Washington -- U.S. Representative Philip Crane has introduced legislation that would expand for five years the benefits of the Caribbean Basin Initiative (CBI) by making tariffs on all U.S. imports from participating countries equal to those enjoyed by Mexico under the North American Free Trade Agreement (NAFTA).

"Building on this highly successful initiative, the bill we are introducing today offers trade benefits to CBI countries on the remaining 30 percent of their imports that are not currently duty-free," Crane said at a March 4 news conference. Crane chairs the House of Representatives Ways and Means trade subcommittee.

The measure -- the Caribbean and Central American Relief and Economic Stabilization Act -- would also authorize relief for Caribbean and Central American nations affected by the devastation caused by Hurricane Georges in September 1998 and Hurricane Mitch in October 1998.

Crane and cosponsor Representative Jim Kolbe said the 24 CBI participants have been close economic partners with the United States since CBI was enacted in 1983.

President Clinton's CBI parity legislation, also announced March 4, would extend some trade benefits but only through June 30, 2001. It is similar to legislation that was approved by the Senate Finance Committee in 1998.

Following is the text of Crane's new release:

(Note: in the text, "billion" means 1,000 million.)

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Crane Introduces CBI Legislation

Statement by Chairman Crane Caribbean and Central America Relief and Economic Stabilization Act

Washington -- Ways and Means Trade Subcommittee Chairman Philip M. Crane (R-IL) today introduced the Caribbean and Central America Relief and Economic Stabilization Act (CCARES). A summary of the bill is included in this release. The following is Chairman Crane's prepared statement for the news conference.

"Chairman (Jim) Kolbe and I wanted to bring to your attention broad authorizing legislation we are introducing to respond to the serious damage done to the region by Hurricane Mitch and Hurricane Georges in September and October. The National Hurricane Center called Mitch the most deadly hurricane in the Atlantic in over 200 years. Estimates say that it killed close to 10,000 people in the Caribbean Basin region and left approximately 3 million people homeless and uprooted, including many children. Hurricane Georges caused more than $1 billion in damage and killed 250 people. Approximately 356 bridges have been destroyed in the region and 57 percent of the region's roads were damaged in the storms and the flooding that followed.

We want to join with the President and Senator (Phil) Graham in supporting a broad, bipartisan relief package that includes necessary foreign assistance, but which will also offer what the countries will tell you they need the most -- long-term opportunities for investment and employment.

Title I of this bill amends the Caribbean Basin Economic Recovery Act, passed in 1983. The CBI program represents a highly successful commitment by the United States to promote the development of strong democratic governments and revitalized economics in neighboring countries in the Caribbean Basin. Building on this highly successful initiative, the bill we are introducing today offers trade benefits to CBI countries on the remaining 30 percent of their imports that are not currently duty-free.

The countries in the Caribbean are close economic partners and have been since we enacted the original CBI program in 1983. We believe this bill is essential to their economic, political, and social stability, and is the right thing to do in light of the human suffering that is currently taking place.

If we don't reinforce foreign assistance with a mechanism for CBI countries to "trade" their way to jobs and prosperity, the United States will pay a price in increased illegal immigration and drug trafficking and we will have failed in our leadership and humanitarian responsibilities in our own backyard.

I believe that this bill provides meaningful trade benefits for the region. I am disappointed that the President's proposal, unveiled today, does not do more in this regard and merely pays lip service to the concept of providing trade benefits, particularly in the textile area. Requiring U.S. fabric to be used before the CBI nations can receive preferential treatment does not help these countries develop the infrastructure they so desperately need to do now. I look forward to working with the Administration and the Senate in enacting strong, meaningful trade benefits for the region that put muscle behind our hurricane relief goal."

Caribbean and Central American Relief and Economic Stabilization (CCARES) Act

Summary of Provisions

Responds to the immediate and long-term needs of the Caribbean and Central American nations affected by the devastation caused by Hurricanes Georges (September 1998) and Mitch (October 1998).

Provides support for the Overseas Private Investment Corporation (OPIC) to continue to work with U.S. business and other entities to help meet the long-term investment needs of the Caribbean and Central America.

Offers temporary benefits (five years) to Caribbean Basin countries on the 30 percent of imports from the region which are not currently duty-free under CBERA and other trade programs.

Requires the President to review country adherence to eligibility criteria in current law and as further interpreted by the bill. The President may determine, whether to withdraw, suspend, or limit new trade benefits.

Contains strict transshipment penalties. Under "one strike and you're out," if an exporter engages in illegal textile transshipment, the President is required to deny all benefits under the bill to that exporter for a period of two years.

Authorizes funds for reconstruction and disaster mitigation assistance in the Caribbean and Central American, including funds for agriculture and rural reconstruction; disease control and prevention; education and housing; and environmental management.

Provides for anti-corruption assistance and training to ensure that U.S. funds are used efficiently and effectively.

Provides $25 million to replenish the international disaster account to enable the U.S. Government to respond to unexpected disaster needs in the future.

Provides $135 million to replenish Department of Defense accounts used in providing disaster relief and reconstruction, including those accounts that support landmine detection and removal.

Authorizes at least $16 billion for debt forgiveness for Honduras.

Multilateral Assistance

Provides $25 million for the Central American Trust Fund to be applied against multilateral debt. This Fund will cover much of the region's $1.4 billion in external financing needs.

Supports long-term infrastructure development assistance.

Immigration

Extends the moratorium on deportations for most affected nations until infrastructure is ready to accept them, and they are not at risk from widespread disease.

Provides funding for Enforcement and Border Affairs within the Immigration arid Naturalization (INS) to support increased detention requirements for Central American criminal aliens held by the INS and to address an expected influx of illegal immigrants from Central America.

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