Smith Introduces U.S. Trade Preference for
Tsunami Stricken Countries
Trade Preference Will Remove Tariffs, Increase Competitiveness
Washington, DC - Senator Gordon Smith introduced the Tariff Relief Assistance for Developing Economies (TRADE) Act which extends U.S. trade preference to a group of 15 countries including the tsunami devastated countries of Sri Lanka, and Maldives.
"U.S. trade preference introduces the hope of a competitive economy to countries facing calamitous situations," Smith said. "The U.S. has achieved miraculous feats by fostering the spirit of free enterprise, and this bill extends that same opportunity to countries in dire need."
By removing trade barriers, the TRADE Act will create incentives for investment
and opportunities for employment in the 14 Least Developed Countries (LDCs),
as defined by the United Nations and the U.S. State Department, which are not
covered by any current U.S. trade preference program. The act also includes
an emergency trade provision to assist Sri Lanka.
Removal of the textile quotas on January 1, 2005 has left these countries at a severe competitive disadvantage and threatens the critical apparel industries of Bangladesh, Nepal, Sri Lanka and Cambodia. Extending duty-free exports to these nations, as is extended to other LDCs, will allow them the chance to compete with larger, more developed nations such as China and India. Currently, U.S. Trade Preference extends to LDCs in the Caribbean and Sub-Saharan Africa.
"Economic restoration of this magnitude requires immediate and decisive action," said Smith. "This bill is long overdue for many of the countries benefiting, but essential to those reeling from the recent tsunami."
