New legislation would provide duty-free access for textiles and apparel from 14 least-developed countries
May 26, 2009
World Trade\Interactive
Sens. Dianne Feinstein, D-Calif., and Kit Bond, R-Mos., introduced May 21 a bill (S. 1141) that would grant duty-free treatment to textile and apparel goods, up to a limit, from the 14 least-developed countries that are not currently beneficiaries under any U.S. preference program: Afghanistan, Bangladesh, Bhutan, Cambodia, Kiribati, Laos, Maldives, Nepal, Samoa, Solomon Islands, East Timor, Tuvalu, Vanuatu and Yemen. The same benefits would be made available to Sri Lanka as well.
The reintroduction of the Tariff Relief Assistance for Developing Economies (TRADE) Act of 2009, which had been sponsored by Sen. Feinstein and former Sen. Gordon Smith in the last Congress, signals a desire to level the playing field for LDCs. The U.S. and other developed nations have committed to quota-free, duty-free access for all LDCs as part of the Doha Round. With most LDCs already eligible for such treatment under U.S. preference programs, some members of Congress view the new bill as the last major step toward fulfilling that commitment. Others believe the U.S. should not extend these benefits until a final Doha Round agreement has been concluded.
The goal of the legislation is to help promote democracy while sustaining vital export industries and creating employment opportunities in LDCs. As a result, to be eligible for the bill’s benefits a country must demonstrate that it is making continual progress toward establishing the rule of law, political pluralism, the right to due process and a market-based economy that protects private property rights.
There is speculation that under a Democrat-controlled Congress and White House prospects for this bill to be approved by Congress, or for its provisions to be included in a broader review of U.S. trade preference programs that could result in similar benefits, could be favorable. For more information on this bill or how you can work to help influence its outcome, please contact Nicole Bivens Collinson at (202) 216-9307 or Tom Travis at (305) 267-9200.
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