subheading 6306.22.90 of the Harmonized Tariff Sched-
ule of the United States. 
SEC. 2. DESIGNATION OF ELIGIBLE COUNTRIES. 
(a) IN GENERAL.—The President shall, upon the en-
actment of this Act designate each country listed in sub-
section (d) as a beneficiary country unless, and shall 
thereafter withdraw such designation from any such coun-
tries if— 
(1) the country is listed by the United States 
Department of State as a state sponsor of terrorism; 
or 
(2) the country engages in activities that under-
mine United States national security or foreign pol-
icy interests. 
(b) REVIEWS.—Beginning 1 year after the date of the 
enactment of this Act, and annually thereafter, the Presi-
dent shall conduct a review to determine if a basis exists 
for withdrawing the designation of a country as a bene-
ficiary country under this Act. In determining whether or 
not to withdraw such designation, the President shall con-
sider— 
(1) whether or not the country has established, 
or is making continual progress toward estab-
lishing—
(A) a market-based economy that protects 
private property rights, incorporates an open 
rules-based trading system, and minimizes gov-
ernment 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 peace-
ful 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 condu-
cive to domestic and foreign investment; 
(ii) protecting intellectual property; 
and 
(iii) resolving bilateral trade and in-
vestment disputes; 
(E) economic policies that reduce poverty, 
increase the availability of health care and edu-
cational opportunities, expand physical infra-
structure, promote the development of private 
enterprise, and encourage the formation of cap-
ital markets through micro-credit or other pro-
grams; 
(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 Busi-
ness 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 em-
ployment of children, and acceptable conditions 
of work; and 
(H) policies that provide a high level of en-
vironmental protection; 
(2) the country’s record on activities that un-
dermine United States national security or foreign 
policy interests, and support of a peaceful resolution 
of the Israeli-Palestinian conflict; 
(3) whether the country is a signatory of the 
United Nations Declaration of Human Rights, en-
gages in gross violations of internationally recog-
nized human rights, and is making continuing and 
verifiable progress on the protection of internation-
ally recognized human rights, including freedom of 
speech and press, freedom of peaceful assembly and 
association, and freedom of religion; 
(4) the country’s participation in the primary, 
secondary, or tertiary economic boycott of Israel; 
and 
(5) whether the country otherwise meets the eli-
gibility criteria set forth in subsection (b)(2) of sec-
tion 502 of the Trade Act of 1974 (19 U.S.C. 
2462), other than subparagraph (B) of such sub-
section. 
(c) CONTINUING COMPLIANCE.—If the President de-
termines under subsection (b) that a country should no 
longer be designated as a beneficiary country, the Presi-
dent shall withdraw such designation. 
(d) COUNTRIES ELIGIBLE FOR DESIGNATION.—The 
countries referred to in subsection (a) are the following 
countries of the greater Middle East or their successor po-
litical entities: 
(1) Afghanistan. 
(2) Algeria. 
(3) Azerbaijan.
(4) Bahrain. 
(5) Bangladesh. 
(6) Egypt. 
(7) Iraq. 
(8) Kuwait. 
(9) Lebanon. 
(10) Morocco. 
(11) Oman. 
(12) Pakistan. 
(13) Qatar. 
(14) Saudi Arabia. 
(15) Tunisia. 
(16) Turkey. 
(17) United Arab Emirates. 
(18) Yemen. 
(e) THE PALESTINIAN AUTHORITY.— 
(1) DESIGNATION.—The President is author-
ized to designate the Palestinian Authority or its 
successor political entity as a beneficiary political en-
tity which, if so designated, shall be eligible for the 
duty-free treatment under this Act as if it were a 
beneficiary country, if the President determines that 
the Palestinian Authority— 
(A) does not participate in acts of ter-
rorism, takes active measures to combat ter-
rorism, and cooperates fully in international ef-
forts to combat terrorism; 
(B) does not engage in activities that un-
dermine United States national security or for-
eign policy interests; 
(C) 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 
the press, freedom of peaceful assembly and as-
sociation, and freedom of religion; and 
(D) accepts Israel’s right to exist in peace 
within secure borders. 
(2) WITHDRAWAL.—The President shall with-
draw the designation of the Palestinian Authority 
under paragraph (1) at any time that the President 
determines that the Palestinian Authority no longer 
meets the requirements of paragraph (1). 
(f) NOTIFICATION OF CONGRESS.—In any case in 
which the President withdraws the designation of a coun-
try as a beneficiary country under subsection (a) or (c), 
or withdraws the designation of the Palestinian Authority 
under subsection (d)(2), the President shall notify the 
Congress of such withdrawal and the reasons therefor.