[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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