[Congressional Record Volume 155, Number 79 (Thursday, May 21, 2009)]
[Senate]
[Pages S5846-S5848]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mrs. FEINSTEIN (for herself and Mr. Bond):
  S. 1141. A bill to extend certain trade preferences to certain least-
developed countries, and for other purposes; to the Committee on 
Finance.
  Mrs. FEINSTEIN. Mr. President, I rise today with Senator Bond to 
introduce the Tariff Relief Assistance for Developing Economies Act of 
2009 to help some of the world's poorest countries sustain vital export 
industries and promote economic growth and political stability.
  I worked with former senator Gordon Smith on this bill in the past 
and I am proud to move it forward in the 111th Congress.

[[Page S5847]]

  This legislation 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.
  The bill also includes Sri Lanka as an eligible country.
  To be eligible for the benefits provided under our bill, a country 
must demonstrate that it is making continual progress toward 
establishing rule of law, political pluralism, the right to due 
process, and a market-based economy that protects private property 
rights. Our legislation would help promote democracy while sustaining 
vital export industries and creating employment opportunities.
  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 U.S. must take a leadership role in providing much needed 
assistance to the people of these countries.
  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 U.S. 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 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 80-90 percent of Nepal's total exports every year.
  In Cambodia, approximately 250,000 Cambodians work in the garment 
industry supporting approximately one 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.
  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.
  Doing so is consistent with U.S. goals to combat poverty, 
instability, and terrorism in a critical part of the world. We should 
not forget that of the approximately 265 million people that live in 
the TRADE Act countries, almost 200 million are Muslim.
  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 we are trying to rebuild the image of the U.S. around 
the world, 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.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1141

       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 ``Tariff Relief Assistance for 
     Developing Economies Act of 2009'' or the ``TRADE Act of 
     2009''.

     SEC. 2. FINDINGS.

       Congress finds the following:
       (1) It is in the mutual interest of the United States and 
     least-developed countries to promote stable and sustainable 
     economic growth and development.
       (2) Trade and investment are powerful economic tools and 
     can be used to reduce poverty and raise the standard of 
     living in a country.
       (3) A country that is open to trade may increase its 
     economic growth.
       (4) Trade and investment often lead to employment 
     opportunities and often help alleviate poverty.
       (5) Least-developed countries have a particular challenge 
     in meeting the economic requirements and competitiveness of 
     globalization and international markets.
       (6) The United States has recognized the benefits that 
     international trade provides to least-developed countries by 
     enacting the Generalized System of Preferences and trade 
     benefits for developing countries in the Caribbean, Andean, 
     and sub-Saharan African regions of the world.
       (7) Enhanced trade with least-developed Muslim countries, 
     including Yemen, Afghanistan, and Bangladesh, is consistent 
     with other United States objectives of encouraging a strong 
     private sector and individual economic empowerment in those 
     countries.
       (8) Offering least-developed countries enhanced trade 
     preferences will encourage both higher levels of trade and 
     direct investment in support of positive economic and 
     political developments throughout the world.
       (9) Encouraging the reciprocal reduction of trade and 
     investment barriers will enhance the benefits of trade and 
     investment as well as enhance commercial and political ties 
     between the United States and the countries designated for 
     benefits under this Act.
       (10) Economic opportunity and engagement in the global 
     trading system together with support for democratic 
     institutions and a respect for human rights are mutually 
     reinforcing objectives and key elements of a policy to 
     confront and defeat global terrorism.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Beneficiary trade act of 2009 country.--The term 
     ``beneficiary TRADE Act of 2009 country'' means a TRADE Act 
     of 2009 country that the President has determined is eligible 
     for preferential treatment under section 5.
       (2) Former trade act of 2009 beneficiary country.--The term 
     ``former TRADE Act of 2009 beneficiary country'' means a 
     country that, after being designated as a beneficiary TRADE 
     Act of 2009 country under this Act, ceased to be designated 
     as such a country by reason of its entering into a free trade 
     agreement with the United States.
       (3) TRADE act of 2009 country.--The term ``TRADE Act of 
     2009 country'' means a country listed in subsection (b) or 
     (c) of section 4.

     SEC. 4. AUTHORITY TO DESIGNATE; ELIGIBILITY REQUIREMENTS.

       (a) Authority To Designate.--
       (1) In general.--Notwithstanding any other provision of 
     law, the President is authorized to designate a TRADE Act of 
     2009 country as a beneficiary TRADE Act of 2009 country 
     eligible for benefits described in section 5--
       (A) if the President determines that the country meets the 
     requirements set forth in section 104 of the African Growth 
     and Opportunity Act (19 U.S.C. 3703); and
       (B) subject to the authority granted to the President under 
     subsections (a), (d), and (e) of section 502 of the Trade Act 
     of 1974 (19 U.S.C. 2462 (a), (d), and (e)), if the country 
     otherwise meets the eligibility criteria set forth in such 
     section 502.
       (2) Application of section 104.--Section 104 of the African 
     Growth and Opportunity Act shall be applied for purposes of 
     paragraph (1) by substituting ``TRADE Act of 2009 country'' 
     for ``sub-Saharan African country'' each place it appears.
       (b) Countries Eligible for Designation.--For purposes of 
     this Act, the term ``TRADE Act of 2009 country'' refers to 
     the following or their successor political entities:

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       (1) Afghanistan.
       (2) Bangladesh.
       (3) Bhutan.
       (4) Cambodia.
       (5) Kiribati.
       (6) Lao People's Democratic Republic.
       (7) Maldives.
       (8) Nepal.
       (9) Samoa.
       (10) Solomon Islands.
       (11) Timor-Leste (East Timor).
       (12) Tuvalu.
       (13) Vanuatu.
       (14) Yemen.
       (c) Sri Lanka Economic Emergency Support.--For purposes of 
     this Act, the President may also designate Sri Lanka as 
     beneficiary TRADE Act of 2009 country eligible for benefits 
     described in section 5.

     SEC. 5. TRADE ENHANCEMENT.

       The preferential treatment described in this section 
     includes the following:
       (1) Preferential tariff treatment for certain articles.--
       (A) In general.--The President may provide duty-free 
     treatment for any article described in section 503(b)(1) (B) 
     through (G) of the Trade Act of 1974 (19 U.S.C. 2463(b)(1) 
     (B) through (G)) that is the growth, product, or manufacture 
     of a beneficiary TRADE Act of 2009 country, if, after 
     receiving the advice of the International Trade Commission in 
     accordance with section 503(e) of the Trade Act of 1974 (19 
     U.S.C. 2463(e)), the President determines that such article 
     is not import-sensitive in the context of imports from 
     beneficiary TRADE Act of 2009 countries.
       (B) Rules of origin.--The duty-free treatment provided 
     under subparagraph (A) shall apply to any article described 
     in that subparagraph that meets the requirements of section 
     503(a)(2) of the Trade Act of 1974 (19 U.S.C. 2463(a)(2)), 
     except that--
       (i) if the cost or value of materials produced in the 
     customs territory of the United States is included with 
     respect to that article, an amount not to exceed 15 percent 
     of the appraised value of the article at the time it is 
     entered that is attributed to such United States cost or 
     value may be applied toward determining the percentage 
     referred to in subparagraph (A) of section 503(a)(2) of the 
     Trade Act of 1974 (19 U.S.C. 2463(a)(2)); and
       (ii) the cost or value of the materials included with 
     respect to that article that are produced in one or more 
     beneficiary TRADE Act of 2009 countries or former beneficiary 
     TRADE Act of 2009 countries shall be applied in determining 
     such percentage.
       (2) Textile and apparel articles.--
       (A) In general.--The preferential treatment relating to 
     textile and apparel articles described in section 112 (a) and 
     (b) (1) and (2) of the African Growth and Opportunity Act (19 
     U.S.C. 3721 (a) and (b) (1) and (2)) shall apply to textile 
     and apparel articles imported directly into the customs 
     territory of the United States from a beneficiary TRADE Act 
     of 2009 country and such section shall be applied for 
     purposes of this subparagraph by substituting ``beneficiary 
     TRADE Act of 2009 country'' and ``beneficiary TRADE Act of 
     2009 countries'' for ``beneficiary sub-Saharan African 
     country'' and ``beneficiary sub-Saharan African countries'', 
     respectively, each place such terms appear.
       (B) Apparel articles assembled from regional and other 
     fabric.--In applying such section 112, apparel articles 
     wholly assembled in one or more beneficiary TRADE Act of 2009 
     countries or former beneficiary TRADE Act of 2009 countries, 
     or both, from fabric wholly formed in one or more beneficiary 
     TRADE Act of 2009 countries or former beneficiary TRADE Act 
     of 2009 countries, or both, from yarn originating either in 
     the United States or one or more beneficiary TRADE Act of 
     2009 countries or former beneficiary TRADE Act of 2009 
     countries, or both (including fabrics not formed from yarns, 
     if such fabrics are classifiable under heading 5602 or 5603 
     of the Harmonized Tariff Schedule of the United States and 
     are wholly formed and cut in the United States, in one or 
     more beneficiary TRADE Act of 2009 countries or former 
     beneficiary TRADE Act of 2009 countries, or any combination 
     thereof), whether or not the apparel articles are also made 
     from any of the fabrics, fabric components formed, or 
     components knit-to-shape described in section 112(b) (1) or 
     (2) of the African Growth and Opportunity Act (19 U.S.C. 
     3721(b) (1) and (2)) (unless the apparel articles are made 
     exclusively from any of the fabrics, fabric components 
     formed, or components knit-to-shape described in such section 
     112(b) (1) or (2)) subject to the following:
       (i) Limitations on benefits.--

       (I) In general.--Preferential treatment under this 
     subparagraph shall be extended in the 1-year period beginning 
     January 1, 2009, and in each of the succeeding 10 1-year 
     periods, to imports of apparel articles described in this 
     subparagraph in an amount not to exceed the applicable 
     percentage of the aggregate square meter equivalents of all 
     apparel articles imported into the United States in the most 
     recent 12-month period for which data are available.
       (II) Applicable percentage.--For purposes of this clause, 
     the term ``applicable percentage'' means 11 percent for the 
     1-year period beginning January 1, 2009, increased in each of 
     the 10 succeeding 1-year period by equal increments, so that 
     for the period beginning January 1, 2019, the applicable 
     percentage does not exceed 14 percent.

       (ii) Special rule.--

       (I) In general.--Subject to clause (i), preferential 
     treatment described in this subparagraph shall be extended 
     through December 31, 2016, for apparel articles wholly 
     assembled in one or more beneficiary TRADE Act of 2009 
     countries or former beneficiary TRADE Act of 2009 countries, 
     or both, regardless of the country of origin of the yarn or 
     fabric used to make such articles.
       (II) Country limitations.--

       (aa) Small suppliers.--If, during the preceding 1-year 
     period beginning on January 1 for which data are available, 
     imports from a beneficiary TRADE Act of 2009 country are less 
     than 1 percent of the aggregate square meter equivalents of 
     all apparel articles imported into the United States during 
     such period, such imports may increase to an amount that is 
     equal to not more than 1.5 percent of the aggregate square 
     meter equivalents of all apparel articles imported into the 
     United States during such period.
       (bb) Other suppliers.--If during the preceding 1-year 
     period beginning on January 1 for which data are available, 
     imports from a beneficiary TRADE Act of 2009 country are at 
     least 1 percent of the aggregate square meter equivalents of 
     all apparel articles imported into the United States during 
     such period, such imports may increase, during each 
     subsequent 12-month period, by an amount that is equal to not 
     more than one-third of 1 percent of the aggregate square 
     meter equivalents of all apparel articles imported into the 
     United States.
       (cc) Aggregate country limit.--In no case may the aggregate 
     quantity of textile and apparel articles imported into the 
     United States under this subparagraph exceed the applicable 
     percentage set forth in clause (i).
       (C) Technical amendment.--Section 6002(a)(2)(B) of the 
     Africa Investment Incentive Act of 2006 (Public Law 109-432) 
     is amended by inserting before ``by striking'' the following: 
     ``in paragraph (3),''.
       (D) Other restrictions.--The provisions of section 112 (b) 
     (3)(B), (4), (5), (6), (7), and (8), and (e), and section 113 
     of the African Growth and Opportunity Act (19 U.S.C. 3721 (b) 
     (3)(B), (4), (5), (6), (7), and (8), and (e), and 3722) shall 
     apply with respect to the preferential treatment extended 
     under this Act to a beneficiary TRADE Act of 2009 country by 
     substituting ``beneficiary TRADE Act of 2009 country'' for 
     ``beneficiary sub-Saharan African country'' and ``beneficiary 
     TRADE Act of 2009 countries'' and ``former beneficiary TRADE 
     Act of 2009 countries'' for ``beneficiary sub-Saharan African 
     countries'' and ``former sub-Saharan African countries'', 
     respectively, wherever appropriate.

     SEC. 6. REPORTING REQUIREMENT.

       The President shall monitor, review, and report to 
     Congress, not later than 1 year after the date of the 
     enactment of this Act, and annually thereafter, on the 
     implementation of this Act and on the trade and investment 
     policy of the United States with respect to the TRADE Act of 
     2009 countries.

     SEC. 7. TERMINATION OF PREFERENTIAL TREATMENT.

       No duty-free treatment or other preferential treatment 
     extended to a beneficiary TRADE Act of 2009 country under 
     this Act shall remain in effect after December 31, 2019.

     SEC. 8. EFFECTIVE DATE.

       The provisions of this Act shall take effect on January 1, 
     2009.
                                 ______