II 

111TH CONGRESS 

1ST SESSION S. 1141 

To extend certain trade preferences to certain least-developed countries, and 

for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MAY 21, 2009 

Mrs. FEINSTEIN (for herself and Mr. BOND) 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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Tariff Relief Assist5 ance for Developing Economies Act of 2009’’ or the 

6 ‘‘TRADE Act of 2009’’. 

7 SEC. 2. FINDINGS. 

8 Congress finds the following: 

9 (1) It is in the mutual interest of the United 

10 States and least-developed countries to promote staVerDate Nov 24 2008 01:48 May 28, 2009 Jkt 079200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1141.IS S1141

jbell on PROD1PC69 with BILLS
2 

•S 1141 IS

1 ble and sustainable economic growth and develop2 ment. 

3 (2) Trade and investment are powerful eco4 nomic tools and can be used to reduce poverty and 

5 raise the standard of living in a country. 

6 (3) A country that is open to trade may in7 crease its economic growth. 

8 (4) Trade and investment often lead to employ9 ment opportunities and often help alleviate poverty. 

10 (5) Least-developed countries have a particular 

11 challenge in meeting the economic requirements and 

12 competitiveness of globalization and international 

13 markets. 

14 (6) The United States has recognized the bene15 fits that international trade provides to least-devel16 oped countries by enacting the Generalized System 

17 of Preferences and trade benefits for developing 

18 countries in the Caribbean, Andean, and sub-Saha19 ran African regions of the world. 

20 (7) Enhanced trade with least-developed Mus21 lim countries, including Yemen, Afghanistan, and 

22 Bangladesh, is consistent with other United States 

23 objectives of encouraging a strong private sector and 

24 individual economic empowerment in those countries. 


jbell on PROD1PC69 with BILLS
3 

•S 1141 IS

1 (8) Offering least-developed countries enhanced 

2 trade preferences will encourage both higher levels of 

3 trade and direct investment in support of positive 

4 economic and political developments throughout the 

5 world. 

6 (9) Encouraging the reciprocal reduction of 

7 trade and investment barriers will enhance the bene8 fits of trade and investment as well as enhance com9 mercial and political ties between the United States 

10 and the countries designated for benefits under this 

11 Act. 

12 (10) Economic opportunity and engagement in 

13 the global trading system together with support for 

14 democratic institutions and a respect for human 

15 rights are mutually reinforcing objectives and key 

16 elements of a policy to confront and defeat global 

17 terrorism. 

18 SEC. 3. DEFINITIONS. 

19 In this Act: 

20 (1) BENEFICIARY TRADE ACT OF 2009 COUN21 TRY.—The term ‘‘beneficiary TRADE Act of 2009 

22 country’’ means a TRADE Act of 2009 country that 

23 the President has determined is eligible for pref24 erential treatment under section 5. 


jbell on PROD1PC69 with BILLS
4 

•S 1141 IS

1 (2) FORMER TRADE ACT OF 2009 BENEFICIARY

2 COUNTRY.—The term ‘‘former TRADE Act of 2009 

3 beneficiary country’’ means a country that, after 

4 being designated as a beneficiary TRADE Act of 

5 2009 country under this Act, ceased to be des6 ignated as such a country by reason of its entering 

7 into a free trade agreement with the United States. 

8 (3) TRADE ACT OF 2009 COUNTRY.—The term 

9 ‘‘TRADE Act of 2009 country’’ means a country 

10 listed in subsection (b) or (c) of section 4. 

11 SEC. 4. AUTHORITY TO DESIGNATE; ELIGIBILITY REQUIRE12 MENTS. 

13 (a) AUTHORITY TO DESIGNATE.— 

14 (1) IN GENERAL.—Notwithstanding any other 

15 provision of law, the President is authorized to des16 ignate a TRADE Act of 2009 country as a bene17 ficiary TRADE Act of 2009 country eligible for ben18 efits described in section 5— 

19 (A) if the President determines that the 

20 country meets the requirements set forth in sec21 tion 104 of the African Growth and Oppor22 tunity Act (19 U.S.C. 3703); and 

23 (B) subject to the authority granted to the 

24 President under subsections (a), (d), and (e) of 

25 section 502 of the Trade Act of 1974 (19 


jbell on PROD1PC69 with BILLS
5 

•S 1141 IS

1 U.S.C. 2462 (a), (d), and (e)), if the country 

2 otherwise meets the eligibility criteria set forth 

3 in such section 502. 

4 (2) APPLICATION OF SECTION 104.—Section 

5 104 of the African Growth and Opportunity Act 

6 shall be applied for purposes of paragraph (1) by 

7 substituting ‘‘TRADE Act of 2009 country’’ for 

8 ‘‘sub-Saharan African country’’ each place it ap9 pears. 

10 (b) COUNTRIES ELIGIBLE FOR DESIGNATION.—For 

11 purposes of this Act, the term ‘‘TRADE Act of 2009 coun12 try’’ refers to the following or their successor political enti13 ties: 

14 (1) Afghanistan. 

15 (2) Bangladesh. 

16 (3) Bhutan. 

17 (4) Cambodia. 

18 (5) Kiribati. 

19 (6) Lao People’s Democratic Republic. 

20 (7) Maldives. 

21 (8) Nepal. 

22 (9) Samoa. 

23 (10) Solomon Islands. 

24 (11) Timor-Leste (East Timor). 

25 (12) Tuvalu. 


jbell on PROD1PC69 with BILLS
6 

•S 1141 IS

1 (13) Vanuatu. 

2 (14) Yemen. 

3 (c) SRI LANKA ECONOMIC EMERGENCY SUPPORT.— 

4 For purposes of this Act, the President may also designate 

5 Sri Lanka as beneficiary TRADE Act of 2009 country eli6 gible for benefits described in section 5. 

7 SEC. 5. TRADE ENHANCEMENT. 

8 The preferential treatment described in this section 

9 includes the following: 

10 (1) PREFERENTIAL TARIFF TREATMENT FOR

11 CERTAIN ARTICLES.— 

12 (A) IN GENERAL.—The President may 

13 provide duty-free treatment for any article de14 scribed in section 503(b)(1) (B) through (G) of 

15 the Trade Act of 1974 (19 U.S.C. 2463(b)(1) 

16 (B) through (G)) that is the growth, product, 

17 or manufacture of a beneficiary TRADE Act of 

18 2009 country, if, after receiving the advice of 

19 the International Trade Commission in accord20 ance with section 503(e) of the Trade Act of 

21 1974 (19 U.S.C. 2463(e)), the President deter22 mines that such article is not import-sensitive 

23 in the context of imports from beneficiary 

24 TRADE Act of 2009 countries. 


jbell on PROD1PC69 with BILLS
7 

•S 1141 IS

1 (B) RULES OF ORIGIN.—The duty-free 

2 treatment provided under subparagraph (A) 

3 shall apply to any article described in that sub4 paragraph that meets the requirements of sec5 tion 503(a)(2) of the Trade Act of 1974 (19 

6 U.S.C. 2463(a)(2)), except that— 

7 (i) if the cost or value of materials 

8 produced in the customs territory of the 

9 United States is included with respect to 

10 that article, an amount not to exceed 15 

11 percent of the appraised value of the arti12 cle at the time it is entered that is attrib13 uted to such United States cost or value 

14 may be applied toward determining the 

15 percentage referred to in subparagraph (A) 

16 of section 503(a)(2) of the Trade Act of 

17 1974 (19 U.S.C. 2463(a)(2)); and 

18 (ii) the cost or value of the materials 

19 included with respect to that article that 

20 are produced in one or more beneficiary 

21 TRADE Act of 2009 countries or former 

22 beneficiary TRADE Act of 2009 countries 

23 shall be applied in determining such per24 centage. 

25 (2) TEXTILE AND APPAREL ARTICLES.— 


jbell on PROD1PC69 with BILLS
8 

•S 1141 IS

1 (A) IN GENERAL.—The preferential treat2 ment relating to textile and apparel articles de3 scribed in section 112 (a) and (b) (1) and (2) 

4 of the African Growth and Opportunity Act (19 

5 U.S.C. 3721 (a) and (b) (1) and (2)) shall 

6 apply to textile and apparel articles imported 

7 directly into the customs territory of the United 

8 States from a beneficiary TRADE Act of 2009 

9 country and such section shall be applied for 

10 purposes of this subparagraph by substituting 

11 ‘‘beneficiary TRADE Act of 2009 country’’ and 

12 ‘‘beneficiary TRADE Act of 2009 countries’’ 

13 for ‘‘beneficiary sub-Saharan African country’’ 

14 and ‘‘beneficiary sub-Saharan African coun15 tries’’, respectively, each place such terms ap16 pear. 

17 (B) APPAREL ARTICLES ASSEMBLED FROM

18 REGIONAL AND OTHER FABRIC.—In applying 

19 such section 112, apparel articles wholly assem20 bled in one or more beneficiary TRADE Act of 

21 2009 countries or former beneficiary TRADE 

22 Act of 2009 countries, or both, from fabric 

23 wholly formed in one or more beneficiary 

24 TRADE Act of 2009 countries or former bene25 ficiary TRADE Act of 2009 countries, or both, 


jbell on PROD1PC69 with BILLS
9 

•S 1141 IS

1 from yarn originating either in the United 

2 States or one or more beneficiary TRADE Act 

3 of 2009 countries or former beneficiary 

4 TRADE Act of 2009 countries, or both (includ5 ing fabrics not formed from yarns, if such fab6 rics are classifiable under heading 5602 or 

7 5603 of the Harmonized Tariff Schedule of the 

8 United States and are wholly formed and cut in 

9 the United States, in one or more beneficiary 

10 TRADE Act of 2009 countries or former bene11 ficiary TRADE Act of 2009 countries, or any 

12 combination thereof), whether or not the ap13 parel articles are also made from any of the 

14 fabrics, fabric components formed, or compo15 nents knit-to-shape described in section 112(b) 

16 (1) or (2) of the African Growth and Oppor17 tunity Act (19 U.S.C. 3721(b) (1) and (2)) (un18 less the apparel articles are made exclusively 

19 from any of the fabrics, fabric components 

20 formed, or components knit-to-shape described 

21 in such section 112(b) (1) or (2)) subject to the 

22 following: 

23 (i) LIMITATIONS ON BENEFITS.— 

24 (I) IN GENERAL.—Preferential 

25 treatment under this subparagraph 


jbell on PROD1PC69 with BILLS
10 

•S 1141 IS

1 shall be extended in the 1-year period 

2 beginning January 1, 2009, and in 

3 each of the succeeding 10 1-year peri4 ods, to imports of apparel articles de5 scribed in this subparagraph in an 

6 amount not to exceed the applicable 

7 percentage of the aggregate square 

8 meter equivalents of all apparel arti9 cles imported into the United States 

10 in the most recent 12-month period 

11 for which data are available. 

12 (II) APPLICABLE PERCENT13 AGE.—For purposes of this clause, the 

14 term ‘‘applicable percentage’’ means 

15 11 percent for the 1-year period be16 ginning January 1, 2009, increased in 

17 each of the 10 succeeding 1-year pe18 riod by equal increments, so that for 

19 the period beginning January 1, 2019, 

20 the applicable percentage does not ex21 ceed 14 percent. 

22 (ii) SPECIAL RULE.— 

23 (I) IN GENERAL.—Subject to 

24 clause (i), preferential treatment de25 scribed in this subparagraph shall be 


jbell on PROD1PC69 with BILLS
11 

•S 1141 IS

1 extended through December 31, 2016, 

2 for apparel articles wholly assembled 

3 in one or more beneficiary TRADE 

4 Act of 2009 countries or former bene5 ficiary TRADE Act of 2009 countries, 

6 or both, regardless of the country of 

7 origin of the yarn or fabric used to 

8 make such articles. 

9 (II) COUNTRY LIMITATIONS.— 

10 (aa) SMALL SUPPLIERS.—If, 

11 during the preceding 1-year pe12 riod beginning on January 1 for 

13 which data are available, imports 

14 from a beneficiary TRADE Act 

15 of 2009 country are less than 1 

16 percent of the aggregate square 

17 meter equivalents of all apparel 

18 articles imported into the United 

19 States during such period, such 

20 imports may increase to an 

21 amount that is equal to not more 

22 than 1.5 percent of the aggregate 

23 square meter equivalents of all 

24 apparel articles imported into the 


jbell on PROD1PC69 with BILLS
12 

•S 1141 IS

1 United States during such pe2 riod. 

3 (bb) OTHER SUPPLIERS.—If 

4 during the preceding 1-year pe5 riod beginning on January 1 for 

6 which data are available, imports 

7 from a beneficiary TRADE Act 

8 of 2009 country are at least 1 

9 percent of the aggregate square 

10 meter equivalents of all apparel 

11 articles imported into the United 

12 States during such period, such 

13 imports may increase, during 

14 each subsequent 12-month pe15 riod, by an amount that is equal 

16 to not more than one-third of 1 

17 percent of the aggregate square 

18 meter equivalents of all apparel 

19 articles imported into the United 

20 States. 

21 (cc) AGGREGATE COUNTRY

22 LIMIT.—In no case may the ag23 gregate quantity of textile and 

24 apparel articles imported into the 

25 United States under this subVerDate Nov 24 2008 19:29 May 26, 2009 Jkt 079006 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S1141.IS S1141

jbell on PROD1PC69 with BILLS
13 

•S 1141 IS

1 paragraph exceed the applicable 

2 percentage set forth in clause (i). 

3 (C) TECHNICAL AMENDMENT.—Section 

4 6002(a)(2)(B) of the Africa Investment Incen5 tive Act of 2006 (Public Law 109–432) is 

6 amended by inserting before ‘‘by striking’’ the 

7 following: ‘‘in paragraph (3),’’. 

8 (D) OTHER RESTRICTIONS.—The provi9 sions of section 112 (b) (3)(B), (4), (5), (6), 

10 (7), and (8), and (e), and section 113 of the Af11 rican Growth and Opportunity Act (19 U.S.C. 

12 3721 (b) (3)(B), (4), (5), (6), (7), and (8), and 

13 (e), and 3722) shall apply with respect to the 

14 preferential treatment extended under this Act 

15 to a beneficiary TRADE Act of 2009 country 

16 by substituting ‘‘beneficiary TRADE Act of 

17 2009 country’’ for ‘‘beneficiary sub-Saharan Af18 rican country’’ and ‘‘beneficiary TRADE Act of 

19 2009 countries’’ and ‘‘former beneficiary 

20 TRADE Act of 2009 countries’’ for ‘‘bene21 ficiary sub-Saharan African countries’’ and 

22 ‘‘former sub-Saharan African countries’’, re23 spectively, wherever appropriate. 


jbell on PROD1PC69 with BILLS
14 

•S 1141 IS

1 SEC. 6. REPORTING REQUIREMENT. 

2 The President shall monitor, review, and report to 

3 Congress, not later than 1 year after the date of the enact4 ment of this Act, and annually thereafter, on the imple5 mentation of this Act and on the trade and investment 

6 policy of the United States with respect to the TRADE 

7 Act of 2009 countries. 

8 SEC. 7. TERMINATION OF PREFERENTIAL TREATMENT. 

9 No duty-free treatment or other preferential treat10 ment extended to a beneficiary TRADE Act of 2009 coun11 try under this Act shall remain in effect after December 

12 31, 2019. 

13 SEC. 8. EFFECTIVE DATE. 

14 The provisions of this Act shall take effect on Janu15 ary 1, 2009. 

Æ 


jbell on PROD1PC69 with BILLS