House Passes Ex-Im Bank Reauthorization Bill: The House passed a bill this week to reauthorize the Export-Import Bank for five years. The Senate approved the bill late September. It will now go to the president for his signature. According to information from the House Financial Services Committee, this bill: creates a small business division at the Bank that will conduct outreach, tailor products to small businesses and establish a liaison with the Small Business Administration; streamlines the Bank’s application process and mandates that the Bank provide timely notice of receipt of applications; establishes an office at the Bank to focus on small businesses owned by women or the socially and economically disadvantaged; and requires the Bank to provide various enhancements to its regular operational reports to Congress.

CITA Adjusts Import Limits for Ukraine: The Committee for the Implementation of Textile Agreements has issued a directive, effective today, adjusting the import limits for certain wool textiles and textile products produced or manufactured in Ukraine and exported during the period January 1 through December 31, 2006. The current limit for category 435 is being increased for the re-crediting of unused 2005 carryforward.

Costa Rica Pocketing Agreement: Under an agreement between the U.S. and Costa Rica regarding certain changes to the DR-CAFTA textile and apparel rules of origin, goods qualifying for preferential tariff treatment as described in Annex 3.27 will be duty-free.

DOC Announces Allocation of 2007 Worsted Wool Fabric TRQs: The ITA has determined the allocation for calendar year 2007 of imports of certain worsted wool fabrics under tariff-rate quotas. The ITA oversees TRQs providing for reductions through 2009 of the import duties on specific quantities of two categories of worsted wool fabrics suitable for use in making suits, suit-type jackets or trousers: (a) fabric with average fiber diameters greater than 18.5 microns (HTSUS 9902.51.11; 5.5 million square meters); and (b) fabric with average fiber diameters of 18.5 microns or less (HTSUS 9902.51.15; five million square meters). These two TRQs are allocated to persons (including firms, corporations or other legal entities) who cut and sew men’s and boys’ worsted wool suits, suit-type jackets and trousers in the U.S. A third TRQ, which is also for worsted wool fabric with average fiber diameters of 18.5 microns or less (HTSUS 9902.51.16; two million square meters), is only for use by persons who weave worsted wool fabric in the U.S.

EU Reaches Compromise on New Chemical Regulatory Framework: The European Union has agreed to a compromise on the proposed Registration, Evaluation and Authorization of Chemicals (REACH) framework for regulating the import, manufacture, sale and use of chemical substances. The European Parliament is expected to vote on the legislation next week, paving the way for its implementation in early 2007. The REACH requirements are expected to affect 30,000 chemicals already on the market in a wide variety of consumer and industrial uses.

U.S. Presents Annual Recommendations under Japan Regulatory Reform Initiative: As part of an annual exchange under the U.S.-Japan Regulatory Reform and Competition Policy Initiative, the United States recently presented its recommendations for further improvements in Japan’s business environment and new market opportunities for U.S. exporters and companies seeking to do business in Japan. These recommendations, along with those from Japan, will serve as the basis for discussions over the coming months in the high-level officials group and in four different working groups covering telecommunications, information technologies, medical devices and pharmaceuticals, and cross-sectoral issues.

Chamber of Commerce Calls for U.S. to Recalibrate its Role in Southeast Asia: The U.S. Chamber of Commerce, in conjunction with the American Chambers of Commerce in Southeast Asia, recently released a report calling on the U.S. government to follow the chamber’s lead and increase its focus, resources and presence in Southeast Asia. With new trade agreements “springing up everywhere” throughout the region, said Chamber President Tom Donohue, “the U.S. business community believes it is important for the United States to recalibrate its role and strategy in Southeast Asia to ensure a strengthened competitive position for American companies in this critical market.” Donohue noted that the chamber is taking a similar approach by “stepping up its regional programs and initiatives and increasing its policy advocacy efforts in Washington to reflect the heightened priority of Southeast Asia in the business strategy of American companies.” The importance of the bilateral trade relationship is clear, the report notes. Southeast Asia is the United States’ fourth-largest global trading partner, while the U.S. ranks second behind Japan as a source of foreign direct investment in the ten member countries of the Association of Southeast Asian Nations. Two-way trade supports an estimated 800,000 U.S. jobs.

Business Groups Express Opposition to China Export Control Rule: Twenty-four prominent business associations, including the National Foreign Trade Council, the U.S.-China Business Council and the Business Software Alliance, have called on the Department of Commerce to withdraw and reconsider moving ahead with a proposed export control regulation for China. In a letter sent to the Bureau of Industry and Security Nov. 30, the business groups raised concerns about the proposed rule, stating that it is unilateral and out of step with diplomatic efforts, imposes excessive compliance burdens on U.S. businesses and does not advance national security interests.

Business Urges Passage of Trade and Tax Extenders Bill in Lame Duck Session: With Congress making a final push to end its legislative session this week, business groups are urging House and Senate leadership to approve this year a tax and trade package that would enact, renew or extend a number of important trade preference programs. In a Dec. 1 letter, the American Apparel and Footwear Association, the Business Roundtable, the U.S. Chamber of Commerce and others said Congress should (1) renew the Generalized System of Preferences, (2) renew the Andean Trade Preference Act, (3) extend the third-country fabric provision under the African Growth and Opportunity Act, (4) extend certain new trade preferences to Haiti, (5) enact the miscellaneous tariff bill, and (6) grant permanent normal trade relations status to Vietnam.

U.S. and Lebanon Sign Trade and Investment Framework Agreement: Assistant USTR for Europe and the Middle East Shaun Donnelly and Lebanese Minister of Economy and Trade Sami Haddad recently signed a Trade and Investment Framework Agreement to provide a forum for expanding and strengthening trade and investment relations between the two countries. Specifically, the TIFA creates a joint council that will consider a wide range of commercial issues and sets out basic principles underlying the bilateral trade and investment relationship.

China and Pakistan Sign Free Trade Agreement: China and Pakistan recently signed a free trade agreement and will begin eliminating or reducing tariffs on products in two phases starting July 1, 2007. In addition to liberalizing trade in goods, the agreement covers investment and includes chapters on rules of origin, technical barriers to trade and sanitary and phytosanitary measures. The two countries plan to launch negotiations on trade in services shortly.

Textile Importers Have Important Opportunity to Comment on Vietnam AD Monitoring Program: December 27 is the deadline for importers of textile and apparel products from Vietnam to file comments with the Department of Commerce regarding its proposed monitoring program for such imports. The Bush administration pledged to implement this monitoring program, and to self-initiate antidumping cases against textiles and apparel from Vietnam if the program reveals evidence that those goods are being dumped in the U.S. market, as part of its effort to secure congressional approval of permanent normal trade relations status for Vietnam in connection with that country’s pending accession to the World Trade Organization. The monitoring program will begin when Vietnam officially joins the WTO, which is expected to take place in late December.

Textile and Apparel Groups Seek “Commercially Meaningful” FTA with Korea: The American Apparel and Footwear Association, the United States Association of Importers of Textiles and Apparel and the Korea Federation of Textile Industries issued a joint statement last week announcing their support for free trade agreement between the U.S. and South Korea that is “commercially-meaningful” for the textile and apparel industries of both nations. The associations encouraged their respective governments to focus on a progressive and open agreement and not to negotiate from a static template. In addition, the associations said the FTA should provide for the immediate elimination of all apparel and textile duties as well as flexible rules of origin.