§2134 Two-year Residual Authority to Negotiate Duties

Summary

The President can make trade deals with other countries and change import duties when U.S. or foreign duties are unduly hurting U.S. trade and doing so would further the goals of the chapter. He may agree with other governments and then announce changes needed to carry out those deals, including keeping or changing duty-free or excise treatment or adding duties. There are limits. In any 1-year period, deals cannot cut duties or keep duty-free treatment for goods that make up more than 2 percent of the value of U.S. imports for the most recent 12 months of data. No cut can lower a duty to less than 80 percent of its current rate. Duties also cannot be set lower or higher than the rate that would have resulted if the maximum authority under section 2111 had been used. If a duty is at an intermediate stage under section 2119, each stage may be cut by up to 20 percent and the final rate must be at least 80 percent of the final-stage rate under section 2111, subject to the prior limit. To simplify math, the President may exceed the 80 percent and section 2111 limits by at most the smaller of (A) the gap to the next lower whole number or (B) one-half of 1 percent ad valorem. Such agreements may only be made during the 2-year period immediately after the period for agreements under section 2111 ends.