To Implement the United States-Chile Free Trade Agreement

This proclamation implements the United States-Chile Free Trade Agreement by modifying the Harmonized Tariff Schedule to establish preferential tariff treatment, rules of origin, and staged duty reductions. It removes Chile from the Generalized System of Preferences, delegates authority to the Secretary of Commerce and the Committee for the Implementation of Textile Agreements (CITA), and sets January 1, 2004 as the effective date for most provisions.

Federal Register Open PDF 68 FR 75789

Impact dates

Date TBD
Staged duty reductions effective per dates specified in relevant sections of Annex II to Publication 3652
Jan 1, 2004
Proclamation effective for goods entered or withdrawn from warehouse for consumption

Key directives

Modify HTS per Annex I of USITC Publication 3652
Modify HTS per Annex II of Publication 3652 with staged effective dates
Secretary of Commerce to establish/designate office for panel administrative assistance
CITA authorized to conduct verifications under Article 3.21
CITA authorized to review and act on textile/apparel serious damage requests
Supersede inconsistent prior proclamations and Executive Orders

Who is ordered

Timeline

Immediate

HTS modifications take effect January 1, 2004 for most goods
Chile removed from GSP beneficiary list

Near term (90d)

Staged duty reductions begin per Annex II of Publication 3652

Long term

Continued phased elimination of duties per USCFTA schedule
Ongoing CITA authority for textile import relief investigations

Risks & tensions

Potential textile/apparel industry disputes over 'serious damage' determinations
GSP removal may face opposition from Chilean interests or U.S. importers previously using that program
Incorporation by reference of USITC Publication 3652 means full tariff details not in proclamation text itself