"Minibus" Addresses Brazil Cotton Issue, Trade Agency Funding

With the current continuing resolution (CR) to fund the federal budget expiring today, the House and Senate on November 17 passed the Consolidated and Further Continuing Appropriations Act (H.R. 2112). The legislation combines an extension of the CR through December 16 with the first "minibus" appropriations bill, which includes the fiscal 2012 Agriculture, Commerce-Justice-Science, and Transportation-Housing and Urban Development appropriations bills. Following are some of the trade issues addressed by the "minibus":  
  • The House-passed version of H.R. 2112 included an amendment offered by Rep. Ron Kind (D-WI) to defund part of the 2010 temporary agreement that averted Brazilian retaliation against U.S. goods and intellectual property in connection with the WTO cotton case. The final legislation adopted in conference and enacted into law does not include the Kind amendment, thus allowing the temporary agreement to remain in place pending a permanent solution. The Chamber-affiliated Brazil-U.S. Business Council has led an ongoing advocacy campaign to resolve the dispute and avoid Brazilian retaliation.  
  • Conferees agreed to the higher funding level for the Office of the U.S. Trade Representative included in the Senate-approved bill ($51.2 million). The need for the higher funding level was cited in a Chamber appropriations letter and circulated to key staff. The final bill directs USTR to hire at least four additional staff fluent in Chinese to monitor and enforce China's compliance with its WTO obligations.  
  • The final version of the bill includes funding for the United States Commercial Service (USCS) in the amount of $269.8 million, a sum higher than the level approved by the House or Senate. Funding cuts have reduced USCS staff by almost 25% in the last five years. The Chamber has argued that growth in U.S. exports is essential to the economic recovery, and many U.S. small companies will be unable to participate in global markets without USCS assistance. The Chamber pressed Congress to support a more robust budget for the USCS so it can continue to help U.S. companies tap foreign markets.  
  • Earlier, on October 20, the Senate defeated by a 55 to 44 vote an amendment by Sen. Jeff Merkley (D-OR) that would have expanded "Buy America" provisions relating to federally funded rail transportation projects. The Chamber sent a Key Vote letter in opposition that was credited with helping turn the tide on the amendment.  



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