[Congressional Record Volume 150, Number 42 (Tuesday, March 30, 2004)]
[Senate]
[Pages S3370-S3371]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DeWINE (for himself, Mr. Graham of Florida, Mr. Lugar, Mr. 
        Baucus, Mr. Chafee, Mr. Dodd, Mr. Nelson of Florida, Mr. 
        Voinovich, and Mr. Sununu):
  S. 2261. A bill to expand certain preferential trade treatment for 
Haiti; to the Committee on Finance.
  Mr. DeWINE. Mr. President, today we have an opportunity to reach out 
to the least developed country in the Western Hemisphere--we have an 
opportunity to reach out to the island nation of Haiti.
  I am pleased to join Senators Graham of Florida, Lugar, Baucus, 
Chafee, Dodd, Voinovich, and Nelson of Florida in introducing the Haiti 
Economic Opportunity Act of 2004. I also would like to thank 
Representative Shaw, as well as our other House cosponsors, for their 
support of this bill.
  Our bill would use trade incentives to encourage the post-Aristide 
government to make much needed reforms, while encouraging foreign 
direct investment--the most powerful, and yet underutilized, tool of 
development. The bill's provisions apply the least developed country 
provisions of the African Growth and Opportunity Act, AGOA, to Haiti--
the least developed country in our Hemisphere.
  Specifically, our bill would provide duty-free entry to apparel 
articles assembled in Haiti contingent upon Presidential certification 
that the new government is making significant political, economic, and 
social reforms. The bill also caps the amount of duty-free articles at 
1.5 percent of the total amount of U.S. apparel imports, growing to 3.5 
percent over 7 years. Currently, Haiti accounts for less than one-half 
of 1 percent of all U.S. apparel imports, and although these provisions 
seem modest by U.S. standards, in Haiti they are substantial.
  The enactment of this legislation would promote employment in Haitian 
industry by allowing Haiti to become a garment production center again. 
Haiti has a labor advantage that makes it competitive compared to other 
countries in the region, and at one time several years ago over 100,000 
people were employed in assembly jobs. Now, that number stands at just 
30,000, and regional and global economic conditions are quickly 
converging to eliminate any chance of Haiti reestablishing a foothold 
in the garment production market.
  Our window of opportunity to act expires at the end of the year, when 
quotas are phased out of the global market for textiles and apparel, 
and countries, such as China, are allowed to fully enter the market. In 
addition, Haiti has been largely left out of the Central American Free-
Trade Agreement negotiations, gaining only small concessions for 
coproduction with the Dominican Republic. These concessions are 
necessary but far from sufficient for creating jobs.
  I have traveled to Haiti 13 times, and there is no doubt that Haiti 
needs this opportunity. No other nation in our hemisphere is as 
impoverished. Today, at least 80 percent of all Haitians live in abject 
poverty, with at least 80 percent under- or unemployed. Per capita 
annual income is less than $400.
  No other nation in our hemisphere has a higher rate of HIV/AIDS. 
Today, AIDS is the No. 1 cause of all adult deaths in Haiti, killing at 
least 30,000 Haitians annually and orphaning 200,000 children.
  No other nation in our hemisphere has a higher infant mortality rate 
or a lower life expectancy rate.
  And, no other nation in our hemisphere is as environmentally 
strapped. Haiti is an ecological disaster, with a 98-percent 
deforestation level and extreme topsoil erosion.
  Despite this, U.S. assistance has reached its lowest level in over a 
decade. This needs to change. Haiti is in our backyard, inexorably 
linked to the United States by history, geography, humanitarian 
concerns, the illicit drug trade, and the ever-present possibility of 
waves of incoming refugees. Haiti's problems are our problems.
  In an environment such as this, foreign assistance is not enough to 
create economic opportunities, promote development, and reverse these 
dire conditions. Economic development is the answer, bringing with it 
lower unemployment, increased infrastructure development, and spillover 
effects for the rest of Haiti's population.
  This bill is not the ``silver bullet'' for Haiti, because there is no 
silver bullet. Rebuilding Haiti is going to require time, attention, 
and determination on the part of the people of Haiti, the countries in 
the region, and ultimately the entire international community. This 
bill would be a powerful indicator that Haiti has the support necessary 
to move forward. I encourage all of my colleagues to cosponsor this 
important piece of legislation.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2261

       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 ``Haiti Economic Recovery 
     Opportunity Act of 2004''.

     SEC. 2. TRADE BENEFITS TO HAITI.

       (a) In General.--The Caribbean Basin Economic Recovery Act 
     (19 U.S.C. 2701 et seq.) is amended by inserting after 
     section 213 the following new section:

     ``SEC. 213A. SPECIAL RULE FOR HAITI.

       ``(a) In General.--In addition to any other preferential 
     treatment under this Act, beginning on October 1, 2003, and 
     in each of the 7 succeeding 1-year periods, apparel articles 
     described in subsection (b) that are imported directly into 
     the customs territory of the United States from Haiti shall 
     enter the United States free of duty, subject to the 
     limitations described in subsections (b) and (c), if Haiti 
     has satisfied the requirements set forth in subsection (d).
       ``(b) Apparel Articles Described.--Apparel articles 
     described in this subsection are apparel articles that are 
     wholly assembled or knit-to-shape in Haiti from any 
     combination of fabrics, fabric components, components knit-
     to-shape, and yarns without regard to the country of origin 
     of the fabrics, components, or yarns.
       ``(c) Preferential Treatment.--The preferential treatment 
     described in subsection (a), shall be extended--
       ``(1) during the 12-month period beginning on October 1, 
     2003, to a quantity of apparel articles that is equal to 1.5 
     percent of the aggregate square meter equivalents of all 
     apparel articles imported into the United States during the 
     12-month period beginning October 1, 2002; and
       ``(2) during the 12-month period beginning on October 1 of 
     each succeeding year, to a quantity of apparel articles that 
     is equal to the product of--
       ``(A) the percentage applicable during the previous 12-
     month period plus 0.5 percent (but not over 3.5 percent); and
       ``(B) the aggregate square meter equivalents of all apparel 
     articles imported into the United States during the 12-month 
     period that ends on September 30 of that year.
       ``(d) Eligibility Requirements.--Haiti shall be eligible 
     for preferential treatment under this section if the 
     President determines and certifies to Congress that Haiti--
       ``(1) has established, or is making continual progress 
     toward establishing--
       ``(A) 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;
       ``(B) the rule of law, political pluralism, and the right 
     to due process, a fair trial, and equal protection under the 
     law;
       ``(C) the elimination of barriers to United States trade 
     and investment, including by--
       ``(i) the provision of national treatment and measures to 
     create an environment conducive to domestic and foreign 
     investment;

[[Page S3371]]

       ``(ii) the protection of intellectual property; and
       ``(iii) the resolution of bilateral trade and investment 
     disputes;
       ``(D) economic policies to reduce poverty, increase the 
     availability of health care and educational opportunities, 
     expand physical infrastructure, promote the development of 
     private enterprise, and encourage the formation of capital 
     markets through microcredit or other programs;
       ``(E) a system to combat corruption and bribery, such as 
     signing and implementing the Convention on Combating Bribery 
     of Foreign Public Officials in International Business 
     Transactions; and
       ``(F) protection of internationally recognized worker 
     rights, including the right of association, the right to 
     organize and bargain collectively, a prohibition on the use 
     of any form of forced or compulsory labor, a minimum age for 
     the employment of children, and acceptable conditions of work 
     with respect to minimum wages, hours of work, and 
     occupational safety and health;
       ``(2) does not engage in activities that undermine United 
     States national security or foreign policy interests; and
       ``(3) does not engage in gross violations of 
     internationally recognized human rights or provide support 
     for acts of international terrorism and cooperates in 
     international efforts to eliminate human rights violations 
     and terrorist activities.''.
       (b) Effective Date.--
       (1) In general.--The amendment made by subsection (a) 
     applies with respect to goods entered, or withdrawn from 
     warehouse for consumption, on or after October 1, 2003.
       (2) Retroactive application to certain entries.--
     Notwithstanding section 514 of the Tariff Act of 1930 (19 
     U.S.C. 1514) or any other provision of law, upon proper 
     request filed with the Customs Service before the 90th day 
     after the date of the enactment of this Act, any entry or 
     withdrawal from warehouse for consumption, of any goods 
     described in the amendment made by subsection (a)--
       (A) that was made on or after October 1, 2003, and before 
     the date of the enactment of this Act, and
       (B) with respect to which there would have been no duty if 
     the amendment made by subsection (a) applied to such entry or 
     withdrawal,

     shall be liquidated or reliquidated as though such amendment 
     applied to such entry or withdrawal.

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