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By GREG HITT
April 30, 2008; Page A3
WASHINGTON -- The troubled nation of Haiti would benefit from trade preferences Rep. Charles Rangel wants in the farm bill coming together on Capitol Hill, but the move risks injecting trade politics into legislation that already has stirred controversy over farm subsidies.
The New York Democrat's amendment is one of several provisions members of Congress are tacking on to the five-year, nearly $300 billion bill.
President Bush stepped up his criticism Tuesday, calling the measure "bloated" and complaining that it would "do little to solve the problem" of high food prices, which have sparked riots around the world. He also accused lawmakers of failing "to eliminate subsidy payments to multimillionaire farmers."
Mr. Bush dispatched his agriculture secretary to press congressional negotiators to embrace bigger cuts in payments. After a series of closed-door meetings, lawmakers suggested they are moving closer to the White House. More negotiations are expected Wednesday; the bill appears headed to House and Senate votes next week.
The bill, which includes farm supports and land conservation as well as school lunches and rural economic development, is a top priority of the Democratic congressional leadership.
With momentum gathering, the measure is a magnet for the targeted ambitions of members in both parties. Already, the bill includes faster tax write-offs for investments in racehorses and lowered tax rates for American timber companies. It is also expected to include a rider authorizing the Justice Department to prosecute timber smugglers, a measure pushed by Rep. Earl Blumenauer, the Oregon Democrat.
For Mr. Rangel, chairman of the House Ways and Means Committee, the Haiti initiative is a small price to exact after having been tapped by Democratic leaders to help develop financing for $10.4 billion in new spending on nutrition programs.
The measure is designed to increase Haitian textile and apparel trade by easing rules under an existing U.S. trade preference program. The proposal would ensure that Haitian apparel could be shipped to the U.S. duty free, while allowing Haitian manufacturers to use low-cost yarn and fabric from around the globe, instead of just from American suppliers. It would aid apparel companies that do business in Haiti, such as Cintas Corp., an Ohio uniform company.
A few weeks ago, violent protests triggered by rising food prices rocked the Caribbean nation, the poorest in the Western Hemisphere, and forced a shake-up in the government.
"We're facing political turmoil that's not based on politics, it's based on raw hunger," said the Rev. Andrew Small, a foreign-policy adviser at the U.S. Conference of Catholic Bishops, which has lobbied for the proposal.
The Rangel proposal would build on a 2006 law intended to encourage trade with Haiti. That measure added about 5,000 jobs to Haiti's apparel sector, raising employment to about 20,000 workers. The law didn't spur expected investment, partly because benefits were set to expire after five years.
Congressional aides cautioned the proposal's details are still fluid. But the measure is expected to make existing incentives more generous, while extending them for as long as a decade.
Behind the scenes, Sen. Saxby Chambliss, the Senate Agriculture Committee's top-ranking Republican, has raised concerns . He says a company in his home state of Georgia could be harmed by the changes, which would make Haitian producers more competitive. A spokeswoman for Mr. Chambliss said he "is opposed to this provision in its current form and is hopeful a compromise can still be reached."
The maneuvering underscored the risk of the Rangel proposal, which could spur a backlash among textile-state lawmakers. But with the bill moving fast, the strength of textile-community opposition was unclear.
"No one wants to give the impression that they are steadfastly against doing something for the poorest country in our hemisphere," said Augustine Tantillo, executive director of the American Manufacturing Trade Action Coalition, a textile-trade group. Mr. Tantillo said the industry is working to tighten the Rangel provision and limit damage to U.S. industry.
Write to Greg Hitt at greg.hitt@wsj.com
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