The Senate and the House of Representatives have both passed a bill that includes most of the trade liberalization measures that the trade community has actively pushed for in recent months. The measure includes a two-year extension of the Generalized System of Preferences, a continuation of benefits for Andean and African countries, a new trade preference program for Haiti, permanent normal trade relations status for Vietnam, hundreds of import duty suspension provisions, and a change to the timing of HTSUS revisions. President Bush is expected to sign the bill into law later this month.

GSP - The GSP program is reauthorized in its present form through 2008. After a six-month delay, rules on competitive need limit waivers will be tightened in order to tailor the program for use by lesser-developed countries that need help exporting to the U.S. The president will have the ability to end CNL waivers that have been in effect for at least five years for products that exceeded 150 percent of the CNL or 75 percent of U.S. imports of that product during the previous year.

AGOA - Duty-free treatment for textile and apparel articles made in certain African Growth and Opportunity Act beneficiary countries with third-country fabric is extended through Sept. 30, 2012. In order to encourage investment in fabric production in Africa, however, this benefit no longer applies to apparel goods made from components that are in "abundant supply" in Africa (denim, for example, which is produced in Lesotho ). Duty-free treatment is also granted to certain non-apparel textiles made entirely of African fabric in sub-Saharan African LDCs. In addition, the bill provides that AGOA short supply designations may be revoked if they were granted based on fraudulent information.

Haiti - A new trade preference program is established for Haiti that applies the same political, economic and labor criteria, and the same textile and apparel transshipment requirements, as AGOA. The emphasis of the program is on fostering textile and apparel production by liberalizing rules of origin and establishing a new tariff preference level for woven apparel that will be set at 50 million square meter equivalents in years one and two and 33.5 million SME in year three. Origin rules are also relaxed for wire harnesses used in automobile production. The president is to determine within 90 days of the bill's enactment that Haiti is eligible for these benefits.

ATPDEA - The Andean Trade Promotion and Drug Eradication Act is extended for six months for all four beneficiary countries. The program may be extended for an additional six months for each country if the U.S. and that country both complete their legislative process to approve a bilateral trade promotion agreement. The ATPDEA is amended to allow the revocation of short supply designations that were granted on the basis of fraudulent information.

Vietnam - Permanent normal trade relations status is granted to Vietnam , thereby allowing U.S. companies to enjoy the benefits associated with that country's pending accession to the World Trade Organization. A subsidies enforcement mechanism is established to ensure a quick and decisive response if Vietnam grants any prohibited subsidies to its textile and apparel industry.

Import tariffs - Import tariffs are suspended or reduced on more than 500 products, including certain lamp holders, footwear, aircraft parts, golf bags, fibers and fabrics, electronic devices, small appliances, and chemicals. The bill also corrects some erroneous past duty assessments through entry reliquidations.

Tariff schedule - The 15-day window for implementing changes to the Harmonized Tariff Schedule of the U.S. to reflect revisions agreed upon in the World Customs Organization is extended to 30 days.

CBTPA - The Caribbean Basin Trade Partnership Act is amended to allow the revocation of short supply designations that were granted on the basis of fraudulent information.