S. 1141 would extend certain trade preferences to certain least-developed countries.
Detailed Summary
Tariff Relief Assistance for Developing Economies Act of 2009 or the TRADE Act of 2009 - 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 as beneficiary TRADE Act of 2009 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 2009 country if their assembly meet specified U.S. origin requirements.
Grants AGOA preferential treatment for apparel articles assembled in one or more beneficiary TRADE Act of 2009 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 2009 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.
Status of the Legislation
Latest Major Action: 5/21/2009: Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.
Points in Favor
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Points Against
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Visitor Comments
AEnglish
June 3, 2009, 1:48pm (report abuse)The bill is counter to trade agreements already eastblished in the western hemisphere, namely for Haiti and the Dominican Republic. The HOPE bill is just getting started and has proven to be a benefit for this poorest of the western LDC's. Looking at all 14 countries included in S.1141, the smallest nine have almost no industrial structure, employee training, middle management, or transport system to move goods in or out. It will take the majority of the bill's life span to establish these factors. This agreement will only assist the bigger 3 or 4 countries in growing bigger, further displacing and distancing US or regional goods and trimmings for US markets. Further, it will tend to have advrse affects on neighboring countries industrial growth (India), and therefore be regionally counter-productive.
Russell
June 3, 2009, 9:32pm (report abuse)This is a great legislation and the Congress should move rapidly to approve this measure. The US shouldn't discriminate against where the LDC's are located. As the leader of the free world, America should help poor countries through giving trade benefits not by giving aid.
AEnglish
June 15, 2009, 11:24am (report abuse)The only country that this legislation will aid is ultimately China. Most of the factories in these developing countries, Cambodia and Loas, are owned and operated by the Chinese. The same way that the duty-free operations in Africa and Jordan were also owned and operated by the Chinese when those bills were passed. The Chinese move their factories, including all managers and in most cases, operators on contract, to these countries move away from the rising wages in China.