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