[US] Congress Moving Quickly on Economic Stimulus

February 2, 2009

2 February 2009

[US] Congress Moving Quickly on Economic Stimulus Bill with Trade Provisions

This article is extracted from the 2 February 2009 edition of “WorldTrade Interactive”.

Economic stimulus legislation working its way quickly through Congress contains a number of trade-related provisions. The House approved its version Jan. 28 by a 224-188 vote…. The Senate is considering a similar but separate measure, with action expected in the next few days.

Government Procurement. ST&R’s Mike Hathaway, a former senior deputy general counsel at the Office of the U.S. Trade Representative who participated in the negotiation and implementation of the 1979 Agreement on Government Procurement, points out that the “Buy American” provisions for some steel and textiles in the House stimulus bill could open the trade debate before the Obama administration even has its trade team in place. These provisions would generally require that the steel used in infrastructure projects such as building roads and bridges, and the textiles used to make uniforms for the Transportation Security Administration, originate in the U.S. …

… U.S. exporters have raised concerns that the new preferences could prompt action against U.S. exports. Threats of such retaliation are already being heard in Europe.

“It is safe to say,” Hathaway concluded, “that procurement obligations serving as the leading edge of trade policy is not likely what the new Obama administration had in mind.” Expanding the Buy American preferences “places a domain partially reserved from trade liberalization under scrutiny” and “will raise both the technical nature and the policy conflicts of international trade.” …

Byrd Amendment. The Senate bill includes a provision that would prohibit U.S. Customs and Border Protection from demanding the repayment of antidumping and countervailing duties that were collected on imports from Canada and Mexico and then distributed to affected U.S. producers from 2001 through 2005 under the Continued Dumping and Subsidy Offset Act. Following a court ruling that the so-called Byrd Amendment did not apply to imports from Canada and Mexico, CBP has requested that companies repay by March 28 tens of millions of dollars in AD/CV duties assessed on products imported from those countries. …


Topic(s): 
World Economy & Politics
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Canadian News Channel / International News Channel
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