To expand certain preferential trade treatment for Haiti.

Summary: Haiti Economic Recovery Opportunity Act of 2002 - Amends the Caribbean Basin Economic Recovery Act to allow specified apparel articles that are imported directly into the customs territory of the United States from Haiti to enter free of duty if Haiti has satisfied the requirements of this Act.Declares that such articles include apparel articles that are wholly assembled or knit-to-shape in Haiti exclusively from fabric components and yarns formed in: (1) the United States; (2) a country that is party to a free trade agreement with the United States on January 1, 2002, that enters into a free trade agreement with the United States subject to trade promotion authority, or that has been designated as a beneficiary country; and (4) any country if the fabrics or yarns are designated as not being commercially available in the United States.Specifies the quantity of articles to which such preferential treatment shall extend.Declares that Haiti shall be eligible for such preferential treatment if the President determines and certifies to Congress that Haiti has met specified conditions, including: (1) establishing or making progress toward establishing a market-based economy that protects private property rights, the rule of law, the elimination of barriers to U.S. trade and investment, economic policies to reduce poverty, a system to combat corruption and bribery, and protection of internationally recognized worker rights; (2) not engaging in activities that undermine U.S. national security or foreign policy interests or gross violations of internationally recognized human rights; (3) not providing support for international terrorism; and (4) cooperating in international efforts to eliminate human rights violations and terrorist activities.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Haiti Economic Recovery Opportunity 
Act of 2002''.

SEC. 2. TRADE BENEFITS TO HAITI.

    (a) In General.--The Caribbean Basin Economic Recovery Act (19 
U.S.C. 2701 et seq.) is amended by inserting after section 213 the 
following new section:

``SEC. 213A. SPECIAL RULE FOR HAITI.

    ``(a) In General.--In addition to any other preferential treatment 
under this Act, in each 12-month period beginning on October 1, 2002, 
apparel articles described in subsection (b) that are imported directly 
into the customs territory of the United States from Haiti shall enter 
the United States free of duty, subject to the limitations described in 
subsections (b) and (c), if Haiti has satisfied the requirements set 
forth in subsection (d).
    ``(b) Apparel Articles Described.--Apparel articles described in 
this subsection are apparel articles that are wholly assembled or knit-
to-shape in Haiti exclusively from any combination of fabrics, fabric 
components, components knit-to-shape, and yarns formed in one or more 
of the following countries:
            ``(1) The United States.
            ``(2) Any country that is party to a free trade agreement 
        with the United States, on January 1, 2002.
            ``(3) Any country that enters into a free trade agreement 
        with the United States subject to the provisions of title XXI 
        of the Trade Act of 2002 (Public Law 107-210).
            ``(4) Any country designated as a beneficiary country 
        under--
                    ``(A) section 213(b)(5)(B) of this Act;
                    ``(B) section 506A(a)(1) of the Trade Act of 1974 
                (19 U.S.C. 2466a(a)(1)); or
                    ``(C) section 204(b)(6)(B) of the Andean Trade 
                Preference Act (19 U.S.C. 3203(b)(6)(B)).
            ``(5) Any country, if the fabrics or yarns are designated 
        as not being commercially available in the United States for 
        the purposes of NAFTA (Annex 401), the Caribbean Basin Trade 
        Partnership Act, the African Opportunity and Growth Act, or the 
        Andean Trade Promotion and Drug Eradication Act.
    ``(c) Preferential Treatment.--The preferential treatment described 
in subsection (a), shall be extended--
            ``(1) during the 12-month period beginning on October 1, 
        2002, to a quantity of apparel articles that is equal to 1.5 
        percent of the aggregate square meter equivalents of all 
        apparel articles imported into the United States during the 12-
        month period beginning October 1, 2001; and
            ``(2) during the 12-month period beginning on October 1 of 
        each succeeding year, to a quantity of apparel articles that is 
        equal to the product of--
                    ``(A) the percentage applicable during the previous 
                12-month period plus 0.5 percent (but not over 3.5 
                percent); and
                    ``(B) the aggregate square meter equivalents of all 
                apparel articles imported into the United States during 
                the 12-month period that ends on September 30 of that 
                year.
    ``(d) Eligibility Requirements.--Haiti shall be eligible for 
preferential treatment under this section if the President determines 
and certifies to Congress that Haiti--
            ``(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, political pluralism, and the 
                right to due process, a fair trial, and equal 
                protection under the law;
                    ``(C) the elimination of barriers to United States 
                trade and investment, including by--
                            ``(i) the provision of national treatment 
                        and measures to create an environment conducive 
                        to domestic and foreign investment;
                            ``(ii) the protection of intellectual 
                        property; and
                            ``(iii) the resolution of bilateral trade 
                        and investment disputes;
                    ``(D) economic policies to 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 microcredit or 
                other programs;
                    ``(E) a system to combat corruption and bribery, 
                such as signing and implementing the Convention on 
                Combating Bribery of Foreign Public Officials in 
                International Business Transactions; and
                    ``(F) 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 with 
                respect to minimum wages, hours of work, and 
                occupational safety and health;
            ``(2) does not engage in activities that undermine United 
        States national security or foreign policy interests; and
            ``(3) does not engage in gross violations of 
        internationally recognized human rights or provide support for 
        acts of international terrorism and cooperates in international 
        efforts to eliminate human rights violations and terrorist 
        activities.''.
    (b) Effective Date.--
            (1) In general.--The amendment made by subsection (a) 
        applies with respect to goods entered, or withdrawn from 
        warehouse for consumption, on or after October 1, 2002.
            (2) Retroactive application to certain entries.--
        Notwithstanding section 514 of the Tariff Act of 1930 (19 
        U.S.C. 1514) or any other provision of law, upon proper request 
        filed with the Customs Service before the 90th day after the 
        date of the enactment of this Act, any entry or withdrawal from 
        warehouse for consumption, of any goods described in the 
        amendment made by subsection (a)--
                    (A) that was made on or after October 1, 2002, and 
                before the date of the enactment of this Act, and
                    (B) with respect to which there would have been no 
                duty if the amendment made by subsection (a) applied to 
                such entry or withdrawal,
        shall be liquidated or reliquidated as though such amendment 
        applied to such entry or withdrawal.