for least-developed countries (LDCs) to utilize the benefits of AGOA. The provision included in the Rangel-McCrery bill repeals the existing provision and replaces it with a request for a government study to find new ways to encourage investment in Africa.R. 6560.
