TRADE LAWS MODIFICATION -- (House of Representatives - December 08, 2006)
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Mr. THOMAS. Mr. Speaker, I yield myself such time as I may consume.
(Mr. THOMAS asked and was given permission to revise and extend his remarks.)
Mr. THOMAS. Mr. Speaker, today the House will consider H.R. 6406. This is the companion bill which will be combined with the tax and trade bill to be sent back to the Senate. It was originally structured as H.R. 6406, and it approves several trade measures that really are important to the livelihoods of millions of people, both in developing countries and in the U.S. and affects the global marketplace.
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Mr. Speaker, today the House is considering H.R. 6406 to approve several trade measures that are vitally important to the livelihoods of millions of people in developing countries or are necessary to keep U.S. manufacturers and exporters competitive in the global marketplace.
This bill would extend several existing trade preferences for developing countries. The longstanding Generalized System of Preferences, or GSP, which expires at the end of this year, provides duty-free treatment to non-sensitive products from developing countries. This bill extends GSP, adjusting it to ensure that benefits are targeted toward countries that are not competitive. It's important to note that the GSP extension applies the same rules to all countries equally.
The bill would also extend and enhance the African Growth and Opportunities Act, or AGOA, which provides trade preferences to sub-Saharan Africa. This bill would extend the current duty-free benefits on African apparel using third-country fabric through 2012.
The bill grants a six-month extension of preferences to the Andean countries, and allows another six-month extension for each country if a trade promotion agreement with that country is approved. This approach keeps our democratic allies whole while creating an incentive to complete the transition to a mature trading relationship by implementing the trade agreements that have been negotiated and concluding agreements with the other Andean countries.
The bill would also provide modest new trade preferences for Haiti to create jobs in that desperately poor country by encouraging Haiti to use more U.S. and hemispheric inputs. Haiti's poverty is equivalent to the poorest countries in Africa, and yet Haiti has never received U.S. trade preferences like the AGOA benefits.
The second major component of the bill grants permanent normal trade relations, or PNTR, to Vietnam. The bill also creates a mechanism to ensure that Vietnam abides by its obligations to end all prohibited subsidies to its textile sector. Vietnam has completed all the steps necessary to become a member of the World Trade Organization. The Vietnamese National Assembly ratified the implementing package, and the country will officially become a member at the end of the month. A majority of House members supported identical language granting PNTR to Vietnam last month.
Lastly, the bill includes 500 Miscellaneous Trade Bill provisions that went through the usual rigorous vetting process to ensure they are noncontroversial. These provisions suspend duties on products that are not produced in the United States and are usually traded in small volumes. This bill helps lower costs for U.S. manufacturers, retailers, and consumers.
This bill is responsible, bipartisan legislation that deserves support. Providing assistance to these poor countries not only helps to create stronger trading partners in the future but is also our responsibility as one of the world's strongest economies to create humanitarian opportunities through trade. I urge passage of this legislation.
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Mr. Speaker, I ask unanimous consent that the remainder of my time until I reclaim my time be provided to the gentleman from Florida who I would usually describe as the chairman of the Trade Subcommittee. Mr. Shaw, however, deserves a bit fuller description.
He came to Congress in 1981. He joined the Ways and Means Committee in the 100th Congress. He joined in 1988 and then became chairman of the Trade Subcommittee in January of 2005. He is the author of the Haiti Economic Opportunity Act. He was chairman of the Human Resources Subcommittee from 1995 until 1998, and one of his major achievements, as far as I am concerned, was the 1996 welfare reform bill, historic and unprecedented. He was chairman and is chairman of the Florida delegation since 1996. And as the proud grandfather of two, I am amazed to say he is the father of four and the grandfather of 15; and I cannot imagine if my two were 15. And so it is my pleasure to turn the time over to the gentleman from Florida (Mr. Shaw).
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