A bill to extend certain trade preferences to certain least-developed countries in Asia and the South Pacific, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Asia-South Pacific Trade Preferences 
Act''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) It is in the mutual interest of the United States and 
        least-developed countries to promote stable and sustainable 
        economic growth and development.
            (2) Trade and investment are powerful economic tools and 
        can be used to reduce poverty and raise the standard of living 
        in a country.
            (3) A country that is open to trade may increase its 
        economic growth.
            (4) Trade and investment often lead to employment 
        opportunities and often help alleviate poverty.
            (5) Least-developed countries have a particular challenge 
        in meeting the economic requirements of and competitiveness 
        necessary for globalization and international markets.
            (6) The United States has recognized the benefits that 
        international trade provides to least-developed countries by 
        enacting the Generalized System of Preferences and trade 
        benefits for developing countries in the Caribbean, Andean, and 
        sub-Saharan African regions of the world.
            (7) Enhanced trade with least-developed Muslim countries, 
        including Yemen, Afghanistan, and Bangladesh, is consistent 
        with other United States objectives of encouraging a strong 
        private sector and individual economic empowerment in those 
        countries.
            (8) Offering least-developed countries enhanced trade 
        preferences will encourage both higher levels of trade and 
        direct investment in support of positive economic and political 
        developments throughout the world.
            (9) Encouraging the reciprocal reduction of trade and 
        investment barriers will enhance the benefits of trade and 
        investment as well as enhance commercial and political ties 
        between the United States and the countries designated for 
        benefits under this Act.
            (10) 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.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Asia or south pacific country.--The term ``Asia or 
        South Pacific country'' means a country listed in section 4(b).
            (2) Beneficiary asia or south pacific country.--The term 
        ``beneficiary Asia or South Pacific country'' means an Asia or 
        South Pacific country that the President has determined is 
        eligible for preferential treatment under this Act.
            (3) Former beneficiary asia or south pacific country.--The 
        term ``former beneficiary Asia or South Pacific country'' means 
        a country that, after being designated as a beneficiary Asia or 
        South Pacific country under this Act, ceased to be designated 
        as such a country by reason of its entering into a free trade 
        agreement with the United States.

SEC. 4. AUTHORITY TO DESIGNATE; ELIGIBILITY REQUIREMENTS.

    (a) Authority To Designate.--
            (1) In general.--Notwithstanding any other provision of 
        law, the President is authorized to designate an Asia or South 
        Pacific country as a beneficiary Asia or South Pacific country 
        eligible for preferential treatment under this Act--
                    (A) if the President determines that the country 
                meets the requirements set forth in section 104 of the 
                African Growth and Opportunity 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), 
                if the country otherwise meets the eligibility criteria 
                set forth in such section 502.
            (2) Application of section 104.--Section 104 of the African 
        Growth and Opportunity Act shall be applied for purposes of 
        paragraph (1) by substituting ``Asia or South Pacific country'' 
        for ``sub-Saharan African country'' each place it appears.
    (b) Countries Eligible for Designation.--For purposes of this Act, 
the term ``Asia or South Pacific country'' refers to the following or 
their successor political entities:
            (1) Afghanistan.
            (2) Bangladesh.
            (3) Bhutan.
            (4) Cambodia.
            (5) Kiribati.
            (6) Lao People's Democratic Republic.
            (7) Maldives.
            (8) Nepal.
            (9) Samoa.
            (10) Solomon Islands.
            (11) Timor-Leste (East Timor).
            (12) Tuvalu.
            (13) Vanuatu.

SEC. 5. ELIGIBLE ARTICLES.

    (a) In General.--Unless otherwise excluded from eligibility (or 
otherwise provided for in this Act), preferential treatment shall apply 
in accordance with subsections (b), (c), and (d).
    (b) Certain Articles.--
            (1) In general.--The President may provide duty-free 
        treatment to any article described in subparagraphs (B) through 
        (G) of section 503(b)(1) of the Trade Act of 1974 (19 U.S.C. 
        2463(b)(1)) if--
                    (A) the article is the growth, product, or 
                manufacture of a beneficiary Asia or South Pacific 
                country; and
                    (B) the President determines, after receiving the 
                advice of the International Trade Commission in 
                accordance with section 503(e) of the Trade Act of 1974 
                (19 U.S.C. 2463(e)), that the article is not import-
                sensitive in the context of imports from beneficiary 
                Asia or South Pacific countries.
            (2) Rules of origin.--The duty-free treatment 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 (19 U.S.C. 2463(a)(2)), except that 
        for purposes of determining if the article meets the 35-percent 
        requirement under subparagraph (A)(ii) of such section--
                    (A) if the cost or value of materials produced in 
                the customs territory of the United States is included 
                with respect to that article, an amount not to exceed 
                15 percent of the appraised value of the article at the 
                time it is entered that is attributed to such United 
                States cost or value may be applied toward meeting the 
                35-percent requirement; and
                    (B) the cost or value of the materials included 
                with respect to that article that are produced in one 
                or more beneficiary Asia or South Pacific countries or 
                former beneficiary Asia or South Pacific countries 
                shall be applied toward meeting the 35-percent 
                requirement.
    (c) Textile and Apparel Articles.--
            (1) In general.--The preferential treatment described in 
        subsection (a) of section 112 of the African Growth and 
        Opportunity Act (19 U.S.C. 3721(a)) shall apply with respect to 
        textile and apparel articles described in paragraphs (1), (2), 
        (4), (5), (7), and (8) of subsection (b) of such section and 
        paragraphs (2) and (3) of this subsection that are imported 
        directly into the customs territory of the United States from a 
        beneficiary Asia or South Pacific country except that such 
        section 112 shall be applied and administered with respect to 
        such articles--
                    (A) in subsection (a), by substituting ``a 
                beneficiary Asia or South Pacific country (as defined 
                in section 3 of the Asia-South Pacific Trade 
                Preferences Act)'' for ``a beneficiary sub-Saharan 
                African country described in section 506A(c) of the 
                Trade Act of 1974''; and
                    (B) in paragraphs (1), (2), (4), (5), (7), and (8) 
                of subsection (b), by substituting ``beneficiary Asia 
                or South Pacific country'' and ``beneficiary Asia or 
                South Pacific countries'' for ``beneficiary sub-Saharan 
                African country'' and ``beneficiary sub-Saharan African 
                countries'', respectively, each place such terms 
                appear.
            (2) Textile and apparel articles assembled from regional 
        and other fabric.--
                    (A) In general.--Textile and apparel articles 
                described in this paragraph are textile and apparel 
                articles wholly assembled in one or more beneficiary 
                Asia or South Pacific countries or former beneficiary 
                Asia or South Pacific countries, or both, from fabric 
                wholly formed in one or more beneficiary Asia or South 
                Pacific countries or former beneficiary Asia or South 
                Pacific countries, or both, from yarn originating 
                either in the United States or one or more beneficiary 
                Asia or South Pacific countries or former beneficiary 
                Asia or South Pacific 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, in one or 
                more beneficiary Asia or South Pacific countries or 
                former beneficiary Asia or South Pacific countries, or 
                any combination thereof), whether or not the textile 
                and apparel articles are also made from any of the 
                fabrics, fabric components formed, or components knit-
                to-shape described in paragraph (1) or (2) of section 
                112(b) of the African Growth and Opportunity Act (19 
                U.S.C. 3721(b)) (unless the apparel articles are made 
                exclusively from any of the fabrics, fabric components 
                formed, or components knit-to-shape described in 
                paragraph (1) or (2) of such section 112(b)).
                    (B) Limitations on benefits.--
                            (i) In general.--Preferential treatment 
                        under this subsection shall be extended in the 
                        1-year period beginning January 1, 2012, and in 
                        each of the succeeding 10 1-year periods, to 
                        imports of textile and apparel articles 
                        described in subparagraph (A) in an amount not 
                        to exceed the applicable percentage of the 
                        aggregate square meter equivalents of all 
                        textile and apparel articles imported into the 
                        United States in the most recent 12-month 
                        period for which data are available.
                            (ii) Applicable percentage.--For purposes 
                        of this subparagraph, the term ``applicable 
                        percentage'' means 11 percent for the 1-year 
                        period beginning January 1, 2012, increased in 
                        each of the 10 succeeding 1-year periods by 
                        equal increments, so that for the period 
                        beginning January 1, 2022, the applicable 
                        percentage does not exceed 14 percent.
            (3) Handloomed, handmade, folklore articles and ethnic 
        printed fabrics.--
                    (A) In general.--A textile or apparel article 
                described in this paragraph is a handloomed, handmade, 
                folklore article or an ethnic printed fabric of a 
                beneficiary Asia or South Pacific country or countries 
                that is certified as such by the competent authority of 
                such beneficiary country or countries. For purposes of 
                this subsection, the President, after consultation with 
                the beneficiary Asia or South Pacific country or 
                countries concerned, shall determine which, if any, 
                particular textile and apparel goods of the country or 
                countries shall be treated as being handloomed, 
                handmade, or folklore articles or an ethnic printed 
                fabric.
                    (B) Requirements for ethnic printed fabric.--Ethnic 
                printed fabrics qualified under this paragraph are--
                            (i) fabrics containing a selvedge on both 
                        edges, having a width of less than 50 inches, 
                        classifiable under subheading 5208.52.30 or 
                        5208.52.40 of the Harmonized Tariff Schedule of 
                        the United States;
                            (ii) of the type that contains designs, 
                        symbols, and other characteristics of Asian or 
                        South Pacific prints--
                                    (I) normally produced for and sold 
                                on the indigenous Asian or South 
                                Pacific market; and
                                    (II) normally sold in Asia or South 
                                Pacific countries by the piece as 
                                opposed to being tailored into garments 
                                before being sold in indigenous Asian 
                                or South Pacific markets;
                            (iii) printed, including waxed, in one or 
                        more beneficiary Asia or South Pacific 
                        countries; and
                            (iv) fabrics formed in the United States, 
                        from yarns formed in the United States, or from 
                        fabric formed in one or more beneficiary Asia 
                        or South Pacific countries from yarn 
                        originating in either the United States or one 
                        or more beneficiary Asia or South Pacific 
                        countries.
            (4) Special rule.--
                    (A) In general.--Preferential treatment under this 
                subsection shall be extended through December 31, 2019, 
                for textile and apparel articles that are wholly 
                assembled in one or more beneficiary Asia or South 
                Pacific countries or former beneficiary Asia or South 
                Pacific countries, or both, regardless of the country 
                of origin of the yarn or fabric used to make such 
                articles.
                    (B) Country limitations.--
                            (i) Small suppliers.--If, during a calendar 
                        year, imports of textile and apparel articles 
                        described in subparagraph (A) from a 
                        beneficiary Asia or South Pacific country are 
                        less than 1 percent of the aggregate square 
                        meter equivalents of all textile and apparel 
                        articles imported into the United States during 
                        that calendar year, such imports may be 
                        increased to an amount that is equal to not 
                        more than 1.5 percent of the aggregate square 
                        meter equivalents of all textile and apparel 
                        articles imported into the United States during 
                        that calendar year for the succeeding calendar 
                        year.
                            (ii) Other suppliers.--If, during a 
                        calendar year, imports of textile and apparel 
                        articles described in subparagraph (A) from a 
                        beneficiary Asia or South Pacific country are 
                        at least 1 percent of the aggregate square 
                        meter equivalents of all textile and apparel 
                        articles imported into the United States during 
                        that calendar year, such imports may be 
                        increased by an amount that is equal to not 
                        more than \1/3\ of 1 percent of the aggregate 
                        square meter equivalents of all textile and 
                        apparel articles imported into the United 
                        States during that calendar year for the 
                        succeeding calendar year.
                            (iii) Aggregate country limit.--In no case 
                        may the aggregate quantity of textile and 
                        apparel articles described in subparagraph (A) 
                        imported into the United States during a 
                        calendar year under this subsection exceed the 
                        applicable percentage set forth in paragraph 
                        (2)(B)(ii) for that calendar year.
    (d) Other Restrictions.--The provisions of subsections (b)(3)(B) 
and (e) of section 112 and section 113 of the African Growth and 
Opportunity Act (19 U.S.C. 3721 and 3722) shall apply with respect to 
the preferential treatment extended under this section to a beneficiary 
Asia or South Pacific country by substituting ``beneficiary Asia or 
South Pacific country'' for ``beneficiary sub-Saharan African country'' 
and ``beneficiary Asia or South Pacific countries'' and ``former 
beneficiary Asia or South Pacific countries'' for ``beneficiary sub-
Saharan African countries'' and ``former sub-Saharan African 
countries'', respectively, as appropriate.
    (e) Technical Amendment.--Section 6002(a)(2)(B) of the Africa 
Investment Incentive Act of 2006 (Public Law 109-432) is amended by 
inserting before ``by striking'' the following: ``in paragraph (3),''.

SEC. 6. REPORTING REQUIREMENT.

    The President shall monitor, review, and report to Congress, not 
later than 1 year after the date of the enactment of this Act, and 
annually thereafter, on the implementation of this Act and on the trade 
and investment policy of the United States with respect to the Asia or 
South Pacific countries.

SEC. 7. TERMINATION OF PREFERENTIAL TREATMENT.

    No duty-free treatment or other preferential treatment extended to 
a beneficiary Asia or South Pacific country under this Act shall remain 
in effect after December 31, 2022.

SEC. 8. EFFECTIVE DATE.

    The provisions of this Act shall take effect on January 1, 2012.

Summary: Asia-South Pacific Trade Preferences Act - Authorizes the President to designate an Asia or South Pacific country as a beneficiary Asia or South Pacific country eligible for preferential treatment under this Act if that country meets: (1) certain requirements under the African Growth and Opportunity Act, including establishing a market-based economy and the rule of law, the protection of human rights, and the elimination of trade barriers to the United States; and (2) certain eligibility criteria for designation as a least-developed beneficiary developing country under the Trade Act of 1974.

Lists the following countries eligible for designation as a "Asia or South Pacific country": (1) Afghanistan, (2) Bangladesh, (3) Bhutan, (4) Cambodia, (5) Kiribati, (6) Lao People's Democratic Republic, (7) Maldives, (8) Nepal, (9) Samoa, (10) Solomon Islands, (11) Timor-Leste (East Timor), (12) Tuvalu, and (13) Vanuatu.

Authorizes the President to provide duty-free treatment of certain import-sensitive articles (watches, electronic articles, steel articles, footwear and certain other apparel, and glass products) meeting rules of origin requirements if: (1) the article is the growth, product, or manufacture of a beneficiary Asia or South Pacific country; and (2) the President determines, after receiving advice of the International Trade Commission (ITC), that the article is not import-sensitive in the context of imports from beneficiary Asia or South Pacific countries.

Prescribes the rules of origin for the articles for the duty-free treatment. Grants duty-free treatment of certain textile and apparel articles imported directly into the customs territory of the United States from a beneficiary Asia or South Pacific country.

Establishes limitations on such preferential treatment.

Prescribes requirements for handloomed, handmade, folklore articles or ethnic printed fabrics.

Prescribes a special rule to extend such preferential treatment through December 31, 2019, for textile and apparel articles that are wholly assembled in one or more beneficiary or former beneficiary Asia or South Pacific countries, or both, regardless of the country or origin of the yarn or fabric used to make such articles.

Terminates the extension of preferential treatment to a beneficiary Asia or South Pacific country after December 31, 2022.