<enum>I</enum><header>Trade Preferences for Least Developed Countries</header> <section commented="no" id="HB8B6B03ED40041C68000283C18CCB5E1"><enum>101.</enum><header>Trade preferences</header> <subsection commented="no" id="H8DE21D938C3B485A9B82FA37477E5072"><enum>(a)</enum><header>In general</header><text>Title V of the Trade Act of 1974 is amended by inserting after section 506B the following:</text> <quoted-block display-inline="no-display-inline" id="H00D176533CA94ACDA5272B00B6FFC2F3" style="OLC"> <section id="HF7431F45B2B5412985D0C003933CF4DF"><enum>506C.</enum><header>Trade preferences for least developed countries</header> <subsection id="H49500793376C43E18F6DA165B8247000"><enum>(a)</enum><header>Duty-free-treatment</header><text display-inline="yes-display-inline">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.</text> </subsection><subsection id="H6CB89D167CA94FA0BC7974CFD6DA973E"><enum>(b)</enum><header>Designation of qualified beneficiary countries</header> <paragraph id="HF475CCA18CBF4E048F20677B5CB800C5"><enum>(1)</enum><header>Designated countries</header><text>Subject to paragraph (2), the President shall designate the following countries as qualified beneficiary countries for purposes of this section:</text> <subparagraph commented="no" display-inline="no-display-inline" id="H6A628D7781904F74AEB955CACD9779E0"><enum>(A)</enum><text>Countries determined by the Economic and Social Council of the United Nations as <quote>Least Developed</quote>, other than Myanmar and Sudan.</text> </subparagraph><subparagraph commented="no" id="HAB03CD2D92624F8591AE878C5E918608"><enum>(B)</enum><text>A country that is designated as an eligible sub-Saharan African country under section 104 of the African Growth and Opportunity Act.</text> </subparagraph></paragraph><paragraph id="HEBC6581DF65045DFA0C1C85B43814D58"><enum>(2)</enum><header>Exclusion</header><text>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:</text> <subparagraph commented="no" id="H33C87FA121DC4FE69192DD8801C46762"><enum>(A)</enum><text display-inline="yes-display-inline">The country has not adopted and maintained in its statutes and regulations the following rights, as defined by the International Labor Organization:</text> <clause id="HEC2139E134774A27B1BBF5543C44ACF7"><enum>(i)</enum><text>Freedom of association.</text> </clause><clause id="H19321BC01EBD471CADC608BA363F9B42"><enum>(ii)</enum><text>The effective recognition of the right to collective bargaining.</text> </clause><clause id="H2DF4354FED7F4219B3EE3383F4AB2B68"><enum>(iii)</enum><text>The elimination of all forms of compulsory or forced labor.</text> </clause><clause commented="no" id="HF45AEEC3D1D547B89EFE17AD27705B33"><enum>(iv)</enum><text display-inline="yes-display-inline">The effective abolition of child labor and the prohibition on the worst forms of child labor.</text> </clause><clause id="H0E21AD95B9C7408DAC288CC8F84F4387"><enum>(v)</enum><text>The elimination of discrimination in respect of employment and occupation.</text> </clause></subparagraph><subparagraph commented="no" id="H767A84D8A6344A4796281D94AD68D0DE"><enum>(B)</enum><text display-inline="yes-display-inline">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.</text> </subparagraph><subparagraph id="H81D9BC8B0F994B6BAC86E6A127B64E3C"><enum>(C)</enum><text>The country is not making meaningful progress toward—</text> <clause commented="no" id="H70BF7E614C6C41029C8FB4EE3BBDD111"><enum>(i)</enum><text display-inline="yes-display-inline">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;</text> </clause><clause commented="no" id="H205BC581152140BC8379F9EF9398F1B"><enum>(ii)</enum><text display-inline="yes-display-inline">establishing the rule of law, political pluralism, and the right to due process, a fair trial, and equal protection under the law;</text> </clause><clause commented="no" id="H65B005B26A1F4406AC24558FBA3543EB"><enum>(iii)</enum><text display-inline="yes-display-inline">elimination of barriers to trade and investment, including by—</text> <subclause commented="no" id="H011797B00CDF46D49F9F48AB3F2500CA"><enum>(I)</enum><text display-inline="yes-display-inline">the provision of national treatment measures to create an environment conducive to domestic and foreign investment;</text> </subclause><subclause commented="no" id="HD70025F2F63644D29FA14DA58E7C0000"><enum>(II)</enum><text display-inline="yes-display-inline">the protection of intellectual property (without prejudice to any rights conferred by World Trade Organization agreements); and</text> </subclause><subclause commented="no" id="H8C368A8F4AF54754B89BDE5D018717F2"><enum>(III)</enum><text>the resolution of bilateral trade and investment disputes;</text> </subclause></clause><clause commented="no" id="H11433A69F45541058BFB953F623C7837"><enum>(iv)</enum><text display-inline="yes-display-inline">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;</text> </clause><clause id="H1E007352953747E889BACCE19493F183"><enum>(v)</enum><text display-inline="yes-display-inline">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</text> </clause><clause id="H581CB367738F4314BDB0A75702AB7D04"><enum>(vi)</enum><text display-inline="yes-display-inline">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.</text> </clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H374426FAD5D74C95A49C2FE81E395615"><enum>(D)</enum><text>The country engages in gross violations of internationally recognized human rights or fails to cooperate in international efforts to eliminate human rights violations.</text> </subparagraph><subparagraph id="HEAD4B49EB595417CB0422420DEFA5B70"><enum>(E)</enum><text display-inline="yes-display-inline">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.</text> </subparagraph></paragraph><paragraph id="H5ADF6C147199488694B9553B1F14809D"><enum>(3)</enum><header>Compliance</header> <subparagraph id="H383B6325BB7C477DB95BA9079569BC2"><enum>(A)</enum><header>Actions for noncompliance</header><text display-inline="yes-display-inline">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—</text> <clause id="HE931BD0DF5CA4BD4A44410E8E9F49A4"><enum>(i)</enum><text display-inline="yes-display-inline">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);</text> </clause><clause id="H9E05DCCDFA224268BB9866DDEF65B875"><enum>(ii)</enum><text>the Director shall notify the Congress of any action under clause (i); and</text> </clause><clause id="HF1EDEEA537C94FFDA4594300F093B6EA"><enum>(iii)</enum><text display-inline="yes-display-inline">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).</text> </clause></subparagraph><subparagraph commented="no" id="H7A687CF6A76E490DBC00DBD2F2705723"><enum>(B)</enum><header>Termination of eligibility</header><text display-inline="yes-display-inline">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.</text> </subparagraph><subparagraph id="H2D3CCEB965FA47FEAF15C84E4284006F"><enum>(C)</enum><header>Reinstatement of eligibility</header><text display-inline="yes-display-inline">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).</text> </subparagraph></paragraph></subsection><subsection id="H83604B00AA4B4F8FAA9888D149E975E4"><enum>(c)</enum><header>Eligible articles</header> <paragraph commented="no" id="H9015F082B72F4BE8BFC49F7C38505325"><enum>(1)</enum><header>Rules of origin</header> <subparagraph commented="no" id="HC2D5B40D353B48C98B9C87711B87D962"><enum>(A)</enum><header>In general</header><text>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—</text> <clause commented="no" id="HCE04A8EBCEB34339824D93EE0324C4B3"><enum>(i)</enum><text>the article is imported directly from a qualified beneficiary country into the customs territory of the United States; and</text> </clause><clause commented="no" id="H21BAB1D1122B4565A619F17534BD9FAD"><enum>(ii)</enum><text>the sum of—</text> <subclause commented="no" id="H672AE261F8294413A239B047C968F444"><enum>(I)</enum><text>the cost or value of the materials produced in 1 or more qualified beneficiary countries under this section, plus</text> </subclause><subclause commented="no" id="H0E3389CAC03749838E05C948E81413F"><enum>(II)</enum><text>the direct costs of processing operations performed in 1 or more qualified beneficiary countries,</text> </subclause><continuation-text continuation-text-level="clause">is not less than 35 percent of the appraised value of the article at the time it is entered.</continuation-text></clause></subparagraph><subparagraph commented="no" id="HD7060F3B5FF64337972647437DBCE4A8"><enum>(B)</enum><header>Special rule for sub-saharan africa</header><text display-inline="yes-display-inline">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 <quote>25 percent</quote> for <quote>35 percent</quote>.</text> </subparagraph><subparagraph commented="no" id="H3B747AB4228C4F84BE9FDDDA34977EF"><enum>(C)</enum><header>Determination of percentage</header><text display-inline="yes-display-inline">For purposes of determining the percentage referred to in subparagraph (A)(ii), the term <quote>qualified beneficiary country</quote> 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).</text> </subparagraph><subparagraph commented="no" id="HAEF95F16AE454B20009EAB455CCEFB4D"><enum>(D)</enum><header>Exclusions</header><text display-inline="yes-display-inline">An article shall not be treated as the growth, product, or manufacture of a qualified beneficiary developing country by virtue of having merely undergone—</text> <clause commented="no" id="HDE8364C9C3914A08875DE3D9E8A70388"><enum>(i)</enum><text>simple combining or packaging operations, or</text> </clause><clause commented="no" id="H0D99D0649B9A45ECB28DA29BBB2B909C"><enum>(ii)</enum><text>mere dilution with water or mere dilution with another substance that does not materially alter the characteristics of the article.</text> </clause></subparagraph><subparagraph commented="no" id="HBA518C65D7574109BFC4953BAACE3E36"><enum>(E)</enum><header>Direct costs of processing operations</header><text display-inline="yes-display-inline">As used in this paragraph, the term <quote>direct costs of processing operations</quote>—</text> <clause commented="no" id="HEFAB5E1DD25445768C1100ECA51DA00"><enum>(i)</enum><text>includes, but is not limited to—</text> <subclause commented="no" id="H33BF9F004BE145DB8C2742BCAB811729"><enum>(I)</enum><text>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</text> </subclause><subclause commented="no" id="HD0EE42D817A9460C008BF969B23F5FB3"><enum>(II)</enum><text>dies, molds, tooling, and depreciation on machinery and equipment which are allocable to the specific merchandise; and</text> </subclause></clause><clause commented="no" id="HD2658C2205D84166B7AF9038984B766C"><enum>(ii)</enum><text>does not include costs that are not directly attributable to the merchandise concerned or are not costs of manufacturing the product, such as—</text> <subclause commented="no" id="H0610833890C343CC90EA2869B67746F7"><enum>(I)</enum><text>profit; and</text> </subclause><subclause commented="no" id="HBC20469E049F4ADA94B7059B57361240"><enum>(II)</enum><text>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.</text> </subclause></clause></subparagraph></paragraph><paragraph id="H914DE3535BBF48A58600D1E84BB1C5B"><enum>(2)</enum><header>Adjustment rule</header> <subparagraph id="HD2A0DA5399E942058701A556A4CADFC"><enum>(A)</enum><header>Adjustment rule for significant apparel suppliers</header><text display-inline="yes-display-inline">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.</text> </subparagraph><subparagraph id="H30DDA0C09E084042915811FE29021636"><enum>(B)</enum><header>Products</header><text>The products referred to in subparagraph (A) are the following:</text> <clause id="H1F27E91F901A498AACB1E8BC04AABAF8"><enum>(i)</enum><text display-inline="yes-display-inline">Men’s and boys’ trousers, breeches, and shorts made with cotton or man-made fibers.</text> </clause><clause id="H24B03D3710BD4C918BB51D66AB609059"><enum>(ii)</enum><text>Women’s and girls’ trousers, slacks, breeches, and shorts made with cotton or man-made fibers.</text> </clause><clause id="H748F1EC2F0AE4EAD9963AAD8485E6E73"><enum>(iii)</enum><text>Men’s and boys’ knit shirts made from cotton or man-made fibers.</text> </clause><clause id="HB36F00C802F14334948DA4E044316324"><enum>(iv)</enum><text>Women’s and girls’ knit shirts and blouses made from cotton or man-made fibers.</text> </clause><clause id="H6E6B32D1DC8641FD9851ECC38DE61161"><enum>(v)</enum><text>Men’s and boys’ shirts, not knit, made from cotton or man-made fibers.</text> </clause><clause id="H06A5D6149C9C493BBDE7B9EAD3CFB272"><enum>(vi)</enum><text>Women’s and girls’ shirts and blouses, non-knit, made from cotton or man-made fibers.</text> </clause><clause id="HC573F8803D3C457F004101A9571D9904"><enum>(vii)</enum><text>Men’s and boys’ coats made from cotton or man-made fibers.</text> </clause><clause id="H142B2964C8974D7F9F6F209885CC2B7C"><enum>(viii)</enum><text>Women’s and girls’ coats made from cotton or man-made fibers.</text> </clause></subparagraph><subparagraph id="H54142C0817074E77888C3FE0F13D613"><enum>(C)</enum><header>Alternative adjustment rule for significant apparel supplier</header><text display-inline="yes-display-inline">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.</text> </subparagraph><subparagraph id="HCE80869C32CC4FC69C09C16F4E8D9516"><enum>(D)</enum><header>Competitive incentive</header><text display-inline="yes-display-inline">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—</text> <clause id="H11AAD79CB0B44687BE321610B6DE7341"><enum>(i)</enum><text>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</text> </clause><clause id="H75A5644208A340D6AB7C41C9D325FD76"><enum>(ii)</enum><text>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.</text> </clause></subparagraph><subparagraph id="H2839C4A926F647D685D6C4F7476B4DEE"><enum>(E)</enum><header>Significant apparel supplier defined</header><text display-inline="yes-display-inline">For purposes of this paragraph, the term <quote>significant apparel supplier</quote> means Bangladesh and Cambodia.</text> </subparagraph></paragraph></subsection><subsection id="HA40EBAD5BFA24D568D093979E8F38DC6"><enum>(d)</enum><header>Protection against transshipment</header><text>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—</text> <paragraph id="H356FBE4B2ADA42AAB1C89974E0CAA802"><enum>(1)</enum><text>any reference to a <quote>sub-Saharan African country</quote> or to <quote>sub-Saharan African countries</quote> shall be deemed to refer to a qualified beneficiary country or to qualified beneficiary countries, as the case may be; and</text> </paragraph><paragraph id="H383399972B1D4CCF800029B9B454BB29"><enum>(2)</enum><text>any reference to <quote>section 112</quote> shall be deemed to refer to this section.</text> </paragraph></subsection><subsection id="H4F214072DE6C44548FEB663BB39385A9"><enum>(e)</enum><header>Safeguard for agricultural products</header> <paragraph id="H622D0FDF657A4278BCA3FAFB00A7E13B"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">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).</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="HEF910EE397CD433D8B37C25CEEC4F45E"><enum>(2)</enum><header>Calculation of additional duties</header><text>The amount of the additional duty under this subsection shall be determined as follows:</text> <subparagraph commented="no" id="H295ECFC397E347D383B7F48EF63CE3F5"><enum>(A)</enum><text>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.</text> </subparagraph><subparagraph commented="no" id="H4B35E648954D410D82F5D7BF24E8BF57"><enum>(B)</enum><text>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.</text> </subparagraph><subparagraph commented="no" id="H63F9663578784F7F85FE45E27168745C"><enum>(C)</enum><text>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.</text> </subparagraph><subparagraph commented="no" id="H1F1719B0D88744E5B4002B837F3D79D0"><enum>(D)</enum><text>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.</text> </subparagraph><subparagraph commented="no" id="H0AC11444A76F4B56BC0088B0CE860097"><enum>(E)</enum><text>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.</text> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8A480BE386534D8093CA0864D2C7107"><enum>(3)</enum><header>Exceptions</header><text>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.</text> </paragraph><paragraph commented="no" id="H940DC2C1DD8D4B77966200A296983227"><enum>(4)</enum><header>Calculation of trigger price</header> <subparagraph commented="no" id="H2A90E095E83446C0B832A071D42F5B64"><enum>(A)</enum><header>In general</header><text>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.</text> </subparagraph><subparagraph commented="no" id="HC15C6E8AD6D44DD9A1898563DDF59199"><enum>(B)</enum><header>Consultation with congressional committees</header><text>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.</text> </subparagraph></paragraph><paragraph commented="no" id="H69F158D9C46C44B699C80215BBEEA080"><enum>(5)</enum><header>Notice to country concerned</header><text>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.</text> </paragraph><paragraph commented="no" id="H58EAC282E184483A97E2CE89D450C826"><enum>(6)</enum><header>Definitions</header><text>In this subsection:</text> <subparagraph commented="no" id="HEBD28968B88D4144A22838BFE0F2AAAC"><enum>(A)</enum><header>Agricultural product</header><text display-inline="yes-display-inline">The term <quote>agricultural product</quote> 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 (<external-xref legal-doc="usc" parsable-cite="usc/7/1471">7 U.S.C. 1471(2)</external-xref>) and insects), and any product thereof.</text> </subparagraph><subparagraph commented="no" id="HCE238D15FA04422BAB9FBE00F0C2F6A8"><enum>(B)</enum><header>F.O.B</header><text>The term <quote>F.O.B.</quote> means free on board, regardless of the mode of transportation, at the point of direct shipment by the seller to the buyer.</text> </subparagraph><subparagraph commented="no" id="H1DE32BD40DBB4120ACC45B791F9100F"><enum>(C)</enum><header>HTS</header><text>The term <quote>HTS</quote> means the Harmonized Tariff Schedule of the United States.</text> </subparagraph><subparagraph commented="no" id="HF648E08F053F4926AC5510C1903819B7"><enum>(D)</enum><header>Unit import price</header><text>The term <quote>unit import price</quote> means the price expressed in dollars per kilogram.</text> </subparagraph></paragraph></subsection><subsection id="H91D2EF442C5347B0B3F0523524DF017B"><enum>(f)</enum><header>Monitoring African textile and apparel trade</header> <paragraph id="H65862CB375A04B0A8FF36FA84E00132C"><enum>(1)</enum><header>ITC reports</header><text display-inline="yes-display-inline">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—</text> <subparagraph id="HE04B764368124657A524665DF24B0226"><enum>(A)</enum><text>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</text> </subparagraph><subparagraph id="H018AA997E453494994BE64DE24568FC5"><enum>(B)</enum><text>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..</text> </subparagraph></paragraph><paragraph id="HC9952A6069134D0584456F98F53B6830"><enum>(2)</enum><header>Congressional hearings</header><text display-inline="yes-display-inline">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.</text> </paragraph></subsection><subsection id="HDA7E355544EE41DF95E42F132840D492"><enum>(g)</enum><header>Effective date and continuation of program</header><text>This section shall take effect on January 1, 2009. Section 505 does not apply to the preferential treatment provided under this section.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H552869B206BA473F8CEDF0602813B175"><enum>(b)</enum><header>Conforming amendment</header><text>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:</text> <quoted-block display-inline="no-display-inline" id="HB4FE16C41AAC400889F0CE096EB87D1B" style="OLC"> <toc regeneration="no-regeneration"> <toc-entry level="section">506C. Trade preferences for least-developed countries.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section>

110 HR 3905 IH: New Partnership for Development Act of U.S. House of Representatives 2007-10-18 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

110th CONGRESS 1st Session

H. R. 3905

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.

Short title

This Act may be cited as the

New Partnership for Development Act of 2007

<enum>I</enum><header>Trade Preferences for Least Developed Countries</header> <section commented="no" id="HB8B6B03ED40041C68000283C18CCB5E1"><enum>101.</enum><header>Trade preferences</header> <subsection commented="no" id="H8DE21D938C3B485A9B82FA37477E5072"><enum>(a)</enum><header>In general</header><text>Title V of the Trade Act of 1974 is amended by inserting after section 506B the following:</text> <quoted-block display-inline="no-display-inline" id="H00D176533CA94ACDA5272B00B6FFC2F3" style="OLC"> <section id="HF7431F45B2B5412985D0C003933CF4DF"><enum>506C.</enum><header>Trade preferences for least developed countries</header> <subsection id="H49500793376C43E18F6DA165B8247000"><enum>(a)</enum><header>Duty-free-treatment</header><text display-inline="yes-display-inline">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.</text> </subsection><subsection id="H6CB89D167CA94FA0BC7974CFD6DA973E"><enum>(b)</enum><header>Designation of qualified beneficiary countries</header> <paragraph id="HF475CCA18CBF4E048F20677B5CB800C5"><enum>(1)</enum><header>Designated countries</header><text>Subject to paragraph (2), the President shall designate the following countries as qualified beneficiary countries for purposes of this section:</text> <subparagraph commented="no" display-inline="no-display-inline" id="H6A628D7781904F74AEB955CACD9779E0"><enum>(A)</enum><text>Countries determined by the Economic and Social Council of the United Nations as <quote>Least Developed</quote>, other than Myanmar and Sudan.</text> </subparagraph><subparagraph commented="no" id="HAB03CD2D92624F8591AE878C5E918608"><enum>(B)</enum><text>A country that is designated as an eligible sub-Saharan African country under section 104 of the African Growth and Opportunity Act.</text> </subparagraph></paragraph><paragraph id="HEBC6581DF65045DFA0C1C85B43814D58"><enum>(2)</enum><header>Exclusion</header><text>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:</text> <subparagraph commented="no" id="H33C87FA121DC4FE69192DD8801C46762"><enum>(A)</enum><text display-inline="yes-display-inline">The country has not adopted and maintained in its statutes and regulations the following rights, as defined by the International Labor Organization:</text> <clause id="HEC2139E134774A27B1BBF5543C44ACF7"><enum>(i)</enum><text>Freedom of association.</text> </clause><clause id="H19321BC01EBD471CADC608BA363F9B42"><enum>(ii)</enum><text>The effective recognition of the right to collective bargaining.</text> </clause><clause id="H2DF4354FED7F4219B3EE3383F4AB2B68"><enum>(iii)</enum><text>The elimination of all forms of compulsory or forced labor.</text> </clause><clause commented="no" id="HF45AEEC3D1D547B89EFE17AD27705B33"><enum>(iv)</enum><text display-inline="yes-display-inline">The effective abolition of child labor and the prohibition on the worst forms of child labor.</text> </clause><clause id="H0E21AD95B9C7408DAC288CC8F84F4387"><enum>(v)</enum><text>The elimination of discrimination in respect of employment and occupation.</text> </clause></subparagraph><subparagraph commented="no" id="H767A84D8A6344A4796281D94AD68D0DE"><enum>(B)</enum><text display-inline="yes-display-inline">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.</text> </subparagraph><subparagraph id="H81D9BC8B0F994B6BAC86E6A127B64E3C"><enum>(C)</enum><text>The country is not making meaningful progress toward—</text> <clause commented="no" id="H70BF7E614C6C41029C8FB4EE3BBDD111"><enum>(i)</enum><text display-inline="yes-display-inline">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;</text> </clause><clause commented="no" id="H205BC581152140BC8379F9EF9398F1B"><enum>(ii)</enum><text display-inline="yes-display-inline">establishing the rule of law, political pluralism, and the right to due process, a fair trial, and equal protection under the law;</text> </clause><clause commented="no" id="H65B005B26A1F4406AC24558FBA3543EB"><enum>(iii)</enum><text display-inline="yes-display-inline">elimination of barriers to trade and investment, including by—</text> <subclause commented="no" id="H011797B00CDF46D49F9F48AB3F2500CA"><enum>(I)</enum><text display-inline="yes-display-inline">the provision of national treatment measures to create an environment conducive to domestic and foreign investment;</text> </subclause><subclause commented="no" id="HD70025F2F63644D29FA14DA58E7C0000"><enum>(II)</enum><text display-inline="yes-display-inline">the protection of intellectual property (without prejudice to any rights conferred by World Trade Organization agreements); and</text> </subclause><subclause commented="no" id="H8C368A8F4AF54754B89BDE5D018717F2"><enum>(III)</enum><text>the resolution of bilateral trade and investment disputes;</text> </subclause></clause><clause commented="no" id="H11433A69F45541058BFB953F623C7837"><enum>(iv)</enum><text display-inline="yes-display-inline">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;</text> </clause><clause id="H1E007352953747E889BACCE19493F183"><enum>(v)</enum><text display-inline="yes-display-inline">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</text> </clause><clause id="H581CB367738F4314BDB0A75702AB7D04"><enum>(vi)</enum><text display-inline="yes-display-inline">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.</text> </clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H374426FAD5D74C95A49C2FE81E395615"><enum>(D)</enum><text>The country engages in gross violations of internationally recognized human rights or fails to cooperate in international efforts to eliminate human rights violations.</text> </subparagraph><subparagraph id="HEAD4B49EB595417CB0422420DEFA5B70"><enum>(E)</enum><text display-inline="yes-display-inline">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.</text> </subparagraph></paragraph><paragraph id="H5ADF6C147199488694B9553B1F14809D"><enum>(3)</enum><header>Compliance</header> <subparagraph id="H383B6325BB7C477DB95BA9079569BC2"><enum>(A)</enum><header>Actions for noncompliance</header><text display-inline="yes-display-inline">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—</text> <clause id="HE931BD0DF5CA4BD4A44410E8E9F49A4"><enum>(i)</enum><text display-inline="yes-display-inline">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);</text> </clause><clause id="H9E05DCCDFA224268BB9866DDEF65B875"><enum>(ii)</enum><text>the Director shall notify the Congress of any action under clause (i); and</text> </clause><clause id="HF1EDEEA537C94FFDA4594300F093B6EA"><enum>(iii)</enum><text display-inline="yes-display-inline">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).</text> </clause></subparagraph><subparagraph commented="no" id="H7A687CF6A76E490DBC00DBD2F2705723"><enum>(B)</enum><header>Termination of eligibility</header><text display-inline="yes-display-inline">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.</text> </subparagraph><subparagraph id="H2D3CCEB965FA47FEAF15C84E4284006F"><enum>(C)</enum><header>Reinstatement of eligibility</header><text display-inline="yes-display-inline">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).</text> </subparagraph></paragraph></subsection><subsection id="H83604B00AA4B4F8FAA9888D149E975E4"><enum>(c)</enum><header>Eligible articles</header> <paragraph commented="no" id="H9015F082B72F4BE8BFC49F7C38505325"><enum>(1)</enum><header>Rules of origin</header> <subparagraph commented="no" id="HC2D5B40D353B48C98B9C87711B87D962"><enum>(A)</enum><header>In general</header><text>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—</text> <clause commented="no" id="HCE04A8EBCEB34339824D93EE0324C4B3"><enum>(i)</enum><text>the article is imported directly from a qualified beneficiary country into the customs territory of the United States; and</text> </clause><clause commented="no" id="H21BAB1D1122B4565A619F17534BD9FAD"><enum>(ii)</enum><text>the sum of—</text> <subclause commented="no" id="H672AE261F8294413A239B047C968F444"><enum>(I)</enum><text>the cost or value of the materials produced in 1 or more qualified beneficiary countries under this section, plus</text> </subclause><subclause commented="no" id="H0E3389CAC03749838E05C948E81413F"><enum>(II)</enum><text>the direct costs of processing operations performed in 1 or more qualified beneficiary countries,</text> </subclause><continuation-text continuation-text-level="clause">is not less than 35 percent of the appraised value of the article at the time it is entered.</continuation-text></clause></subparagraph><subparagraph commented="no" id="HD7060F3B5FF64337972647437DBCE4A8"><enum>(B)</enum><header>Special rule for sub-saharan africa</header><text display-inline="yes-display-inline">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 <quote>25 percent</quote> for <quote>35 percent</quote>.</text> </subparagraph><subparagraph commented="no" id="H3B747AB4228C4F84BE9FDDDA34977EF"><enum>(C)</enum><header>Determination of percentage</header><text display-inline="yes-display-inline">For purposes of determining the percentage referred to in subparagraph (A)(ii), the term <quote>qualified beneficiary country</quote> 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).</text> </subparagraph><subparagraph commented="no" id="HAEF95F16AE454B20009EAB455CCEFB4D"><enum>(D)</enum><header>Exclusions</header><text display-inline="yes-display-inline">An article shall not be treated as the growth, product, or manufacture of a qualified beneficiary developing country by virtue of having merely undergone—</text> <clause commented="no" id="HDE8364C9C3914A08875DE3D9E8A70388"><enum>(i)</enum><text>simple combining or packaging operations, or</text> </clause><clause commented="no" id="H0D99D0649B9A45ECB28DA29BBB2B909C"><enum>(ii)</enum><text>mere dilution with water or mere dilution with another substance that does not materially alter the characteristics of the article.</text> </clause></subparagraph><subparagraph commented="no" id="HBA518C65D7574109BFC4953BAACE3E36"><enum>(E)</enum><header>Direct costs of processing operations</header><text display-inline="yes-display-inline">As used in this paragraph, the term <quote>direct costs of processing operations</quote>—</text> <clause commented="no" id="HEFAB5E1DD25445768C1100ECA51DA00"><enum>(i)</enum><text>includes, but is not limited to—</text> <subclause commented="no" id="H33BF9F004BE145DB8C2742BCAB811729"><enum>(I)</enum><text>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</text> </subclause><subclause commented="no" id="HD0EE42D817A9460C008BF969B23F5FB3"><enum>(II)</enum><text>dies, molds, tooling, and depreciation on machinery and equipment which are allocable to the specific merchandise; and</text> </subclause></clause><clause commented="no" id="HD2658C2205D84166B7AF9038984B766C"><enum>(ii)</enum><text>does not include costs that are not directly attributable to the merchandise concerned or are not costs of manufacturing the product, such as—</text> <subclause commented="no" id="H0610833890C343CC90EA2869B67746F7"><enum>(I)</enum><text>profit; and</text> </subclause><subclause commented="no" id="HBC20469E049F4ADA94B7059B57361240"><enum>(II)</enum><text>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.</text> </subclause></clause></subparagraph></paragraph><paragraph id="H914DE3535BBF48A58600D1E84BB1C5B"><enum>(2)</enum><header>Adjustment rule</header> <subparagraph id="HD2A0DA5399E942058701A556A4CADFC"><enum>(A)</enum><header>Adjustment rule for significant apparel suppliers</header><text display-inline="yes-display-inline">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.</text> </subparagraph><subparagraph id="H30DDA0C09E084042915811FE29021636"><enum>(B)</enum><header>Products</header><text>The products referred to in subparagraph (A) are the following:</text> <clause id="H1F27E91F901A498AACB1E8BC04AABAF8"><enum>(i)</enum><text display-inline="yes-display-inline">Men’s and boys’ trousers, breeches, and shorts made with cotton or man-made fibers.</text> </clause><clause id="H24B03D3710BD4C918BB51D66AB609059"><enum>(ii)</enum><text>Women’s and girls’ trousers, slacks, breeches, and shorts made with cotton or man-made fibers.</text> </clause><clause id="H748F1EC2F0AE4EAD9963AAD8485E6E73"><enum>(iii)</enum><text>Men’s and boys’ knit shirts made from cotton or man-made fibers.</text> </clause><clause id="HB36F00C802F14334948DA4E044316324"><enum>(iv)</enum><text>Women’s and girls’ knit shirts and blouses made from cotton or man-made fibers.</text> </clause><clause id="H6E6B32D1DC8641FD9851ECC38DE61161"><enum>(v)</enum><text>Men’s and boys’ shirts, not knit, made from cotton or man-made fibers.</text> </clause><clause id="H06A5D6149C9C493BBDE7B9EAD3CFB272"><enum>(vi)</enum><text>Women’s and girls’ shirts and blouses, non-knit, made from cotton or man-made fibers.</text> </clause><clause id="HC573F8803D3C457F004101A9571D9904"><enum>(vii)</enum><text>Men’s and boys’ coats made from cotton or man-made fibers.</text> </clause><clause id="H142B2964C8974D7F9F6F209885CC2B7C"><enum>(viii)</enum><text>Women’s and girls’ coats made from cotton or man-made fibers.</text> </clause></subparagraph><subparagraph id="H54142C0817074E77888C3FE0F13D613"><enum>(C)</enum><header>Alternative adjustment rule for significant apparel supplier</header><text display-inline="yes-display-inline">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.</text> </subparagraph><subparagraph id="HCE80869C32CC4FC69C09C16F4E8D9516"><enum>(D)</enum><header>Competitive incentive</header><text display-inline="yes-display-inline">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—</text> <clause id="H11AAD79CB0B44687BE321610B6DE7341"><enum>(i)</enum><text>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</text> </clause><clause id="H75A5644208A340D6AB7C41C9D325FD76"><enum>(ii)</enum><text>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.</text> </clause></subparagraph><subparagraph id="H2839C4A926F647D685D6C4F7476B4DEE"><enum>(E)</enum><header>Significant apparel supplier defined</header><text display-inline="yes-display-inline">For purposes of this paragraph, the term <quote>significant apparel supplier</quote> means Bangladesh and Cambodia.</text> </subparagraph></paragraph></subsection><subsection id="HA40EBAD5BFA24D568D093979E8F38DC6"><enum>(d)</enum><header>Protection against transshipment</header><text>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—</text> <paragraph id="H356FBE4B2ADA42AAB1C89974E0CAA802"><enum>(1)</enum><text>any reference to a <quote>sub-Saharan African country</quote> or to <quote>sub-Saharan African countries</quote> shall be deemed to refer to a qualified beneficiary country or to qualified beneficiary countries, as the case may be; and</text> </paragraph><paragraph id="H383399972B1D4CCF800029B9B454BB29"><enum>(2)</enum><text>any reference to <quote>section 112</quote> shall be deemed to refer to this section.</text> </paragraph></subsection><subsection id="H4F214072DE6C44548FEB663BB39385A9"><enum>(e)</enum><header>Safeguard for agricultural products</header> <paragraph id="H622D0FDF657A4278BCA3FAFB00A7E13B"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">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).</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="HEF910EE397CD433D8B37C25CEEC4F45E"><enum>(2)</enum><header>Calculation of additional duties</header><text>The amount of the additional duty under this subsection shall be determined as follows:</text> <subparagraph commented="no" id="H295ECFC397E347D383B7F48EF63CE3F5"><enum>(A)</enum><text>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.</text> </subparagraph><subparagraph commented="no" id="H4B35E648954D410D82F5D7BF24E8BF57"><enum>(B)</enum><text>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.</text> </subparagraph><subparagraph commented="no" id="H63F9663578784F7F85FE45E27168745C"><enum>(C)</enum><text>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.</text> </subparagraph><subparagraph commented="no" id="H1F1719B0D88744E5B4002B837F3D79D0"><enum>(D)</enum><text>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.</text> </subparagraph><subparagraph commented="no" id="H0AC11444A76F4B56BC0088B0CE860097"><enum>(E)</enum><text>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.</text> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8A480BE386534D8093CA0864D2C7107"><enum>(3)</enum><header>Exceptions</header><text>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.</text> </paragraph><paragraph commented="no" id="H940DC2C1DD8D4B77966200A296983227"><enum>(4)</enum><header>Calculation of trigger price</header> <subparagraph commented="no" id="H2A90E095E83446C0B832A071D42F5B64"><enum>(A)</enum><header>In general</header><text>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.</text> </subparagraph><subparagraph commented="no" id="HC15C6E8AD6D44DD9A1898563DDF59199"><enum>(B)</enum><header>Consultation with congressional committees</header><text>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.</text> </subparagraph></paragraph><paragraph commented="no" id="H69F158D9C46C44B699C80215BBEEA080"><enum>(5)</enum><header>Notice to country concerned</header><text>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.</text> </paragraph><paragraph commented="no" id="H58EAC282E184483A97E2CE89D450C826"><enum>(6)</enum><header>Definitions</header><text>In this subsection:</text> <subparagraph commented="no" id="HEBD28968B88D4144A22838BFE0F2AAAC"><enum>(A)</enum><header>Agricultural product</header><text display-inline="yes-display-inline">The term <quote>agricultural product</quote> 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 (<external-xref legal-doc="usc" parsable-cite="usc/7/1471">7 U.S.C. 1471(2)</external-xref>) and insects), and any product thereof.</text> </subparagraph><subparagraph commented="no" id="HCE238D15FA04422BAB9FBE00F0C2F6A8"><enum>(B)</enum><header>F.O.B</header><text>The term <quote>F.O.B.</quote> means free on board, regardless of the mode of transportation, at the point of direct shipment by the seller to the buyer.</text> </subparagraph><subparagraph commented="no" id="H1DE32BD40DBB4120ACC45B791F9100F"><enum>(C)</enum><header>HTS</header><text>The term <quote>HTS</quote> means the Harmonized Tariff Schedule of the United States.</text> </subparagraph><subparagraph commented="no" id="HF648E08F053F4926AC5510C1903819B7"><enum>(D)</enum><header>Unit import price</header><text>The term <quote>unit import price</quote> means the price expressed in dollars per kilogram.</text> </subparagraph></paragraph></subsection><subsection id="H91D2EF442C5347B0B3F0523524DF017B"><enum>(f)</enum><header>Monitoring African textile and apparel trade</header> <paragraph id="H65862CB375A04B0A8FF36FA84E00132C"><enum>(1)</enum><header>ITC reports</header><text display-inline="yes-display-inline">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—</text> <subparagraph id="HE04B764368124657A524665DF24B0226"><enum>(A)</enum><text>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</text> </subparagraph><subparagraph id="H018AA997E453494994BE64DE24568FC5"><enum>(B)</enum><text>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..</text> </subparagraph></paragraph><paragraph id="HC9952A6069134D0584456F98F53B6830"><enum>(2)</enum><header>Congressional hearings</header><text display-inline="yes-display-inline">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.</text> </paragraph></subsection><subsection id="HDA7E355544EE41DF95E42F132840D492"><enum>(g)</enum><header>Effective date and continuation of program</header><text>This section shall take effect on January 1, 2009. Section 505 does not apply to the preferential treatment provided under this section.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H552869B206BA473F8CEDF0602813B175"><enum>(b)</enum><header>Conforming amendment</header><text>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:</text> <quoted-block display-inline="no-display-inline" id="HB4FE16C41AAC400889F0CE096EB87D1B" style="OLC"> <toc regeneration="no-regeneration"> <toc-entry level="section">506C. Trade preferences for least-developed countries.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section><enum>II</enum><header>Generalized System of Preferences </header> <section id="HF7988E4514404E9800D6FCA21D78D48"><enum>201.</enum><header>Sense of Congress concerning Generalized System of Preferences</header><text display-inline="no-display-inline">It is the sense of the Congress that the Generalized System of Preferences program under title V of the Trade Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/19/2461">19 U.S.C. 2461 et seq.</external-xref>) 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.</text> </section><section id="HDC7C6FF2C6BB4C43BAE3FAB5D11242E8"><enum>202.</enum><header>Sense of Congress concerning India, China, and the OECD</header><text display-inline="no-display-inline">It is the sense of the Congress that—</text> <paragraph id="HBC8E5ACCDB6940F5A34500988732217F"><enum>(1)</enum><text display-inline="yes-display-inline">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</text> </paragraph><paragraph id="H3A7F7A54D8E041F98221FAF540329D4F"><enum>(2)</enum><text>it should be a priority of the President to take action to secure such market access.</text> </paragraph></section><enum>III</enum><header>Assistance to leverage trade preferences for least developed countries </header> <section id="H50E2A25A272B45469E116183C3A29C14"><enum>301.</enum><header>Assistance to leverage trade preferences for least developed countries</header><text display-inline="no-display-inline">Part I of the Foreign Assistance Act of 1961 (<external-xref legal-doc="usc" parsable-cite="usc/22/2151">22 U.S.C. 2151 et seq.</external-xref>) is amended by adding after chapter 3 the following new chapter:</text> <quoted-block display-inline="no-display-inline" id="H39F3F1F8B4C24A76AF4B2C4976EDFA93" style="OLC"> <chapter id="HA7F8CE89BCFA48E8888BF16353C1733C"><enum>4</enum><header>Assistance to leverage trade preferences for least developed countries </header> <section id="H4994D185B5054E398EC73DD6B9032E9D"><enum>401.</enum><header>Office of Trade and Competitiveness for Least Developed Countries</header> <subsection id="H06BE9EF574DD42DFA391BB83C1C55F57"><enum>(a)</enum><header>Establishment</header><text display-inline="yes-display-inline">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 <quote>Office</quote>) that will be responsible for planning, developing, and coordinating trade capacity-building and competitiveness programs for least developed countries.</text> </subsection><subsection id="H4C74B2A45DD5432B821EBB1058C1D940"><enum>(b)</enum><header>Director and staff</header> <paragraph id="H8FCD9EE5BC6B461BBE870862C5FB0085"><enum>(1)</enum><header>Director</header><text>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 <quote>Director</quote>). The Director shall report directly to the Administrator of the United States Agency for International Development.</text> </paragraph><paragraph id="HEDD0CA087E494188A2119860002FB0CF"><enum>(2)</enum><header>Staff</header><text>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.</text> </paragraph></subsection></section><section id="HF613D895F5D44EE0AE9C00B8FF25FBE6"><enum>402.</enum><header>General duties</header> <subsection id="H814FA7B7F1004B939C1E38003EBB4B36"><enum>(a)</enum><header>Study on competitiveness of least developed countries; authorization of assistance; coordination and consultation</header> <paragraph id="H80D8E7CC242C4473AF0016005626625B"><enum>(1)</enum><header>Study required</header><text display-inline="yes-display-inline">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.</text> </paragraph><paragraph id="H99FD8C32EB704AC4AA729CFA5FBD37E3"><enum>(2)</enum><header>Matters to be included</header><text>The study required by paragraph (1) shall include a detailed description for each least developed country that—</text> <subparagraph id="H1097ADBF025E4280B300FBBE9D43DC7"><enum>(A)</enum><text>identifies sectors of the economy of the country with the greatest potential for growth and poverty reduction, including through export sales;</text> </subparagraph><subparagraph id="H2F62566477CD40CFAC8593DD2F8C47EA"><enum>(B)</enum><text>identifies barriers, both domestically and internationally, that are impeding growth and poverty reduction in sectors identified under subparagraph (A); and</text> </subparagraph><subparagraph id="HE2EDD33D26F54715826076E052000000"><enum>(C)</enum><text>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).</text> </subparagraph></paragraph><paragraph id="H75206D1319144A9ABE6E00B4E4558DC2"><enum>(3)</enum><header>Authorization of assistance</header><text display-inline="yes-display-inline">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.</text> </paragraph><paragraph id="H1077A1E3A88E4680B27CD02923E63034"><enum>(4)</enum><header>Coordination and consultation</header> <subparagraph id="HD22377B0B8E744959F1C93441FDED45"><enum>(A)</enum><header>In general</header><text>The Director shall coordinate trade capacity building programs carried out by the United States Agency for International Development in least developed countries.</text> </subparagraph><subparagraph id="HCF87E4D12ECF4323BA72E66B8D7B9D76"><enum>(B)</enum><header>Trade capacity coordinating committee for least developed countries</header><text display-inline="yes-display-inline">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:</text> <clause id="H7507EB1340BF4534A673F4EAB1198059"><enum>(i)</enum><text>The Director, who shall serve as chairperson of the Committee.</text> </clause><clause id="HFFC7C3E7955044CBBCAB00C82EC025CC"><enum>(ii)</enum><text>The United States Trade Representative.</text> </clause><clause id="H00B3D61879364EDDBB3855548600C2E0"><enum>(iii)</enum><text>The Secretaries of Agriculture, Commerce, Treasury, and State.</text> </clause><clause id="HB9AAD2509C25477A9CE9E338C5E66658"><enum>(iv)</enum><text>The head of any other Federal department or agency that the President determines to be appropriate.</text> </clause></subparagraph></paragraph></subsection><subsection id="HED0A5FD034B145F29C17BD58C86F925C"><enum>(b)</enum><header>Monitoring working conditions</header> <paragraph id="H25C28D2A451348E5A38813D7D6568C97"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">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.</text> </paragraph><paragraph id="H10EE0125CB344007B716C1A53EC89EA8"><enum>(2)</enum><header>Reports</header><text display-inline="yes-display-inline">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.</text> </paragraph></subsection><subsection id="HB46B4E950111456C9527C1D1BFDF58BD"><enum>(c)</enum><header>Workforce competitiveness program</header><text display-inline="yes-display-inline">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—</text> <paragraph id="H92F158F8BCFD4FBBA4675F038DBD6D1"><enum>(1)</enum><text>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;</text> </paragraph><paragraph id="HF188000733F24E5598FE47F96D3585E1"><enum>(2)</enum><text>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;</text> </paragraph><paragraph id="H3233F1ECFB1E42D7AC757E843F568BE4"><enum>(3)</enum><text>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;</text> </paragraph><paragraph id="HED479FAD3D7D4DCBA9E8DD6B51BD5F93"><enum>(4)</enum><text display-inline="yes-display-inline">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</text> </paragraph><paragraph id="H48F61377D3A84A87AA2C38241F7027B4"><enum>(5)</enum><text>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.</text> </paragraph></subsection><subsection id="H99F2FD0688F94676B8E77763134180D2"><enum>(d)</enum><header>Public petitions</header><text display-inline="yes-display-inline">The Director shall—</text> <paragraph id="HFA8957A4001047B397D6C0F15E8FE9EA"><enum>(1)</enum><text display-inline="yes-display-inline">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;</text> </paragraph><paragraph id="H70A4938251CC47B5BF965C86383D2F80"><enum>(2)</enum><text>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</text> </paragraph><paragraph id="H0139E65DD06148BFA382D04418CB2335"><enum>(3)</enum><text display-inline="yes-display-inline">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.</text> </paragraph></subsection><subsection id="H0C60182B65A64A54ABFD4F003523A28B"><enum>(e)</enum><header>Annual report card on competitiveness</header><text display-inline="yes-display-inline">The Administrator of the United States Agency for International Development shall submit to Congress a report, to be known as the <quote>Report Card on Competitiveness</quote>, which shall be considered in the evaluation of eligibility of least developed countries for assistance under this chapter, and which describes—</text> <paragraph id="H1F5BB821E90A499686A469695D00CBF8"><enum>(1)</enum><text display-inline="yes-display-inline">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);</text> </paragraph><paragraph id="H0B7F1126D1CD436EB6A7B8F61DE7D1E1"><enum>(2)</enum><text>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;</text> </paragraph><paragraph id="HB0AB2B860AFF4387BC1D059D31002DD1"><enum>(3)</enum><text>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;</text> </paragraph><paragraph id="H62A7065DFE41411E805FACCA652D500"><enum>(4)</enum><text>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;</text> </paragraph><paragraph id="H3B0D1060803E41B9B697CDBB1B73FFFD"><enum>(5)</enum><text>reasoned assessments of the merits of any public petitions on labor rights matters submitted during the preceding year under subsection (d);</text> </paragraph><paragraph id="HD44CD0C323F94391A9C70058EECAEE8"><enum>(6)</enum><text>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);</text> </paragraph><paragraph id="HBB54E4E7B46C4211A4E1CCC397BE5951"><enum>(7)</enum><text>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</text> </paragraph><paragraph id="H2D5BE776346B47439C654DDB1ED1B4A2"><enum>(8)</enum><text>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.</text> </paragraph></subsection></section><section id="HA7822CBD43894CECA50665A5AE440046"><enum>403.</enum><header>Assistance for capacity building for small and medium enterprises</header> <subsection id="HF0B6F25077904F3C87ECBE5F78E13793"><enum>(a)</enum><header>Assistance authorized</header><text display-inline="yes-display-inline">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.</text> </subsection><subsection id="H4050B27D4AA44B86AF38F99EEA07004D"><enum>(b)</enum><header>Activities supported</header><text>Assistance provided under subsection (a) shall, to the maximum extent practicable, be used to carry out the following activities:</text> <paragraph id="H6EAB5E60FD7B41A3A7A3618E187913C0"><enum>(1)</enum><text>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.</text> </paragraph><paragraph id="HB0EC94BAB9B04621006C4457ECD00301"><enum>(2)</enum><text>Provide counseling, training, and technical assistance in all aspects of small business management, including marketing and production, to qualified small and medium enterprises.</text> </paragraph><paragraph id="HF4B526FFEBEA47E79FD9128F2F625675"><enum>(3)</enum><text>Provide management assistance to current and prospective owners of small and medium enterprises.</text> </paragraph><paragraph id="H12F68FC458F94B47B9A3F61CA35133CA"><enum>(4)</enum><text>Partner with financial institutions and international financial institutions to provide loan guarantees for qualified small and medium enterprises.</text> </paragraph><paragraph id="HBB21C62950E74673BD59B438B0355D7"><enum>(5)</enum><text>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.</text> </paragraph><paragraph id="H5743602FE4AE49808C5D4913F6A27FCE"><enum>(6)</enum><text display-inline="yes-display-inline">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.</text> </paragraph><paragraph id="H14938E3E4D4E402DB49F7C292112EA0"><enum>(7)</enum><text>Provide guidance to qualified small and medium enterprises on developing and protecting intellectual property.</text> </paragraph></subsection></section><section id="H1B5B692C123842FAAB15619128BB21B"><enum>404.</enum><header>Assistance for capacity building for agriculture</header> <subsection id="HE23FFE1F7AFD4A7F901E247142D096F7"><enum>(a)</enum><header>Assistance authorized</header><text display-inline="yes-display-inline">The Director, in consultation with the Secretary of Agriculture, shall provide assistance to promote capacity building for farmers in least developed countries.</text> </subsection><subsection id="HFCB9DB0628F64587A8554300D4F5D3A8"><enum>(b)</enum><header>Activities supported</header><text>Assistance provided under subsection (a) shall, to the maximum extent practicable, be used to carry out the following activities:</text> <paragraph id="H6AE60D6E402C438DB6FC0579AAD6455F"><enum>(1)</enum><text>Develop and facilitate value-added agricultural processing activities.</text> </paragraph><paragraph id="HCB395CF1ACE44F04B755F0E54CC90370"><enum>(2)</enum><text>Develop a comprehensive plan for the expansion and diversification of agricultural trade between and among least developed countries and the United States.</text> </paragraph><paragraph id="H0ED94C6CDA75421385965D3FD343E6C2"><enum>(3)</enum><text>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.</text> </paragraph><paragraph id="HE7AD0A6D36E6472C995755E5A512BDEF"><enum>(4)</enum><text>Improve market access for United States agricultural products and equipment by—</text> <subparagraph id="H9F35AF04E8B945D5BBD7D71E24CF56D2"><enum>(A)</enum><text>strengthening the capacity of agricultural producer organizations in least developed countries to identify agricultural equipment and supply needs;</text> </subparagraph><subparagraph id="HC9863778CA33486CB6A7FB28734D814C"><enum>(B)</enum><text>working with financial institutions in least developed countries to remove obstacles that inhibit export credit guarantee programs; and</text> </subparagraph><subparagraph id="HCF06A7CFC66E43E681AB15FF898C6999"><enum>(C)</enum><text>facilitating access for ports of entry and warehouse facilities in least developed countries.</text> </subparagraph></paragraph></subsection></section><section id="HBC979F4279F64EBCB1D8DCF96DAE4F8C"><enum>405.</enum><header>Assistance for capacity building for financial institutions and promoting investment</header> <subsection id="HBB2A0F37988142BEA95DF97B3BBF1C56"><enum>(a)</enum><header>Assistance authorized</header><text display-inline="yes-display-inline">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.</text> </subsection><subsection id="H721C1666EFB44509BF1E5CC7D32E4D04"><enum>(b)</enum><header>Activities supported</header><text>Assistance provided under subsection (a) shall, to the maximum extent practicable, be used to carry out the following activities:</text> <paragraph id="H186F0A05F3234767B8523825A375CC66"><enum>(1)</enum><text>Promote business partnerships between entrepreneurs in least developed countries and the United States.</text> </paragraph><paragraph id="H276D7095EA4B48C984819BCDF17F049E"><enum>(2)</enum><text display-inline="yes-display-inline">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.</text> </paragraph><paragraph id="HE1689C1B4A164A78ACE797C0260084B3"><enum>(3)</enum><text>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.</text> </paragraph><paragraph id="H7936043279424C9F9F95D351FAF939F"><enum>(4)</enum><text>Facilitate the development of modern commercial and manufacturing technology to least developed countries for the purpose of expanding commercial opportunities.</text> </paragraph><paragraph id="H299974B50B614E83B741C258B9A5126D"><enum>(5)</enum><text>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.</text> </paragraph><paragraph id="HA82B49BA0C2E4245BB00BC6B20D3D324"><enum>(6)</enum><text>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.</text> </paragraph></subsection></section><section id="HFB21D95893AF4E31B3C15F8943A4D521"><enum>406.</enum><header>Least developed country defined</header><text display-inline="no-display-inline">For purposes of this chapter, the term <quote>least developed country</quote> 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.</text> </section><section id="HD44601ED53C847CCBBD942F74EFBCC9B"><enum>407.</enum><header>Authorization of appropriations</header> <subsection id="H8325DCACC7A94B7F954B60BAADDAD39C"><enum>(a)</enum><header>In general</header><text>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.</text> </subsection><subsection commented="no" id="HAD2F8D45AAF44301B72D95EA41EFD10"><enum>(b)</enum><header>Priority</header><text>Of the amounts appropriated pursuant to the authorization of appropriations under subsection (a)—</text> <paragraph commented="no" id="HBD33E2C07A224B50850000F7D5C79068"><enum>(1)</enum><text display-inline="yes-display-inline">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;</text> </paragraph><paragraph commented="no" id="H44FCCED6D32D46FAB9FA8BE5BEDB5C3E"><enum>(2)</enum><text display-inline="yes-display-inline">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</text> </paragraph><paragraph id="H175F5307B53A4FDD99D367311B00EEDB"><enum>(3)</enum><text display-inline="yes-display-inline">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.</text> </paragraph></subsection></section></chapter><after-quoted-block>.</after-quoted-block></quoted-block> </section><enum>IV</enum><header>Aid for Trade Fund</header> <section id="HDE77F974892E425684E24CB998D975ED"><enum>401.</enum><header>Aid for Trade Fund</header> <subsection id="H086AC5D60F9C442AB7A9A6B7467126AA"><enum>(a)</enum><header>Establishment</header><text display-inline="yes-display-inline">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 <quote>Aid for Trade Fund</quote> (hereinafter in this section referred to as the <quote>Fund</quote>), which meets the requirement of subsection (b) of this section.</text> </subsection><subsection id="H62520566E05D440A9351DDF70D4C2F9"><enum>(b)</enum><header>Activities of Fund</header><text display-inline="yes-display-inline">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—</text> <paragraph id="HFCC7C41D4A3844C8B6755BCE77A36385"><enum>(1)</enum><text>finance infrastructure projects to increase economic diversification through trade in such least developed countries; and</text> </paragraph><paragraph id="H9829FECD26C544ADA20006D38D36AD53"><enum>(2)</enum><text>fulfill United States commitments at the World Trade Organization with respect to trade-capacity building of such least developed countries.</text> </paragraph></subsection><subsection id="HC87E1EB6AB6642159C0081E86EEA8E43"><enum>(c)</enum><header>Authorization of appropriations</header><text display-inline="yes-display-inline">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.</text> </subsection></section><section id="HCEE29A7A7F9E4A919CCA0037FC498254"><enum>402.</enum><header>Assistance to develop large-scale engineering infrastructure projects</header> <subsection id="H52E2EE9D63BF499384C6B2CB96EDC68C"><enum>(a)</enum><header>Assistance authorized</header><text display-inline="yes-display-inline">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—</text> <paragraph id="H89B21E7DD7B042A4A99638BBCCF1F49D"><enum>(1)</enum><text>improves the ability of farmers and small and medium enterprises to communicate and transport goods and services;</text> </paragraph><paragraph id="H8BEE8925477E44239FDD38A9AAEDFAAD"><enum>(2)</enum><text>improve the distribution of food, electricity, and water; and</text> </paragraph><paragraph id="H68DA5C6D7C0A49EA9E3B00475F342E23"><enum>(3)</enum><text>improve the provision of health care and education to the inhabitants of the beneficiary country.</text> </paragraph></subsection><subsection id="HA1C26B29F17A44BC93FAF27C4E9E2D49"><enum>(b)</enum><header>Additional requirement</header><text>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.</text> </subsection><subsection id="H62796B2A887B42B09C53FDB418975D6D"><enum>(c)</enum><header>Authorization of appropriations</header><text>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.</text> </subsection></section><section id="H44CAEBF939904461BFD2294C7B6FF3D1"><enum>403.</enum><header>Least developed country defined</header><text display-inline="no-display-inline">For purposes of this title, the term <quote>least developed country</quote> 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</text> </section>