Trade Pacts Get One-Year Extension
The U.S. Senate took the final step and extended for one year the Andean Trade Preference Act, following approval by the House of Representatives.
The trade pact, which was scheduled to expire on Dec. 31, allows Colombia, Ecuador and Peru to export certain goods, such as apparel and shoes, to the United States without paying duties. ATPA has been in effect since 1991 and requires the three Andean countries to participate in an anti-narcotics program to eradicate the drug trade from those countries.
Also on Dec. 22, the Senate extended the General System of Preferences for another year, giving 132 developing countries the opportunity to export many of their goods to the United States duty free.
The two extensions were praised by the American Apparel & Footwear Association, whose many members source overseas. “I now call on President Obama to sign these extensions as soon as possible so our industry can continue doing business,” said Kevin Burke, the AAFA’s president and chief executive. “Right now, affordability is the name of the game, and these programs fit that model.”—Deborah Belgum
