OMB COST ESTIMATE
Report No: 507
1. LAW NUMBER: P.L.106-200 (H.R. 434)
2. BILL TITLE: Trade and Development Act of 2000
3. BILL PURPOSE: Authorizes expanded trade benefits to eligible sub-Saharan African and Caribbean Basin countries, authorizes permanent normal trade relations status for Albania and Kyrgyzstan, and includes other changes to U.S. trade laws.
4. OMB ESTIMATE: P.L. 106-200 expands tariff preferences to 48 sub-Saharan African and 27 Caribbean Basin countries. In addition, the Act reduces tariffs for certain worsted wool fabric. OMB estimates that, in total, these changes will reduce revenues by $505 million in 2001, and $3 billion over the period 2001 through 2005. The Act also accelerates the rum excise tax cover over payments to Puerto Rico and the Virgin Islands, which were delayed in Public Law 106-170. This shifts $32 million in payments from 2001 to 2000. Several other provisions also have small pay-as-you-go effects on outlays.
The differences between OMB and CBO estimates are the result of different baselines and estimating models.
7. CUMULATIVE EFFECT OF DIRECT SPENDING AND REVENUE LEGISLATION ENACTED TO DATE:
*$500,000 or less.
NOTE: The cumulative effect of direct spending and revenue legislation enacted to date is currently estimated to result in an end-of-session sequester. The Administration looks forward to working with the Congress to ensure that an unintended sequester does not occur.
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