[Congressional Record Volume 152, Number 38 (Thursday, March 30, 2006)]
[Extensions of Remarks]
[Page E478]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




            THE TRADE PREFERENCE EXTENSION AND EXPANSION ACT

                                 ______
                                 

                         HON. CHARLES B. RANGEL

                              of new york

                    in the house of representatives

                        Thursday, March 30, 2006

  Mr. RANGEL. Mr. Speaker, today Representative Jefferson, 
Representative McDermott and I are introducing the Trade Preference 
Extension and Expansion Act. There are three key aspects to this 
legislation.
  First, the act would extend for 1 year the trade benefits provided to 
developing countries under the U.S. Generalized System of Preferences 
(``GSP'') and the Andean Trade Preference Act (``ATPA''). Both of these 
programs currently are scheduled to expire at the end of 2006. Our 
trade preference programs are critical, not just to workers and 
businesses in developing countries, but to U.S. workers and businesses. 
It is important that we extend these programs immediately in order to 
provide our trading partners, as well as U.S. manufacturers and 
retailers, the predictability necessary to make business and investment 
decisions for the future.
  I have heard some of my colleagues suggest that we should let these 
programs lapse in order to pressure our trading partners to agree to 
the demands of U.S. negotiators in ongoing bilateral and multilateral 
trade negotiations. I agree with my colleagues that we should be 
seeking the best deals possible with each of our trading partners. 
However, I disagree with the notion that the United States should 
threaten all of our developing country trading partners, many of which 
are struggling to pull themselves out of poverty, with the elimination 
of current trade benefits in an ill-considered attempt to strengthen 
our hand at the negotiating table.
  I do not mean to suggest, however, that our current trade preference 
programs should never be changed to reflect new realities in trade and 
the rules of the WTO. For that reason, the Trade Preference Extension 
and Expansion Act calls for only a 1 year extension of GSP and ATPA. It 
is important to evaluate how well these programs are working for 
workers and businesses both in the United States and developing 
countries--and to consider whether changes should be made to improve 
the programs. In fact, Representative McDermott, Representative 
Jefferson and I sent a letter to Chairman Thomas today requesting that 
the Ways and Means Committee hold hearings as soon as possible to 
consider the future of GSP and ATPA, as well as the African Growth and 
Opportunity Act (``AGOA''). I believe it is important that the Congress 
and all interested stakeholders begin to investigate and consider this 
issue immediately, as it is likely that Congress will make changes to 
these programs next year in order to implement agreements negotiated as 
part of the Doha Development Agenda round of World Trade Organization 
negotiations.
  The second key aspect of the Trade Preference Extension and Expansion 
Act is the extension and expansion of benefits provided to sub-Saharan 
Africa under AGOA. In the year since the expiration of global textile 
and apparel quotas, sub-Saharan Africa's exports to the United States 
of apparel fell by 16 percent, and the sector has lost as many as 
100,000 jobs. Further, the textile and apparel industries in sub-
Saharan Africa face many challenges beyond the elimination of global 
quotas, including competition from well-established and sometimes 
subsidized producers, such as China, and inadequate infrastructure and 
other supply-side constraints.
  In recognition of these challenges, the Trade Preference Extension 
and Expansion Act would extend until December 2007, the current duty-
free benefits provided under AGOA for apparel made in least developed 
African countries from third country fabric. If this benefit is not 
extended, it will be reduced in half on October 1 of this year, putting 
at risk the fledgling apparel industries that have provided vitally 
needed jobs and economic growth in sub-Saharan Africa.
  The Act also would establish a simpler, value-added rule of origin 
for apparel and extend additional benefits to the textile and 
agricultural sectors under AGOA. These provisions are intended to 
enable the textile and apparel industries in sub-Saharan Africa to 
compete, given the current market reality in the region, which is that 
African textile mills cannot generally produce fabric in sufficient 
quantity and variety to meet the needs of African apparel producers or 
market demand. In addition, these provisions are intended to promote 
sustainable development in sub-Saharan Africa by promoting the 
diversification of the economies of countries in the region, 
particularly in the agricultural sector.
  Representative McDermott, Representative Jefferson and I have put 
forward these ideas regarding the expansion of benefits for textile, 
apparel and agricultural products under AGOA as a way to start a 
discussion among other Members and stakeholders about the best way to 
promote sustainable economic growth in sub-Saharan Africa. We recognize 
that sub-Saharan Africa faces a wide variety of challenges and that 
there are potentially several different approaches that could be taken 
to promote the long-term health of the region. We look forward to 
working with our colleagues, interested parties in the private sector 
and civil society, and AGOA country governments to gather additional 
information about the best ways to address the challenges facing sub-
Saharan Africa today, and we stand ready to work in Congress to ensure 
that the United States continues to play a leadership role in promoting 
economic development in the region.
  The third key aspect of the Trade Preferences Extension and Expansion 
Act is a Sense of the Congress resolution calling on the President to 
make a determination as soon as possible regarding the extension of 
AGOA benefits to Liberia. The October 2005 elections in Liberia 
represented a key step in building peace in Liberia, following nearly 
two decades of civil war. Further, the election of Ms. Ellen Johnson 
Sirleaf as President of Liberia marks an important milestone for 
Africa, as President Johnson Sirleaf is the first elected female 
President in African history. President Johnson Sirleaf has laid out a 
multifaceted government agenda emphasizing security, public and 
private-sector led revitalization, good governance and anti-corruption 
efforts, regional and international cooperation, and political 
reconciliation and inclusiveness. President Sirleaf Johnson also has 
made the improvement of workers rights a high priority. In light of 
recent progress in Liberia and need to promote economic growth in the 
country, I believe it is important that the President extend AGOA 
benefits to Liberia as soon as possible.
  I urge my colleagues to join Representatives McDermott, Jefferson and 
me in supporting the Trade Preference Extension and Expansion Act.

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