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Trade Preference Program Changes Include Two Additions

Thursday, December 26, 2013
Sandler, Travis & Rosenberg Trade Report

President Obama issued Dec. 23 a proclamation making several changes to the coverage of the African Growth and Opportunity Act, the Caribbean Basin Economic Recovery Act and the Caribbean Basin Trade Partnership Act. The proclamation also extends an agricultural agreement with Israel and makes certain other technical changes.

AGOA. The proclamation reinstates Mali as a beneficiary sub-Saharan African country under the AGOA one year after that country was suspended from the program. Mali has already had its visa system certified, which means that certain textile and apparel imports from that country will be able to benefit from duty-free treatment in the U.S.

CBTPA. The proclamation designates Curaçao as a beneficiary country for purposes of the CBERA and the CBTPA.

ATPA. The preferential treatment extended pursuant to the Andean Trade Preference Act expired on July 31, 2013. Accordingly, the proclamation makes certain modifications to the Harmonized Tariff Schedule of the United States to reflect this status.

Israel. In 2004 the U.S. entered into an agreement with Israel that provides duty-free access to specified quantities of certain agricultural products of that country. The proclamation extends this agreement through Dec. 31, 2014, to allow time for further negotiations on an agreement that will replace the original.

Korea. The proclamation implements certain additional modifications to the HTSUS to ensure that the duty reductions agreed under the U.S.-Korea Free Trade Agreement are applied as scheduled.

Chile. The proclamation corrects a typographical error in the HTSUS with respect to the U.S. FTA with Chile.

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