ITC to Investigate Effect of Duty-Free, Quota-Free Imports from LDCs
On July 8, 2011, the International Trade Commission launched an investigation1 to assess the probable economic effect of allowing products from the world's least-developed countries (LDCs) to enter the U.S. duty-free and quota free (DFQF).
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(In December 2005, World Trade Organization members reached agreement to provide DFQF market access to products from LDCs. In May 2011, ambassadors endorsed a proposal from WTO Director-General Lamy for three groups of issues to be approached at different speeds in the Doha negotiations, as full agreement on Doha was unlikely to be achieved by the WTO's December 2011 goal. Under this proposal, a package for LDCs would be considered for December on issues such as DFQF, including Rules of Origin, the LDC Services Waiver, and a step forward on cotton. See ITT's Online Archives or 06/01/11 news, 11060123, for BP summary.)
ITC to Address Effect on U.S. Industries, Imports from U.S. FTA Partners, Etc.
The ITC last provided a report on the economic effects of providing DFQF access to LDCs in 2007, as requested by the U.S. Trade Representative. On June 16, 2011, USTR Kirk requested the ITC conduct an updated analysis of these economic effects based on 2010 trade data to take into account market access changes since 2007. As requested, the ITC will provide advice to the USTR as to the probable economic effect of providing DFQF treatment for imports from LDCs on U.S. industries producing like or directly competitive products, consumers, imports under U.S. preference programs, and imports from U.S. free trade agreement (FTA) partners.
(See ITT's Online Archives or 06/23/11 news, 11062314, for BP summary of USTR's request for an updated analysis.)
Comments Due by Sept 16, Final Report to be Submitted to USTR by Feb 2012
The ITC notes that it will not hold a public hearing in connection with this investigation, but welcomes written submissions for the record from all interested parties by September 16, 2011. The ITC expects to submit its report, which will be confidential, to the USTR by February 16, 2012.
Will Cover HTS Ch 1-97 Articles & Consider GSP AGOA, CBI Preference Programs
The ITC's advice will be based on the 2010 Harmonized Tariff Schedule (HTS) nomenclature and on 2010 trade and tariff rate data. The investigation will cover each article in HTS Chapters 1 through 97 for which U.S. tariffs or tariff-rate quotas remain, taking into account preferential tariff treatment currently being provided to LDCs under the African Growth and Opportunity Act (AGOA) and the Caribbean Basin Initiative (CBI) programs and that could be provided under the Generalized System of Preferences (GSP), if Congress renews that program.
Will Also Identify Textile Articles for Which Imports Could Potentially Increase
Additionally, the ITC will, to the extent possible, evaluate the articles in HTS Chapters 50 through 63 (on textile and textile articles) to identify products not currently imported from LDCs for which imports could potentially increase following the granting of DFQF access and the possible effect of trade diversion on U.S. imports from countries with which the U.S. has FTAs or preferential trade programs, including countries to which the U.S. is a major exporter of yarns and fabrics.
1Probable Economic Effect of Providing Duty-Free, Quota-Free Treatment for Imports from Least-Developed Countries, 2012 Report
The Federal Register notice (FR Pub 07/13/11) is available here.