1.This Act may be cited as the
Tariff Relief Assistance for
Developing Economies Act of 2009
or the
TRADE Act of
2009
.
2.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.
3.In this Act:
(1)Beneficiary TRADE Act of 2009
countryThe 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
countryThe 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 countryThe term TRADE Act of 2009
country means a country listed in subsection (b) or (c) of section
4.
4.Authority To designate; eligibility
requirements
(a)
(1)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 104Section 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
designationFor 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
supportFor 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.
5.The preferential treatment described in this
section includes the following:
(1)Preferential tariff treatment for certain
articles
(A)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)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)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 fabricIn 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)
(I)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)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)
(I)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)
- (aa)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)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)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)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)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.
6.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.
7.Termination of preferential
treatmentNo 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.
8.The provisions of this
Act shall take effect on January 1, 2009.