AAEI Issues "The Innovation Economy for America" Policy Paper

The American Association of Exporters and Importers (AAEI) has isssued a policy paper entitled “The Innovation Economy for America.” The paper, which was sent to all members of Congress last week, contains a series of ideas that, if adopted, would according to AAEI "greatly increase the likelihood that the next great company with innovative technology and products will be created in the United States and thrive in the global marketplace."

"Our leaders need to better understand what innovation really is," said AAEI President and CEO Marianne Rowden, who authored the document. "Innovation can take many forms now, from new products to new processes. If Congress can improve the business environment for our cutting-edge innovators, then it will have tilled the soil from which new ideas can propel the future of our economy."

The document describes the following four policy areas that will foster innovative thinking and invention:

1. Creating an Environment that is Conducive to and Protects Innovation

2. Implementing These Small and Medium Size Business Enterprises Initiatives and Priorities

• Completing Free Trade Agreements with Colombia, Panama and Korea
• Help Small and Medium Size Business Navigate U.S. Export Controls by providing assistance through the U.S. Small Business Administration and the U.S. Department of Commerce
• Expand Export Financing Opportunities for SMEs

3. Promoting Exports by

• Enacting Duty Drawback Simplification
• Streamlining Export Controls

4. Lower Transaction Costs for Business by

• Passing the Miscellaneous Trade Bill (H.R. 4380)
• Finishing the Automated Commercial Environment (ACE) and International Trade Data System (ITDS)
• Economizing Homeland Security Costs (including C-TPAT, CCSP)
• Harmonizing and Recognizing Authorized Economic Operator Programs
• Promoting International Standards Setting Bodies
• Enacting an Exclusive Forum for Trade-Related Disputes by passing a bill to expand the jurisdiction of hte U.S. Court of International Trade
• Eliminating and Reducing User Fees

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HTSUS Updated to Reflect Implementation of U.S.-Peru Trade Promotion Agreement

The United States-Peru Trade Promotion Agreement went into on February 1, 2009.

In order to implement the U.S.-Peru Trade Promotion Agreement, the U.S. International Trade Commission has updated the Harmonized Tariff Schedule of the United States (HTSUS).

The Rules of Origin of the U.S.-Peru Trade Promotion Agreement are found in General Note 32 (starts on page 562 of the General Notes) and the special rate of duty column of the HTSUS has been updated to indicate the letters "PE" for products from Peru eligible for the preferential duty rates.

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U.S.-Peru Free Trade Agreement to Take Effect on February 1, 2009

The U.S.-Peru Free Trade Agreement (officially known as the U.S.-Peru Trade Promotion Agreement) will go into effect on February 1, 2009.

In Washington, DC, President Bush yesterday issued a proclamation to implement the free trade agreement and in Lima, Peruvian President Alan Garcia and Mercedes Aráoz Fernandez, Peru's Minister of Trade and Tourism, also signed the required proclamation to formally implement the free trade agreement.

In order to receive preferential treatment under the U.S.-Peru Trade Promotion Agreement, U.S. and Peruvian goods must qualify as originating as prescribed under the Rules of Origin section of the Agreement (Annex 4.1). The Rules of Origin for the U.S.-Peru Trade Promotion Agreement are similar, but not identical, to rules of origin found in the North American Free Trade Agreement (NAFTA), the U.S.-Chile Free Trade Agreement and the Central American-Dominican Republic-United States Free Trade Agreement (CAFTA-DR).

The Rules of Origin for the U.S.-Peru Free Trade Agreement can be found here (pdf) and will soon be published in the General Notes of the Harmonized Tariff Schedule of the United States Annotated and the appropriate changes will be made to the HTSUS in order to reflect the preferential duty rates for qualifying Peruvian products.

The U.S.-Peru Free Trade Agreement was signed on April 12, 2006. It was approved by the U.S. House of Representatives on November 8, 2007 and by the U.S. Senate on December 4, 2007. President Bush signed the legislation implementing the Agreement on December 14, 2007.

Peru’s Congress passed this week modifications to earlier legislation on trade, health and the environment, in order to conform to and implement the terms of the free trade agreement.

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Costa Rica Finally Eligible for CAFTA-DR Benefits on January 1, 2009

President Bush today issued a Proclamation providing that the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR) will enter into force for Costa Rica on January 1, 2009. Costa Rican products meeting the rules of origin of the CAFTA-DR that are entered into the U.S., or withdrawn from warehouse for consumption, on or after January 1, 2009 will be eligible for preferential tariff treatment.

Costa Rica is the last country to implement the CAFTA-DR. CAFTA-DR entered into force for El Salvador on March 1, 2006, for Honduras and Nicaragua on April 1, 2006, for Guatemala on July 1, 2006, and for the Dominican Republic on March 1, 2007.

In October 2007, the voters of Costa Rica narrowly backed the free trade agreement in a national referendum.

No date has yet been set for implementation of the U.S.-Peru Free Trade Agreement, which is expected to go into effect some time in 2009.

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