CQ TODAY MIDDAY UPDATE
Oct. 3, 2008 – 1:18 p.m.
House Clears Bill to Extend Trade Programs
The House cleared legislation Friday extending two trade programs set to expire at the end of this year.
The bill would extend the Generalized Systems of Preferences and the Andean Trade Pact. The GSP is a trade program designed to help developing countries expand their market presence and strengthen their economies.
The Andean trade pact waives duties on imports from Bolivia, Colombia, Ecuador and Peru in accordance with a 1991 law. In February, President Bush signed into law an extension of the pact through 2008.
The bill cleared by voice vote, a day after a Senate compromise ended a dispute that had stalled it for several months.
In a compromise hammered out Thursday between Charles E. Grassley of Iowa, ranking Republican on the Senate Finance Committee, and Democratic Majority Leader Harry Reid , D-Nev., a substitute amendment was adopted to limit the extension for Ecuador and Bolivia to six months. An additional six-month extension would be allowed if the two countries cooperate with U.S. anti-drug efforts.
Grassley had single-handedly stalled the bill in past months because of dissatisfaction with the two countries’ antidrug efforts.
“Peru and Colombia have pursued a strong reciprocal trading relationship with the United States and are being treated accordingly. Bolivia and Ecuador have taken different paths,” Grassley said. “Today’s outcome gives those countries a chance to address these concerns.”
The legislation also would amend the law implementing the Dominican Republic and Central America Free Trade Agreement to establish a “two for one” textile and apparel allowance program. Under the program, when textile producers purchase a certain quantity of U.S. fabric for apparel production in the Dominican Republic, they will receive a credit. That credit could then be used by the producers to ship apparel to the United States duty free regardless of the fabric’s origin.
The bill also opens duty-free imports from African nations Lesotho, Kenya, Madagascar and Swaziland and grants “least developed country” status to Mauritius. The status allows the country to ship garments to the United States without tariffs.




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