Tariff Relief Assistance for Developing Economies Act of 2005 (TRADE Act of 2005) - Authorizes the President to designate Afghanistan, Bangladesh, Bhutan, Cambodia, Kiribati, Lao People's Democratic Republic, Maldives, Nepal, Samoa, Solomon Islands, Timor-Leste (East Timor), Tuvalu, Vanuatu, Yemen, and Sri Lanka or their successor political entities (TRADE Act of 2005 countries) as beneficiary TRADE Act of 2005 countries eligible to receive duty-free treatment for certain articles that are the growth, product, or manufacture of such countries, if after receiving the advice of the International Trade Commission (ITC) the President determines that such articles are not import-sensitive in the context of imports from such countries.
Conditions such designation upon eligibility requirements of the African Growth and Opportunity Act (AGOA) and the Trade Act of 1974.
Prescribes the rule of origin for the articles for the duty-free treatment.
Applies duty-free treatment, without any quantitative limitations, granted to textile and apparel articles under AGOA to articles imported directly into the U.S. customs territory from a beneficiary TRADE Act of 2005 country if their assembly meets specified U.S. origin requirements.
Grants AGOA preferential treatment for apparel articles assembled in one or more beneficiary TRADE Act of 2005 countries or such former countries, or both, from regional fabric from yarn originating either in the United States or one or more of such countries.
Establishes: (1) limitations on such preferential treatment; and (2) special rules for apparel articles wholly assembled in one or more beneficiary TRADE Act of 2005 countries or former beneficiary countries, or both, regardless of the country of origin of the yarn or fabric used to make such articles; and (3) applicable percentages of such benefits.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 191 Introduced in Senate (IS)]
109th CONGRESS
1st Session
S. 191
To extend certain trade preferences to certain least-developed
countries, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 26, 2005
Mr. Smith (for himself, Mrs. Feinstein, Mr. Baucus, and Mr. Santorum)
introduced the following bill; which was read twice and referred to the
Committee on Finance
_______________________________________________________________________
A BILL
To extend certain trade preferences to certain least-developed
countries, and for other purposes.
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 2005'' or as the ``TRADE Act of 2005''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) It is in the mutual interest of the United States and
the least-developed countries to promote stable and sustainable
economic growth and development.
(2) Trade and investment are powerful economic tools and a
country may use trade and investment to reduce poverty and
raise the standard of living in that country.
(3) A country that is open to trade may increase its
economic growth.
(4) Twenty-five percent of the world's population survives
on less than one dollar per day.
(5) Unemployment rates in least-developed countries are
extremely high, including unemployment rates in some countries
of up to 70 percent.
(6) Trade and investment often lead to employment
opportunities and often help alleviate poverty.
(7) Least-developed countries have a particular challenge
in meeting the economic requirements and competitiveness of
globalization and international markets.
(8) The United States has recognized the benefits of trade
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.
(9) The challenges of the global trading environment for
least-developed countries are even greater given the end of the
Multi-Fiber Arrangement in 2005, and certain least-developed
countries, including Bangladesh, Cambodia, and Nepal, are
particularly vulnerable to the changes that will result from
the end of that Arrangement.
(10) Responding to the needs of least-developed countries
would be consistent with other United States trade objectives,
including encouraging forward progress on the WTO Doha
Development Round.
(11) Enhanced trade with the Muslim least-developed
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.
(12) 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 region and the world.
(13) 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 beneficiary countries.
(14) 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.
(15) A powerful earthquake and tsunami struck in the Indian
Ocean on December 26, 2004.
(16) The destruction caused by the tsunami in Sri Lanka was
devastating and included the loss of an estimated 30,000 people
and physical damage that will cost an amount equal to 6.5
percent of annual economy of Sri Lanka to repair.
(17) The effects of lost businesses and reconstruction
costs caused by the tsunami damage will result in a drop in the
economic growth of Sri Lanka.
(18) Senate Resolution 4, 109th Congress, agreed to January
4, 2005, expressed the support of the Senate for the long-term
commitment and engagement of the United States to provide
financial aid and other forms of direct and indirect assistance
to the countries and peoples of the region impacted by the
earthquake and the tsunami.
(19) Duty preferences that assist Sri Lanka in the United
States market will help Sri Lanka rebuild and overcome the
economic destruction caused by the tsunami.
SEC. 3. 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
2005 country as a beneficiary TRADE Act of 2005 country
eligible for benefits described in section 4--
(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 2005 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 2005 country'' refers to the following or their
successor political entities:
(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 2005 country eligible for benefits described in section 4.
SEC. 4. TRADE ENHANCEMENT.
(a) Benefits Described.--The benefits described in this section are
as follows:
(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
2005 country described, if, after receiving the advice
of the International Trade Commission in accordance
with section 503(e) of the Trade Act of 1974, the
President determines that such article is not import-
sensitive in the context of imports from beneficiary
TRADE Act of 2005 countries.
(B) Rules of origin.--The duty-free treatment
provided under subparagraph (A) shall apply to any
article described in that paragraph that meets the
requirements of section 503(a)(2) of the Trade Act of
1974, 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; 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 2005 countries or former beneficiary TRADE
Act of 2005 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
2005 country and such section shall be applied for
purposes of this subparagraph by substituting ``TRADE
Act of 2005 country'' and ``TRADE Act of 2005
countries'' for ``sub-Saharan African country'' and
``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 2005 countries or former beneficiary TRADE
Act of 2005 countries, or both, from fabric wholly
formed in one or more beneficiary TRADE Act of 2005
countries or former beneficiary TRADE Act of 2005
countries, or both, from yarn originating either in the
United States or one or more beneficiary TRADE Act of
2005 countries or former beneficiary TRADE Act of 2005
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, one or more beneficiary TRADE Act of
2005 countries or former beneficiary TRADE Act of 2005
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 (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, 2005, 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 preceding 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, 2005, increased in each of
the 10 succeeding 1-year period by
equal increments, so that for the
period beginning January 1, 2014, 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, 2011, for apparel
articles wholly assembled in one or
more beneficiary TRADE Act of 2005
countries or former beneficiary TRADE
Act of 2005 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 2005 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 2005 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) Other restrictions.--The provisions of section
112(b) (3)(C), (4), (5), (6), and (7), and (d), and
section 113 of the African Growth and Opportunity Act
(19 U.S.3721(b) (3)(C), (4), (5), (6), and (7), and
(d), and 3722) shall apply with respect to the
preferential treatment extended under this Act to a
beneficiary TRADE Act of 2005 country by substituting
``TRADE Act of 2005 country'' for ``sub-Saharan African
country'' and ``TRADE Act of 2005 countries'' and
``former TRADE Act of 2005 countries'' for ``sub-
Saharan African countries'' wherever appropriate.
SEC. 5. REPORTING REQUIREMENT.
The President shall monitor, review, and report to Congress, not
later than 1 year after the date of 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
2005 countries.
SEC. 6. DEFINITIONS.
In this Act:
(1) Beneficiary trade act of 2005 country.--The term
``beneficiary TRADE Act of 2005 country'' means a country
listed in subsection (b) or (c) of section 3 that the President
has determined is eligible for preferential treatment under
this Act.
(2) Former trade act of 2005 country.--The term ``former
TRADE Act of 2005 country'' means a country that, after being
designated as a beneficiary TRADE Act of 2005 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.
SEC. 7. TERMINATION OF PREFERENTIAL TREATMENT.
No duty-free treatment or other preferential treatment extended to
a beneficiary TRADE Act of 2005 country under this Act shall remain in
effect after December 31, 2014.
SEC. 8. EFFECTIVE DATE.
The provisions of this Act shall take effect on January 1, 2005.
<all>
Introduced in Senate
Sponsor introductory remarks on measure. (CR S600)
Read twice and referred to the Committee on Finance.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line