Competitive Need Limitations Modernization Act of 2017

Bill: 115-s-2036
Sponsor: full_name: Sen. Donnelly, Joe [D-IN]
Introduced: 2017-10-31
Policy area: Foreign Trade and International Finance
Subjects: Competitiveness, trade promotion, trade deficits

Tariffs

Trade restrictions
Latest action: action_date: 2017-10-31
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2017-10-31
action_desc: Introduced in Senate
text: <p><b>Competitive Need Limitations Modernization Act of 2017 </b></p> <p>This bill amends the Trade Act of 1974 to revise the competitive need limitation review process by: (1) modifying the deadline for the review process, and (2) establishing the relevant domestic production time frame for such review as within the preceding three years (currently on January 1, 1995). (The competitive need limitation terminates duty-free treatment with respect to articles from a beneficiary developing country if certain import limits are exceeded.)</p>

tv_txt: II 115th CONGRESS 1st Session S. 2036 IN THE SENATE OF THE UNITED STATES October 31, 2017 Mr. Donnelly (for himself, Mrs. Ernst , and Mr. Portman ) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To make necessary changes to the competitive need limitations provision of the Generalized System of Preferences, and for other purposes.

1. Short title This Act may be cited as the Competitive Need Limitations Modernization Act of 2017 . 2. Findings Congress finds the following: (1) The Generalized System of Preferences, established under title V of the Trade Act of 1974 ( 19 U.S.C. 2461 et seq.), was created to promote economic development by expanding trade opportunities. (2) Congress imposed limits on the amount of trade that could qualify for duty-free treatment under the Generalized System of Preferences, referred to as the competitive need limitation . This limitation may be waived in the national economic interest. (3) The competitive need limitation and waiver processes must be carried out in a manner that accurately accounts for current domestic production and must be based on evidence from trade data. (4) The present competitive need limitation review process is flawed because the timing of the reviews prevent the use of full-year trade data, which can be solved by shifting the deadline of the review process. (5) The exclusion of products from the competitive need limitation is determined based on the levels of domestic production that existed in 1995. This does not reflect the realities of the current economy and should be updated. 3. Modification to procedures for competitive need limitation and waivers Section 503 of the Trade Act of 1974 ( 19 U.S.C. 2463 ) is amended as follows: (1) Modifications to competitive need limitation consideration In subsection (c)(2)— (A) in the matter following subparagraph (A)(i)(II), by striking July 1 and inserting October 15 ; and (B) in subparagraph (E), by striking on January 1, 1995 and inserting in any of the preceding three calendar years . (2) Modifications to waiver consideration In subsection (d), by striking July 1 in each place it appears and inserting October 15 .