1.This Act may be cited as &short-title1;
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2.Congress finds that—
(1)it is in the mutual interest of the United States and countries emerging from political instability, civil strife, or armed conflict, to promote stable and sustainable growth and development of such countries;
(2)democratization and economic progress in countries emerging from political instability, civil strife, or armed conflict are important elements of a policy to address terrorism and endemic instability;
(3)preferential trade and market access arrangements are not a substitute for, but a complement to, necessary political and economic reforms that lead to political liberalization and economic freedom;
(4)countries in the developing world, and in particular countries emerging from political instability, civil strife, or armed conflict, experience deepening poverty, slow job creation, and a declining share of world trade and investment, while at the same time tend to have population growth rates among the highest in the world;
(5)such economic conditions are in part the result of barriers to trade and investment, a failure to engage fully in the global trading system, lack of participation in the World Trade Organization, and, often, a lack of economic diversification and over-reliance on the energy sector;
(6)offering enhanced trade preferences to countries emerging from political instability, civil strife, or armed conflict will encourage higher levels of trade and direct investment and help bring such countries more fully into the global trading system;
(7)higher levels of trade and investment and greater involvement in the global trading system can lead to increased economic development, which can in turn lead to more jobs for people in countries emerging from political instability, civil strife, or armed conflict; and
(8)encouraging the reduction of trade and investment barriers will enhance the benefits of trade and investment for all participating countries, as well as enhance commercial and political ties between the United States and such participating countries.
3.Congress supports—
(1)encouraging increased trade and investment between the United States and countries emerging from political instability, civil strife, or armed conflict;
(2)reducing tariff and nontariff barriers and other obstacles to trade between the United States and countries emerging from political instability, civil strife, or armed conflict;
(3)strengthening and expanding the private sector and accelerating the rate of job creation in countries emerging from political instability, civil strife, or armed conflict;
(4)promoting the rule of law, economic reform, political liberalization, respect for human rights, and the eradication of poverty in such countries;
(5)facilitating the development of civil societies and political freedom in such countries;
(6)promoting sustainable development, and protecting and preserving the environment in a manner consistent with economic development; and
(7)encouraging such countries to diversify their economies, implement domestic economic reforms, open to trade, and adopt anticorruption measures, including through accession to the Organization for Economic Cooperation and Development (OECD) Convention on Combating Bribery of Foreign Public Officials in International Business Transactions.
4.Designation of eligible countries
(a)The President is authorized to designate any country emerging from political instability, civil strife, or armed conflict as a beneficiary country if the President determines that the country—
(1)has established, or is making continual progress toward establishing—
(A)a market-based economy that protects private property rights, incorporates an open rules-based trading system, and minimizes government interference in the economy through measures such as price controls, subsidies, and government ownership of economic assets;
(B)the rule of law and the right to due process, a fair trial, and equal protection under the law;
(C)political pluralism, a climate free of political intimidation and restrictions on peaceful political activity, and democratic elections that meet international standards of fairness, transparency, and participation;
(D)the elimination of barriers to United States trade and investment, including by—
(i)providing national treatment and measures to create an environment conducive to domestic and foreign investment;
(ii)protecting intellectual property; and
(iii)resolving bilateral trade and investment disputes;
(E)economic policies that reduce poverty, increase the availability of health care and educational opportunities, expand physical infrastructure, promote the development of private enterprise, and encourage the formation of capital markets through micro-credit or other programs;
(F)a system to combat corruption and bribery, such as signing and implementing the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions;
(G)protection of internationally recognized worker rights, including the right of association, the right to organize and bargain collectively, a prohibition on the use of any form of forced or compulsory labor, a minimum age for the employment of children, and acceptable conditions of work; and
(H)policies that provide a high level of environmental protection;
(2)does not engage in activities that undermine United States national security or foreign policy interests;
(3)is a signatory of the United Nations Declaration of Human Rights, does not engage in gross violations of internationally recognized human rights, and is making continuing and verifiable progress on the protection of internationally recognized human rights, including freedom of speech and press, freedom of peaceful assembly and association, and freedom of religion;
(4)is not listed by the United States Department of State as a state sponsor of terrorism and cooperates fully in international efforts to combat terrorism; and
(5)otherwise meets the eligibility criteria set forth in section 502(b)(2) of the Trade Act of 1974 (19 U.S.C. 2462(b)(2)), other than section 502(b)(2)(B).
(b)If a country fails to satisfy one or more of the requirements contained in subparagraphs (A) through (H) of subsection (a)(1), but otherwise meets the requirements of subsection (a), the President may designate the country as a beneficiary country under this Act if the President determines that such designation will be in the national economic or security interest of the United States and transmits to Congress a report that contains the determination and the reasons therefor.
(c)If the President determines that a designated beneficiary country no longer meets the requirements described in subsection (a), the President shall terminate the designation of the country made pursuant to subsection (a) and transmit to Congress a report that contains the determination and the reasons therefor.
5.Designation of eligible articles
(a)Except as provided in sections 503(b)(2) and (3) of the Trade Act of 1974 (19 U.S.C. 2463(b)(2) and (3)), the President is authorized to designate articles as eligible for duty-free treatment from all beneficiary countries for purposes of this section by Executive order or Presidential proclamation after receiving the advice of the International Trade Commission in accordance with subsection (c).
(b)
(1)The duty-free treatment provided under this section shall apply to any eligible article which is the growth, product, or manufacture of 1 or more beneficiary countries if—
(A)that article is imported directly from a beneficiary country into the customs territory of the United States; and
(B)the sum of—
(i)the cost or value of the materials produced in 1 or more beneficiary countries, plus
(ii)the direct cost of processing operations performed in such beneficiary country or countries,is not less than 35 percent of the appraised value of such article at the time it is entered.
(2)An article shall not be treated as the growth, product, or manufacture of a beneficiary country by virtue of having merely undergone—
(A)simple combining or packaging operations; or
(B)mere dilution with water or mere dilution with another substance that does not materially alter the characteristics of the article.
(3)The Secretary of the Treasury, after consulting with the United States Trade Representative, shall prescribe such regulations as may be necessary to carry out this subsection, including, but not limited to, regulations providing that, in order to be eligible for duty-free treatment under this Act, an article—
(A)must be wholly the growth, product, or manufacture of 1 or more beneficiary countries; or
(B)must be a new or different article of commerce which has been grown, produced, or manufactured in 1 or more beneficiary countries.
(c)International Trade Commission adviceBefore designating an article as an eligible article under subsection (a), the President shall publish in the Federal Register and furnish the International Trade Commission with a list of articles that may be considered for designation as eligible articles for purposes of this Act. The President shall comply with the provisions of sections 131, 132, 133, and 134 of the Trade Act of 1974 as if an action under this section were an action taken under section 123 of the Trade Act of 1974 to carry out a trade agreement entered into under section 123.
6.Termination of preferential treatmentNo duty-free treatment or other preferential treatment extended to beneficiary countries under this Act shall remain in effect after December 31, 2011.