Floral importers are closer to having another two-plus years of duty-free flowers. A bill extending duty-free status through September 30, 2010, for flowers exported to the United States from four Andean nations has been introduced in the House of Representatives.
H.R. 5264, sponsored by House Ways and Means Committee Chairman Charles Rangel (D-15-NY), extends benefits for eligible products under The Andean Trade Preference Act (ATPA). The ATPA, which provides duty-free entry for flowers coming from Colombia, Ecuador, Bolivia and Peru, is set to expire on February 29. Rep. Rangel's bill extends those preferences for all four countries.
Without an extension, U.S. importers of record would begin paying duties on flowers from those four countries on March 1, 2008.
Both Colombia and Peru have negotiated free trade agreements (FTA's) with the United States. Once fully ratified and implemented, those FTA's will provide permanent duty-free status for flowers exported to the U.S from those two nations. Currently, duty-free status must be extended periodically under the rules and procedures outlined in the ATPA.
FTA's have not been negotiated with Ecuador or Bolivia due to concerns regarding the protection of U.S. investments in those two countries.
A Senate companion bill similar to Rep. Rangel's has not yet been introduced.
"This is just a first step," says Drew Gruenburg, chief operating officer of the Society of American Florists. "The Senate has to introduce its own bill, and the President would have to sign any extension bill into law by Feb. 29 in order for this to go into effect."