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108th Congress, 2d Session - - - - - - - - - - - - House Document 108-211

 
NOTIFICATION TO ADD IRAQ TO THE LIST OF COUNTRIES UNDER THE GENERALIZED 
                      SYSTEM OF PREFERENCES (GSP)

                               __________

                             COMMUNICATION

                                  from

                   THE PRESIDENT OF THE UNITED STATES

                              transmitting

   NOTIFICATION OF HIS INTENTION TO DESIGNATE IRAQ AS A BENEFICIARY 
 DEVELOPING COUNTRY UNDER THE GENERALIZED SYSTEM OF PREFERENCES (GSP) 
 ANY SUCH DESIGNATION, PURSUANT TO PUB. L. 104-188, SEC. 1952(a) (110 
                              STAT. 1917)

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  September 8, 2004.--Referred to the Committee on Ways and Means and 
                         ordered to be printed
To the Congress of the United States:
    Pursuant to section 502(f) of the Trade Act of 1974, as 
amended (the ``1974 Act''), I am writing to inform you of my 
intent to designate Iraq as a beneficiary developing country 
for purposes of the Generalized System of Preferences (GSP).
    I have considered the criteria set forth in sections 501 
and 502 of the 1974 Act. In light of these criteria, I have 
determined that it is appropriate to extend GSP benefits to 
Iraq.

                                                    George W. Bush.
    The White House, September 7, 2004.
To Modify the Generalized System of Preferences, and for Other Purposes

                              ----------                              


            By the President of the United States of America

                             A PROCLAMATION

    1. Pursuant to sections 501 and 502(a)(1) of Title V of the 
Trade Act of 1974, as amended (the ``1974 Act'') (19 U.S.C. 
2461, 2462(a)(1)), the President is authorized to designate 
countries as beneficiary developing countries for purposes of 
the Generalized System of Preferences (GSP).
    2. Pursuant to section 503(d) of the 1974 Act (19 U.S.C. 
2463(d)), the President may waive the application of the 
competitive need limitations in section 503(c)(2)(A) (19 U.S.C. 
2463(c)(2)(A)) with respect to any eligible article from any 
beneficiary developing country if certain conditions are met.
    3. Pursuant to section 503(d)(5) of the 1974 Act (19 U.S.C. 
2463(d)(5)), any waiver granted under section 503(d) shall 
remain in effect until the President determines that such 
waiver is no longer warranted due to changed circumstances.
    4. Section 7(a) of the AGOA Acceleration Act of 2004 
(Public Law 108-274) (``AGOA Acceleration Act'') amended 
section 506A of the GSP (19 U.S.C. 2466a) to provide certain 
benefits to any country designated as a beneficiary sub-Saharan 
African country under section 506A(a) of the GSP that becomes a 
party to a free trade agreement with the United States, and 
amended section 506B of the GSP (19 U.S.C. 2466b) to extend the 
period during which preferential treatment may be accorded to 
such countries.
    5. Section 7(b) through (f) of the AGOA Acceleration Act 
amended section 112 of the African Growth and Opportunity Act 
(Title I of the Trade and Development Act of 2000, Public Law 
106-200) (AGOA) (19 U.S.C. 3721) to modify the type and 
quantity of textile and apparel articles eligible for the 
preferential treatment now accorded to designated beneficiary 
sub-Saharan African countries, and to provide certain benefits 
to any such country that becomes a party to a free trade 
agreement with the United States.
    6. On December 17, 1992, the Governments of Canada, Mexico, 
and the United States entered into the North American Free 
Trade Agreement (NAFTA). The Congress approved the NAFTA in 
section 101(a) of the North American Free Trade Agreement 
Implementation Act (the ``NAFTA Implementation Act'') (19 
U.S.C. 3311(a)), and the President implemented the tariff 
provisions of the NAFTA with respect to the United States in 
Proclamation 6641 of December 15, 1993.
    7. Section 201(a) of the NAFTA Implementation Act (19 
U.S.C. 3331(a)) authorizes the President to proclaim such duty 
modifications as the President may determine to be necessary or 
appropriate to carry out or apply, among other provisions, 
Article 308 and Annex 308.1 of the NAFTA.
    8. NAFTA Article 308 and Annex 308.1 provide for each NAFTA 
Party to eliminate or reduce normal trade relations (most-
favored-nation) rates of duty on certain automatic data 
processing machinery and parts, and set the terms under which 
such goods shall be considered originating goods under the 
NAFTA when imported from the territory of a NAFTA Party.
    9. Pursuant to sections 501 and 502(a)(1) of the 1974 Act, 
and having due regard for the factors set forth in section 501 
of the 1974 Act and taking into account the factors set forth 
in section 502(c) of the 1974 Act (19 U.S.C. 2462(c)), I have 
decided to designate Iraq as a beneficiary developing country 
for purposes of the GSP.
    10. Pursuant to section 503(d)(5) of the 1974 Act, I have 
determined that a previously granted waiver of the competitive 
need limitations of section 503(c)(2)(A) is no longer warranted 
due to changed circumstances.
    11. In order to implement the tariff treatment provided 
under section 7 of the AGOA Acceleration Act, it is necessary 
to modify the Harmonized Tariff Schedule of the United States 
(HTS).
    12. I have determined that each NAFTA Party has eliminated 
or reduced its normal trade relations (most-flavored-nation) 
rates of duty applicable to the goods enumerated in Table 
308.1.1 of NAFTA Annex 308.1 to the levels prescribed in that 
Table. Annex 308.1 provides for those goods to be originating 
goods under the NAFTA when imported from Canada or Mexico.
    13. Pursuant to section 201(a) of the NAFTA Implementation 
Act, I have determined that the modifications to the HTS 
hereinafter proclaimed concerning goods considered to be 
originating when imported from the territory of a NAFTA Party 
are necessary and appropriate to carry out or apply Article 308 
and Annex 308.1 of the NAFTA.
    14. Section 604 of the 1974 Act, as amended (19 U.S.C. 
2483), authorizes the President to embody in the HTS the 
substance of the relevant provisions of that Act, and of other 
acts affecting import treatment, and actions thereunder, 
including the removal, modification, continuance, or imposition 
of any rate of duty or other import restriction.
    NOW, THEREFORE, I, GEORGE W. BUSH, President of the United 
States of America, acting under the authority vested in me by 
the Constitution and the laws of the United States of America, 
including but not limited to Title V and section 604 of the 
1974 Trade Act, section 112 of the AGOA, and section 201(a) of 
the NAFTA Implementation Act, do proclaim that:
    (1) Iraq is designated as a beneficiary developing country 
for purposes of the GSP, effective 15 days after the date of 
this proclamation.
    (2) In order to reflect this designation in the HTS, 
general note 4(a) to the HTS is modified by adding ``Iraq'' to 
thelist entitled ``Independent Countries'', effective with 
respect to articles entered, or withdrawn from warehouse for 
consumption, on or after 15 days after the date of this proclamation.
    (3) In order to provide that a country no longer be treated 
as a beneficiary developing country with respect to an eligible 
article for purposes of the GSP, general note 4(d) to the HTS 
is modified as provided in section 1 of Annex I.
    (4) In order to withdraw preferential tariff treatment 
under the GSP for a certain article imported from a certain 
beneficiary developing country, the Rates of Duty 1-Special 
subcolumn for such HTS subheading is modified as provided for 
in section 2 of Annex I to this proclamation.
    (5) The waiver of the application of section 503(c)(2)(A) 
of the 1974 Act to the article in the HTS subheading and to the 
beneficiary developing country listed in section 3 of Annex I 
to this proclamation is revoked.
    (6) In order to provide for the preferential treatment 
provided for in section 506A and 506B of the GSP, as amended by 
section 7(a) of the AGOA Acceleration Act, and section 112 of 
the AGOA, as amended by sections 7(b) through (f) of the AGOA 
Acceleration Act, the HTS is modified as provided in Annex II 
to this proclamation.
    (7) In order to implement Article 308 and Annex 308.1 of 
the NAFTA for certain automatic data processing machinery and 
parts imported from Canada and Mexico, the HTS is modified as 
provided in Annex III to this proclamation.
    (8) Any provisions of previous proclamations and Executive 
Orders that are inconsistent with this proclamation are 
superseded to the extent of such inconsistency.
    (9) The modifications made by and action taken in Annex I 
to this proclamation shall be effective with respect to 
eligible articles entered, or withdrawn from warehouse for 
consumption, on or after 60 days after the date of this 
proclamation.
    (10) The modifications made by Annex II shall be effective 
with respect to eligible articles entered, or withdrawn from 
warehouse for consumption, on or after July 13, 2004, except 
that the modifications made by section 4(A) relating to 
increases in the quantity of certain articles eligible for 
duty-free treatment shall be effective with respect to articles 
entered, or withdrawn from warehouse for consumption, on or 
after the dates provided in that section.
    (11) The modifications made by Annex III shall be effective 
with respect to goods entered, or withdrawn from warehouse for 
consumption, on or after January 1, 2003.
    IN WITNESS WHEREOF, I have hereunto set my hand this 
seventh day of September, in the year of our Lord two thousand 
four, and of the Independence of the United States of America 
the two hundred and twenty-ninth.
                                                    George W. Bush.
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Pages: 1

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