CITA Outlines Procedures for Panama TPA Textile & Apparel Safeguard Actions
The Committee for the Implementation of Textile Agreements outlined the procedures it will follow in considering requests to impose U.S.-Panama Trade Promotion Agreement (PATPA) safeguard actions (in the form of higher duty rates) on textile and/or apparel products from Panama. The interim procedures are effective May 28, but CITA is asking for comments on the procedures by June 27. CITA said the safeguard is available when, as a result of the elimination of duties under PATPA, a Panamanian textile or apparel article benefiting from preferential tariff treatment is being imported into the U.S. in such increased quantities as to cause serious damage or the threat of damage to a U.S. industry producing a like or directly competitive article.
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Three Year Maximum; Rate Cannot Exceed MFN Rate
The safeguard would last for a maximum of three years of higher duties. The rise in duties cannot exceed the lesser of the U.S. Most Favored Nation (column 1) tariff rate for the article at the time the safeguard is imposed, or the U.S. MFN (column 1) tariff rate for the article on the day before PATPA entered into force (Oct. 31, 2012).
Safeguard Mechanism Expires on Oct. 31, 2017; U.S. Must Provide Compensation
CITA’s authority to impose safeguards on Panamanian textiles and apparel will expire five years after Oct. 31, 2012, the date on which PATPA entered into force. In addition, if a PATPA safeguard is imposed, the U.S. must provide Panama “mutually agreed” trade liberalizing compensation in the form of concessions having equivalent trade effects or equivalent to the value of the additional duties expected to result from the safeguard measure. These concessions will be limited to textile and apparel products, unless the U.S. and Panama agree otherwise.
(Federal Register 05/28/13)