GSP and FTA Update
The White House has begun technical discussions on several Free Trade Agreements (FTA) to include South Korea, Colombia and Panama. These discussions are intended to create draft bills and draft Statements of Administrative Action. On a very positive note, the U.S. Trade Representative Ron Kirk has recognized that Colombia has been successful in implementing improvements to labor rights required by the milestones set forth by the U.S. for April 22nd.
In addition to moving forward with technical discussions, the White House is expected to work with Congress on a Trade Adjustment Assistance (TAA) renewal. Renewal of the TAA will support Americans who may need training or other services when and if their jobs are negatively affected by the implementation of these three Free Trade Agreements.
Many trade organizations feel that these recent actions are very positive. The general sentiment is that work on these three very important Free Trade Agreements will help push progress on extending programs that have recently expired such as the Generalized System of Preferences (GSP) and the Andean Trade Preference Act. This decision to move forward with the pending FTA will help to resolve the impasse that has prevented progress to date with the White House's trade agenda. Also, it is significant to note that on May 3, 2011, the U.S. Ambassadors from Indonesia, Kosovo, Mongolia, Nepal, Paraguay, Phillippines, Sri Lanka, Thailand and Uruguay sent a letter to the Senate Finance Committee asking for GSP renewal as soon as possible.
Moving forward with these FTA's has the strategic benefit of helping US exports of agricultural products such as grain. Colombia alone had traditionally been the United States' fifth largest market for coarse grain exports. Due to competing preferential trade agreements existing in other countries, our position has eroded by almost 70%. The export of US beef is a strategic focus and part of an ongoing promotion with South Korea.
If you have any questions or concerns please feel free to contact your Liberty Account Representative. We will continue to follow these very important issues and provide updates as available.
