I 
109TH CONGRESS 
1ST SESSION 
H. R. 886
To extend certain trade preferences to certain least-developed countries, and 
for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 17, 2005
Mr. KOLBE (for himself and Mr. CROWLEY) introduced the following bill; 
which was referred to the Committee on Ways and Means 
A BILL 
To extend certain trade preferences to certain least-developed 
countries, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Tariff Relief Assist-
ance for Developing Economies Act of 2005’’ or as the 
‘‘TRADE Act of 2005’’. 
SEC. 2. FINDINGS. 
The Congress finds the following: 
(1) It is in the mutual interest of the United 
States and least developed countries to promote sta-
ble and sustainable economic growth and develop-
ment. 
(2) Increased trade and investment are power-
ful tools countries can use to reduce poverty and 
raise living standards. 
(3) Openness to trade boosts economic growth. 
(4) Twenty-five percent of the world’s popu-
lation survives on less than one dollar per day. 
(5) Unemployment rates in least developed 
countries are extremely high, including rates in some 
countries of up to 70 percent. 
(6) Trade and investment lead to employment 
opportunities and can help alleviate poverty. 
(7) Least developed countries have a particular 
challenge in meeting the economic requirements and 
competitiveness of globalization and international 
markets. 
(8) The United States has recognized the im-
portance of these challenges and the benefits of 
trade to least developed countries by enacting the 
Generalized System of Preferences and subsequent 
benefits for developing countries in the Caribbean, 
Andean, and sub-Saharan African regions of the 
world.
(9) The challenges of the global trading envi-
ronment for least developed countries are even great-
er given the expiration of the Multi-Fiber Arrange-
ment in 2005, and certain least developed countries, 
including Bangladesh, Cambodia, and Nepal, are 
particularly vulnerable to the changes that will result 
from the expiration of that Arrangement. 
(10) Responding to the needs of least developed 
countries would be consistent with other trade objec-
tives of the United States, including encouraging 
forward progress on the WTO Doha Development 
Round. 
(11) Enhanced trade with the Muslim least de-
veloped countries, including Yemen, Afghanistan, 
and Bangladesh, would be consistent with other ob-
jectives of the United States of encouraging strong 
private sectors and individual economic empower-
ment in those countries. 
(12) Offering the least developed countries en-
hanced trade preferences will encourage both higher 
levels of trade and direct investment in support of 
positive 
economic 
and 
political 
developments 
throughout the region and the world. 
(13) Encouraging the reciprocal reduction of 
trade and investment barriers will enhance the bene-
fits of trade and investment as well as enhance com-
mercial and political ties between the United States 
and the beneficiary countries. 
(14) Economic opportunity and engagement in 
the global trading system, together with support for 
democratic institutions and a respect for human 
rights, are mutually reinforcing objectives and key 
elements of a policy to confront and defeat global 
terrorism. 
(15) A powerful earthquake and tsunami struck 
in the Indian Ocean on December 26, 2004. 
(16) The destruction caused by the tsunami in 
Sri Lanka caused the death of more than 30,000 
people and left physical damage equal to approxi-
mately 6.5 percent of the Sri Lankan economy. 
(17) The effects of lost businesses and recon-
struction costs due to the tsunami damage will lead 
to a drop in the economic growth of Sri Lanka. 
(18) Senate Resolution 4 of the 109th Con-
gress, agreed to unanimously on January 4, 2005, 
expressed the support of the Senate for the long-
term commitment of the United States to provide fi-
nancial aid and other forms of assistance to the 
countries and peoples of the region affected by the 
earthquake and the tsunami.
(19) Duty preferences given to imports into the 
United States of products of Sri Lanka will help Sri 
Lanka rebuild and overcome the economic destruc-
tion caused by the tsunami. 
SEC. 3. AUTHORITY TO DESIGNATE; ELIGIBILITY REQUIRE-
MENTS. 
(a) AUTHORITY TO DESIGNATE.—
(1) IN GENERAL.—Notwithstanding any other 
provision of law, the President is authorized to des-
ignate a country listed under subsection (b) as a 
TRADE Act of 2005 beneficiary country eligible for 
benefits described in section 4—
(A) if the President determines that the 
country meets the requirements set forth in sec-
tion 104 of the African Growth and Oppor-
tunity Act (19 U.S.C. 3703); and 
(B) subject to the authority granted to the 
President under subsections (a), (d), and (e) of 
section 502 of the Trade Act of 1974 (19 U.S. 
C. 2462 (a), (d), and (e)), if the country other-
wise meets the eligibility criteria set forth in 
section 502 of that Act. 
(2) APPLICATION
OF
SECTION
104.—Section 
104 of the African Growth and Opportunity Act 
shall be applied for purposes of paragraph (1) by
substituting ‘‘TRADE Act of 2005 beneficiary coun-
try’’ for ‘‘beneficiary sub-Saharan African country’’ 
each place that term appears. 
(b) COUNTRIES ELIGIBLE FOR DESIGNATION.—
(1) IN
GENERAL.—The countries eligible for 
designation under subsection (a) are the following or 
their successor political entities: 
(A) Afghanistan. 
(B) Bangladesh. 
(C) Bhutan. 
(D) Cambodia. 
(E) Kiribati. 
(F) Lao People’s Democratic Republic. 
(G) Maldives. 
(H) Nepal. 
(I) Samoa. 
(J) Solomon Islands. 
(K) Timor-Leste (East Timor). 
(L) Tuvalu. 
(M) Vanuatu. 
(N) Yemen. 
(2) SRI
LANKA
ECONOMIC
EMERGENCY
SUP-
PORT.—The President may also designate Sri Lanka 
as a TRADE Act of 2005 beneficiary country eligi-
ble for benefits described in section 4.
SEC. 4. TRADE ENHANCEMENT. 
(a) PREFERENTIAL TARIFF TREATMENT FOR CER-
TAIN ARTICLES.—
(1) IN GENERAL.—The President may provide 
duty-free treatment for any article described in sec-
tion 503(b)(1) (B) through (G) of the Trade Act of 
1974 (19 U.S.C. 2463(b)(1)(B) through (G)) that is 
the growth, product, or manufacture of a TRADE 
Act of 2005 beneficiary country if, after receiving 
the advice of the International Trade Commission in 
accordance with section 503(e) of the Trade Act of 
1974, the President determines that such article is 
not import-sensitive in the context of imports from 
TRADE Act of 2005 beneficiary countries. 
(2) RULES
OF
ORIGIN.—The duty-free treat-
ment provided under paragraph (1) shall apply to 
any article described in that paragraph that meets 
the requirements of section 503(a)(2) of the Trade 
Act of 1974, except that—
(A) if the cost or value of materials pro-
duced in the customs territory of the United 
States is included with respect to that article, 
an amount not to exceed 15 percent of the ap-
praised value of the article at the time it is en-
tered that is attributed to such United States 
cost or value may be applied toward deter-
mining the percentage referred to in subpara-
graph (A) of section 503(a)(2) of the Trade Act 
of 1974; and 
(B) the cost or value of the materials in-
cluded with respect to that article that are pro-
duced in one or more TRADE Act of 2005 ben-
eficiary countries or former TRADE Act of 
2005 beneficiary countries shall be applied in 
determining such percentage. 
(b) TEXTILE AND APPAREL ARTICLES.—
(1) PREFERENTIAL TREATMENT.—Textile and 
apparel articles described in paragraphs (2), (3), 
and (4) that are imported directly into the customs 
territory of the United States from a TRADE Act 
of 2005 beneficiary country shall enter the United 
States free of duty and free of any quantitative limi-
tations in accordance with the requirements of such 
paragraphs, if the country has satisfied the require-
ments set forth in section 113 of the African Growth 
and Opportunity Act (19 U.S.C. 3722). In applying 
such section 113—
(A) ‘‘TRADE Act of 2005 beneficiary 
country’’ and ‘‘TRADE Act of 2005 beneficiary 
countries’’ shall be substituted for ‘‘beneficiary 
sub-Saharan African country’’ and ‘‘beneficiary
sub-Saharan African countries’’, respectively, 
each place such terms appear; 
(B) ‘‘TRADE Act of 2005 beneficiary 
countries’’ shall be substituted for ‘‘countries in 
sub-Saharan Africa’’ in section 113(b)(5); and 
(C) any reference to preferential treatment 
under ‘‘section 112(a)’’, ‘‘section 112’’, or ‘‘this 
Act’’ shall be deemed to refer to preferential 
treatment under this subsection. 
(2) APPAREL ARTICLES ASSEMBLED IN TRADE 
ACT OF 2005 BENEFICIARY COUNTRIES.—The pref-
erential treatment under paragraph (1) shall apply 
to apparel articles described in paragraphs (1) and 
(2) of subsection (b) of section 112 of the African 
Growth and Opportunity Act (19 U.S.C. 3721(b)(1) 
and (2)), except that such paragraphs shall be ap-
plied for purposes of this paragraph by substituting 
‘‘TRADE Act of 2005 beneficiary country’’ and 
‘‘TRADE Act of 2005 beneficiary countries’’ for 
‘‘beneficiary sub-Saharan African country’’ and 
‘‘beneficiary sub-Saharan African countries’’, respec-
tively, each place such terms appear. 
(3) APPAREL ARTICLES ASSEMBLED FROM RE-
GIONAL
AND
OTHER
FABRIC.—The preferential 
treatment under paragraph (1) shall apply to ap-
parel articles that are wholly assembled in one or 
more TRADE Act of 2005 beneficiary countries or 
former TRADE Act of 2005 beneficiary countries, 
or both, from fabric wholly formed in one or more 
TRADE Act of 2005 beneficiary countries or former 
TRADE Act of 2005 beneficiary countries, or both, 
from yarn originating either in the United States or 
one or more TRADE Act of 2005 beneficiary coun-
tries or former TRADE Act of 2005 beneficiary 
countries, or both (including fabrics not formed from 
yarns, if such fabrics are classifiable under heading 
5602 or 5603 of the Harmonized Tariff Schedule of 
the United States and are wholly formed and cut in 
the United States, one or more TRADE Act of 2005 
beneficiary countries or former TRADE Act of 2005 
beneficiary countries, or any combination thereof), 
whether or not the apparel articles are also made 
from any of the fabrics, fabric components formed, 
or components knit-to-shape to which paragraph (1) 
of this subsection applies (unless the apparel articles 
are made exclusively from any of the fabrics, fabric 
components formed, or components knit-to-shape to 
which paragraph (1) of this subsection applies), sub-
ject to the following: 
(A) LIMITATIONS ON BENEFITS.—