U.S. SENATE PASSES CONTROVERSIAL AFRICAN/CARIBBEAN TRADE BILL
Late Thursday, the U.S. Senate passed a controversial trade bill
which included the African Growth and Opportunity Act, the Caribbean Basin Initiative, and
a renewal of the General System of Preferences.
The bill proposes to lower tariffs and quotas on products from
sub-Saharan African countries, such as textiles, apparel and footwear. "The textile
trade provisions are one of the key elements of the bill’s approach toward generating
investment in the African region," said Robert J. Verdisco, president of the
International Mass Retail Association.
The bill gives renewed trade privileges to countries in the Caribbean
and Central America, which will put them in the same status as Mexico in the North
American Free Trade Agreement.
The bill also proposes to renew the General System of Preferences
program for five years, retroactive to its last expiration on June 30. GSP
gives importers duty-free status on certain goods from developing
countries. The bill offers no modifications to the program.
While the Senate version is more restrictive than the version passed by
the House in July, the differences will be worked out in conference.
Some industry groups that failed to get provisions into the Senate
version will try again during the conference period. "We will be working
behind the scenes to make sure that our amendments get looked at and
considered," said Edwin W. Van Ek, head of the American Association of Exporters and
Importers drawback committee, which is seeking revisions to Customs’ duty drawback rules.