TABLE OF CONTENTS:
Title I: Trade Policy for Sub-Saharan Africa
Title II: International Financial and Foreign Relations
Policy for Sub-Saharan Africa
African Growth and Opportunity Act - Declares the support of the Congress for the economic self-reliance of sub-Saharan African countries committed to economic and political reform, market incentives and private sector growth, eradication of poverty, and the importance of women to economic growth and development.
(Sec. 4) Makes a sub-Saharan African country eligible to participate in programs, projects, or activities, or receive assistance or other benefits under this Act if the President determines, according to specified evidence, that it does not engage in gross violations of internationally recognized human rights, and has established, or is making continual progress toward establishing, a market-based economy.
Directs the President to monitor and review the progress of sub-Saharan African countries to determine their current or potential eligibility under the requirements of this Act. Makes ineligible to participate in programs or receive assistance or other benefits under this Act any countries that have not made progress in meeting such requirements.
Title I: Trade Policy For Sub-Saharan Africa - Directs the President to convene annual high-level meetings between U.S. Government officials and officials of the governments of sub-Saharan African countries to foster close economic ties between them. Directs the President to establish a United States-Sub-Saharan Africa Trade and Economic Cooperation Forum, which shall, among other things, encourage joint ventures between small and large businesses. Directs the United States Information Agency (USIA), in order to assist the Forum, to disseminate economic information in support of the free market economic reforms contained in this Act. Authorizes appropriations (but with a bar on the use of funds to create or support any nongovernmental organization whose aim is to facilitate trade between the United States and sub-Saharan Africa).
(Sec. 102) Directs the President to develop a plan meeting certain requirements to enter into one or more trade agreements with certain eligible sub-Saharan African countries to establish a United States-Sub-Saharan Africa Free Trade Area.
(Sec. 103) Expresses the sense of the Congress that reform of trade policies in sub-Saharan Africa that removes structural impediments to trade, consistent with the World Trade Organization (WTO), can lay the groundwork for sustained growth there in both textile and apparel exports. Directs the United States, pursuant to the Agreement on Textiles and Clothing, to eliminate the existing quotas on textile and apparel exports to the United States from Kenya and Mauritius, provided they adopt a visa system to guard against the unlawful transshipment of such goods and the use of counterfeit documents. Directs the President to: (1) continue the existing no quota policy for sub-Saharan African countries; and (2) report to the Congress on the growth in textiles and apparel exports to the United States from such countries in order to protect U.S. consumers, workers, and textile manufacturers from economic injury on account of the no quota policy. Sets forth enforcement procedures (including penalties) for violations of the requirements contained in this Act.
(Sec. 104) Amends the Trade Act of 1974 to authorize the President to provide duty-free treatment for any non-import-sensitive article that is the growth, product, or manufacture of an eligible sub-Saharan African beneficiary developing country.
Waives the competitive need limitation with respect to eligible countries in sub-Saharan Africa. Extends duty-free treatment to sub-Saharan African beneficiary developing countries through June 30, 2009.
(Sec. 105) Directs the President to establish the position of Assistant United States Trade Representative for African Affairs within the Office of the United States Trade Representative to direct and coordinate interagency activities on U.S.-Africa trade policy and investment matters.
(Sec. 106) Directs the President to report to Congress on U.S. trade and investment policy for sub-Saharan Africa and on implementation of this Act.
Title II: International Financial and Foreign Relations Policy For Sub-Saharan Africa - Expresses the sense of the Congress that: (1) the Secretary of the Treasury should instruct the U.S. Executive Directors of specified international financial institutions to use their votes to encourage their institutions to develop enhanced mechanisms which further economic and trade reforms and deep debt reduction under the Heavily Indebted Poor Countries (HIPC) debt initiative in eligible sub-Saharan African countries; and (2) relief provided to such countries under the HIPC debt initiative should primarily be made through grants rather than through extended-term debt, with interim financing for eligible countries that establish a strong record of macroeconomic reform.
(Sec. 202) Expresses the sense of the Congress that the stated policy of the executive branch in the 1997 Partnership for Growth and Opportunity in Africa initiative is a step toward the establishment of a comprehensive trade and development policy for sub-Saharan Africa and is a companion to the policy goals set forth in this Act. Directs the President, in addition to continuing bilateral and multilateral economic and development assistance, to target technical assistance toward: (1) developing relationships between U.S. firms and firms in sub-Saharan Africa; (2) providing assistance to sub-Saharan African countries to liberalize trade and promote exports, bring their regimes into compliance with WTO standards, make financial and fiscal reforms, and promote greater agribusiness linkages; (3) addressing critical agricultural policy issues as market liberalization, agricultural export development, and agribusiness investment in processing and transporting agricultural commodities; (4) increasing the number of reverse trade missions to growth-oriented sub-Saharan African countries; (5) increasing trade in services; and (6) encouraging greater sub-Saharan participation in future WTO negotiations on services and making further commitments in their schedules to the General Agreement on Trade in Services in order to encourage the removal of tariff and nontariff barriers.
(Sec. 203) Expresses the sense of the Congress that the Overseas Private Investment Corporation (OPIC) should exercise its authorities to initiate, in addition to any existing fund, an equity infrastructure fund or funds in support of projects in sub-Saharan African countries, particularly projects that expand opportunities for women entrepreneurs and employment for the poor.
(Sec. 204) Amends the Foreign Assistance Act of 1961 to direct the Board of Directors of OPIC to increase financial assistance in sub-Saharan Africa.
Amends the Export-Import Bank Act of 1945 to make similar changes with respect to the Export-Import Bank of the United States.
(Sec. 205) Directs the Secretary of Commerce, subject to the availability of appropriations, to take steps to ensure that at least 20 full-time U.S. and Foreign Commercial Service employees are stationed in sub-Saharan Africa, including that full-time Service employees are stationed in not less than ten different sub-Saharan African countries.
Directs the Service to take specified action to encourage the export of U.S. goods and services to sub-Saharan African countries.
(Sec. 206) Expresses the sense of the Congress that, to the extent appropriate, the U.S. Government should make every effort to donate to governments of eligible sub-Saharan African countries air traffic control equipment that is no longer in use, including appropriate related reimbursable technical assistance for such equipment.
[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 666 Introduced in Senate (IS)]
106th CONGRESS
1st Session
S. 666
To authorize a new trade and investment policy for sub-Saharan Africa.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 18, 1999
Mr. Lugar (for himself, Mr. Gramm, Mr. McCain, Mr. DeWine, Mr. Hagel,
Mr. Grams, Mr. Jeffords, Ms. Landrieu, and Mr. Lieberman) introduced
the following bill; which was read twice and referred to the Committee
on Finance
_______________________________________________________________________
A BILL
To authorize a new trade and investment policy for sub-Saharan Africa.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``African Growth and
Opportunity Act''.
(b) Table of Contents.--
Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Statement of policy.
Sec. 4. Eligibility requirements.
Sec. 5. Sub-Saharan Africa defined.
TITLE I--TRADE POLICY FOR SUB-SAHARAN AFRICA
Sec. 101. United States-Sub-Saharan Africa Trade and Economic
Cooperation Forum.
Sec. 102. United States-Sub-Saharan Africa Free Trade Area.
Sec. 103. Eliminating trade barriers and encouraging exports.
Sec. 104. Generalized system of preferences.
Sec. 105. Assistant United States trade representative for Sub-Saharan
Africa.
Sec. 106. Reporting requirement.
TITLE II--INTERNATIONAL FINANCIAL AND FOREIGN RELATIONS POLICY FOR SUB-
SAHARAN AFRICA
Sec. 201. International financial institutions and debt reduction.
Sec. 202. Executive branch initiatives.
Sec. 203. Sub-Saharan Africa Infrastructure Fund.
Sec. 204. Overseas Private Investment Corporation and Export-Import
Bank initiatives.
Sec. 205. Expansion of the United States and foreign commercial service
in Sub-Saharan Africa.
Sec. 206. Donation of air traffic control equipment to eligible Sub-
Saharan African countries.
SEC. 2. FINDINGS.
The Congress finds that it is in the mutual economic interest of
the United States and sub-Saharan Africa to promote stable and
sustainable economic growth and development in sub-Saharan Africa and
that sustained economic growth in sub-Saharan Africa depends in large
measure upon the development of a receptive environment for trade and
investment. To that end, the United States seeks to facilitate market-
led economic growth in, and thereby the social and economic development
of, the countries of sub-Saharan Africa. In particular, the United
States seeks to assist sub-Saharan African countries, and the private
sector in those countries, to achieve economic self-reliance by--
(1) strengthening and expanding the private sector in sub-
Saharan Africa, especially women-owned businesses;
(2) encouraging increased trade and investment between the
United States and sub-Saharan Africa;
(3) reducing tariff and nontariff barriers and other trade
obstacles;
(4) expanding United States assistance to sub-Saharan
Africa's regional integration efforts;
(5) negotiating free trade areas;
(6) establishing a United States-Sub-Saharan Africa Trade
and Investment Partnership;
(7) focusing on countries committed to accountable
government, economic reform, and the eradication of poverty;
(8) establishing a United States-Sub-Saharan Africa
Economic Cooperation Forum; and
(9) continuing to support development assistance for those
countries in sub-Saharan Africa attempting to build civil
societies.
SEC. 3. STATEMENT OF POLICY.
The Congress supports economic self-reliance for sub-Saharan
African countries, particularly those committed to--
(1) economic and political reform;
(2) market incentives and private sector growth;
(3) the eradication of poverty; and
(4) the importance of women to economic growth and
development.
SEC. 4. ELIGIBILITY REQUIREMENTS.
(a) In General.--A sub-Saharan African country shall be eligible to
participate in programs, projects, or activities, or receive assistance
or other benefits under this Act if the President determines that the
country does not engage in gross violations of internationally
recognized human rights and has established, or is making continual
progress toward establishing, a market-based economy, such as the
establishment and enforcement of appropriate policies relating to--
(1) promoting free movement of goods and services between
the United States and sub-Saharan Africa and among countries in
sub-Saharan Africa;
(2) promoting the expansion of the production base and the
transformation of commodities and nontraditional products for
exports through joint venture projects between African and
foreign investors;
(3) trade issues, such as protection of intellectual
property rights, improvements in standards, testing, labeling
and certification, and government procurement;
(4) the protection of property rights, such as protection
against expropriation and a functioning and fair judicial
system;
(5) appropriate fiscal systems, such as reducing high
import and corporate taxes, controlling government consumption,
participation in bilateral investment treaties, and the
harmonization of such treaties to avoid double taxation;
(6) foreign investment issues, such as the provision of
national treatment for foreign investors, removing restrictions
on investment, and other measures to create an environment
conducive to domestic and foreign investment;
(7) supporting the growth of regional markets within a free
trade area framework;
(8) governance issues, such as eliminating government
corruption, minimizing government intervention in the market
such as price controls and subsidies, and streamlining the
business license process;
(9) supporting the growth of the private sector, in
particular by promoting the emergence of a new generation of
African entrepreneurs;
(10) encouraging the private ownership of government-
controlled economic enterprises through divestiture programs;
and
(11) observing the rule of law, including equal protection
under the law and the right to due process and a fair trial.
(b) Additional Factors.--In determining whether a sub-Saharan
African country is eligible under subsection (a), the President shall
take into account the following factors:
(1) An expression by such country of its desire to be an
eligible country under subsection (a).
(2) The extent to which such country has made substantial
progress toward--
(A) reducing tariff levels;
(B) binding its tariffs in the World Trade
Organization and assuming meaningful binding
obligations in other sectors of trade; and
(C) eliminating nontariff barriers to trade.
(3) Whether such country, if not already a member of the
World Trade Organization, is actively pursuing membership in
that Organization.
(4) Where applicable, the extent to which such country is
in material compliance with its obligations to the
International Monetary Fund and other international financial
institutions.
(5) The extent to which such country has a recognizable
commitment to reducing poverty, increasing the availability of
health care and educational opportunities, the expansion of
physical infrastructure in a manner designed to maximize
accessibility, increased access to market and credit facilities
for small farmers and producers, and improved economic
opportunities for women as entrepreneurs and employees, and
promoting and enabling the formation of capital to support the
establishment and operation of micro-enterprises.
(6) Whether or not such country engages in activities that
undermine United States national security or foreign policy
interests.
(c) Continuing Compliance.--
(1) Monitoring and review of certain countries.--The
President shall monitor and review the progress of sub-Saharan
African countries in order to determine their current or
potential eligibility under subsection (a). Such determinations
shall be based on quantitative factors to the fullest extent
possible and shall be included in the annual report required by
section 106.
(2) Ineligibility of certain countries.--A sub-Saharan
African country described in paragraph (1) that has not made
continual progress in meeting the requirements with which it is
not in compliance shall be ineligible to participate in
programs, projects, or activities, or receive assistance or
other benefits, under this Act.
SEC. 5. SUB-SAHARAN AFRICA DEFINED.
For purposes of this Act, the terms ``sub-Saharan Africa'', ``sub-
Saharan African country'', ``country in sub-Saharan Africa'', and
``countries in sub-Saharan Africa'' refer to the following or any
successor political entities:
Republic of Angola (Angola)
Republic of Botswana (Botswana)
Republic of Burundi (Burundi)
Republic of Cape Verde (Cape Verde)
Republic of Chad (Chad)
Democratic Republic of Congo
Republic of the Congo (Congo)
Republic of Djibouti (Djibouti)
State of Eritrea (Eritrea)
Gabonese Republic (Gabon)
Republic of Ghana (Ghana)
Republic of Guinea-Bissau (Guinea-Bissau)
Kingdom of Lesotho (Lesotho)
Republic of Madagascar (Madagascar)
Republic of Mali (Mali)
Republic of Mauritius (Mauritius)
Republic of Namibia (Namibia)
Federal Republic of Nigeria (Nigeria)
Democratic Republic of Sao Tome and Principe (Sao Tome and
Principe)
Republic of Sierra Leone (Sierra Leone)
Somalia
Kingdom of Swaziland (Swaziland)
Republic of Togo (Togo)
Republic of Zimbabwe (Zimbabwe)
Republic of Benin (Benin)
Burkina Faso (Burkina)
Republic of Cameroon (Cameroon)
Central African Republic
Federal Islamic Republic of the Comoros (Comoros)
Republic of Cote d'Ivoire (Cote d'Ivoire)
Republic of Equatorial Guinea (Equatorial Guinea)
Ethiopia
Republic of the Gambia (Gambia)
Republic of Guinea (Guinea)
Republic of Kenya (Kenya)
Republic of Liberia (Liberia)
Republic of Malawi (Malawi)
Islamic Republic of Mauritania (Mauritania)
Republic of Mozambique (Mozambique)
Republic of Niger (Niger)
Republic of Rwanda (Rwanda)
Republic of Senegal (Senegal)
Republic of Seychelles (Seychelles)
Republic of South Africa (South Africa)
Republic of Sudan (Sudan)
United Republic of Tanzania (Tanzania)
Republic of Uganda (Uganda)
Republic of Zambia (Zambia)
TITLE I--TRADE POLICY FOR SUB-SAHARAN AFRICA
SEC. 101. UNITED STATES-SUB-SAHARAN AFRICA TRADE AND ECONOMIC
COOPERATION FORUM.
(a) Declaration of Policy.--The President shall convene annual
high-level meetings between appropriate officials of the United States
Government and officials of the governments of sub-Saharan African
countries in order to foster close economic ties between the United
States and sub-Saharan Africa.
(b) Establishment.--Not later than 12 months after the date of the
enactment of this Act, the President, after consulting with Congress
and the governments concerned, shall establish a United States-Sub-
Saharan Africa Trade and Economic Cooperation Forum (in this section
referred to as the ``Forum'').
(c) Requirements.--In creating the Forum, the President shall meet
the following requirements:
(1) The President shall direct the Secretary of Commerce,
the Secretary of the Treasury, the Secretary of State, and the
United States Trade Representative to host the first annual
meeting with the counterparts of such Secretaries from the
governments of sub-Saharan African countries eligible under
section 4, the Secretary General of the Organization of African
Unity, and government officials from other appropriate
countries in Africa, to discuss expanding trade and investment
relations between the United States and sub-Saharan Africa and
the implementation of this Act including encouraging joint
ventures between small and large businesses.
(2)(A) The President, in consultation with the Congress,
shall encourage United States nongovernmental organizations to
host annual meetings with nongovernmental organizations from
sub-Saharan Africa in conjunction with the annual meetings of
the Forum for the purpose of discussing the issues described in
paragraph (1).
(B) The President, in consultation with the Congress, shall
encourage United States representatives of the private sector
to host annual meetings with representatives of the private
sector from sub-Saharan Africa in conjunction with the annual
meetings of the Forum for the purpose of discussing the issues
described in paragraph (1).
(3) The President shall, to the extent practicable, meet
with the heads of governments of sub-Saharan African countries
eligible under section 4 not less than once every two years for
the purpose of discussing the issues described in paragraph
(1). The first such meeting should take place not later than
twelve months after the date of the enactment of this Act.
(d) Dissemination of Information by USIA.--In order to assist in
carrying out the purposes of the Forum, the United States Information
Agency shall disseminate regularly, through multiple media, economic
information in support of the free market economic reforms described in
this Act.
(e) Authorization of Appropriations.--There are authorized to be
appropriated such sums as may be necessary to carry out this section.
(f) Limitation on Use of Funds.--None of the funds authorized under
this section may be used to create or support any nongovernmental
organization for the purpose of expanding or facilitating trade between
the United States and sub-Saharan Africa.
SEC. 102. UNITED STATES-SUB-SAHARAN AFRICA FREE TRADE AREA.
(a) Declaration of Policy.--The Congress declares that a United
States-Sub-Saharan Africa Free Trade Area should be established, or
free trade agreements should be entered into, in order to serve as the
catalyst for increasing trade between the United States and sub-Saharan
Africa and increasing private sector development in sub-Saharan Africa.
(b) Plan Requirement.--
(1) In general.--The President, taking into account the
provisions of the treaty establishing the African Economic
Community and the willingness of the governments of sub-Saharan
African countries to engage in negotiations to enter into free
trade agreements, shall develop a plan for the purpose of
entering into one or more trade agreements with sub-Saharan
African countries eligible under section 4 in order to
establish a United States-Sub-Saharan Africa Free Trade Area
(in this section referred to as the ``Free Trade Area'').
(2) Elements of plan.--The plan shall include the
following:
(A) The specific objectives of the United States
with respect to the establishment of the Free Trade
Area and a suggested timetable for achieving those
objectives.
(B) The benefits to both the United States and sub-
Saharan Africa with respect to the Free Trade Area.
(C) A mutually agreed-upon timetable for
establishing the Free Trade Area.
(D) The implications for and the role of regional
and sub-regional organizations in sub-Saharan Africa
with respect to the Free Trade Area.
(E) Subject matter anticipated to be covered by the
agreement for establishing the Free Trade Area and
United States laws, programs, and policies, as well as
the laws of participating eligible African countries
and existing bilateral and multilateral and economic
cooperation and trade agreements, that may be affected
by the agreement or agreements.
(F) Procedures to ensure the following:
(i) Adequate consultation with the Congress
and the private sector during the negotiation
of the agreement or agreements for establishing
the Free Trade Area.
(ii) Consultation with the Congress
regarding all matters relating to
implementation of the agreement or agreements.
(iii) Approval by the Congress of the
agreement or agreements.
(iv) Adequate consultations with the
relevant African governments and African
regional and subregional intergovernmental
organizations during the negotiations of the
agreement or agreements.
(c) Reporting Requirement.--Not later than 12 months after the date
of the enactment of this Act, the President shall prepare and transmit
to the Congress a report containing the plan developed pursuant to
subsection (b).
SEC. 103. ELIMINATING TRADE BARRIERS AND ENCOURAGING EXPORTS.
(a) Findings.--The Congress makes the following findings:
(1) The lack of competitiveness of sub-Saharan Africa in
the global market, especially in the manufacturing sector, make
it a limited threat to market disruption and no threat to
United States jobs.
(2) Annual textile and apparel exports to the United States
from sub-Saharan Africa represent less than 1 percent of all
textile and apparel exports to the United States, which totaled
$54,001,863,000 in 1997.
(3) Sub-Saharan Africa has limited textile manufacturing
capacity. During 1999 and the succeeding 4 years, this limited
capacity to manufacture textiles and apparel is projected to
grow at a modest rate. Given this limited capacity to export
textiles and apparel, it will be very difficult for these
exports from sub-Saharan Africa, during 1999 and the succeeding
9 years, to exceed 3 percent annually of total imports of
textile and apparel to the United States. If these exports from
sub-Saharan Africa remain around 3 percent of total imports,
they will not represent a threat to United States workers,
consumers, or manufacturers.
(b) Sense of the Congress.--It is the sense of the Congress that--
(1) it would be to the mutual benefit of the countries in
sub-Saharan Africa and the United States to ensure that the
commitments of the World Trade Organization and associated
agreements are faithfully implemented in each of the member
countries, so as to lay the groundwork for sustained growth in
textile and apparel exports and trade under agreed rules and
disciplines;
(2) reform of trade policies in sub-Saharan Africa with the
objective of removing structural impediments to trade,
consistent with obligations under the World Trade Organization,
can assist the countries of the region in achieving greater and
greater diversification of textile and apparel export
commodities and products and export markets; and
(3) the President should support textile and apparel trade
reform in sub-Saharan Africa by, among other measures,
providing technical assistance, sharing of information to
expand basic knowledge of how to trade with the United States,
and encouraging business-to-business contacts with the region.
(c) Treatment of Quotas.--
(1) Kenya and mauritius.--Pursuant to the Agreement on
Textiles and Clothing, the United States shall eliminate the
existing quotas on textile and apparel exports to the United
States--
(A) from Kenya within 30 days after that country
adopts an efficient visa system to guard against
unlawful transshipment of textile and apparel goods and
the use of counterfeit documents; and
(B) from Mauritius within 30 days after that
country adopts such a visa system.
The Customs Service shall provide the necessary technical
assistance to Kenya and Mauritius in the development and
implementation of those visa systems.
(2) Other sub-saharan countries.--The President shall
continue the existing no quota policy for countries in sub-
Saharan Africa. The President shall submit to the Congress, not
later than March 31 of each year, a report on the growth in
textiles and apparel exports to the United States from
countries in sub-Saharan Africa in order to protect United
States consumers, workers, and textile manufacturers from
economic injury on account of the no quota policy.
(d) Customs Procedures and Enforcement.--
(1) Actions by countries against transshipment and
circumvention.--The President should ensure that any country in
sub-Saharan Africa that intends to export textile and apparel
goods to the United States--
(A) has in place a functioning and effective visa
system and domestic laws and enforcement procedures to
guard against unlawful transshipment of textile and
apparel goods and the use of counterfeit documents; and
(B) will cooperate fully with the United States to
address and take action necessary to prevent
circumvention, as provided in Article 5 of the
Agreement on Textiles and Clothing.
(2) Penalties against exporters.--If the President
determines, based on sufficient evidence, that an exporter has
willfully falsified information regarding the country of
origin, manufacture, processing, or assembly of a textile or
apparel article for which duty-free treatment under section
503(a)(1)(C) of the Trade Act of 1974 is claimed, then the
President shall deny to such exporter, and any successors of
such exporter, for a period of 2 years, duty-free treatment
under such section for textile and apparel articles.
(3) Applicability of united states laws and procedures.--
All provisions of the laws, regulations, and procedures of the
United States relating to the denial of entry of articles or
penalties against individuals or entities for engaging in
illegal transshipment, fraud, or other violations of the
customs laws shall apply to imports from sub-Saharan countries.
(4) Monitoring and reports to congress.--The Customs
Service shall monitor and the Commissioner of Customs shall
submit to the Congress, not later than March 31 of each year, a
report on the effectiveness of the visa systems described in
subsection (c)(1) and paragraph (1) of this subsection and on
measures taken by countries in sub-Saharan Africa which export
textiles or apparel to the United States to prevent
circumvention as described in Article 5 of the Agreement on
Textiles and Clothing.
(e) Definition.--For purposes of this section, the term ``Agreement
on Textiles and Clothing'' means the Agreement on Textiles and Clothing
referred to in section 101(d)(4) of the Uruguay Round Agreements Act
(19 U.S.C. 3511(d)(4)).
SEC. 104. GENERALIZED SYSTEM OF PREFERENCES.
(a) Preferential Tariff Treatment for Certain Articles.--Section
503(a)(1) of the Trade Act of 1974 (19 U.S.C. 2463(a)(1)) is amended--
(1) by redesignating subparagraph (C) as subparagraph (D);
and
(2) by inserting after subparagraph (B) the following:
``(C) Eligible countries in sub-saharan africa.--
The President may provide duty-free treatment for any
article set forth in paragraph (1) of subsection (b)
that is the growth, product, or manufacture of an
eligible country in sub-Saharan Africa that is a
beneficiary developing country, if, after receiving the
advice of the International Trade Commission in
accordance with subsection (e), the President
determines that such article is not import-sensitive in
the context of imports from eligible countries in sub-
Saharan Africa. This subparagraph shall not affect the
designation of eligible articles under subparagraph
(B).''.
(b) Rules of Origin.--Section 503(a)(2) of the Trade Act of 1974
(19 U.S.C. 2463(a)(2)) is amended by adding at the end the following:
``(C) Eligible countries in sub-saharan africa.--
For purposes of determining the percentage referred to
in subparagraph (A) in the case of an article of an
eligible country in sub-Saharan Africa that is a
beneficiary developing country--
``(i) if the cost or value of materials
produced in the customs territory of the United
States is included with respect to that
article, an amount not to exceed 15 percent of
the appraised value of the article at the time
it is entered that is attributed to such United
States cost or value may be applied toward
determining the percentage referred to in
subparagraph (A); and
``(ii) the cost or value of the materials
included with respect to that article that are
produced in any beneficiary developing country that is an eligible
country in sub-Saharan Africa shall be applied in determining such
percentage.''.
(c) Waiver of Competitive Need Limitation.--Section 503(c)(2)(D) of
the Trade Act of 1974 (19 U.S.C. 2463(c)(2)(D)) is amended to read as
follows:
``(D) Least-developed beneficiary developing
countries and eligible countries in sub-saharan
africa.--Subparagraph (A) shall not apply to any least-
developed beneficiary developing country or any
eligible country in sub-Saharan Africa.''.
(d) Extension of Program.--Section 505 of the Trade Act of 1974 (19
U.S.C. 2465) is amended to read as follows:
``SEC. 505. DATE OF TERMINATION.
``(a) Countries in Sub-Saharan Africa.--No duty-free treatment
provided under this title shall remain in effect after June 30, 2009,
with respect to beneficiary developing countries that are eligible
countries in sub-Saharan Africa.
``(b) Other Countries.--No duty-free treatment provided under this
title shall remain in effect after June 30, 1999, with respect to
beneficiary developing countries other than those provided for in
subsection (a).''.
(e) Definition.--Section 507 of the Trade Act of 1974 (19 U.S.C.
2467) is amended by adding at the end the following:
``(6) Eligible country in sub-saharan africa.--The terms
`eligible country in sub-Saharan Africa' and `eligible
countries in sub-Saharan Africa' mean a country or countries
that the President has determined to be eligible under section
4 of the African Growth and Opportunity Act.''.
(f) Effective Date.--The amendments made by this section take
effect on July 1, 1999.
SEC. 105. ASSISTANT UNITED STATES TRADE REPRESENTATIVE FOR SUB-SAHARAN
AFRICA.
(a) Sense of Congress.--It is the sense of the Congress that the
position of Assistant United States Trade Representative for African
Affairs is integral to the United States commitment to increasing
United States-sub-Saharan African trade and investment.
(b) Maintenance of Position.--The President shall maintain a
position of Assistant United States Trade Representative for African
Affairs within the Office of the United States Trade Representative to
direct and coordinate interagency activities on United States-Africa
trade policy and investment matters and serve as--
(1) a primary point of contact in the executive branch for
those persons engaged in trade between the United States and
sub-Saharan Africa; and
(2) the chief advisor to the United States Trade
Representative on issues of trade with Africa.
(c) Funding and Staff.--The President shall ensure that the
Assistant United States Trade Representative for African Affairs has
adequate funding and staff to carry out the duties described in
subsection (b), subject to the availability of appropriations.
SEC. 106. REPORTING REQUIREMENT.
The President shall submit to the Congress, not later than 1 year
after the date of the enactment of this Act, and not later than the end
of each of the next 6 1-year periods thereafter, a comprehensive report
on the trade and investment policy of the United States for sub-Saharan
Africa, and on the implementation of this Act. The last report required
by section 134(b) of the Uruguay Round Agreements Act (19 U.S.C.
3554(b)) shall be consolidated and submitted with the first report
required by this section.
TITLE II--INTERNATIONAL FINANCIAL AND FOREIGN RELATIONS POLICY FOR SUB-
SAHARAN AFRICA
SEC. 201. INTERNATIONAL FINANCIAL INSTITUTIONS AND DEBT REDUCTION.
(a) Better Mechanisms To Further Goals for Sub-Saharan Africa.--It
is the sense of the Congress that the Secretary of the Treasury should
instruct the United States Executive Directors of the International
Bank for Reconstruction and Development, the International Monetary
Fund, and the African Development Bank to use the voice and votes of
the Executive Directors to encourage vigorously their respective
institutions to develop enhanced mechanisms which further the following
goals in eligible countries in sub-Saharan Africa:
(1) Strengthening and expanding the private sector,
especially among women-owned businesses.
(2) Reducing tariffs, nontariff barriers, and other trade
obstacles, and increasing economic integration.
(3) Supporting countries committed to accountable
government, economic reform, the eradication of poverty, and
the building of civil societies.
(4) Supporting deep debt reduction at the earliest possible
date with the greatest amount of relief for eligible poorest
countries under the ``Heavily Indebted Poor Countries'' (HIPC)
debt initiative.
(b) Sense of Congress.--It is the sense of the Congress that relief
provided to countries in sub-Saharan Africa which qualify for the
Heavily Indebted Poor Countries debt initiative should primarily be
made through grants rather than through extended-term debt, and that
interim relief or interim financing should be provided for eligible
countries that establish a strong record of macroeconomic reform.
SEC. 202. EXECUTIVE BRANCH INITIATIVES.
(a) Statement of Congress.--The Congress recognizes that the stated
policy of the executive branch in 1997, the ``Partnership for Growth
and Opportunity in Africa'' initiative, is a step toward the
establishment of a comprehensive trade and development policy for sub-
Saharan Africa. It is the sense of the Congress that this Partnership
is a companion to the policy goals set forth in this Act.
(b) Technical Assistance To Promote Economic Reforms and
Development.--In addition to continuing bilateral and multilateral
economic and development assistance, the President shall target
technical assistance toward--
(1) developing relationships between United States firms
and firms in sub-Saharan Africa through a variety of business
associations and networks;
(2) providing assistance to the governments of sub-Saharan
African countries to--
(A) liberalize trade and promote exports;
(B) bring their legal regimes into compliance with
the standards of the World Trade Organization in
conjunction with membership in that Organization;
(C) make financial and fiscal reforms; and
(D) promote greater agribusiness linkages;
(3) addressing such critical agricultural policy issues as
market liberalization, agricultural export development, and
agribusiness investment in processing and transporting agricultural
commodities;
(4) increasing the number of reverse trade missions to
growth-oriented countries in sub-Saharan Africa;
(5) increasing trade in services; and
(6) encouraging greater sub-Saharan participation in future
negotiations in the World Trade Organization on services and
making further commitments in their schedules to the General
Agreement on Trade in Services in order to encourage the
removal of tariff and nontariff barriers.
SEC. 203. SUB-SAHARAN AFRICA INFRASTRUCTURE FUND.
(a) Initiation of Funds.--It is the sense of the Congress that the
Overseas Private Investment Corporation should exercise the authorities
it has to initiate an equity fund or equity funds in support of
projects in the countries in sub-Saharan Africa, in addition to the
existing equity fund for sub-Saharan Africa created by the Corporation.
(b) Structure and Types of Funds.--
(1) Structure.--Each fund initiated under subsection (a)
should be structured as a partnership managed by professional
private sector fund managers and monitored on a continuing
basis by the Corporation.
(2) Capitalization.--Each fund should be capitalized with a
combination of private equity capital, which is not guaranteed
by the Corporation, and debt for which the Corporation provides
guaranties.
(3) Infrastructure fund.--One or more of the funds, with
combined assets of up to $500,000,000, should be used in
support of infrastructure projects in countries of sub-Saharan Africa.
(4) Emphasis.--The Corporation shall ensure that the funds
are used to provide support in particular to women
entrepreneurs and to innovative investments that expand
opportunities for women and maximize employment opportunities
for poor individuals.
SEC. 204. OVERSEAS PRIVATE INVESTMENT CORPORATION AND EXPORT-IMPORT
BANK INITIATIVES.
(a) Overseas Private Investment Corporation.--
(1) Advisory committee.--Section 233 of the Foreign
Assistance Act of 1961 (22 U.S.C. 2193) is amended by adding at
the end the following:
``(e) Advisory Committee.--The Board shall take prompt measures to
increase the loan, guarantee, and insurance programs, and financial
commitments, of the Corporation in sub-Saharan Africa, including
through the use of an advisory committee to assist the Board in
developing and implementing policies, programs, and financial
instruments with respect to sub-Saharan Africa. In addition, the
advisory committee shall make recommendations to the Board on how the
Corporation can facilitate greater support by the United States for
trade and investment with and in sub-Saharan Africa. The advisory
committee shall terminate 4 years after the date of the enactment of
this subsection.''.
(2) Reports to the congress.--Within 6 months after the
date of the enactment of this Act, and annually for each of the
4 years thereafter, the Board of Directors of the Overseas
Private Investment Corporation shall submit to the Congress a
report on the steps that the Board has taken to implement
section 233(e) of the Foreign Assistance Act of 1961 (as added
by paragraph (1)) and any recommendations of the advisory board
established pursuant to such section.
(b) Export-Import Bank.--
(1) Advisory committee for sub-saharan africa.--Section
2(b) of the Export-Import Bank Act of 1945 (12 U.S.C. 635(b))
is amended by inserting after paragraph (12) the following:
``(13)(A) The Board of Directors of the Bank shall take prompt
measures, consistent with the credit standards otherwise required by
law, to promote the expansion of the Bank's financial commitments in
sub-Saharan Africa under the loan, guarantee, and insurance programs of
the Bank.
``(B)(i) The Board of Directors shall establish and use an advisory
committee to advise the Board of Directors on the development and
implementation of policies and programs designed to support the
expansion described in subparagraph (A).
``(ii) The advisory committee shall make recommendations to the
Board of Directors on how the Bank can facilitate greater support by
United States commercial banks for trade with sub-Saharan Africa.
``(iii) The advisory committee shall terminate 4 years after the
date of the enactment of this subparagraph.''.
(2) Reports to the congress.--Within 6 months after the
date of the enactment of this Act, and annually for each of the
4 years thereafter, the Board of Directors of the Export-Import
Bank of the United States shall submit to the Congress a report
on the steps that the Board has taken to implement section 2(b)(13)(B)
of the Export-Import Bank Act of 1945 (as added by paragraph (1)) and
any recommendations of the advisory committee established pursuant to
such section.
SEC. 205. EXPANSION OF THE UNITED STATES AND FOREIGN COMMERCIAL SERVICE
IN SUB-SAHARAN AFRICA.
(a) Findings.--The Congress makes the following findings:
(1) The United States and Foreign Commercial Service
(hereafter in this section referred to as the ``Commercial
Service'') plays an important role in helping United States
businesses identify export opportunities and develop reliable
sources of information on commercial prospects in foreign
countries.
(2) During the 1980s, the presence of the Commercial
Service in sub-Saharan Africa consisted of 14 professionals
providing services in eight countries. By early 1997, that
presence had been reduced by half to seven, in only four
countries.
(3) Since 1997, the Department of Commerce has slowly begun
to increase the presence of the Commercial Service in sub-
Saharan Africa, adding five full-time officers to established
posts.
(4) Although the Commercial Service Officers in these
countries have regional responsibilities, this kind of coverage
does not adequately service the needs of United States
businesses attempting to do business in sub-Saharan Africa.
(5) The Congress has, on several occasions, encouraged the
Commercial Service to focus its resources and efforts in
countries or regions in Europe or Asia to promote greater
United States export activity in those markets.
(6) Because market information is not widely available in
many sub-Saharan African countries, the presence of additional
Commercial Service Officers and resources can play a
significant role in assisting United States businesses in
markets in those countries.
(b) Appointments.--Subject to the availability of appropriations,
by not later than December 31, 2000, the Secretary of Commerce, acting
through the Assistant Secretary of Commerce and Director General of the
United States and Foreign Commercial Service, shall take steps to
ensure that--
(1) at least 20 full-time Commercial Service employees are
stationed in sub-Saharan Africa; and
(2) full-time Commercial Service employees are stationed in
not less than ten different sub-Saharan African countries.
(c) Commercial Service Initiative for Sub-Saharan Africa.--In order
to encourage the export of United States goods and services to sub-
Saharan African countries, the Commercial Service shall make a special
effort to--
(1) identify United States goods and services which are not
being exported to sub-Saharan African countries but which are
being exported to those countries by competitor nations;
(2) identify, where appropriate, trade barriers and
noncompetitive actions, including violations of intellectual
property rights, that are preventing or hindering sales of
United States goods and services to, or the operation of United
States companies in, sub-Saharan Africa;
(3) present, periodically, a list of the goods and services
identified under paragraph (1), and any trade barriers or
noncompetitive actions identified under paragraph (2), to
appropriate authorities in sub-Saharan African countries with a
view to securing increased market access for United States
exporters of goods and services;
(4) facilitate the entrance by United States businesses
into the markets identified under paragraphs (1) and (2); and
(5) monitor and evaluate the results of efforts to increase
the sales of goods and services in such markets.
(d) Reports to Congress.--Not later than one year after the date of
the enactment of this Act, and each year thereafter for five years, the
Secretary of Commerce, in consultation with the Secretary of State,
shall report to the Congress on actions taken to carry out subsections
(b) and (c). Each report shall specify--
(1) in what countries full-time Commercial Service Officers
are stationed, and the number of such officers placed in each
such country;
(2) the effectiveness of the presence of the additional
Commercial Service Officers in increasing United States exports
to sub-Saharan African countries; and
(3) the specific actions taken by Commercial Service
Officers, both in sub-Saharan African countries and in the
United States, to carry out subsection (c), including
identifying a list of targeted export sectors and countries.
SEC. 206. DONATION OF AIR TRAFFIC CONTROL EQUIPMENT TO ELIGIBLE SUB-
SAHARAN AFRICAN COUNTRIES.
It is the sense of the Congress that, to the extent appropriate,
the United States Government should make every effort to donate to
governments of sub-Saharan African countries (determined to be eligible
under section 4 of this Act) air traffic control equipment that is no
longer in use, including appropriate related reimbursable technical
assistance.
<all>
Introduced in Senate
Sponsor introductory remarks on measure. (CR S2949)
Read twice and referred to the Committee on Finance.
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