CPR POLICY POSITION THE IMPORTANCE OF THE ROZ LEGISLATION

The Reconstruction Opportunity Zone (ROZ) legislation being currently discussed in the U.S. Congress is an important component of Americaâs strategy to engage Pakistan in a productive way that will create jobs and increase trade between our two countries. The Council on Pakistan Relations strongly supports the ROZ legislation and encourages Congressional leaders and the Obama Administration to pass this legislation. The purpose of the ROZs is to promote economic development by granting certain goods duty-free access into the U.S. The ROZs would be in effect a free trade zone whose ultimate objective is to spur jobs and economic growth in the tribal areas to provide an alternative to Al Qaeda and the Taliban.

Last year, in the House of Representatives and the U.S. Senate Congressman Chris Van Hollen (D-MD) and Senator Maria Cantwell (D-WA) introduced in the House and Senate, respectively, the Reconstruction Opportunity Zone (ROZ) legislation which would establish a unilateral U.S. trade preference program along the Afghanistan-Pakistan border. For a more detailed analysis of the ROZ legislation, please see the report entitled âAfghanistan and Pakistan Reconstruction Opportunity Zones (ROZs), H.R. 1318/H.R. 1886/H.R. 2410 and S. 496: Issues and Argumentsâ produced by the Congressional Research Service.

Last year, after a disagreement with the Senate, the House was unable to include the ROZ legislation in the Kerry/Lugar/Berman Pakistan aid bill. However, the House also included the ROZ legislation in the annual âForeign Relations Authorization Act, Fiscal Years 2010 and 2011â (H.R.2410) introduced by Congressman Berman. The legislation passed the House and was sent to the Senate Foreign Relations Committee where it is awaiting action. On April 27, the Senate Foreign Relations Committee passed its version of the âForeign Relations Authorization Act for Fiscal Years 2011-11â (S.2971) and sent it to the full Senate for consideration. Unfortunately, the Senate version did not include the ROZ language. The passage of the Senate Foreign Relations Committeeâs Authorization bill was notable in that it was the first time in five years that the Committee was able to actually pass the annual authorization bill.