29224: Lucas (comment) URGENT - UNITED STATES CONGRESS (fwd)

[Bob Corbett <corbetre@webster.edu>]

From: Stanley Lucas <maloukwi@yahoo.com>

Attention Friends:

  Please note below this important development on the HOPE (Haitian Hemispheric 
Opportunity through Partnership Encouragement Act). Chairman Bill Thomas 
introduced the bill yesterday September 21, 2006.  Below is an outline of what 
this bill would do, but it could use your support to ensure its prompt passage.

  The Washington Democracy Project (WDP) will join the Haiti Democracy Project 
(HDP) and other friends of Haiti to support this bill. The passage of this bill 
will mean more jobs and opportunities for all Haitians – especially Haitian 
workers.

  Please take some time to make a call members of Congress and your local 
representatives. The main phone number is: 202-224-3121.  Your calls will make 
the difference.


  Thank you!

  Stanley Lucas
  Director
  Latin America & the Caribbean
  Washington Democracy Project
  202-256-6026
  Committee on Ways and Means
For Immediate Release   Contact: Press Office
September 21, 2006      202-225-8933
Chairman Thomas Introduces Trade Preferences Bill
  WASHINGTON - Today, Rep. Bill Thomas (R-CA), Chairman of the Ways and Means 
Committee, introduced H.R. 6142, a bill to provide trade preferences for 
developing countries.This legislation has three major components:

      African Investment Incentive Act to provide investment incentives for 
U.S. companies in Africa and to extend modified third country fabric benefits.
      Generalized System of Preferences extension for two years with 
modifications to assure preferences benefit countries in the most need.
      Haitian Hemispheric Opportunity through Partnership Encouragement Act 
(HOPE)to provide certain apparel benefits to Haiti.

  "This legislation is aimed at continuing and targeting our bipartisan 
humanitarian efforts through trade," said Ways and Means Chairman Bill Thomas 
(R-CA).  "It will enhance opportunities for the world's poorest countries, 
while assuring no adverse impact to U.S. industries or workers."A summary of 
the legislation follows:
  (more)
Committee on Ways and Means
Extension of Generalized System of Preferences,
Africa Investment Incentive Act, and
Haitian Hemispheric Opportunity through
Partnership Encouragement ("HOPE") Act
H.R. 6142, Summary
  Generalized System of Preferences (GSP)

   Extends GSP for two years, consistent with the President's budget request.
  2.      Tightens rules on competitive need limit waivers to tailor the 
program for use by lesser developed countries that need help exporting to the 
United States:·      Eliminates the opportunity for waivers on any product 
category when a country exports more than $1.5 billion of that product in the 
prior year.1       Eliminates the opportunity for waivers for countries with 
per capita income more than $3400..African Investment Incentive Act1. 
Provides a tax credit for new U.S. labor and capital investments in 
AGOA-eligible countries:

      An elective credit is available to offset U.S. tax on income from active 
trade or business operations (other than mining, oil and gas) in AGOA-eligible 
countries.  The credit is available to U.S. corporations that invest in 
AGOA-eligible countries directly (through "branch" operations) and indirectly 
(through controlled foreign corporations and partnerships).
      The credit is equal to 60 percent of additional wages and fringe benefits 
and an amount (15 percent - 65 percent) of depreciation on new investments in 
tangible property (other than vessels, aircraft and related containers). 
Credit can be carried forward for 10 years.  Credit (as well as any 
carryforward) expires for taxable years beginning after December 31, 2015.


   Extends current provision allowing benefits for apparel made with fabric 
from third countries until September 2008, with a full 3.5 percent cap.
  3.   Starting in October 2008, replaces current third country fabric benefit 
with a new rule of origin for lesser developed countries for apparel products 
based upon the percentage of African content.  The new rule would allow duty 
free access for apparel containing 50 percent or more African content (or U.S., 
U.S. free trade agreement, or Caribbean content).  This 50 percent in the rule 
would grow to 60 percent in increments through year 2015 and be subject to a 
3.5 percent cap.4.   Provides an exception to the third country fabric benefit 
and to the benefit under the newly created rule of origin for apparel goods 
made from components that are in "abundant supply" in Africa.  The purpose is 
to remove current disincentives for the investment in fabric production in 
Africa.
  Specifically, the bill requires the International Trade Commission (ITC) to 
determine which products are being produced commercially in Africa and in what 
amount.  After the ITC-determined level of African supply is used, then apparel 
companies in Africa may use the third country rule for additional demand. In 
particular, denim is deemed to be in abundant supply because of known 
production in Lesotho.

   Allows duty free treatment for lesser developed countries for certain 
textiles (non-apparel) of wholly made African fabric.
  Haitian Hemispheric Opportunity through Partnership Encouragement ("HOPE") 
Act

   Applies the same political, economic, and labor criteria as the African 
Growth and Opportunity Act (AGOA).
  2.      Applies same textile and apparel transshipment requirements as 
AGOA.3.      In addition to current CBI benefits, provides a new rule of origin 
for apparel:

      50% of the value of the finished product must be of U.S., Haitian, NAFTA, 
AGOA, CBI, Andean, or FTA origin in years 1-3; in year 4, the percentage grows 
to 55% and in year 5, to 60%
      Allows the new test to be applied on an annual, aggregated basis
      Caps the amount of trade under the new test at 1% of U.S. apparel imports 
in year 1, growing by 0.25 percentage points per year through year 5

4.      Allows a "single transformation" rule of origin for bras, so that 
components can be sourced from anywhere as long as they are assembled in 
Haiti.5.      Provides a small tariff preference level (TPL) for woven apparel, 
of 50 million square meter equivalents (SMEs) in years 1 and 2 and 33.5 million 
SMEs in year 3.6.      Requires a study by the International Trade Commission 
to determine the effect of the textile and apparel benefits on the trade 
markets and industries in Haiti, the Caribbean Basin countries, and the United 
States.7.      Assures that short supply determinations can be revoked in the 
case of fraud.8.      Liberalizes the rule of origin for wire harnesses, 
providing benefits if 50% of the value added is of U.S., Haitian, NAFTA, AGOA, 
CBI, Andean, or FTA

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