[Congressional Record Volume 146, Number 124 (Friday, October 6, 2000)]
[Extensions of Remarks]
[Page E1711]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               THE SOUTHEAST EUROPE TRADE PREFERENCE ACT

                                 ______
                                 

                           HON. AMO HOUGHTON

                              of new york

                    in the house of representatives

                        Friday, October 6, 2000

  Mr. HOUGHTON. Mr. Speaker, today I've introduced the Southeast Europe 
Trade Preference Act (SETPA), a modest yet important bill that was 
originally introduced in the Senate by the Senior Senator from New 
York. This bill is designed to promote meaningful economic development 
and stability in Southeast Europe through additional trade benefits 
targeted to certain countries in Southeast Europe.
  The bill, modeled on the recently passed Caribbean Basin Initiative, 
with some key changes. The bill authorizes the President to proclaim 
duty-free treatment for all eligible articles from the following 
countries, subject to specified conditions: Albania, Bosnia and 
Herzegovina, Bulgaria, Croatia, the Former Yugoslav Republic of 
Macedonia, Romania, Slovenia, Kosovo, and Montenegro.
  Mr. Speaker, this is a timely piece of legislation, especially when 
considering the changes occurring right now in the Federal Republic of 
Yugoslavia (FRY). As you know, following the recent elections and 
yesterday's uprising in Belgrade, Vojislav Kostunica is the president-
elect of Yugoslavia and international war criminal Slobodan Milosevic 
has apparently been ousted. This is terrific news for the region, and 
the world.
  The SETPA would extend duty-free treatment to products that are 
currently not eligible under the GSP program, including certain iron 
and steel products, certain agricultural products, footwear, glassware, 
ceramics, automobiles, bicycles, clocks and watches. The only product 
that would not receive additional coverage is textiles, in order to 
protect that fragile industry here in the United States.
  It is important to note that the bill contains common sense 
protections for U.S. industries such as a provision that prohibits the 
President from designating any country a beneficiary country of the 
bill if that country has seized ownership of any property owned by a 
U.S. citizen or corporation, or has taken steps to do so.
  That important provision can be waived if the President reports to 
Congress that compensation has been or is being made to the owner, or 
good-faith negotiations to provide such compensation are in progress. 
If the country is otherwise taking steps to discharge its obligations 
under international law; or a dispute over compensation for such a 
seizure has been submitted to arbitration under the Convention for the 
Settlement of Investment Disputes, the provision may also be waived.
  Other grounds which could disqualify a country for designation as a 
beneficiary include a failure to recognize or enforce arbitral awards 
in favor of U.S. owners, the preferential treatment to the products of 
a developed country other than the United States, with significant 
adverse effect on U.S. commerce, the broadcast of copyrighted material 
belonging to U.S. copyright owners by a government-owned entity without 
the owners' express consent, or the absence of a treaty or other 
agreement regarding the extradition of U.S. citizens. Failure to take 
steps to afford workers in the country certain internationally 
recognized worker rights will also disqualify a country, as does 
membership in the European Union.
  The President is, of course, able to waive these prohibitions should 
he report reasons for doing so to Congress, except in the case of 
membership in the European Union.
  Importantly, the bill sets specific conditions for the beneficiary 
designation of the Federal Republic of Yugoslavia (FRY). With the 
sweeping changes now occurring in that nation, we want to be certain 
that the Administration is free to act accordingly should the FRY take 
the steps necessary for beneficiary designation.
  A number of reports are necessary, and thus would be required after 
passage of the SETPA, to be sure that the bill does no harm to the 
United States. Section 8 of the bill requires the U.S. International 
Trade Commission to report to Congress and the President on the 
economic impact of this Act on U.S. industries and consumers, and 
Section 9 directs the Secretary of Labor to review, analyze, and report 
to Congress on this Act's impact on U.S. labor, as well as developments 
in labor conditions in the beneficiary countries.
  Finally, Mr. Speaker, I would just like to say that this bill is good 
for the people of Southeast Europe, and good for the people of the 
United States. It will promote economic and political security in this 
important area of the world following the recent devastating conflicts 
of the area, and will enhance the economic and national security 
interests of the United States in Europe. I know that it's late in the 
session--really too late to consider the bill this year--but I would 
hope that we can take this bill up at the earliest possible opportunity 
in the 107th Congress.




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