TheWeekInCongress.com

Week Ending December 9, 2005

H.R.4340 To implement the United States-Bahrain Free Trade Agreement.

BRIEF

As is the case with most free trade agreements this one specifies tariff changes and how disputes are settled. Also common to such agreements are requirements governing the ‘rules of origin’ regarding textile imports that determine whether all or part of a garment to be sold in the US qualifies for tariff deduction.

Although the bill would open the door to any import from Bahrain the traditional imports have been clothing, oils, aluminum and chemicals and it is the loss of revenue from those imports that will make the Agreement a money loser for US taxpayers at least through 2015.

Not addressed in the bill is re-importation of pharmaceuticals through which prescription drugs could be sent back to the US for sale at a lower price that demanded by the US market.

Sponsor: Representative Roy Blunt (R-MO-7^th)

Vote: Passed House 327 to 95 (RC 616) December 7, 2005

Cost to the taxpayers: The Congressional Budget Office estimates that enacting the bill would reduce revenues by $20 million in 2006, by $143 million over the 2006-2010 period, and by $341 million over the 2006-2015 period, net of income and payroll tax offsets. CBO estimates that enacting H.R. 4340 also would increase direct spending by $1 million in 2006, $3 million over the 2006-2010 period, and $6 million over the 2006-2015 period.

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No reproduction or distribution without written permission from TheWeekInCongress.com.