TheWeekInCongress.com

Week Ending July 16, 2004

S2261 to expand certain preferential trade treatment for Haiti

BRIEF

   The bill follows the removal of Haitian President Aristide and the worsening of economic conditions in that small Caribbean island country.

   Intended to stimulate business activity and trade the bill would give duty-free treatment to certain apparel items that are wholly assembled or knitted-to-shape in Haiti. The country or origin of the materials or clothing components is of no consequence.

   The Congressional Research Service explained that the tariff reduction is not automatic and requires that the US ‘President certifies to Congress that Haiti has established or is progressing towards political, economic and social reforms, does not engage in activities that would undermine US security of foreign policy and does not engage in gross violations of human rights or activities in support of terrorism.’ The bill includes language that requires Haiti to cooperate completely with US Customs and Border Control agents regarding the imports.

   Initially 1.5 percent of apparel imported into the US will receive the reduction. The amount will grow to 3.5 percent over seven years.

   The tariff reduction is retroactive to October 1, 2003.

Sponsor: Senator Michael DeWine (R-OH)

Vote: Passed Senate by Unanimous Consent (July 16, 2004)

Cost to the taxpayers:  The tariff discount would affect 1.5 percent of total apparel imports from Haiti. Haiti provides .5 percent of total apparel imports to the US. The cost of the bill in lost revenue is expected to be miniscule. ## All Rights Reserved. No reproduction or distribution without written permission from TheWeekInCongress.com.