8 ment Agency shall consider a grant or grants to assist in the design, financial planning, training, and other preparatory steps for the construction of a new sewage treatment plant for Panama City. (2) REPORTING REQUIREMENT.-Not later than 1 year after the date on which the President submits the certification and report under section 3, the Director of the Trade and Development Agency shall submit a report to the Committee on International Relations of the House of Representatives and the Committee on Foreign Relations of the Senate re garding the steps taken pursuant to paragraph (1) and the status of planning for construction of a new sewage treatment plant for Panama City. (d) SCHOLARSHIP PROGRAM FOR PANAMA.— (1) ACTION BY AGENCY FOR INTERNATIONAL DEVELOPMENT.-The Administrator of the Agency for International Development shall ensure that, for the duration of the agreement period, up to $2,000,000 of the funds made available each year to the Cooperative Association of States for Scholarships program shall be made available for scholar ships for deserving students from Panama to study in the United States. 1 2 3 4 5 6 7 8 9 10 9 (2) REPORTING REQUIREMENT.-Not later than 1 year after the date on which the President submits the certification and report under section 3, the Administrator of the Agency for International Development shall submit a report to the Committee on International Relations of the House of Representatives and the Committee on Foreign Relations of the Senate regarding the steps taken pursuant to paragraph (1). (e) TREATMENT OF CERTAIN TEXTILE AND AP 11 PAREL ARTICLES.— 12 13 14 15 16 17 18 19 20 21 22 23 24 (1) EQUIVALENT TARIFF AND QUOTA TREAT MENT.-During the transition period (A) the tariff treatment accorded at any time to any textile or apparel article that origi nates in Panama shall be identical to the tariff treatment that is accorded at such time under section 2 of the Annex to an article described in the same 8-digit subheading of the HTS that is a good of Mexico and is imported into the United States; (B) duty-free treatment under the Caribbean Basin Economic Recovery Act shall apply to any textile or apparel article that is imported 10 into the United States from Panama and that (i) is assembled in Panama, from fabrics wholly formed and cut in the United States from yarns formed in the United (I) under subheading 9802.00.80 of the HITS; or (II) under chapter 61, 62, or 63 of the HTS if, after such assembly, the article would have qualified for under subheading treatment (ii) is knit-to-shape in Panama from yarns wholly formed in the United States; (iii) is made in Panama from fabric knit in Panama from yarns wholly formed in the United States; (iv) is cut and assembled in Panama from fabrics wholly formed in the United 11 States from yarns wholly formed in the United States; or (v) is identified under paragraph (3) as a handloomed, handmade, or folklore article of Panama and is certified as such by the competent authority of that country; and (C) no quantitative restriction or consultation level may be applied to the importation into the United States of any textile or apparel article that (i) originates in the territory of Pan ama, or (ii) qualifies for duty-free treatment under clause (i), (ii), (iii), (iv), or (v) of subparagraph (B). (2) TREATMENT OF OTHER NONORIGINATING TEXTILE AND APPAREL ARTICLES. (A) PREFERENTIAL TARIFF TREATMENT.-Subject to subparagraph (B), the President may place in effect at any time during the transition period with respect to any textile or apparel article that— (i) is a product of Panama, but 12 (ii) does not qualify as a good that originates in the territory of Panama or is eligible for benefits under paragraph (1)(B), tariff treatment that is identical to the in-preference-level tariff treatment accorded at such time under Appendix 6.B of the Annex to an article described in the same 8-digit subheading of the HTS that is a product of Mexico and is imported into the United States. For purposes of this subparagraph, the "in-preference-level tariff treatment" accorded to an article that is a product of Mexico is the rate of duty applied to that article when imported in quantities less than or equal to the quantities specified in Schedule 6.B.1, 6.B.2., or 6.B.3. of the Annex for imports of that article from Mexico into the United States. (B) LIMITATIONS ON ALL ARTICLES.-Tariff treatment under subparagraph (A) may be extended, during any calendar year, to not more than 6,750,000 square meter equivalents of cotton or man-made fiber apparel, to not more than 225,000 square meter equivalents of wool apparel, and to not more than 3,750,000 square |