ExecutiveOrdersEO
Proc 7987ProclamationG.W. Bush · R Quiet signal

Proclamation 7987

To Implement the Dominican Republic-Central America-United States Free Trade Agreement

This proclamation implements the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR) with respect to El Salvador, modifying the Harmonized Tariff Schedule to provide preferential tariff treatment, establishing rules of origin, and delegating authority to the Secretary of Commerce, the Committee for the Implementation of Textile Agreements (CITA), and the United States Trade Representative for various trade administration functions.

Federal Register Open PDF 71 FR 10827

Impact dates

  1. CITA must eliminate quantity restriction on fabric/yarn/fiber within 6 months of adding to restricted list in Annex 3.25

  2. Proclamation effective for goods entered or withdrawn from warehouse for consumption (except Annex II staged reductions)

Key directives

  • Modify HTS as set forth in Annex I and Annex II of USITC Publication 3829
  • Secretary of Commerce to establish or designate office for administrative assistance to dispute panels
  • CITA authorized to determine commercial availability of fabrics/yarns/fibers under section 203(o)
  • CITA authorized to suspend/deny preferential tariff treatment for textile/apparel goods
  • CITA authorized to review requests for relief from serious damage to domestic textile/apparel industry
  • USTR authorized to obtain advice, submit reports, and consult with Congress on implementation
  • USTR authorized to modify HTS notes via Federal Register notice to reflect CITA determinations

Who is ordered

Timeline

Immediate

  • HTS modifications effective March 1, 2006 for most goods
  • El Salvador removed from GSP, CBERA, and CBTPA beneficiary lists

Near term (90d)

  • Staged duty reductions begin per Annex II of Publication 3829

Long term

  • Future staged duty reductions as specified in Publication 3829
  • Ongoing textile/apparel trade monitoring and enforcement by CITA

Risks & tensions

  • Textile/apparel industry likely to seek relief under sections 321-328, creating trade friction with El Salvador
  • CITA's delegated authority over commercial availability determinations creates administrative discretion with potential for inconsistent application
  • Supersession clause (paragraph 11) may create legal uncertainty for pending transactions under prior proclamations
Proclamation 7987: To Implement the Dominican Republic-Central America-United States Free Trade Agreement · Executive Orders