OMB COST ESTIMATE
FOR PAY-AS-YOU-GO CALCULATIONS

Report No: 560
Date: 12/13/2001

1. LAW NUMBER: P.L.107-43 (H.R. 2603)
2. BILL TITLE: United States-Jordan Free Trade Area Implementation Act
3. BILL PURPOSE: Implements the U.S.-Jordan agreement establishing a free trade area.

 

4. OMB ESTIMATE: P.L.107-43 phases out all tariffs on U.S. imports from Jordan at varying rates and different time tables. The reduction of tariff rates reduces receipts by small amounts.

	(Fiscal years; in millions of dollars)
	2001	2002	2003	2004	2005	2006
Receipts . . . . . . . . . . . . . . . . . . . .	0	-1	-1	-2	-3	-5

 

5. CBO ESTIMATE:

	(Fiscal years; in millions of dollars)
	2001	2002	2003	2004	2005	2006
Receipts . . . . . . . . . . . . . . . . . . . .	0	-2	-2	-3	-4	-4

 

6. EXPLANATION OF DIFFERENCES BETWEEN OMB AND CBO ESTIMATES:

   There are small technical estimating differences.

7. CUMULATIVE EFFECT OF DIRECT SPENDING AND REVENUE LEGISLATION ENACTED TO DATE:

	(Fiscal years; in millions of dollars)
	2001	2002	2003	2004	2005	2006
Outlay effect..............	5,503	16,646	20,274	21,014	22,071	7,413
Receipt effect............	-69,501	-35,106	-84,595	-103,785	-104,939	-123,377
Net costs....................	75,004	51,752	104,869	124,799	127,010	130,790

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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