[Congressional Record Volume 150, Number 99 (Friday, July 16, 2004)]
[Senate]
[Pages S8401-S8402]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




            HAITI ECONOMIC RECOVERY OPPORTUNITY ACT OF 2004

  Mr. FRIST. Mr. President, I ask unanimous consent that the Finance 
Committee be discharged from further consideration of S. 2261 and that 
the Senate proceed to its immediate consideration.
  The PRESIDING OFFICER. Without objection, it is so ordered. The clerk 
will report the bill by title.
  The legislative clerk read as follows:

       A bill (S. 2261) to expand certain preferential trade 
     treatment for Haiti.

  There being no objection, the Senate proceeded to consider the bill.
  Mr. DeWINE. Mr. President, I am very pleased we are moving forward 
today with passage of the Haiti Economic Recovery Opportunity Act. 
Congressman Clay Shaw in the House and I have been working on Haiti 
trade legislation for some time. I thank Congressman Shaw for his 
support. I also want to give my sincere thanks to Senators Lindsey 
Graham and Ernest Hollings. Without their help and support we would not 
have been successful in our efforts today. Let me take a moment to 
mention all of our cosponsors as well: Senators Biden, Breaux, Chafee, 
Coleman, Daschle, Dodd, Durbin, Bob Graham, Hagel, Jeffords, 
Lautenberg, Lieberman, Lugar, Bill Nelson, Gordon Smith, Sununu, and 
Voinovich. I thank them for their support and their efforts in getting 
this bill passed.
  This bill can really change things for Haiti. Once it is signed into 
law, it will make a very real, very lasting difference in a country 
that is the poorest in our hemisphere--and one that has an 80-plus 
percent unemployment rate and a less than $400 per capita income for 
individuals.
  This bill is going to 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. This bill, quite simply, will create thousands of 
jobs--one of the most important things for the Haitian people right 
now.
  The people of Haiti want to work. They are good workers--they are 
hard workers. They are industrious. This bill is going to give them the 
chance to have jobs. It is going to give them a chance at economic 
recovery through economic opportunity. In the last decade, Haiti has 
gone from over 100,000 assembly jobs to less than 30,000 today. Our 
bill helps create jobs by providing 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 .5 percent of all U.S. 
apparel imports, and although these provisions seem modest by U.S. 
standards, in Haiti they are substantial.
  This bill is not the ``silver bullet'' for Haiti, because there is no 
silver bullet for Haiti. 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. But, passage of the Haiti Economic Recovery Opportunity Act 
is a powerful indicator that Haiti has the support necessary to move 
forward.
  I yield the floor.
  Mr. DODD. Mr. President, I rise today to speak about an initiative 
that is long overdue. Thanks to the efforts of Senator DeWine, Senator 
Bob Graham, and to the other cosponsors of the pending measure, the 
Haiti Economic Recovery Opportunity, or HERO Act, of 2004 is finally 
getting the attention it deserves.
  Haiti has endured intense strife over the course of the last 3 years. 
Most recently, floods have devastated much of the country, and armed 
gangs have destabilized cities and terrorized rural areas, ultimately 
forcing the elected president from office.
  Although much more support will be necessary in the near future, the 
HERO Act is an excellent first step in the process of establishing 
stability and security in Haiti.
  Unemployment is a major factor in the instability of the country. 
More than two-thirds of eligible workers cannot find jobs in the formal 
economy. The HERO Act begins to address that need by providing living-
wage jobs in the apparel industry for thousands of Haitians.
  Again, I want to stress how important it is to view this as only the 
first part of a large program to address the abject poverty and 
political chaos that has beleaguered Haiti. With this kind of forward-
looking initiative, we can help our neighbors to overcome these 
difficult times. Only through concrete and meaningful U.S. assistance 
on a scale commensurate with Haiti's needs can be ever hope to reverse 
the misery, suffering, and hopelessness that have become commonplace in 
the lives of close neighbors--8 million of them.
  I strongly support this legislation and was pleased to be a 
cosponsor. The people of Haiti have waited too long for the HERO Act to 
become law. It is time for the United States to demonstrate its concern 
for its suffering Haitian neighbors. Now that the Senate has acted, I 
hope that the Bush administration will finally make this a priority and 
urge the House leadership to act on this measure before the August 
recess.
  Mr. FRIST. Mr. President, I ask unanimous consent that the DeWine 
substitute amendment be agreed to, the bill, as amended, be read a 
third time and passed, the motion to reconsider be laid upon the table, 
en bloc, and that any statements relating to the bill be printed in the 
Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment (No. 3565) was agreed to, as follows:

  (Purpose: To provide a substitute amendment to ensure violations of 
              laws relating to circumvention are enforced)

       Strike all after the enacting clause and insert the 
     following:

     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 and conditions set forth in 
     subsections (d) and (e).
       ``(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

[[Page S8402]]

     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 is 
     meeting the conditions of subsection (e) and 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;
       ``(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.
       ``(e) Conditions Regarding Enforcement of Circumvention.--
       ``(1) In general.--The preferential treatment under 
     subsection (b) shall not apply unless the President certifies 
     to Congress that Haiti is meeting the following conditions:
       ``(A) Haiti has adopted an effective visa system, domestic 
     laws, and enforcement procedures applicable to articles 
     described in subsection (b) to prevent unlawful transshipment 
     of the articles and the use of counterfeit documents relating 
     to the importation of the articles into the United States.
       ``(B) Haiti has enacted legislation or promulgated 
     regulations that would permit the Bureau of Customs and 
     Border Protection verification teams to have the access 
     necessary to investigate thoroughly allegations of 
     transshipment through such country.
       ``(C) Haiti agrees to report, on a timely basis, at the 
     request of the Bureau of Customs and Border Protection, on 
     the total exports from and imports into that country of 
     articles described in subsection (b), consistent with the 
     manner in which the records are kept by Haiti.
       ``(D) Haiti agrees to cooperate fully with the United 
     States to address and take action necessary to prevent 
     circumvention.
       ``(E) Haiti agrees to require all producers and exporters 
     of articles described in subsection (b) in that country to 
     maintain complete records of the production and the export of 
     the articles, including materials used in the production, for 
     at least 2 years after the production or export (as the case 
     may be).
       ``(F) Haiti agrees to report, on a timely basis, at the 
     request of the Bureau of Customs and Border Protection, 
     documentation establishing the country of origin of articles 
     described in subsection (b) as used by that country in 
     implementing an effective visa system.
       ``(2) Definitions.--In this subsection:
       ``(A) Circumvention.--The term `circumvention' means any 
     action involving the provision of a false declaration or 
     false information for the purpose of, or with the effect of, 
     violating or evading existing customs, country of origin 
     labeling, or trade laws of the United States or Haiti 
     relating to imports of textile and apparel goods, if such 
     action results--
       ``(i) in the avoidance of tariffs, quotas, embargoes, 
     prohibitions, restrictions, trade remedies, including 
     antidumping or countervailing duties, or safeguard measures; 
     or
       ``(ii) in obtaining preferential tariff treatment.''.
       ``(B) Transshipment.--The term `transshipment' has the 
     meaning given such term under section 213(b)(2)(D)(iii).''.
       (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 United States 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.

  The bill (S. 2261), as amended, was read the third time and passed.

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