[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3905 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 3905

    To provide for an additional trade preference program for least 
              developed countries, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 18, 2007

 Mr. McDermott (for himself, Mr. English of Pennsylvania, Mr. Smith of 
Washington, Mr. Weller of Illinois, Ms. Watson, Mr. Burton of Indiana, 
 Mr. Blumenauer, Mr. Crowley, and Mr. Meek of Florida) introduced the 
following bill; which was referred to the Committee on Ways and Means, 
  and in addition to the Committees on Foreign Affairs and Financial 
Services, for a period to be subsequently determined by the Speaker, in 
   each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
    To provide for an additional trade preference program for least 
              developed countries, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``New Partnership for Development Act 
of 2007''.

        TITLE I--TRADE PREFERENCES FOR LEAST DEVELOPED COUNTRIES

SEC. 101. TRADE PREFERENCES.

    (a) In General.--Title V of the Trade Act of 1974 is amended by 
inserting after section 506B the following:

``SEC. 506C. TRADE PREFERENCES FOR LEAST DEVELOPED COUNTRIES.

    ``(a) Duty-Free-Treatment.--The President shall provide duty-free 
treatment in accordance with this section for all articles from 
qualified beneficiary countries designated under subsection (b), and 
such articles shall not be subject to any quantitative limitation.
    ``(b) Designation of Qualified Beneficiary Countries.--
            ``(1) Designated countries.--Subject to paragraph (2), the 
        President shall designate the following countries as qualified 
        beneficiary countries for purposes of this section:
                    ``(A) Countries determined by the Economic and 
                Social Council of the United Nations as `Least 
                Developed', other than Myanmar and Sudan.
                    ``(B) A country that is designated as an eligible 
                sub-Saharan African country under section 104 of the 
                African Growth and Opportunity Act.
            ``(2) Exclusion.--The President may not designate a country 
        as a qualified beneficiary country, and the President shall 
        terminate the eligibility of a qualified beneficiary country 
        for the preferential treatment under subsection (a), if any of 
        the following applies:
                    ``(A) The country has not adopted and maintained in 
                its statutes and regulations the following rights, as 
                defined by the International Labor Organization:
                            ``(i) Freedom of association.
                            ``(ii) The effective recognition of the 
                        right to collective bargaining.
                            ``(iii) The elimination of all forms of 
                        compulsory or forced labor.
                            ``(iv) The effective abolition of child 
                        labor and the prohibition on the worst forms of 
                        child labor.
                            ``(v) The elimination of discrimination in 
                        respect of employment and occupation.
                    ``(B) The country has failed to effectively 
                enforce, through a sustained or recurring course of 
                action or inaction laws directly related to the rights 
                set forth in subparagraph (A) and to acceptable 
                conditions of work with respect to minimum wages, hours 
                of work, and occupational safety and health, in a 
                manner affecting trade or investment between the United 
                States and the qualifying beneficiary country.
                    ``(C) The country is not making meaningful progress 
                toward--
                            ``(i) establishing 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;
                            ``(ii) establishing the rule of law, 
                        political pluralism, and the right to due 
                        process, a fair trial, and equal protection 
                        under the law;
                            ``(iii) elimination of barriers to trade 
                        and investment, including by--
                                    ``(I) the provision of national 
                                treatment measures to create an 
                                environment conducive to domestic and 
                                foreign investment;
                                    ``(II) the protection of 
                                intellectual property (without 
                                prejudice to any rights conferred by 
                                World Trade Organization agreements); 
                                and
                                    ``(III) the resolution of bilateral 
                                trade and investment disputes;
                            ``(iv) creating a system to combat 
                        corruption and bribery, such as signing and 
                        implementing the Convention on Combating 
                        Bribery of Foreign Public Officials and 
                        International Business Transactions;
                            ``(v) establishing and effectively 
                        enforcing laws to manage natural resources in a 
                        manner that ensures that their extraction does 
                        not cause serious injury to the environment and 
                        peoples of the producer nation; and
                            ``(vi) establishing and effectively 
                        enforcing laws and measures to prevent exports 
                        of illegally harvested flora or fauna, 
                        including by fully implementing the Convention 
                        on International Trade in Endangered Species of 
                        Wild Fauna and Flora.
                    ``(D) The country engages in gross violations of 
                internationally recognized human rights or fails to 
                cooperate in international efforts to eliminate human 
                rights violations.
                    ``(E) The country does not provide reasonable 
                access to the appropriate United States officials to 
                investigate and monitor compliance with the matters set 
                forth in subparagraphs (A) and (B), including by 
                ensuring full access to worksites, workers, and 
                managers for the completion of monitoring visits 
                prescribed under section 402(b) of the Foreign 
                Assistance Act of 1961.
            ``(3) Compliance.--
                    ``(A) Actions for noncompliance.--If the Director 
                of Competitiveness for Least-Developed Countries 
                (established in section 401 of the Foreign Assistance 
                Act of 1961) determines, based upon the annual Report 
                Card on Competitiveness submitted under section 402(e) 
                of that Act, and after interagency consultations and 
                consideration of any comments by Members of Congress 
                that are made upon review of such annual Report Card, 
                or based upon the review and assessment of a petition 
                submitted under section 402(d) of that Act, that the 
                qualified beneficiary country is not meeting the 
                standards required by subparagraphs (A), (B), (D), and 
                (E) of paragraph (2), then--
                            ``(i) the Director shall enter into 
                        consultations with the qualified beneficiary 
                        country, with the participation of worker 
                        representatives, in order to develop a plan 
                        with clear benchmarks to enable the country to 
                        comply with the provisions of subparagraphs 
                        (A), (B), (D) and (E) of paragraph (2);
                            ``(ii) the Director shall notify the 
                        Congress of any action under clause (i); and
                            ``(iii) if, after such consultations, a 
                        plan described in clause (i) cannot be 
                        developed, or such a plan is not implemented 
                        effectively, the President shall notify the 
                        Congress of the extent to which the President 
                        intends to terminate the country's eligibility 
                        for preferential treatment under subsection 
                        (a).
                    ``(B) Termination of eligibility.--The President 
                may not terminate the eligibility of a country on any 
                basis under paragraph (2) before the end of the 3-month 
                period beginning on the date on which the President 
                notifies the Congress of the President's intention to 
                do so.
                    ``(C) Reinstatement of eligibility.--The President 
                may reinstate the eligibility for preferential 
                treatment under subsection (a) of a country whose 
                eligibility has been terminated under subparagraph (A) 
                only if the Director of Competitiveness for Least-
                Developed Countries determines, based upon the most 
                recent annual Report Card on Competitiveness referred 
                to in subparagraph (A) and after interagency 
                consultations and consideration of any comments by 
                Members of Congress that are made upon review of such 
                annual Report Card, that the qualified beneficiary 
                country has met the standards required by subparagraphs 
                (A), (B), (D), and (E) of paragraph (2).
    ``(c) Eligible Articles.--
            ``(1) Rules of origin.--
                    ``(A) In general.--The duty-free treatment provided 
                under this section shall apply to any article that is 
                the growth, product, or manufacture of a qualified 
                beneficiary country if--
                            ``(i) the article is imported directly from 
                        a qualified beneficiary country into the 
                        customs territory of the United States; and
                            ``(ii) the sum of--
                                    ``(I) the cost or value of the 
                                materials produced in 1 or more 
                                qualified beneficiary countries under 
                                this section, plus
                                    ``(II) the direct costs of 
                                processing operations performed in 1 or 
                                more qualified beneficiary countries,
                        is not less than 35 percent of the appraised 
                        value of the article at the time it is entered.
                    ``(B) Special rule for sub-saharan africa.--In the 
                case of a textile or apparel article that is the 
                growth, product, or manufacture of a country described 
                in subsection (b)(1)(B), in the 10-year period 
                beginning on January 1, 2009, subparagraph (A)(ii) 
                shall be applied by substituting `25 percent' for `35 
                percent'.
                    ``(C) Determination of percentage.--For purposes of 
                determining the percentage referred to in subparagraph 
                (A)(ii), the term `qualified beneficiary country' 
                includes the Commonwealth of Puerto Rico and the United 
                States Virgin Islands. If the cost or value of 
                materials produced in the customs territory of the 
                United States (other than the Commonwealth of Puerto 
                Rico) is included with respect to an article to which 
                this paragraph applies, 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)(ii).
                    ``(D) Exclusions.--An article shall not be treated 
                as the growth, product, or manufacture of a qualified 
                beneficiary developing country by virtue of having 
                merely undergone--
                            ``(i) simple combining or packaging 
                        operations, or
                            ``(ii) mere dilution with water or mere 
                        dilution with another substance that does not 
                        materially alter the characteristics of the 
                        article.
                    ``(E) Direct costs of processing operations.--As 
                used in this paragraph, the term `direct costs of 
                processing operations'--
                            ``(i) includes, but is not limited to--
                                    ``(I) all actual labor costs 
                                involved in the growth, production, 
                                manufacture, or assembly of the 
                                specific merchandise, including fringe 
                                benefits, on-the-job training and the 
                                cost of engineering, supervisory, 
                                quality control, and similar personnel; 
                                and
                                    ``(II) dies, molds, tooling, and 
                                depreciation on machinery and equipment 
                                which are allocable to the specific 
                                merchandise; and
                            ``(ii) does not include costs that are not 
                        directly attributable to the merchandise 
                        concerned or are not costs of manufacturing the 
                        product, such as--
                                    ``(I) profit; and
                                    ``(II) general expenses of doing 
                                business that are either not allocable 
                                to the specific merchandise or are not 
                                related to the growth, production, 
                                manufacture, or assembly of the 
                                merchandise, such as administrative 
                                salaries, casualty and liability 
                                insurance, advertising, interest, and 
                                salaries, commissions, or expenses of 
                                sales personnel.
            ``(2) Adjustment rule.--
                    ``(A) Adjustment rule for significant apparel 
                suppliers.--In each of calendar years 2009 through 
                2019, in the case of a product described in 
                subparagraph (B) that is the growth, product, or 
                manufacture of a significant apparel supplier, the 
                preferential treatment under subsection (a) shall be 
                limited to the aggregate square meter equivalent of 
                such product that entered from that significant apparel 
                supplier in calendar year 2007.
                    ``(B) Products.--The products referred to in 
                subparagraph (A) are the following:
                            ``(i) Men's and boys' trousers, breeches, 
                        and shorts made with cotton or man-made fibers.
                            ``(ii) Women's and girls' trousers, slacks, 
                        breeches, and shorts made with cotton or man-
                        made fibers.
                            ``(iii) Men's and boys' knit shirts made 
                        from cotton or man-made fibers.
                            ``(iv) Women's and girls' knit shirts and 
                        blouses made from cotton or man-made fibers.
                            ``(v) Men's and boys' shirts, not knit, 
                        made from cotton or man-made fibers.
                            ``(vi) Women's and girls' shirts and 
                        blouses, non-knit, made from cotton or man-made 
                        fibers.
                            ``(vii) Men's and boys' coats made from 
                        cotton or man-made fibers.
                            ``(viii) Women's and girls' coats made from 
                        cotton or man-made fibers.
                    ``(C) Alternative adjustment rule for significant 
                apparel supplier.--If a significant apparel supplier 
                qualifies under subparagraph (D) for the 
                competitiveness incentive for a calendar year after 
                calendar year 2009, then the quantitative limitation 
                under subparagraph (A) for that calendar year shall be 
                increased by 15 percent over the quantitative 
                limitation that applied to that supplier in the 
                preceding calendar year.
                    ``(D) Competitive incentive.--A significant apparel 
                supplier qualifies for the competitiveness incentive 
                for a calendar year if the Director of Competitiveness 
                for Least-Developed Countries established in section 
                401(b) of the Foreign Assistance Act of 1961 
                determines, on the basis of the annual Report Card on 
                Competitiveness submitted under section 402(e) of that 
                Act, and after meaningful interagency consultations and 
                consideration of any comments by Members of Congress 
                that are made upon review of such annual Report Card, 
                that the country--
                            ``(i) has adopted and maintained in its 
                        statutes and regulations, and practices 
                        thereunder, those labor rights set forth in 
                        subsection (b)(2)(A)(i) of this section; and
                            ``(ii) has not failed to effectively 
                        enforce laws directly related to these rights 
                        and to acceptable conditions of work with 
                        respect to minimum wages, hours of work, and 
                        occupational safety and health.
                    ``(E) Significant apparel supplier defined.--For 
                purposes of this paragraph, the term `significant 
                apparel supplier' means Bangladesh and Cambodia.
    ``(d) Protection Against Transshipment.--The preferential treatment 
under this section may not be extended to textile and apparel articles 
imported from a qualified beneficiary country unless that country meets 
the requirements of section 113 of African Growth and Opportunity Act, 
except that in applying that section--
            ``(1) any reference to a `sub-Saharan African country' or 
        to `sub-Saharan African countries' shall be deemed to refer to 
        a qualified beneficiary country or to qualified beneficiary 
        countries, as the case may be; and
            ``(2) any reference to `section 112' shall be deemed to 
        refer to this section.
    ``(e) Safeguard for Agricultural Products.--
            ``(1) In general.--In the case of an agricultural product 
        that would otherwise be subject to a tariff-rate quota for 
        which preferential treatment is claimed under this section, the 
        President shall assess a duty, in the amount prescribed under 
        paragraph (2), on imports of that product in excess of that 
        tariff-rate quota if the President determines that the unit 
        import price of the product when it enters the United States, 
        determined on an F.O.B. basis, is less than the annual trigger 
        price determined under paragraph (4).
            ``(2) Calculation of additional duties.--The amount of the 
        additional duty under this subsection shall be determined as 
        follows:
                    ``(A) If the difference between the unit import 
                price and the trigger price is less than, or equal to, 
                10 percent of the trigger price, no additional duty 
                shall be imposed.
                    ``(B) If the difference between the unit import 
                price and the trigger price is greater than 10 percent, 
                but less than or equal to 40 percent, of the trigger 
                price, the additional duty shall be equal to 30 percent 
                of the difference between the preferential tariff rate 
                and the column 1 general rate of duty imposed under the 
                HTS on like articles at the time the additional duty is 
                imposed.
                    ``(C) If the difference between the unit import 
                price and the trigger price is greater than 40 percent, 
                but less than or equal to 60 percent, of the trigger 
                price, the additional duty shall be equal to 50 percent 
                of the difference between the preferential tariff rate 
                and the column 1 general rate of duty imposed under the 
                HTS on like articles at the time the additional duty is 
                imposed.
                    ``(D) If the difference between the unit import 
                price and the trigger price is greater than 60 percent, 
                but less than or equal to 75 percent, of the trigger 
                price, the additional duty shall be equal to 70 percent 
                of the difference between the preferential tariff rate 
                and the column 1 general rate of duty imposed under the 
                HTS on like articles at the time the additional duty is 
                imposed.
                    ``(E) If the difference between the unit import 
                price and the trigger price is greater than 75 percent 
                of the trigger price, the additional duty shall be 
                equal to 100 percent of the difference between the 
                preferential tariff rate and the column 1 general rate 
                of duty imposed under the HTS on like articles at the 
                time the additional duty is imposed.
            ``(3) Exceptions.--An additional duty under this subsection 
        shall not be assessed on an agricultural product if, at the 
        time it is entered, the product is subject to import relief 
        under chapter 1 of title II of this Act.
            ``(4) Calculation of trigger price.--
                    ``(A) In general.--Not later than 60 days after the 
                date of the enactment of the this section, and annually 
                thereafter, the President shall, in consultation with 
                the Secretary of Agriculture, establish the annual 
                trigger price for each agricultural product to which 
                this subsection applies, and shall publish such prices 
                in the Federal Register. The trigger price for a 
                product may not be less than the 3-year average import 
                price for that product.
                    ``(B) Consultation with congressional committees.--
                Not later than 30 days before publishing the trigger 
                prices in the Federal Register under subparagraph (A), 
                the President shall notify and consult with the 
                Committee on Ways and Means and the Committee on 
                Agriculture of the House of Representatives, and the 
                Committee on Finance and the Committee on Agriculture 
                of the Senate, with respect to the proposed trigger 
                prices.
            ``(5) Notice to country concerned.--Not later than 60 days 
        after the President first assesses additional duties under this 
        subsection on imports of an agricultural product, the President 
        shall notify the qualified beneficiary country where the 
        product was grown, manufactured, or produced, in writing of 
        such action and shall provide to the country data supporting 
        the assessment of the additional duties.
            ``(6) Definitions.--In this subsection:
                    ``(A) Agricultural product.--The term `agricultural 
                product' means any agricultural commodity, food, feed, 
                fiber, or livestock (including livestock as it is 
                defined in section 602(2) of the Agricultural Act of 
                1949 (7 U.S.C. 1471(2)) and insects), and any product 
                thereof.
                    ``(B) F.O.B.--The term `F.O.B.' means free on 
                board, regardless of the mode of transportation, at the 
                point of direct shipment by the seller to the buyer.
                    ``(C) HTS.--The term `HTS' means the Harmonized 
                Tariff Schedule of the United States.
                    ``(D) Unit import price.--The term `unit import 
                price' means the price expressed in dollars per 
                kilogram.
    ``(f) Monitoring African Textile and Apparel Trade.--
            ``(1) ITC reports.--Not later that 9 months after the date 
        on which this section takes effect, and every 6 months 
        thereafter, the International Trade Commission shall submit a 
        report to the Congress on trade flows of textile and apparel 
        products between qualified beneficiary countries and the United 
        States. The report shall include the Commission's 
        determination, to the extent possible, of how the preferences 
        provided under this section have benefitted sub-Saharan African 
        countries and those countries that are not sub-Saharan African 
        countries. The report shall include--
                    ``(A) an analysis of the impact that the removal of 
                quotas on imports of apparel products of the People's 
                Republic of China has had on trade between qualifying 
                beneficiary countries and the United States; and
                    ``(B) an analysis of the impact that imports from 
                other large apparel exporting nations, such as India 
                and Vietnam, has had on trade between qualifying 
                beneficiary countries and the United States..
            ``(2) Congressional hearings.--At least once each Congress, 
        the Committee on Ways and Means of the House of Representatives 
        and the Committee on Finance of the Senate shall hold public 
        hearings to review the impact of this section, and in 
        particular, to understand how this section is affecting sub-
        Saharan African countries and to explore the need for any 
        policy changes to further enable the preservation and expansion 
        of the level of apparel exports from qualifying beneficiary 
        countries.
    ``(g) Effective Date and Continuation of Program.--This section 
shall take effect on January 1, 2009. Section 505 does not apply to the 
preferential treatment provided under this section.''.
    (b) Conforming Amendment.--The table of contents for the Trade Act 
of 1974 is amended by inserting after the item relating to section 506B 
the following new item:

``506C. Trade preferences for least-developed countries.''.

              TITLE II--GENERALIZED SYSTEM OF PREFERENCES

SEC. 201. SENSE OF CONGRESS CONCERNING GENERALIZED SYSTEM OF 
              PREFERENCES.

    It is the sense of the Congress that the Generalized System of 
Preferences program under title V of the Trade Act of 1974 (19 U.S.C. 
2461 et seq.) is an important program that can assist development and 
the extension of the program before 2009 provides Congress with an 
opportunity to examine ways that the program can better assist 
developing countries and vulnerable economies in part by considering 
issues relating to eligibility criteria, qualifying articles, 
competitive need limitations, and permanency under the program.

SEC. 202. SENSE OF CONGRESS CONCERNING INDIA, CHINA, AND THE OECD.

    It is the sense of the Congress that--
            (1) the benefits provided under title I of this Act can be 
        multiplied if India, the People's Republic of China, and the 
        majority of countries that are members of the Organization for 
        Economic Cooperation and Development provide market access that 
        is substantially similar to that provided under title I; and
            (2) it should be a priority of the President to take action 
        to secure such market access.

TITLE III--ASSISTANCE TO LEVERAGE TRADE PREFERENCES FOR LEAST DEVELOPED 
                               COUNTRIES

SEC. 301. ASSISTANCE TO LEVERAGE TRADE PREFERENCES FOR LEAST DEVELOPED 
              COUNTRIES.

    Part I of the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et 
seq.) is amended by adding after chapter 3 the following new chapter:

    ``CHAPTER 4--ASSISTANCE TO LEVERAGE TRADE PREFERENCES FOR LEAST 
                          DEVELOPED COUNTRIES

``SEC. 401. OFFICE OF TRADE AND COMPETITIVENESS FOR LEAST DEVELOPED 
              COUNTRIES.

    ``(a) Establishment.--There shall be established within the United 
States Agency for International Development an independent Office of 
Trade and Competitiveness for Least Developed Countries (hereinafter in 
this chapter referred to as the `Office') that will be responsible for 
planning, developing, and coordinating trade capacity-building and 
competitiveness programs for least developed countries.
    ``(b) Director and Staff.--
            ``(1) Director.--The head of the Office shall be the 
        Director of Trade and Competitiveness for Least Developed 
        Countries (hereinafter in this chapter referred to as the 
        `Director'). The Director shall report directly to the 
        Administrator of the United States Agency for International 
        Development.
            ``(2) Staff.--The Office shall include staff that includes 
        jurists and an inspectorate staff with expertise in assessing 
        compliance with the eligibility requirements of least developed 
        countries under section 506C of the Trade Act of 1974.

``SEC. 402. GENERAL DUTIES.

    ``(a) Study on Competitiveness of Least Developed Countries; 
Authorization of Assistance; Coordination and Consultation.--
            ``(1) Study required.--In consultation with the heads of 
        appropriate departments and agencies of the Federal Government, 
        and not less than once every three years, the Director shall 
        conduct and submit to Congress a study on the competitiveness 
        of least developed countries.
            ``(2) Matters to be included.--The study required by 
        paragraph (1) shall include a detailed description for each 
        least developed country that--
                    ``(A) identifies sectors of the economy of the 
                country with the greatest potential for growth and 
                poverty reduction, including through export sales;
                    ``(B) identifies barriers, both domestically and 
                internationally, that are impeding growth and poverty 
                reduction in sectors identified under subparagraph (A); 
                and
                    ``(C) makes recommendations on how the United 
                States Government and the private sector can provide 
                technical assistance to the country to assist the 
                country in dismantling the barriers and in promoting 
                investment in sectors identified under subparagraph 
                (B).
            ``(3) Authorization of assistance.--The President is 
        authorized to provide assistance to least developed countries 
        for the purposes of dismantling barriers that are impeding 
        growth in the economic sectors of such countries.
            ``(4) Coordination and consultation.--
                    ``(A) In general.--The Director shall coordinate 
                trade capacity building programs carried out by the 
                United States Agency for International Development in 
                least developed countries.
                    ``(B) Trade capacity coordinating committee for 
                least developed countries.--The President shall 
                establish a Trade Capacity Coordinating Committee for 
                Least Developed Countries for the purpose of 
                coordinating implementation of trade capacity building 
                programs that are carried out by Federal departments 
                and agencies (other than the United States Agency for 
                International Development) in least developed 
                countries. The Committee shall be composed of the 
                following individuals or their designees:
                            ``(i) The Director, who shall serve as 
                        chairperson of the Committee.
                            ``(ii) The United States Trade 
                        Representative.
                            ``(iii) The Secretaries of Agriculture, 
                        Commerce, Treasury, and State.
                            ``(iv) The head of any other Federal 
                        department or agency that the President 
                        determines to be appropriate.
    ``(b) Monitoring Working Conditions.--
            ``(1) In general.--In conjunction with civil society 
        partners in least developed countries with demonstrated 
        expertise in labor rights matters, such as labor leaders, and 
        together with other relevant international organizations, the 
        Director, the Secretary of Labor (or the Secretary's designee), 
        and the Secretary of State (or the Secretary's designee) shall 
        work together to assess compliance by such least developed 
        countries with labor rights described in subparagraphs (A) and 
        (B) of section 506C(b)(2) of the Trade Act of 1974, and with 
        national labor laws, including rights directly related to core 
        labor rights and acceptable conditions of work, and such 
        assessments shall include information available from the 
        International Labor Organization, other interested parties, 
        country and worksite visits that include confidential worker 
        and worker representative interviews, meetings with management, 
        visits to workplaces, collection and review of relevant 
        documents.
            ``(2) Reports.--The Director, in coordination with the 
        Secretary of Labor, or the Secretary's designee, shall monitor 
        the working conditions in least developed countries and prepare 
        reports with findings and recommendations to improve such 
        working conditions which may also be presented to employers, 
        who shall be urged to sign and return such reports to the 
        Director and Secretary indicating any provisions with which 
        they disagree.
    ``(c) Workforce Competitiveness Program.--In conjunction with civil 
society partners in least developed countries with demonstrated 
expertise in labor rights matters, such as labor leaders, and together 
with other relevant international organizations, the Director and the 
Secretary of Labor (utilizing the capacity of the Bureau of 
International Labor Affairs) shall establish a workforce 
competitiveness program for least developed countries to--
            ``(1) provide assistance for drafting laws and regulations 
        to adopt and maintain labor rights as described in section 
        506C(b)(2)(A) of the Trade Act of 1974;
            ``(2) increase the capacity of employers, workers, and 
        their respective organizations to improve working conditions, 
        particularly in the garment sector and for female workers, 
        including by providing targeted technical and capacity building 
        assistance directly to civil society partners in least 
        developed countries with demonstrated expertise in labor rights 
        matters, such as labor unions;
            ``(3) increase worker awareness of labor rights as 
        described in section 506C(b)(2)(A) of the Trade Act of 1974, 
        and worker rights under national laws, including those directly 
        related to such core labor rights and acceptable conditions of 
        work with respect to minimum wages, hours of work, and 
        occupational safety and health;
            ``(4) build the capacity of government officials to ensure 
        greater compliance with labor rights described in section 
        506C(b)(2)(A) of the Trade Act of 1974 and national labor laws, 
        including those directly related to such labor rights and 
        acceptable conditions of work with respect to minimum wages, 
        hours of work, and occupational safety and health; and
            ``(5) develop projects and programs with the International 
        Labor Organization and other private sector and civil society 
        groups and labor unions to meet the objectives of an improved 
        labor law framework and enhanced compliance with labor rights 
        as described in 506C(b)(2)(A) of the Trade Act of 1974 and the 
        labor laws of least developed countries, including those 
        directly related to such core labor rights and acceptable 
        conditions of work with respect to minimum wages, hours of 
        work, and occupational safety and health.
    ``(d) Public Petitions.--The Director shall--
            ``(1) provide for the submission and receipt of public 
        petitions from interested parties at any time on labor rights 
        matters (and take reasonable steps to ensure that such parties 
        are aware of such opportunity) arising in a least developed 
        country and related to compliance with the labor rights 
        eligibility criteria in subparagraphs (A), (B), and (D) of 
        section 506C(b)(2) of the Trade Act of 1974, which may include 
        reference to specific worksites and employers;
            ``(2) immediately upon receipt of such petitions, review 
        the petitions, as appropriate, by conducting labor rights 
        monitoring visits described in subsection (b) to investigate 
        the matter, and hold a public hearing on the reviews of the 
        petitions and investigations; and
            ``(3) upon review of such petition and not less than 60 
        days after receipt, the Director shall publicly issue a 
        reasoned assessment of the merits, including a determination, 
        after meaningful inter-agency consultation, regarding whether 
        the labor rights matters raised in the petition constitute a 
        violation of the requirements of subparagraphs (A), (B), and 
        (D) of section 506C(b)(2) of the Trade Act of 1974.
    ``(e) Annual Report Card on Competitiveness.--The Administrator of 
the United States Agency for International Development shall submit to 
Congress a report, to be known as the `Report Card on Competitiveness', 
which shall be considered in the evaluation of eligibility of least 
developed countries for assistance under this chapter, and which 
describes--
            ``(1) the activities and progress of the Office and the 
        Trade Capacity Coordinating Committee for Least Developed 
        Countries toward dismantling the key barriers identified in the 
        study under subsection (a);
            ``(2) the extent to which least developed countries have 
        adopted and maintained in their laws the core labor rights as 
        described in section 506C(b)(2)(A) of the Trade Act of 1974;
            ``(3) whether least developed countries are meeting the 
        requirements of subparagraphs (B), (D), and (E) of section 
        506C(b)(2) of the Trade Act of 1974;
            ``(4) a syntheses of the monitoring visit reports prepared 
        under subsection (b), which shall include the names of the 
        worksites visited and the findings and recommendations 
        pertaining to each with respect to compliance with labor 
        rights, as detailed in section 506C(b)(2)(A) of the Trade Act 
        of 1974, and with respect to national labor law, including 
        those directly related to labor rights and acceptable 
        conditions of work;
            ``(5) reasoned assessments of the merits of any public 
        petitions on labor rights matters submitted during the 
        preceding year under subsection (d);
            ``(6) the activities undertaken by the Office and, to the 
        extent possible, by public and private entities with respect to 
        the workforce competitiveness program under subsection (c);
            ``(7) whether countries meet the requirements of the 
        competitiveness incentive established under section 
        506C(c)(2)(D) of the Trade Act of 1974, and what challenges 
        remain in each least developed country; and
            ``(8) the activities and progress the Office has achieved 
        in implementing sections 403 through 405 of this Act and title 
        IV of the New Partnership for Development Act of 2007 and 
        detail any key constraints that impact the Office's ability to 
        carry out the duties described in this chapter.

``SEC. 403. ASSISTANCE FOR CAPACITY BUILDING FOR SMALL AND MEDIUM 
              ENTERPRISES.

    ``(a) Assistance Authorized.--The Director, in consultation with 
the Administrator of the Small Business Administration and the United 
States African Development Foundation, shall provide assistance to 
promote capacity building for small and medium enterprises in least 
developed countries.
    ``(b) Activities Supported.--Assistance provided under subsection 
(a) shall, to the maximum extent practicable, be used to carry out the 
following activities:
            ``(1) Provide quality training, counseling, and access to 
        financial resources to enable qualified small and medium 
        enterprises to present well-developed business plans to 
        financial institutions for the purpose of accessing capital.
            ``(2) Provide counseling, training, and technical 
        assistance in all aspects of small business management, 
        including marketing and production, to qualified small and 
        medium enterprises.
            ``(3) Provide management assistance to current and 
        prospective owners of small and medium enterprises.
            ``(4) Partner with financial institutions and international 
        financial institutions to provide loan guarantees for qualified 
        small and medium enterprises.
            ``(5) Develop programs to help qualified small and medium 
        enterprises to understand export opportunities that may exist, 
        including trade preferences programs similar to the program 
        established under section 506C of the Trade Act of 1974.
            ``(6) Outreach activities to current and prospective female 
        entrepreneurs to provide assistance related to launching or 
        growing small businesses, particularly to female entrepreneurs 
        who can create employment opportunities to those in poverty.
            ``(7) Provide guidance to qualified small and medium 
        enterprises on developing and protecting intellectual property.

``SEC. 404. ASSISTANCE FOR CAPACITY BUILDING FOR AGRICULTURE.

    ``(a) Assistance Authorized.--The Director, in consultation with 
the Secretary of Agriculture, shall provide assistance to promote 
capacity building for farmers in least developed countries.
    ``(b) Activities Supported.--Assistance provided under subsection 
(a) shall, to the maximum extent practicable, be used to carry out the 
following activities:
            ``(1) Develop and facilitate value-added agricultural 
        processing activities.
            ``(2) Develop a comprehensive plan for the expansion and 
        diversification of agricultural trade between and among least 
        developed countries and the United States.
            ``(3) Arrange trade and investment missions to least 
        developed countries to generate joint venture investment and 
        marketing agreements among farmers in least developed countries 
        and the United States.
            ``(4) Improve market access for United States agricultural 
        products and equipment by--
                    ``(A) strengthening the capacity of agricultural 
                producer organizations in least developed countries to 
                identify agricultural equipment and supply needs;
                    ``(B) working with financial institutions in least 
                developed countries to remove obstacles that inhibit 
                export credit guarantee programs; and
                    ``(C) facilitating access for ports of entry and 
                warehouse facilities in least developed countries.

``SEC. 405. ASSISTANCE FOR CAPACITY BUILDING FOR FINANCIAL INSTITUTIONS 
              AND PROMOTING INVESTMENT.

    ``(a) Assistance Authorized.--The Director, in consultation with 
the Secretary of Commerce, shall provide assistance to promote capacity 
building for financial institutions and promoting investment in least 
developed countries.
    ``(b) Activities Supported.--Assistance provided under subsection 
(a) shall, to the maximum extent practicable, be used to carry out the 
following activities:
            ``(1) Promote business partnerships between entrepreneurs 
        in least developed countries and the United States.
            ``(2) Host conferences and initiate two-way trade missions 
        to discover and encourage opportunities for private sector 
        cooperation between least developed countries and the United 
        States.
            ``(3) Assist United States firms fully understand the risks 
        and opportunities of doing business in least developed 
        countries and developing tools and mechanisms to reduce such 
        risks and enhance such opportunities, in part by seeking to 
        establish a business council among least developed countries 
        and the United States that consists of prominent, experienced 
        business persons from least developed countries and the United 
        States.
            ``(4) Facilitate the development of modern commercial and 
        manufacturing technology to least developed countries for the 
        purpose of expanding commercial opportunities.
            ``(5) Promote the establishment of lending programs of 
        financial institutions for small and medium enterprises by 
        establishing effective credit risk management systems in least 
        developed countries to improve the quality of the assets of 
        such financial institutions and the ability of such financial 
        institutions to research and assess overall credit risk.
            ``(6) Promote the development of qualified small and medium 
        enterprises that are located in rural and peri-urban areas by 
        carrying out capacity-building activities for micro-enterprise 
        business associations and microfinance networks.

``SEC. 406. LEAST DEVELOPED COUNTRY DEFINED.

    ``For purposes of this chapter, the term `least developed country' 
means a country described in subsection (b)(1)(A) or (B) of section 
506C of the Trade Act of 1974, irrespective of whether or not the 
country is initially or subsequently excluded from eligibility for 
preferential treatment under subsection (a) of such section.

``SEC. 407. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--To carry out this chapter, there are authorized 
to be appropriated to the Director $250,000,000 for each of the fiscal 
years 2009 through 2018.
    ``(b) Priority.--Of the amounts appropriated pursuant to the 
authorization of appropriations under subsection (a)--
            ``(1) for each of the fiscal years 2009 through 2013, the 
        Director shall give priority to providing assistance under 
        sections 403 through 405 to least developed countries that are 
        sub-Saharan African countries, Haiti, and countries that 
        qualify for competitiveness incentives under section 
        506C(c)(2)(D) of the Trade Act of 1974;
            ``(2) for each of the fiscal years 2014 through 2018, the 
        Director shall give priority to providing assistance under 
        sections 403 through 405 to least developed countries that 
        qualify for competitiveness incentives under section 
        506C(c)(2)(D) of the Trade Act of 1974; and
            ``(3) for each of the fiscal years 2009 through 2018, not 
        less than 20 percent of such amounts shall be used to carry out 
        subsections (b) through (d) of section 402.''.

                      TITLE IV--AID FOR TRADE FUND

SEC. 401. AID FOR TRADE FUND.

    (a) Establishment.--The President is authorized to instruct the 
United States Executive Directors of each international financial 
institution (as defined in section 1702(c)(2) of the International 
Financial Institutions Act) to use the voice, vote, and influence of 
the United States to establish a fund, to be known as the ``Aid for 
Trade Fund'' (hereinafter in this section referred to as the ``Fund''), 
which meets the requirement of subsection (b) of this section.
    (b) Activities of Fund.--The requirement of this subsection is that 
the Fund must make grants to least developed countries and regional 
organizations that consist of a majority of such least developed 
countries in order to--
            (1) finance infrastructure projects to increase economic 
        diversification through trade in such least developed 
        countries; and
            (2) fulfill United States commitments at the World Trade 
        Organization with respect to trade-capacity building of such 
        least developed countries.
    (c) Authorization of Appropriations.--For contributions to the Fund 
on behalf of the United States, there are authorized to be appropriated 
to the President $100,000,000 for each of the fiscal years 2008 through 
2017.

SEC. 402. ASSISTANCE TO DEVELOP LARGE-SCALE ENGINEERING INFRASTRUCTURE 
              PROJECTS.

    (a) Assistance Authorized.--The Director of the Office of Trade and 
Competitiveness for Least Developed Countries (established under 
section 401 of the Foreign Assistance Act of 1961 (as added by section 
301 of this Act)) in the United States Agency for International 
Development shall work closely with relevant departments and agencies 
of the Federal Government, international financial institutions, and 
appropriate regional economic and political communities to develop and 
coordinate the development of not less than four annual large-scale 
engineering infrastructure projects in least developed countries or 
other countries that primarily--
            (1) improves the ability of farmers and small and medium 
        enterprises to communicate and transport goods and services;
            (2) improve the distribution of food, electricity, and 
        water; and
            (3) improve the provision of health care and education to 
        the inhabitants of the beneficiary country.
    (b) Additional Requirement.--In carrying out subsection (a), the 
Director shall promote and facilitate local, bilateral, and 
multilateral private and public sources of financing for such 
infrastructure projects and consider the importance of sustainability 
of the project and its impact on the promotion of poverty reduction and 
equality for women and vulnerable populations.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to the President $150,000,000 for each of the fiscal years 
2009 through 2018 to carry out this section.

SEC. 403. LEAST DEVELOPED COUNTRY DEFINED.

    For purposes of this title, the term ``least developed country'' 
means a country described in subsection (b)(1)(A) or (B) of section 
506C of the Trade Act of 1974 (as added by section 101 of this Act), 
irrespective of whether or not the country is initially or subsequently 
excluded from eligibility for preferential treatment under subsection 
(a) of such section
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