Creating Access to Necessary American-Canadian Duty Adjustments Act; CANADA Act
Summary
H.R. 4899, also known as the CANADA Act, aims to exempt small businesses from duties imposed due to a national emergency declared on February 1, 2025, concerning American-Canadian trade. The bill references specific executive orders (14193, 14197, and 14226) that initially established these duties. It seeks to alleviate the financial burden on small businesses affected by these trade restrictions.
The bill defines small businesses according to section 3 of the Small Business Act (15 U.S.C. 632). By exempting these businesses, the Act intends to support their economic stability during the declared national emergency.
The bill was introduced in the House of Representatives by Mr. Pappas and Ms. Goodlander and referred to the Committee on Ways and Means.
Expected Effects
If enacted, the CANADA Act would reduce the financial strain on small businesses that rely on imports from Canada. This could prevent closures and job losses within these businesses. The Act would also alter the scope and impact of the national emergency duties declared by the President.
Potential Benefits
- Reduced financial burden on small businesses importing goods from Canada.
- Potential for job preservation within affected small businesses.
- Increased competitiveness for small businesses compared to larger corporations not as sensitive to duty costs.
- Simplification of trade processes for exempted businesses.
- Support for economic stability during a declared national emergency.
Potential Disadvantages
- Potential reduction in government revenue due to duty exemptions.
- Possible competitive disadvantage for larger businesses that do not qualify for the exemption.
- Increased complexity in customs enforcement and administration.
- Risk of businesses misclassifying themselves to gain the exemption.
- The act may not address the underlying issues that led to the national emergency declaration.
Most Disadvantaged Areas:
Constitutional Alignment
The bill falls under Congress's power to regulate commerce with foreign nations, as granted by Article I, Section 8, Clause 3 of the Constitution. The power to impose and lift duties is a fundamental aspect of this authority. The bill does not appear to infringe upon any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).