WASHINGTON, DC - House Ways and Means Committee Chairman Charles B. Rangel (D-NY) and Ranking Member Jim McCrery (R-LA) today introduced H.R. 6560, legislation establishing a “2 for 1" textile and apparel allowance program to be developed and administered by the Secretary of Commerce. Under the program, when producers purchase a certain quantity of qualifying U.S. fabric (2 square meter equivalents or “SMEs") for apparel production in the Dominican Republic, they will receive a credit (equivalent to 1 SME). This credit can then be used to ship a corresponding quantity of eligible apparel (pants and other bottoms) from the Dominican Republic to the United States duty-free regardless of the origin of the fabric from which the apparel product is made. The provision included in the Rangel-McCrery bill has the broad support of U.S. textile manufacturers.
“This is truly win-win legislation," Chairman Rangel said. “This long overdue program will create incentives for the purchase of U.S. textiles, supporting businesses and workers here at home while also providing valuable benefits to apparel producers and workers in the Dominican Republic. It is easy to see why industries in both countries have been supportive of this initiative."
“This important expansion of the U.S.-CAFTA-DR fair trade agreement, fully supported by the U.S. textile industry, is an opportunity to expand U.S. manufactured exports to the region and demonstrates how these agreements can benefit U.S. workers," said Ranking Member McCrery. “The United States economy has already benefited significantly from CAFTA, and our trade deficit with the region before the agreement went into effect has now become a trade surplus. This legislation will provide another opportunity to grow U.S. textile exports and add to the U.S. trade surplus with the CAFTA-DR region."
Please click here to view the text of H.R. 6560.
