US Trade Act 2005 

The US Trade Act 2005, also known as Tariff Relief Assistance for Developing Economies Act, was tabled in the US Congress on January 26. It promises to provide 14 LDCs of Asia Pacific a duty free market access for 3,677 goods, ranging from ready-made garments to carpet to handicrafts to sugar, olive, milk and plastic products, among others.

Textile and few other items are currently considered import sensitive by the US government and are excluded from duty-free treatment under US Generalized System of Preferences scheme.

The bill argues that the US should grant some trade benefits to these poor countries to sustain their economic growth and political stability.

The Act currently is under discussions at Trade Committee of the House of Representatives and Finance Committee of the Senate.

At the manufacturers' level, the garment entrepreneurs of 14 LDCs have already agreed to jointly push for the Act through an appointment of a lobbyist. Building a common strategy at manufacturers' level, they have also committed to bring together the respective governments and mobilize diplomatic missions to voice out for the Act's ratification. The garment entrepreneurs said that the Rules of Origin conditions may be flexible for the first seven years.

Nepal, Bangladesh, Bhutan, Maldives, Cambodia, Afghanistan, Samoa, Solomon Islands, East Timor, Tuvalu, Vanuatu, Yemen, Kiribati and Laos are the beneficiary countries of the Act.  

According to facts disclosed so far, the Act is similar to the African Growth and Opportunity Act and would be effective till 2014. It prescribes specified Rules of Origin conditions for the beneficiary countries to enjoy duty-free entry in the US market.

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