Mr. President, I rise today to introduce the Asia- South Pacific Trade Preferences Act to help some of the world's poorest countries sustain vital export industries and promote economic growth and…
Mr. President, I rise today to introduce the Asia- South Pacific Trade Preferences Act to help some of the world's poorest countries sustain vital export industries and promote economic growth and political stability.
This legislation will provide duty free and quota free benefits for garments and other products similar to those afforded to beneficiary countries under the Africa Growth and Opportunity Act.
The countries covered by this legislation are 13 Least Developed Countries, LDCs, as defined by the United Nations and the U.S. State Department, which are not covered by any current U.S. trade preference program: Afghanistan, Bangladesh, Bhutan, Cambodia, Kiribati, Laos, Maldives, Nepal, Samoa, Solomon Islands, East Timor, Tuvalu, and Vanuatu.
They are among the poorest countries in the world.
Nepal has per capita income of $240. Unemployment in Bangladesh stands at 40 percent. Approximately 36 percent of Cambodia's population lives below the poverty line.
Each country faces critical challenges in the years ahead including poor health care, insufficient educational opportunities, high HIV/AIDS rates, and the effects of war and civil strife.
The United States must take a leadership role in providing much needed assistance to the people of these countries.
Yet humanitarian and development assistance should not be the sum total of our efforts to put these countries on the road to economic prosperity and political stability.
Indeed, the key for sustained growth and rising standards of living will be the ability of each of these countries to create vital export industries to compete in a free and open global marketplace.
We should help these countries help themselves by opening the U.S. market to their exports as we have done for other developing countries in the past.
By doing so, we will demonstrate the best of American values: reaching out to a neighbor in need and helping him to stand on his own two feet.
Success in this endeavor will ultimately allow these countries to become less dependent on foreign aid and allow the United States to provide assistance to countries in greater need.
But make no mistake. These countries will not automatically receive the trade benefits provided by this legislation.
Our efforts to promote economic growth, jobs, and political stability will fail if these countries are strangled by human rights abuses, corruption, and the absence of the rule of law.
Instead of lifting the citizens of these countries out of poverty and giving hope for a better future, we will ignore our values and sustain the status quo.
So, this legislation has been drafted to ensure that the benefits are granted on a performance-driven basis.
That is, to be eligible, a beneficiary country must demonstrate that it is making continual progress toward establishing rule of law, political pluralism, the right to due process, and a market-based economy that protects private property rights.
So, this legislation would help promote democracy, human rights, and the rule of law while sustaining vital export industries and creating employment opportunities.
The beneficiary countries have a clear incentive to stay on the right path or they will lose the benefits of this bill.
I firmly believe that these benefits will make a difference.
The garment industry is a key part of the manufacturing sector in some of these countries.
In Nepal, the garment industry is entirely export oriented and accounts for 40 percent of foreign exchange earnings. It employs over 100,000 workers, half of them women, and sustains the livelihood of over 350,000 people.
The United States is the largest market for Nepalese garments and accounts for 80-90 percent of Nepal's total exports every year.
In Cambodia, approximately 250,000 Cambodians work in the garment industry supporting approximately one million dependents. The garment industry accounts for more than 90 percent of Cambodia's export earnings.
In Bangladesh, the garment industry accounts for 75 percent of export earnings. The industry employs 1.8 million
people, 90 percent of whom are women, and sustains the livelihoods of 10 to 15 million people.
Despite the poverty seen in these countries and the importance of the garment industry and the U.S. market, they face some of the highest U.S. tariffs in the world, averaging over 15 percent.
In contrast, countries like Japan and our European partners face tariffs that are nearly zero.
Surely we can do better.
By targeting the garment industry, we can make a real difference now in promoting economic growth and higher standards of living.
This legislation will help these countries compete in the U.S. market and lift their and let their citizens know that Americans are committed to helping them realize a better future for themselves and their families.
Doing so is consistent with U.S. goals to combat poverty, instability, and terrorism in a critical part of the world. We should not forget that the vast majority of the people from these beneficiary countries are Muslim.
The impact on U.S. jobs will be minimal.
Currently, the beneficiary countries under this legislation account for only 4 percent of U.S. textile and apparel imports, compared to 24 percent for China, and 72 percent for the rest of the world.
These countries will continue to be small players in the U.S. market, but the benefits of this legislation will have a major impact on their export economies.
At a time when we are trying to rebuild the image of the U.S. around the world, we need legislation such as this to show the best of America and American values. It will provide a vital component to our development strategy and add another tool to the war on terror. I urge my colleagues to support this bill.
Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.