International Trade Law News

Published by Jacobson Burton Kelley PLLC

The House Ways and Means Committee today held an informal markup of the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA). The informal markup was held in order to provide guidance to the Bush Administration on the draft DR-CAFTA implementing bill and Statement of Administrative Action. Under Trade Promotion Authority procedures, once the Administration formally submits these documents to Congress, they may not be amended.

The Committee approved by a vote of 25-16 an amendment in the form of a Chairman's substitute, that made changes to two sections of the proposed text of the Dominican Republic-Central America-United States Free Trade Agreement Implementation Act. The substitute amendment added a provision (section 403) to require the Administration to report on activities conducted by the DR-CAFTA countries and the United States on capacity building on labor issues. In addition, the substitute also included a provision (section 404) to require the President to prepare a report that would examine after one year whether the agreement has had a net negative effect on the services industry. The provision requires the President to make recommendations as to how the Trade Adjustment Assistance program should be amended if the CAFTA-DR has led to negative effects on the services industry. The complete text of the substitute amendment and the Ways and Means Committee's section-by-section analysis of the DR-CAFTA implementing bill can be found at the following link: http://waysandmeans.house.gov/legis.asp?formmode=item&number=424.

Separately, the Senate Finance Committee Senate voted 11-9 in favor of passage of the agreement in a mock markup held yesterday. The Senate Finance Committee's staff summary of the DR-CAFTA Implementation Act can be found at the following link: http://finance.senate.gov/sitepages/leg/leg061305a.pdf.