article: 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.