To extend certain trade benefits to countries emerging from political instability, civil strife, or armed conflict.

Summary: 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.

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.