II
111th CONGRESS
1st Session
S. 1141
IN THE SENATE OF THE UNITED STATES
May 21, 2009
Mrs. Feinstein (for herself and Mr. Bond) introduced the following bill; which was read twice and referred to the Committee on Finance
A BILL
To extend certain trade preferences to certain least-developed countries, and for other purposes.
Short title
This Act may be cited as the
Tariff Relief Assistance for
Developing Economies Act of 2009
or the
TRADE Act of
2009
.
Findings
Congress finds the following:
It is in the mutual interest of the United States and least-developed countries to promote stable and sustainable economic growth and development.
Trade and investment are powerful economic tools and can be used to reduce poverty and raise the standard of living in a country.
A country that is open to trade may increase its economic growth.
Trade and investment often lead to employment opportunities and often help alleviate poverty.
Least-developed countries have a particular challenge in meeting the economic requirements and competitiveness of globalization and international markets.
The United States has recognized the benefits that international trade provides to least-developed countries by enacting the Generalized System of Preferences and trade benefits for developing countries in the Caribbean, Andean, and sub-Saharan African regions of the world.
Enhanced trade with least-developed Muslim countries, including Yemen, Afghanistan, and Bangladesh, is consistent with other United States objectives of encouraging a strong private sector and individual economic empowerment in those countries.
Offering least-developed countries enhanced trade preferences will encourage both higher levels of trade and direct investment in support of positive economic and political developments throughout the world.
Encouraging the reciprocal reduction of trade and investment barriers will enhance the benefits of trade and investment as well as enhance commercial and political ties between the United States and the countries designated for benefits under this Act.
Economic opportunity and engagement in the global trading system together with support for democratic institutions and a respect for human rights are mutually reinforcing objectives and key elements of a policy to confront and defeat global terrorism.
Definitions
In this Act:
Beneficiary TRADE Act of 2009 country
The term beneficiary TRADE Act of 2009 country means a TRADE Act of 2009 country that the President has determined is eligible for preferential treatment under section 5.
Former TRADE Act of 2009 beneficiary country
The term former TRADE Act of 2009 beneficiary country means a country that, after being designated as a beneficiary TRADE Act of 2009 country under this Act, ceased to be designated as such a country by reason of its entering into a free trade agreement with the United States.
TRADE Act of 2009 country
The term TRADE Act of 2009 country means a country listed in subsection (b) or (c) of section 4.
Authority To designate; eligibility requirements
Authority To Designate
In general
Notwithstanding any other provision of law, the President is authorized to designate a TRADE Act of 2009 country as a beneficiary TRADE Act of 2009 country eligible for benefits described in section 5—
if the President determines that the country meets the requirements set forth in section 104 of the African Growth and Opportunity Act (19 U.S.C. 3703); and
subject to the authority granted to the President under subsections (a), (d), and (e) of section 502 of the Trade Act of 1974 (19 U.S.C. 2462 (a), (d), and (e)), if the country otherwise meets the eligibility criteria set forth in such section 502.
Application of section 104
Section 104 of the African Growth and
Opportunity Act shall be applied for purposes of paragraph (1) by substituting
TRADE Act of 2009 country
for sub-Saharan African
country
each place it appears.
Countries eligible for designation
For purposes of this Act, the term TRADE Act of 2009 country refers to the following or their successor political entities:
Afghanistan.
Bangladesh.
Bhutan.
Cambodia.
Kiribati.
Lao People’s Democratic Republic.
Maldives.
Nepal.
Samoa.
Solomon Islands.
Timor-Leste (East Timor).
Tuvalu.
Vanuatu.
Yemen.
Sri Lanka economic emergency support
For purposes of this Act, the President may also designate Sri Lanka as beneficiary TRADE Act of 2009 country eligible for benefits described in section 5.
TRADE enhancement
The preferential treatment described in this section includes the following:
Preferential tariff treatment for certain articles
In general
The President may provide duty-free treatment for any article described in section 503(b)(1) (B) through (G) of the Trade Act of 1974 (19 U.S.C. 2463(b)(1) (B) through (G)) that is the growth, product, or manufacture of a beneficiary TRADE Act of 2009 country, if, after receiving the advice of the International Trade Commission in accordance with section 503(e) of the Trade Act of 1974 (19 U.S.C. 2463(e)), the President determines that such article is not import-sensitive in the context of imports from beneficiary TRADE Act of 2009 countries.
Rules of origin
The duty-free treatment provided under subparagraph (A) shall apply to any article described in that subparagraph that meets the requirements of section 503(a)(2) of the Trade Act of 1974 (19 U.S.C. 2463(a)(2)), except that—
if the cost or value of materials produced in the customs territory of the United States is included with respect to that article, an amount not to exceed 15 percent of the appraised value of the article at the time it is entered that is attributed to such United States cost or value may be applied toward determining the percentage referred to in subparagraph (A) of section 503(a)(2) of the Trade Act of 1974 (19 U.S.C. 2463(a)(2)); and
the cost or value of the materials included with respect to that article that are produced in one or more beneficiary TRADE Act of 2009 countries or former beneficiary TRADE Act of 2009 countries shall be applied in determining such percentage.
Textile and apparel articles
In general
The preferential treatment relating to
textile and apparel articles described in section 112 (a) and (b) (1) and (2)
of the African Growth and Opportunity Act (19 U.S.C. 3721 (a) and (b) (1) and
(2)) shall apply to textile and apparel articles imported directly into the
customs territory of the United States from a beneficiary TRADE Act of 2009
country and such section shall be applied for purposes of this subparagraph by
substituting beneficiary TRADE Act of 2009 country
and
beneficiary TRADE Act of 2009 countries
for beneficiary
sub-Saharan African country
and beneficiary sub-Saharan African
countries
, respectively, each place such terms appear.
Apparel articles assembled from regional and other fabric
In applying such section 112, apparel articles wholly assembled in one or more beneficiary TRADE Act of 2009 countries or former beneficiary TRADE Act of 2009 countries, or both, from fabric wholly formed in one or more beneficiary TRADE Act of 2009 countries or former beneficiary TRADE Act of 2009 countries, or both, from yarn originating either in the United States or one or more beneficiary TRADE Act of 2009 countries or former beneficiary TRADE Act of 2009 countries, or both (including fabrics not formed from yarns, if such fabrics are classifiable under heading 5602 or 5603 of the Harmonized Tariff Schedule of the United States and are wholly formed and cut in the United States, in one or more beneficiary TRADE Act of 2009 countries or former beneficiary TRADE Act of 2009 countries, or any combination thereof), whether or not the apparel articles are also made from any of the fabrics, fabric components formed, or components knit-to-shape described in section 112(b) (1) or (2) of the African Growth and Opportunity Act (19 U.S.C. 3721(b) (1) and (2)) (unless the apparel articles are made exclusively from any of the fabrics, fabric components formed, or components knit-to-shape described in such section 112(b) (1) or (2)) subject to the following:
Limitations on benefits
In general
Preferential treatment under this subparagraph shall be extended in the 1-year period beginning January 1, 2009, and in each of the succeeding 10 1-year periods, to imports of apparel articles described in this subparagraph in an amount not to exceed the applicable percentage of the aggregate square meter equivalents of all apparel articles imported into the United States in the most recent 12-month period for which data are available.
Applicable percentage
For purposes of this clause, the term applicable percentage means 11 percent for the 1-year period beginning January 1, 2009, increased in each of the 10 succeeding 1-year period by equal increments, so that for the period beginning January 1, 2019, the applicable percentage does not exceed 14 percent.
Special rule
In general
Subject to clause (i), preferential treatment described in this subparagraph shall be extended through December 31, 2016, for apparel articles wholly assembled in one or more beneficiary TRADE Act of 2009 countries or former beneficiary TRADE Act of 2009 countries, or both, regardless of the country of origin of the yarn or fabric used to make such articles.
Country limitations
Small suppliers
If, during the preceding 1-year period beginning on January 1 for which data are available, imports from a beneficiary TRADE Act of 2009 country are less than 1 percent of the aggregate square meter equivalents of all apparel articles imported into the United States during such period, such imports may increase to an amount that is equal to not more than 1.5 percent of the aggregate square meter equivalents of all apparel articles imported into the United States during such period.
Other suppliers
If during the preceding 1-year period beginning on January 1 for which data are available, imports from a beneficiary TRADE Act of 2009 country are at least 1 percent of the aggregate square meter equivalents of all apparel articles imported into the United States during such period, such imports may increase, during each subsequent 12-month period, by an amount that is equal to not more than one-third of 1 percent of the aggregate square meter equivalents of all apparel articles imported into the United States.
Aggregate country limit
In no case may the aggregate quantity of textile and apparel articles imported into the United States under this subparagraph exceed the applicable percentage set forth in clause (i).
Technical amendment
Section 6002(a)(2)(B) of the Africa
Investment Incentive Act of 2006 (Public Law 109–432) is amended by inserting
before by striking
the following: in paragraph
(3),
.
Other restrictions
The provisions of section 112 (b) (3)(B),
(4), (5), (6), (7), and (8), and (e), and section 113 of the African Growth and
Opportunity Act (19 U.S.C. 3721 (b) (3)(B), (4), (5), (6), (7), and (8), and
(e), and 3722) shall apply with respect to the preferential treatment extended
under this Act to a beneficiary TRADE Act of 2009 country by substituting
beneficiary TRADE Act of 2009 country
for beneficiary
sub-Saharan African country
and beneficiary TRADE Act of 2009
countries
and former beneficiary TRADE Act of 2009
countries
for beneficiary sub-Saharan African countries
and former sub-Saharan African countries
, respectively, wherever
appropriate.
Reporting requirement
The President shall monitor, review, and report to Congress, not later than 1 year after the date of the enactment of this Act, and annually thereafter, on the implementation of this Act and on the trade and investment policy of the United States with respect to the TRADE Act of 2009 countries.
Termination of preferential treatment
No duty-free treatment or other preferential treatment extended to a beneficiary TRADE Act of 2009 country under this Act shall remain in effect after December 31, 2019.
Effective date
The provisions of this Act shall take effect on January 1, 2009.