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Proc 8618ProclamationObama · D Quiet signal

Proclamation 8618

To Take Certain Actions Under the African Growth and Opportunity Act, and for Other Purposes

This proclamation terminates the Democratic Republic of Congo's designation as a beneficiary sub-Saharan African country under AGOA, effective January 1, 2011, due to failure to make continual progress on eligibility requirements. It also extends duty-free treatment for specified Israeli agricultural products through December 31, 2011, and implements a WTO multilateral agreement eliminating tariffs on certain pharmaceuticals and chemical intermediates.

Federal Register Open PDF 75 FR 81077

Impact dates

  1. Israel agricultural duty-free treatment under 2004 Agreement expires

  2. DRC beneficiary status termination effective; HTS modifications for DRC, Israel, and pharmaceuticals effective

Key directives

  • Terminate DRC designation as beneficiary sub-Saharan African country effective January 1, 2011
  • Delete 'Democratic Republic of Congo' from HTS general note 16(a)
  • Modify HTS to implement U.S. tariff commitments under 2004 U.S.-Israel agricultural agreement through December 31, 2011
  • Modify HTS to implement WTO pharmaceutical and chemical intermediates tariff elimination agreement per USITC Publication 4208
  • Supersede inconsistent provisions of prior proclamations and Executive Orders

Timeline

Immediate

  • DRC beneficiary status termination takes effect (January 1, 2011)
  • HTS modifications for DRC removal effective
  • Israel duty-free extension effective
  • Pharmaceutical tariff eliminations effective

Near term (90d)

  • Israel agricultural duty-free treatment continues through December 31, 2011

Long term

  • DRC must re-apply and meet eligibility criteria for future AGOA reinstatement
  • Potential renegotiation of U.S.-Israel agricultural trade agreement beyond 2011

Risks & tensions

  • DRC termination may strain U.S.-DRC bilateral relations
  • Israel agricultural extension is temporary; failure to negotiate replacement agreement by end of 2011 risks trade disruption
  • Pharmaceutical tariff elimination may face domestic industry adjustment pressures
Proclamation 8618: To Take Certain Actions Under the African Growth and Opportunity Act, and for Other Purposes · Executive Orders