Post-Conflict Trade Recovery Act - Authorizes the President to designate any country emerging from political instability, civil strife, or armed conflict as a beneficiary country if the country: (1) has established, or is making continual progress toward establishing, a market-based economy, the rule of law and the right to due process, political pluralism, and other specified economic and political goals; (2) does not engage in activities that undermine U.S. national security or foreign policy interests; (3) is a signatory of the United Nations Declaration of Human Rights, does not engage in gross violations of internationally recognized human rights, and is making continuing and verifiable progress on the protection of internationally recognized human rights; (4) is not listed by the U.S. Department of State as a state sponsor of terrorism, and cooperates fully in international efforts to combat terrorism; and (5) otherwise meets specified eligibility criteria of the Trade Act of 1974.
Provides that if a country fails to meet the requirements of clause (1), but otherwise meets the rest of the requirements, the President may designate the country as a beneficiary country if determined that such designation will be in the national economic or security interest of the United States and reports the determination to Congress and the reason therefor.
Authorizes the President to designate articles as eligible for duty-free treatment from all beneficiary countries for purposes of this Act by Executive order or presidential proclamation after receiving the advice of the International Trade Commission.
Prescribes the rule of origin for eligible articles imported directly from beneficiary countries.
Terminates on December 31, 2011, the duty-free treatment or other preferential treatment extended to beneficiary countries under this Act.
[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4559 Introduced in House (IH)]
108th CONGRESS
2d Session
H. R. 4559
To extend certain trade benefits to countries emerging from political
instability, civil strife, or armed conflict.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 14, 2004
Mr. Hyde introduced the following bill; which was referred to the
Committee on Ways and Means
_______________________________________________________________________
A BILL
To extend certain trade benefits to countries emerging from political
instability, civil strife, or armed conflict.
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 ``Post-Conflict Trade Recovery Act''.
SEC. 2. FINDINGS.
Congress finds that--
(1) it is in the mutual interest of the United States and
countries emerging from political instability, civil strife, or
armed conflict, to promote stable and sustainable growth and
development of such countries;
(2) democratization and economic progress in countries
emerging from political instability, civil strife, or armed
conflict are important elements of a policy to address
terrorism and endemic instability;
(3) preferential trade and market access arrangements are
not a substitute for, but a complement to, necessary political
and economic reforms that lead to political liberalization and
economic freedom;
(4) countries in the developing world, and in particular
countries emerging from political instability, civil strife, or
armed conflict, experience deepening poverty, slow job
creation, and a declining share of world trade and investment,
while at the same time tend to have population growth rates
among the highest in the world;
(5) such economic conditions are in part the result of
barriers to trade and investment, a failure to engage fully in
the global trading system, lack of participation in the World
Trade Organization, and, often, a lack of economic
diversification and over-reliance on the energy sector;
(6) offering enhanced trade preferences to countries
emerging from political instability, civil strife, or armed
conflict will encourage higher levels of trade and direct
investment and help bring such countries more fully into the
global trading system;
(7) higher levels of trade and investment and greater
involvement in the global trading system can lead to increased
economic development, which can in turn lead to more jobs for
people in countries emerging from political instability, civil
strife, or armed conflict; and
(8) encouraging the reduction of trade and investment
barriers will enhance the benefits of trade and investment for
all participating countries, as well as enhance commercial and
political ties between the United States and such participating
countries.
SEC. 3. STATEMENT OF POLICY.
Congress supports--
(1) encouraging increased trade and investment between the
United States and countries emerging from political
instability, civil strife, or armed conflict;
(2) reducing tariff and nontariff barriers and other
obstacles to trade between the United States and countries
emerging from political instability, civil strife, or armed
conflict;
(3) strengthening and expanding the private sector and
accelerating the rate of job creation in countries emerging
from political instability, civil strife, or armed conflict;
(4) promoting the rule of law, economic reform, political
liberalization, respect for human rights, and the eradication
of poverty in such countries;
(5) facilitating the development of civil societies and
political freedom in such countries;
(6) promoting sustainable development, and protecting and
preserving the environment in a manner consistent with economic
development; and
(7) encouraging such countries to diversify their
economies, implement domestic economic reforms, open to trade,
and adopt anticorruption measures, including through accession
to the Organization for Economic Cooperation and Development
(OECD) Convention on Combating Bribery of Foreign Public
Officials in International Business Transactions.
SEC. 4. DESIGNATION OF ELIGIBLE COUNTRIES.
(a) In General.--The President is authorized to designate any
country emerging from political instability, civil strife, or armed
conflict as a beneficiary country if the President determines that the
country--
(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 and the right to due process, a
fair trial, and equal protection under the law;
(C) political pluralism, a climate free of
political intimidation and restrictions on peaceful
political activity, and democratic elections that meet
international standards of fairness, transparency, and
participation;
(D) the elimination of barriers to United States
trade and investment, including by--
(i) providing national treatment and
measures to create an environment conducive to
domestic and foreign investment;
(ii) protecting intellectual property; and
(iii) resolving bilateral trade and
investment disputes;
(E) economic policies that 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 micro-credit
or other programs;
(F) a system to combat corruption and bribery, such
as signing and implementing the OECD Convention on
Combating Bribery of Foreign Public Officials in
International Business Transactions;
(G) 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; and
(H) policies that provide a high level of
environmental protection;
(2) does not engage in activities that undermine United
States national security or foreign policy interests;
(3) is a signatory of the United Nations Declaration of
Human Rights, does not engage in gross violations of
internationally recognized human rights, and is making
continuing and verifiable progress on the protection of
internationally recognized human rights, including freedom of
speech and press, freedom of peaceful assembly and association,
and freedom of religion;
(4) is not listed by the United States Department of State
as a state sponsor of terrorism and cooperates fully in
international efforts to combat terrorism; and
(5) otherwise meets the eligibility criteria set forth in
section 502(b)(2) of the Trade Act of 1974 (19 U.S.C.
2462(b)(2)), other than section 502(b)(2)(B).
(b) Rule of Construction.--If a country fails to satisfy one or
more of the requirements contained in subparagraphs (A) through (H) of
subsection (a)(1), but otherwise meets the requirements of subsection
(a), the President may designate the country as a beneficiary country
under this Act if the President determines that such designation will
be in the national economic or security interest of the United States
and transmits to Congress a report that contains the determination and
the reasons therefor.
(c) Continuing Compliance.--If the President determines that a
designated beneficiary country no longer meets the requirements
described in subsection (a), the President shall terminate the
designation of the country made pursuant to subsection (a) and transmit
to Congress a report that contains the determination and the reasons
therefor.
SEC. 5. DESIGNATION OF ELIGIBLE ARTICLES.
(a) Eligible Articles.--Except as provided in sections 503(b)(2)
and (3) of the Trade Act of 1974 (19 U.S.C. 2463(b)(2) and (3)), the
President is authorized to designate articles as eligible for duty-free
treatment from all beneficiary countries for purposes of this section
by Executive order or Presidential proclamation after receiving the
advice of the International Trade Commission in accordance with
subsection (c).
(b) Rules of Origin.--
(1) General rule.--The duty-free treatment provided under
this section shall apply to any eligible article which is the
growth, product, or manufacture of 1 or more beneficiary
countries if--
(A) that article is imported directly from a
beneficiary country into the customs territory of the
United States; and
(B) the sum of--
(i) the cost or value of the materials
produced in 1 or more beneficiary countries,
plus
(ii) the direct cost of processing
operations performed in such beneficiary
country or countries,
is not less than 35 percent of the appraised value of
such article at the time it is entered.
(2) Exclusions.--An article shall not be treated as the
growth, product, or manufacture of a beneficiary country by
virtue of having merely undergone--
(A) simple combining or packaging operations; or
(B) mere dilution with water or mere dilution with
another substance that does not materially alter the
characteristics of the article.
(3) Regulations.--The Secretary of the Treasury, after
consulting with the United States Trade Representative, shall
prescribe such regulations as may be necessary to carry out
this subsection, including, but not limited to, regulations
providing that, in order to be eligible for duty-free treatment
under this Act, an article--
(A) must be wholly the growth, product, or
manufacture of 1 or more beneficiary countries; or
(B) must be a new or different article of commerce
which has been grown, produced, or manufactured in 1 or
more beneficiary countries.
(c) International Trade Commission Advice.--Before designating an
article as an eligible article under subsection (a), the President
shall publish in the Federal Register and furnish the International
Trade Commission with a list of articles that may be considered for
designation as eligible articles for purposes of this Act. The
President shall comply with the provisions of sections 131, 132, 133,
and 134 of the Trade Act of 1974 as if an action under this section
were an action taken under section 123 of the Trade Act of 1974 to
carry out a trade agreement entered into under section 123.
SEC. 6. TERMINATION OF PREFERENTIAL TREATMENT.
No duty-free treatment or other preferential treatment extended to
beneficiary countries under this Act shall remain in effect after
December 31, 2011.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
Referred to the Subcommittee on Trade.
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