Pakistan-Afghanistan Economic Development Act

Pakistan-Afghanistan Economic Development Act

This bill allows for duty-free treatment for certain goods from designated Reconstruction Opportunity Zones (ROZs) in Afghanistan and the border regions of Pakistan.

Specifically, the bill allows the President to designate ROZs within Afghanistan or parts of Pakistan, provided certain eligibility criteria are met. The countries must, among other conditions (1) establish (or make continual progress toward establishing) a market-based economy, the rule of law, certain economic policies, a system to combat corruption and bribery, and the protection of core labor standards; and (2) eliminate barriers to trade and investment.

Additionally, the bill allows the President to provide duty-free treatment for certain textile and apparel products, as well as nontextile and nonapparel products, from a ROZ through September 30, 2031.

The bill sets forth requirements to prevent the unlawful transshipment of textile or apparel products. Further, it outlines customs procedures and enforcement.

Products from a ROZ in Afghanistan or Pakistan may continue to receive duty-free treatment only if the President certifies to Congress that the countries have complied with certain requirements, including that the countries must designate a labor official.

The President may withdraw, suspend, or limit the application of duty-free treatment under the bill.