Politics in Action: H.R. 1295 & H.R. 644

STATEMENT OF ADMINISTRATION POLICY

Senate Amendments to H.R. 1295 - Trade Preferences Extension Act of 2015

(Sen. Hatch, R-UT)

The Administration strongly supports enactment of the Senate Amendments to H.R. 1295, the Trade Preferences Extension Act of 2015, which would extend the African Growth and Opportunity Act (AGOA), the Generalized System of Preferences (GSP), and the preferential duty treatment program for Haiti.

AGOA is the cornerstone of our economic relationship with sub-Saharan Africa, and a seamless, long-term renewal of the program improves the environment for investment, two-way trade, development, and economic growth in sub-Saharan Africa.  The Administration welcomes a 10-year extension of the program, including of the third-country fabric provisions.  This will give buyers the certainty they need to build local supply chains and consider Africa as a destination for investment and a source for their purchases.  The Administration is also pleased that the bill includes changes that will improve implementation of the program, such as streamlined rules of origin and updates to the process to review country eligibility.

In addition to extending AGOA, the bill also renews the GSP program through December 31, 2017.  GSP promotes economic growth in the developing world by eliminating duties on a wide range of products from developing countries.  GSP also supports U.S. jobs by lowering the cost of imported inputs, which helps to keep U.S. manufacturers competitive, and reduces prices on many U.S. consumer goods.  The legislation also designates certain cotton articles for potential duty-free treatment under the GSP program for least-developed countries, pursuant to undertakings by the United States in the World Trade Organization.

The bill also extends the Haitian Hemispheric Opportunity through Partnership Encouragement Act (HOPE II) for five years, from 2020 to 2025.  Haiti remains the poorest country in the Americas, and one of the poorest in the world, with a significant need for basic services.  The HOPE program has been instrumental in economic development in Haiti, especially in the textile and apparel sector.  Early extension of this program will provide the stability and continuity needed to help ensure that companies will continue to invest in Haiti’s future.

STATEMENT OF ADMINISTRATION POLICY

Senate Amendments to H.R. 644 – Trade Facilitation and Trade Enforcement Act of 2015

(Sen. Hatch, R-UT)

The Obama Administration has made rigorous trade enforcement a central pillar of U.S. trade policy.  The Administration welcomes and supports most provisions of the Senate Amendments to H.R. 644 – Trade Facilitation and Trade Enforcement Act of 2015, which would reauthorize trade facilitation and trade enforcement functions and activities, and for other purposes.  Most of the provisions included in this bill will strengthen the Administration’s ability to both facilitate trade and improve enforcement of the rules. These new tools will strengthen the Administration’s ability to level the playing field for U.S. workers, businesses and farmers.  The Administration strongly supports the enactment of these provisions.

The Administration strongly supports enactment of the provisions of Title III, Import-Related Protection of Intellectual Property Rights, within the bill.  These provisions will strengthen the authority and capacity of the Department of Homeland Security, including U.S. Customs and Border Protection and U.S. Immigration and Customs Enforcement, to combat the importation of infringing articles at the border. 

The Administration appreciates the need for swift action in response to those who attempt to circumvent our trade laws.  But we have concerns with a specific provision that would grant the violator or alleger the ability to file a complaint in the Court of International Trade.  This would undermine enforcement of antidumping/countervailing duty (AD/CVD) laws, going against a core objective of the bill.  The Administration welcomes the opportunity to work with Congress on these proposals going forward.

The Administration welcomes new enforcement provisions contained in the legislation which will strengthen the Commerce Department’s ability to address non-cooperative foreign companies and governments in trade remedy proceedings.  This provision and others contained in the legislation will enhance the Commerce Department’s implementation of U.S. AD/CVD laws. 

The Administration supports constructive tools to address unfair currency practices.  We support sections 711 and 712 of the bill, which target unfair currency practices and would establish objective standards and strong potential remedies that can further our goal of leveling the playing field for American workers and firms.  These provisions targeting currency practices in this manner would be the strongest in history if enacted.  But the Administration opposes the way the bill uses the countervailing duty process to address currency undervaluation.  Those provisions would undermine our international efforts to address this issue, raise highly problematic questions about consistency with our international obligations, lead to other countries pursuing retaliatory measures that could hurt our exporters, and be difficult to administer. 

The Administration supports a more transparent process for considering duty suspensions, but has concerns that trade policy considerations, such as the effect of duty suspensions on U.S. preference programs and current and future free trade agreement partners, have not been included in the bill.

The Administration looks forward to working with Congress to address these concerns and advancing the policies set forth in this bill.