SOURCING@MAGIC - New countries : No duty

New legislation in the Senate would grant duty-free treatment to textile and apparel goods, up to a limit, from the 14 least-developed countries that are not currently beneficiaries under any U.S. preference program (Afghanistan, Bangladesh, Bhutan, Cambodia, Kiribati, Laos, Maldives, Nepal, Samoa, Solomon Islands, East Timor, Tuvalu, Vanuatu and Yemen) as well as Sri Lanka. The Tariff Relief Assistance for Developing Economies Act of 2009 aims to help promote democracy while sustaining export industries and creating employment opportunities in these countries. As a result, the eligibility criteria for TRADE Act benefits include making continual progress toward establishing the rule of law, political pluralism, the right to due process and a market-based economy that protects private property rights.

The U.S. and other developed nations have committed to duty-free, quota-free access for all LDCs as part of the Doha Round. With most LDCs already eligible for such treatment under U.S. preference programs, the new bill is seen by some as the last major step toward fulfilling that commitment. Prospects for this bill to be approved by Congress, or for its provisions to be included in a broader review of U.S. trade preference programs that could result in similar benefits, could be favorable with Democrats controlling both Congress and the White House.

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