[Congressional Record Volume 151, Number 7 (Monday, January 31, 2005)]
[Senate]
[Pages S644-S645]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




         TARIFF RELIEF ASSISTANCE FOR DEVELOPING ECONOMIES ACT

  Mrs. FEINSTEIN. Mr. President, I support legislation recently 
introduced

[[Page S645]]

by myself, Senator Smith, Senator Baucus, and Senator Santorum to help 
some of the world's poorest countries sustain vital export industries 
and promote economic growth and political stability.
  The Tariff Relief Assistance for Developing Economies Act, TRADE, of 
2005 will provide duty-free and quota-free benefits for garments and 
other products similar to those afforded to beneficiary countries under 
the Africa Growth and Opportunity Act, AGOA. The countries covered by 
this legislation are the 14 Least Developed Countries, LDCs, as defined 
by the United Nations and the U.S. State Department, which are not 
covered by any current U.S. trade preference program: Afghanistan, 
Bangladesh, Bhutan, Cambodia, Kiribati, Laos, Maldives, Nepal, Samoa, 
Solomon Islands, East Timor, Tuvalu, Vanuatu, and Yemen. Given the 
recent tsunami disaster, the bill includes a special emergency trade 
provision to assist Sri Lanka in its rebuilding efforts.
  The beneficiary countries of this legislation are among the poorest 
countries in the world. Nepal has per capita income of $240. 
Unemployment in Bangladesh stands at 40 percent. Approximately 36 
percent of Cambodia's population lives below the poverty line. Each 
country faces critical challenges in the years ahead including poor 
health care, insufficient educational opportunities, high HIV/AIDS 
rates, and the effects of war and civil strife. The United States must 
take a leadership role in providing much-needed assistance to the 
people of these countries.
  Consequently, Senator Smith and I have worked closely together over 
the past few years to push for substantial increases in our foreign aid 
budget. We recognize that helping developing countries rise from 
poverty is not only a moral obligation, but a key component in our 
fight against terror. Yet humanitarian and development assistance 
should not be the sum total of our efforts to put these countries on 
the road to economic prosperity and political stability. Indeed, the 
key for sustained growth and rising standards of living will be the 
ability of each of these countries to create vital export industries to 
compete in a free and open global marketplace.
  We should help these countries help themselves by opening the U.S. 
market to their exports. Success in that endeavor will ultimately allow 
these countries to become less dependent on foreign aid and allow the 
United States to provide assistance to countries in greater need.
  The garment industry is a key part of the manufacturing sector in 
some of these countries. In Nepal, the garment industry is entirely 
export-oriented and accounts for 40 percent of the foreign exchange 
earnings. It employs over 100,000 workers--half of them women--and 
sustains the livelihood of over 350,000 people. The United States is 
the largest market for Nepalese garments and accounts for 80 to 90 
percent of Nepal's total exports every year. In Cambodia, approximately 
250,000 Cambodians work in the garment industry supporting 
approximately 1 million dependents. The garment industry accounts for 
more than 90 percent of Cambodia's export earnings. In Bangladesh, the 
garment industry accounts for 75 percent of export earnings. The 
industry employs 1.8 million people, 90 percent of whom are women, and 
sustains the livelihoods of 10 to 15 million people.
  Despite the poverty seen in these countries and the importance of the 
garment industry and the U.S. market, they face some of the highest 
U.S. tariffs in the world, averaging over 15 percent. In contrast, 
countries like Japan and our European partners face tariffs that are 
nearly zero. On top of this, there is increasing concern that the 
removal of quotas on textile and apparel articles on January 1, 2005, 
will severely harm their garment export industries in LDC countries as 
U.S. importers will shift their orders to China, India and other 
suppliers with cheaper labor markets.
  Millions of jobs could be lost, threatening economic growth and 
political stability. In those countries without a viable garment 
industry--such as Afghanistan and East Timor--the removal of quotas 
will severely impact the opportunities to develop industries, 
employment, and expanded foreign investment.
  Surely we can do better. This legislation will help these countries 
compete in the U.S. market and let their citizens know that Americans 
are committed to helping them realize a better future for themselves 
and their families. And the impact on U.S. jobs will be minimal. 
Currently, the beneficiary countries under this legislation account for 
only 4 percent of U.S. textile and apparel imports, compared to 24 
percent for China, and 72 percent for the rest of the world. These 
countries will continue to be small players in the U.S. market, but the 
benefits of this legislation will have a major impact on their export 
economies.
  At a time when U.S. standing is at an alltime low in some countries, 
we need legislation such as this to show the best of America and 
American values. It will provide a vital component to our development 
strategy and add another tool to the war on terror. I urge my 
colleagues to support this bill.

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