WASHINGTON, DC – Today, U.S. Senator Maria Cantwell (D-WA) attended a Senate Finance Committee Hearing on U. S. Trade Preference Programs, including the Generalized System of Preferences (GSP), that play a critical role in promoting economic development as well as alleviating global poverty. In March 2008, Cantwell introduced a bill that would give the president the authority to establish Reconstruction Opportunity Zones (ROZs)within the territories of Afghanistan and the border regions of Pakistan. These ROZs would permit non-trade sensitive exports (i.e. textiles, apparel, agricultural products, and hand-crafted goods) from these areas to enter the U.S. duty-free, creating a strong incentive for private sector investment and job-creation. 

 

“My state has long understood the power of trade to improve people’s lives around the world,” said Cantwell. “That 9/11 Commission recommended that a ‘comprehensive U.S. strategy to counter terrorism should include economic policies that encourage development, more open societies, and opportunities for people to improve the lives of their families and to enhance prospects for their children's future.’ I fully agree with this sentiment and that is why I, along with Senator Hatch, introduced the ROZ bill. ROZs will give the people of Afghanistan and Pakistan new opportunity and hope.”

In order for an area to be designated as an ROZ so that goods may qualify for benefits, the president must determine that Pakistan or Afghanistan have established, or are making continual progress towards establishing:  a market-based economy; the rule of law; the elimination of barriers to U.S. trade and investment; the protection of intellectual property; efforts to combat corruption; policies to reduce poverty; policies increasing availability of health care and educational opportunities; an the protection of human rights and internationally recognized workers rights. Congressman Chris Van Hollen (D-MD-08) will be introducing companion legislation in the U.S. House of Representatives.

 

During today’s hearing, Cantwell heard testimony from Loren Yager, Director, International Affairs and Trade Issues, Government Accountability Office (GAO); Gran Aldonas, Principal Managing Director, Split Rock International; Edward Gresser, Director of Project on Trade and Global Markets, Progressive Policy Institute; and, Andrew Small, Foreign Policy Advisor, U.S. Conference of Catholic Bishops.

 

Cantwell also presented letters of support for ROZ bill to the Committee from: Former U.N. Ambassador Richard Holbrooke; Secretary of State Condoleezza Rice; Ambassador of Pakistan, Husain Haqqani; Dr. Mir Mohammad Amin Farhang, Minister of Commerce and Industry Islamic Republic of Afghanistan; and Lee H. Hamilton, 9/11 Commission Chair and President and Director of the Woodrow Wilson International Center for Scholars. 

 

9/11 Commission Chair Lee Hamilton wrote:  “Recent reports and studies have suggested growing dissatisfaction with al Qaeda and terrorist tactics among Muslims around the world. Reconstruction Opportunity Zones (ROZs) are one way we can wield American soft power and demonstrate a clear alternative to extremism at one its centers . . . . This legislation would enact some of the recommendations of the 9/11 Commission, which recognized the importance of economic policies as means to develop open societies as a bulwark against extremism and terrorism.  I believe that ROZs will have an important impact on stabilizing the border and promoting our goals in both Pakistan and Afghanistan and would urge quick Congressional action.”

 

Ambassador Richard Holbrooke noted: “One of the most important and potentially effective cooperative tools the United States can offer Pakistan and Afghanistan at this fragile moment are Reconstruction Opportunity Zones (ROZs).”

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