I 

108TH CONGRESS 

2D SESSION H. R. 4559

To extend certain trade benefits to countries emerging from political 

instability, civil strife, or armed conflict. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 14, 2004

Mr. HYDE introduced the following bill; which was referred to the Committee 

on Ways and Means 

A BILL

To extend certain trade benefits to countries emerging from 

political instability, civil strife, or armed conflict.

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 ‘‘Post-Conflict Trade Recov5 ery Act’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds that—

8 (1) it is in the mutual interest of the United 

9 States and countries emerging from political insta10 bility, civil strife, or armed conflict, to promote sta-
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1 ble and sustainable growth and development of such 

2 countries; 

3 (2) democratization and economic progress in 

4 countries emerging from political instability, civil 

5 strife, or armed conflict are important elements of a 

6 policy to address terrorism and endemic instability; 

7 (3) preferential trade and market access ar8 rangements are not a substitute for, but a com9 plement to, necessary political and economic reforms 

10 that lead to political liberalization and economic 

11 freedom; 

12 (4) countries in the developing world, and in 

13 particular countries emerging from political insta14 bility, civil strife, or armed conflict, experience deep15 ening poverty, slow job creation, and a declining 

16 share of world trade and investment, while at the 

17 same time tend to have population growth rates 

18 among the highest in the world; 

19 (5) such economic conditions are in part the re20 sult of barriers to trade and investment, a failure to 

21 engage fully in the global trading system, lack of 

22 participation in the World Trade Organization, and, 

23 often, a lack of economic diversification and over-re24 liance on the energy sector; 
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1 (6) offering enhanced trade preferences to 

2 countries emerging from political instability, civil 

3 strife, or armed conflict will encourage higher levels 

4 of trade and direct investment and help bring such 

5 countries more fully into the global trading system; 

6 (7) higher levels of trade and investment and 

7 greater involvement in the global trading system can 

8 lead to increased economic development, which can 

9 in turn lead to more jobs for people in countries 

10 emerging from political instability, civil strife, or 

11 armed conflict; and 

12 (8) encouraging the reduction of trade and in13 vestment barriers will enhance the benefits of trade 

14 and investment for all participating countries, as 

15 well as enhance commercial and political ties be16 tween the United States and such participating 

17 countries. 

18 SEC. 3. STATEMENT OF POLICY. 

19 Congress supports—

20 (1) encouraging increased trade and investment 

21 between the United States and countries emerging 

22 from political instability, civil strife, or armed con23 flict; 

24 (2) reducing tariff and nontariff barriers and 

25 other obstacles to trade between the United States 
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1 and countries emerging from political instability, 

2 civil strife, or armed conflict; 

3 (3) strengthening and expanding the private 

4 sector and accelerating the rate of job creation in 

5 countries emerging from political instability, civil 

6 strife, or armed conflict; 

7 (4) promoting the rule of law, economic reform, 

8 political liberalization, respect for human rights, and 

9 the eradication of poverty in such countries; 

10 (5) facilitating the development of civil societies 

11 and political freedom in such countries; 

12 (6) promoting sustainable development, and 

13 protecting and preserving the environment in a man14 ner consistent with economic development; and 

15 (7) encouraging such countries to diversify their 

16 economies, implement domestic economic reforms, 

17 open to trade, and adopt anticorruption measures, 

18 including through accession to the Organization for 

19 Economic Cooperation and Development (OECD) 

20 Convention on Combating Bribery of Foreign Public 

21 Officials in International Business Transactions. 

22 SEC. 4. DESIGNATION OF ELIGIBLE COUNTRIES. 

23 (a) IN GENERAL.—The President is authorized to 

24 designate any country emerging from political instability, 
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1 civil strife, or armed conflict as a beneficiary country if 

2 the President determines that the country—

3 (1) has established, or is making continual 

4 progress toward establishing—

5 (A) a market-based economy that protects 

6 private property rights, incorporates an open 

7 rules-based trading system, and minimizes gov8 ernment interference in the economy through 

9 measures such as price controls, subsidies, and 

10 government ownership of economic assets; 

11 (B) the rule of law and the right to due 

12 process, a fair trial, and equal protection under 

13 the law; 

14 (C) political pluralism, a climate free of 

15 political intimidation and restrictions on peace16 ful political activity, and democratic elections 

17 that meet international standards of fairness, 

18 transparency, and participation; 

19 (D) the elimination of barriers to United 

20 States trade and investment, including by—

21 (i) providing national treatment and 

22 measures to create an environment condu23 cive to domestic and foreign investment; 

24 (ii) protecting intellectual property; 

25 and 
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1 (iii) resolving bilateral trade and in2 vestment disputes; 

3 (E) economic policies that reduce poverty, 

4 increase the availability of health care and edu5 cational opportunities, expand physical infra6 structure, promote the development of private 

7 enterprise, and encourage the formation of cap8 ital markets through micro-credit or other pro9 grams; 

10 (F) a system to combat corruption and 

11 bribery, such as signing and implementing the 

12 OECD Convention on Combating Bribery of 

13 Foreign Public Officials in International Busi14 ness Transactions; 

15 (G) protection of internationally recognized 

16 worker rights, including the right of association, 

17 the right to organize and bargain collectively, a 

18 prohibition on the use of any form of forced or 

19 compulsory labor, a minimum age for the em20 ployment of children, and acceptable conditions 

21 of work; and 

22 (H) policies that provide a high level of en23 vironmental protection; 
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1 (2) does not engage in activities that undermine 

2 United States national security or foreign policy in3 terests; 

4 (3) is a signatory of the United Nations Dec5 laration of Human Rights, does not engage in gross 

6 violations of internationally recognized human 

7 rights, and is making continuing and verifiable 

8 progress on the protection of internationally recog9 nized human rights, including freedom of speech and 

10 press, freedom of peaceful assembly and association, 

11 and freedom of religion; 

12 (4) is not listed by the United States Depart13 ment of State as a state sponsor of terrorism and 

14 cooperates fully in international efforts to combat 

15 terrorism; and 

16 (5) otherwise meets the eligibility criteria set 

17 forth in section 502(b)(2) of the Trade Act of 1974 

18 (19 U.S.C. 2462(b)(2)), other than section 

19 502(b)(2)(B). 

20 (b) RULE OF CONSTRUCTION.—If a country fails to 

21 satisfy one or more of the requirements contained in sub22 paragraphs (A) through (H) of subsection (a)(1), but oth23 erwise meets the requirements of subsection (a), the Presi24 dent may designate the country as a beneficiary country 

25 under this Act if the President determines that such des-
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1 ignation will be in the national economic or security inter2 est of the United States and transmits to Congress a re3 port that contains the determination and the reasons 

4 therefor. 

5 (c) CONTINUING COMPLIANCE.—If the President de6 termines that a designated beneficiary country no longer 

7 meets the requirements described in subsection (a), the 

8 President shall terminate the designation of the country 

9 made pursuant to subsection (a) and transmit to Congress 

10 a report that contains the determination and the reasons 

11 therefor. 

12 SEC. 5. DESIGNATION OF ELIGIBLE ARTICLES. 

13 (a) ELIGIBLE ARTICLES.—Except as provided in sec14 tions 503(b)(2) and (3) of the Trade Act of 1974 (19 

15 U.S.C. 2463(b)(2) and (3)), the President is authorized 

16 to designate articles as eligible for duty-free treatment 

17 from all beneficiary countries for purposes of this section 

18 by Executive order or Presidential proclamation after re19 ceiving the advice of the International Trade Commission 

20 in accordance with subsection (c). 

21 (b) RULES OF ORIGIN.—

22 (1) GENERAL RULE.—The duty-free treatment 

23 provided under this section shall apply to any eligi24 ble article which is the growth, product, or manufac25 ture of 1 or more beneficiary countries if—
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1 (A) that article is imported directly from a 

2 beneficiary country into the customs territory of 

3 the United States; and 

4 (B) the sum of—

5 (i) the cost or value of the materials 

6 produced in 1 or more beneficiary coun7 tries, plus 

8 (ii) the direct cost of processing oper9 ations performed in such beneficiary coun10 try or countries, 

11 is not less than 35 percent of the appraised 

12 value of such article at the time it is entered. 

13 (2) EXCLUSIONS.—An article shall not be treat14 ed as the growth, product, or manufacture of a ben15 eficiary country by virtue of having merely under16 gone—

17 (A) simple combining or packaging oper18 ations; or 

19 (B) mere dilution with water or mere dilu20 tion with another substance that does not mate21 rially alter the characteristics of the article. 

22 (3) REGULATIONS.—The Secretary of the 

23 Treasury, after consulting with the United States 

24 Trade Representative, shall prescribe such regula25 tions as may be necessary to carry out this sub-
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1 section, including, but not limited to, regulations 

2 providing that, in order to be eligible for duty-free 

3 treatment under this Act, an article—

4 (A) must be wholly the growth, product, or 

5 manufacture of 1 or more beneficiary countries; 

6 or 

7 (B) must be a new or different article of 

8 commerce which has been grown, produced, or 

9 manufactured in 1 or more beneficiary coun10 tries. 

11 (c) INTERNATIONAL TRADE COMMISSION ADVICE.—

12 Before designating an article as an eligible article under 

13 subsection (a), the President shall publish in the Federal 

14 Register and furnish the International Trade Commission 

15 with a list of articles that may be considered for designa16 tion as eligible articles for purposes of this Act. The Presi17 dent shall comply with the provisions of sections 131, 132, 

18 133, and 134 of the Trade Act of 1974 as if an action 

19 under this section were an action taken under section 123 

20 of the Trade Act of 1974 to carry out a trade agreement 

21 entered into under section 123. 
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1 SEC. 6. TERMINATION OF PREFERENTIAL TREATMENT. 

2 No duty-free treatment or other preferential treat3 ment extended to beneficiary countries under this Act 

4 shall remain in effect after December 31, 2011.

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