Section 1 Short title
This Act may be cited as the “Promoting Regional Opportunities for Sustainable Prosperity and Economic Resilience in the Pacific Act” or the “PROSPER in the Pacific Act”.
Promoting Regional Opportunities for Sustainable Prosperity and Economic Resilience in the Pacific Act
A BILL
To authorize preferential treatment for certain imports from the Pacific Islands.
Sec. 2 Sense of Congress
It is the sense of Congress that—
the United States has longstanding and enduring cultural, historic, economic, strategic, and people-to-people connections with the Pacific Islands, based on shared values, cultural histories, common interests, and a commitment to fostering mutual understanding and cooperation;
the economies of the Pacific Islands countries face significant challenges including geographic isolation, limited economic diversification, vulnerability to natural disasters, and underdeveloped infrastructure and trade capacity, that can make conventional economic indicators based on average national income poor measures of development progress and welfare outcomes;
strengthening U.S.-Pacific Islands economic ties through a preferential trade program would promote inclusive economic development, create sustainable job opportunities, and improve standards of living in the region; and
a U.S.-led preferential trade program would also make Americans safer, stronger, and more prosperous by advancing a free and open Indo-Pacific, prioritizing sovereignty, economic independence, and the rule of law.
Sec. 3 Eligibility requirements
In general— The President shall authorize the provision of preferential treatment under section 4 to articles that are imported directly from a Pacific Islands country into the customs territory of the United States if the President determines that the country—
meets the requirements set forth in paragraphs (1), (2), and (3) of section 104 of the African Growth and Opportunity Act (19 U.S.C. 3703);
does not meet any of the bases for ineligibility under section 502(b)(2) of the Trade Act of 1974 (19 U.S.C. 2462(b)(2)) and does not meet any of the additional bases for ineligibility under subsection (c); and
after taking into account the factors set forth in paragraphs (1) through (7) of subsection (c) of section 502 of the Trade Act of 1974 (19 U.S.C. 2462) and the additional factors set forth in subsection (d), the country meets the eligibility requirements of such section 502.
Withdrawal, suspension, or limitation of preferential treatment; mandatory graduation— The provisions of subsection (d) of section 502 of the Trade Act of 1974 (19 U.S.C. 2462) shall apply with respect to Pacific Island countries to the same extent and in the same manner as such provisions apply with respect to beneficiary developing countries under title V of that Act (19 U.S.C. 2461 et seq.).
Additional bases for ineligibility— The President may not authorize the provision of preferential treatment under section 4 to articles that are imported directly from a Pacific Islands country into the customs territory of the United States if any of the following applies:
Such country fails to effectively afford internationally recognized worker rights to workers in the country (including any designated zone in that country).
Such country engages in gross violations of internationally recognized human rights in that country (including any designated zone in that country).
Such country fails to effectively enforce its environmental laws, regulations, or other measures, or to fulfill its international environmental obligations, including as such obligations relate to public health and illegal, unreported, and unregulated fishing.
Additional factors affecting country designation— In determining whether to authorize the provision of preferential treatment under section 4 to articles that are imported directly from a Pacific Islands country into the customs territory of the United States, the President shall take into account—
whether or not such country effectively affords to workers in that country (including any designated zone in that country) internationally recognized worker rights;
the extent to which such country effectively enforces its environmental laws, regulations, and other measures, and fulfills its international environmental obligations, including as such obligations relates to public health and illegal, unreported, and unregulated fishing; and
the extent to which such country has established, or is making continual progress toward establishing—
the rule of law, political pluralism, and the right to due process, a fair trial, and equal protection under the law;
economic policies to reduce poverty increase the availability of health care and educational opportunities, expand physical infrastructure, promote the development of private enterprise, and encourage the formation of capital markets through micro-credit or other programs; and
a system to combat corruption and bribery, such as signing and implementing the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions.
Sec. 4 Eligibility for certain benefits
The President is authorized to designate articles as eligible articles from a Pacific Islands country that is listed as eligible for benefits under section 3(a) to the same extent and in the same manner as the President is authorized to designate articles as eligible articles from least developed beneficiary developing countries under section 503 of the Trade Act of 1974 (19 U.S.C. 2463), including subsections (a)(2) and (b) of such section.
Sec. 5 Free trade agreements with Pacific Islands countries
Declaration of policy— Congress declares that free trade agreements should be negotiated, where feasible, with interested countries in the Pacific Islands, in order to serve as the catalyst for increasing trade between the United States and the Pacific Islands and increasing private sector investment in the Pacific Islands.
Plan requirement—
In general— The President, taking into account the willingness of the Governments of Pacific Islands countries to engage in negotiations to enter into free trade agreements, shall develop a plan for the purpose of negotiating and entering into one or more trade agreements with interested beneficiary Pacific Islands countries.
Elements of plan— The plan shall include the following:
The specific objectives of the United States with respect to negotiations described in paragraph (1) and a suggested timetable for achieving those objectives.
The benefits to both the United States and the relevant Pacific Islands countries with respect to the applicable free trade agreement or agreements.
A mutually agreed-upon timetable for the negotiations.
The implications for and the role of regional and subregional organizations in the Pacific Islands with respect to such free trade agreement or agreements.
Subject matter anticipated to be covered by the negotiations and United States laws, programs, and policies, as well as the laws of participating eligible Pacific Islands countries and existing bilateral and multilateral and economic cooperation and trade agreements, that may be affected by the agreement or agreements.
Procedures to ensure the following:
Adequate consultation with the Congress and the private sector during the negotiations.
Consultation with the Congress regarding all matters relating to implementation of the agreement or agreements.
Approval by the Congress of the agreement or agreements.
Adequate consultations with the relevant Pacific Islands governments and Pacific Islands regional and subregional intergovernmental organizations during the negotiation of the agreement or agreements.
Reporting requirement— Not later than 12 months after the date of the enactment of this Act, the President shall prepare and transmit to the Congress a report containing the plan developed pursuant to subsection (b).
Sec. 6 Trade facilitation and capacity building
Not later than 180 days after the date of the enactment of this Act, the President shall, in consultation with the Governments of eligible Pacific Islands countries, establish a trade facilitation and capacity building program for the Pacific Islands—
to enhance the Governments of eligible Pacific Islands countries to support successful exporters and to build awareness among potential exporters in eligible Pacific Islands countries about opportunities abroad and ways to manage trade documentation and regulations in the United States and other countries, including through outreach to civil society organizations, indigenous groups, and trade associations;
to provide export finance training for financial institutions in eligible Pacific Islands countries and the Governments of eligible Pacific Islands countries;
to assist the Governments of eligible Pacific Islands countries in maintaining publication of all trade regulations, forms for exporters and importers, tax and tariff rates, and other documentation relating to exporting goods on the internet and developing a robust public-private dialogue for eligible Pacific Islands countries to identify timelines for implementation of key reforms and solutions, as provided for under the Agreement on Trade Facilitation of the World Trade Organization; and
to increase access to guides for importers and exporters on the internet, including rules and documentation for United States tariff preference programs.
Sec. 7 Reporting requirement
The President shall submit to Congress, not later than 1 year after the date of the enactment of this Act, and annually thereafter through 2036, a comprehensive report on the trade and investment policy of the United States for the Pacific Islands, and on the implementation of this Act.
Sec. 8 Termination
No duty-free treatment provided under this Act shall remain in effect after December 31, 2036.
Sec. 9 Definitions
In this Act:
The term internationally recognized worker rights includes—
the right of association;
the right to organize and bargain collectively;
a prohibition on the use of any form of forced or compulsory labor;
a minimum age for the employment of children, and a prohibition on the “worst forms of child labor”, as defined in section 507(6) of the Trade Act of 1974 (19 U.S.C. 2467(6));
acceptable conditions of work with respect to minimum wages, hours of work, and occupational safety and health;
the elimination of discrimination with respect to employment and occupation; and
the elimination of violence or threats of violence against workers, including violence related to gender-based violence or harassment in the workplace and violence related to workers exercising or attempting to exercise any of the rights described in subparagraphs (A) through (F).
The terms Pacific Islands, Pacific Islands country, country in the Pacific Islands, and countries in the Pacific Islands means the Cook Islands, the Republic of Fiji, the Republic of Kiribati, the Republic of the Marshall Islands, the Federated States of Micronesia, the Republic of Nauru, Niue, the Republic of Palau, the Independent State of Papua New Guinea, the Independent State of Samoa, the Solomon Islands, the Kingdom of Tonga, Tuvalu, and the Republic of Vanuatu.