Number: RL34688
Title: U.S. Foreign-Trade Zones: Trade Agreement Parity (TAP) Proposal
Authors: Mary Jane Bolle, Foreign Affairs, Defense, and Trade Division 
Abstract: Major policy implications of extending FTA-related benefits to goods from non- FTA countries include impacts on U.S. parts producers, customs revenue collections, and trade and diplomatic relations with FTA partner countries; the potential for the FTZ Board to be swamped with new applications for FTZ status, and to be under increased political pressure to grant such status; a debatable assertion by its association sponsor that it would create new U.S. jobs; and its impact on the ability of the U.S. Trade Representative (USTR) to negotiate future FTAs. The primary beneficiaries of TAP appear to be foreign multinational corporations (especially motor vehicle producers) that source components from non- FTA countries (i.e. China, Japan and the European Union), and some oil companies that operate U.S. refineries. Potential losers could include parts producers in the United States and FTA countries and U.S.-owned motor vehicle producers that source components from Mexico and Canada.
Pages: 26
Date: September 29, 2008