As most of you are already aware, the US Government has been working to extend the Andean Trade Preference and Drug Eradication Act, which expired on February 12, 2011. With the expiration of this Act, we are now paying duties on exports from South American, such as Oil, Copper, Gold, and Cut Flowers. We are encouraging all florists to send a letter to your local congress repesentative in an effort to have the Act extended again. Below is a letter Licolnway Flower Shop and Greenhouses in York, PA sent to their local congressman and the response they received.
Hi Bob:
We typically do not have the opportunity to discuss “higher-level” issues, and rarely do I have the occasion to even pay attention to international debates, but I have recently become slightly informed about the Andean Trade Preference and Drug Eradication Act (ATPDEA).
Apparently, this was enacted under G.H.W. Bush back in 1991 as a way to eliminate tariffs on imports from South American countries in an effort to reduce the drug production and encourage imports of legal items such as oil, copper, gold, asparagus, sugar and CUT FLOWERS.
The Act has been extended many times, however, it has finally expired as of February 12, 2011 as the Act was allowed to lapse (http://www.reuters.com/article/2011/02/09/us-usa-trade-benefits-idUSTRE71878A20110209).
Florists and floral wholesalers operate on a VERY thin margin. This is a very cut-throat industry and quite frankly, we import a great deal of our product from Columbia and Ecuador. Logistically, because of the climates and the cost of heating greenhouses – it is simply not possible to purchase certain flowers (daisies, etc.) that are grown in the States. We have already seen an increase in our costs of product over the past two weeks and as more flower farms and importers wrap their heads around the actual costs of the tariffs, we will only see them increase more.
If you get a chance, I’d really like to hear what Todd’s thoughts are on the Act. I know that there are many high-level political and international trade decisions behind this, but quite frankly, beyond all of that, this has a direct impact on our small businesses in the region – not just Lincolnway Flower Shop, but ALL retail florists and medium-sized businesses like Schaefer Wholesale Florists, who supplies flowers to several hundred mid-Atlantic customers daily.
We had a terrific Valentine’s Day, and it is starting to feel like customers are starting to spend a little bit more, but sales are still very fragile and the floral industry will feel the impacts of imports from other countries. Remember that the York region has MANY businesses that will feel this – aside from Lincolnway and Schaefer Wholesale, do not forget about Royer’s, Butera, Chas. Schaefer, Stagemeyer, Smith’s, Dandylion, Flower World, etc. We all employ many specifically-skilled workers who would have difficulty finding work in any type of similar field.
Thanks Bob!
Owner,
Lincolnway Flower Shop and Greenhouses
____________________________________________________________
From: Reilly, Bob
Sent: Wednesday, March 09, 2011 11:00 AM
To:
Subject: RE: ATPDEA
Congressman Platts has voted in favor of the short-term extensions of the ATPDEA in the past. We have been following the debate on the long-term extension, but since trade issues don’t fall within his committee jurisdictions, we’ve been waiting until the bill gets through the committee process before delving into the long-term issues. Given the volume of bills before Congress he has to focus on either the bills in his committees or those nearing full House consideration. That being said, the information you sent is great insight for us into the ramifications of the extension’s lapse and lack of a finalized agreement. I frankly had no idea you or other local florists imported flowers in that manner. I will share this information with him and will keep you posted on developments as the agreement moves forward.
That being said, here’s an article from Congressional Quarterly that lays out the current status on the ATPDEA and other out standing trade agreements and what the issues blocking passage may be. Let’s keep in touch on this.
Bob
Jockeying Continues Regarding Which Trade Agreements Should Advance
By Joseph J. Schatz, CQ Staff
The House GOP majority continues to pressure the Obama administration to expand its trade agenda, with a key House Republican warning the president Tuesday against moving ahead with a South Korea trade pact without also advancing agreements with Colombia and Panama.
At the same time, Senate Finance Chairman Max Baucus, a Montana Democrat, is emerging as a critical figure in the fate of the three agreements, all of which have been stalled since President George W. Bush signed them in 2006 and 2007. He could become an ally in the GOP’s push.
President Obama has called for Congress to approve the Korea deal this year, after the pact was tweaked. His chief negotiator, U.S. Trade Representative Ron Kirk, has pledged to send Congress implementing legislation in the next few weeks, setting up a possible spring vote.
Kirk has said he is ramping up efforts to resolve outstanding labor concerns with the Colombian and Panamanian governments, but he would not give a firm timeline for action on those deals, to the ongoing frustration of Republicans.
“I would strongly advise the White House not to send Korea by itself,” said Rep. Kevin Brady, R-Texas, at a briefing by the Congressional Services Caucus. Brady chairs the Ways and Means Subcommittee on Trade.
Brady and other free traders also are looking to Baucus for help. Baucus is withholding his support for the Korea deal, saying it does not do enough to open markets for U.S. beef producers. But he is a big advocate for the Colombia trade deal and might have the leverage to force a deal on all three pacts.
The Colombia pact is important to companies in his state; Baucus is heading to Colombia and Brazil next week with business representatives. But the pact as written has stirred widespread concerns in the broader Democratic Caucus about violence against labor unions in the South American country.
Earlier this week, Baucus and ranking Finance Republican Orrin G. Hatch of Utah wrote to Kirk asking him to come to a March 9 hearing ready to lay out the specific demands that the administration is making to Colombia and Panama. Advocates of free trade complain that Obama and other Democratic critics of the Colombia deal have been unfairly moving the goal posts on the Colombian government.
At the hearing, Baucus and Hatch wrote, “we expect that you will come prepared to (1) identify specifically any additional steps that the administration believes Panama or Colombia should take; and (2) provide a clear and expeditious timetable for moving both agreements through the U.S. Congress.”
Brady noted that Baucus is “on fire for Colombia and Panama.” He said that Obama should sit down with Baucus, Speaker John A. Boehner, R-Ohio, House Ways and Means Chairman Dave Camp, R-Mich., and Senate Minority Leader Mitch McConnell, R-Ky., to hash out a plan for all three trade deals.
‘A Serious Mistake’
Camp blamed the White House’s inaction on the Colombia and Panama deals for helping to derail action last week on draft legislation that would extend Trade Adjustment Assistance (TAA) benefits for workers affected by increased imports, along with trade preferences for Andean nations. House GOP leaders pulled it from the schedule because of concerns among conservatives, some of whom want to use the benefits to force action on all three stalled trade deals. The leaders have not scheduled further action on the bill, and the expanded TAA benefits provided by the 2009 economic stimulus (PL 111-5) expired Feb. 13.
House Ways and Means Committee Democrats are trying to increase pressure on Republicans to bring the bill to the floor. They contend that some Republicans, including Camp, want the bill to move.
“It’s a serious mistake for TAA to be held hostage,” the committee’s ranking Democrat, Sander M. Levin of Michigan, told reporters Tuesday.
Camp introduced stand-alone legislation (HR 622) last week to extend the Andean preferences, but no action has been scheduled on that measure. Levin predicted difficulty in getting it passed without the TAA benefits.
Obama’s push on the South Korea trade deal began after he struck a deal on auto tariffs with Seoul in December that won the backing of Ford Motor Co., which had opposed the trade pact. The agreement with Panama is considered the least controversial of the three trade deals.
A version of this article appeared in the Feb. 16, 2011 print issue of CQ Today
ROBERT REILLY
Deputy Chief of Staff
U.S. Congressman Todd Platts
Glad that we can help! Make sure that you contact your local Representative, too. I am fortunate enough to know my Congressman, and his great Chief-of-Staff, too.