New Trade Bill Goes Into Law Extends GSP and ATPA/ ATPDEA, Grants PNTR for Vietnam, & other Trade Benefits

Issue 541, December 26, 2006

On December 21, 2006, President Bush signed H.R. 6111, the Tax Relief and Health Care Act of 2006, into law. The Act includes trade provisions which:

- Extends GSP Program: The Generalized System of Preferences (GSP) for non-AGOA countries is extended through December 31, 2008. Also, GSP competitive need limit (CNL) waivers are also tightened.

- Extends ATPA/ATPDEA: The Andean Trade Preference Act, as amended by the Andean Trade Promotion and Drug Eradication Act, is extended through June 30, 2007. In addition, a further conditional six-month extension is provided for ATPA/ATPDEA countries for which a free trade agreement (FTA) with the U.S. is almost in effect.

- Grants Permanent Normal Trade Relations (PNTR) to Vietnam: With the granting of PNTR to Vietnam. In association with this action, Vietnam is set to join the World Trade Organization (WTO), scheduled for January 11, 2007. This action will result in the removal of quotas on exports and VISA/ELVIS requirements tied to importations of Vietnamese textile and apparel goods.

AGOA Apparel: A provision is amended in the African Growth and Opportunity Act (AGOA) to extend the “third country” fabric provision for least-developed AGOA countries.

Haiti Apparel, Etc: A new provision is added to the Caribbean Basin Initiative (CBI), entitled the Haiti Hemispheric Opportunity through Partnership Encouragement Act (HOPE), which will allow duty-free entry for certain additional products of Haiti, including certain apparel and certain automotive wire harnesses.

HTSUS Chapter 99: Adds or extends duty-free treatment for various products (mostly chemicals) under various HTS Chapter 99 tariff numbers.

A copy of the White House press release (dated 12/20/06) available at
http://www.whitehouse.gov/news/releases/2006/12/20061220-2.html