United States President Barack Obama has signed into law the Manufacturing
Enhancement Act of 2010, commonly referred to as the Miscellaneous Tariff Bill
(MTB), which contains hundreds of import tariff suspensions and reductions which
should stimulate increased industrial production and create jobs in the American
economy.
Passed with bipartisan support in both the House of Representatives and the
Senate on July 21 and July 27, respectively, the MTB amends the US harmonized
import tariff schedule to provide for various duty suspensions and reductions
until December 31, 2012, for chemicals and other products that are essential
for US manufacturers, but are not made or otherwise available in the US.
As the National Association of Manufacturers (NAM) has said: “The MTB
is one of the most important short-term actions Congress can take to preserve
and expand good American jobs, cut the costs of doing business in the US and
boost American manufacturing exports. US manufacturers large and small will
use the MTB’s tariff suspension provisions to obtain raw materials, proprietary
inputs and other products that are not available in our nation. “
Tariffs included in the MTB have undergone an extremely thorough vetting process
to ensure the benefits do not come at the expense of domestic manufacturers.
During the process, the House Committee on Ways and Means and the Senate Finance
Committee, the Administration, and the US International Trade Commission thoroughly
reviewed each tariff relief request to ensure that there is no domestic opposition.
President Obama, while signing the legislation, commented that the MTB “will
significantly lower costs for American companies across the manufacturing landscape
- from cars to chemicals; medical devices to sporting goods. And that will boost
output, support good jobs here at home, and lower prices for American consumers.”
The Ways and Means Committee Chairman, Sander M. Levin, stated that “the
legislation that President Obama signed is a significant step toward supporting
American manufacturing and American jobs”, while Chuck Grassley, the ranking
member on the Senate Finance Committee, pointed to NAM studies showing the MTB
“will increase US production by USD4.6bn and support 90,000 jobs”.
However, Grassley also said that, while the MTB is a “good start”,
the US should “build on that by moving to implement our pending trade
agreements without delay”. He was referring to the three free trade agreements
with South Korea, Colombia and Panama that have yet to be approved by Congress.
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