Strengthening the African Continental Free Trade Area Act of 2022 or the Strengthening the AfCFTA Act of 2022
This bill requires the President to direct the U.S. Trade Representative to develop a 10-year federal strategy to promote the African Continental Free Trade Area (AfCFTA). Additionally, the U.S. Agency for International Development must establish an AfCFTA Trade Capacity Building Program to support the implementation of the strategy.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9364 Introduced in House (IH)]
<DOC>
117th CONGRESS
2d Session
H. R. 9364
To promote the African Continental Free Trade Area, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 30, 2022
Ms. Bass introduced the following bill; which was referred to the
Committee on Ways and Means, and in addition to the Committee on
Foreign Affairs, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To promote the African Continental Free Trade Area, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Strengthening the African
Continental Free Trade Area Act of 2022'' or the ``Strengthening the
AfCFTA Act of 2022''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) By 2035, the gross domestic product of African
countries is projected to increase by $450,000,000,000 with the
implementation of the AfCFTA and lift 30,000,000 Africans out
of extreme poverty while boosting the wages of African women
and unskilled workers in particular, according to World Bank
estimates.
(2) According to the World Bank, the total intracontinental
exports from African countries would increase by 81 percent
under the AfCFTA. By economic sector, the AfCFTA is expected to
be especially important for expanding manufacturing, by
increasing intracontinental manufacturing exports by 110
percent, which will diversify African economies and decrease
the reliance of such economies upon extracting natural
resources.
(3) The AfCFTA will also increase African manufacturing
exports to the rest of the world by 46 percent. As a result of
the AfCFTA creating new commercial opportunities and
diversifying global supply chains, the rest of the world's
gross domestic product is expected to increase by
$76,000,000,000.
SEC. 3. STATEMENT OF POLICY.
It is the policy of the United States to--
(1) support the African Union's Agenda 2063 efforts to
promote regional economic development, diversification, and
integration by stimulating greater trade and investment among
African countries and between Africa and the global trade
partners of Africa, notably including greater collaboration
with the United States;
(2) partner with the African Union Commission, African
Union entities such as the African Continental Free Trade Area
Secretariat, regional economic communities, and other
intergovernmental African organizations to bolster trade and
investment at the regional, intracontinental, and international
levels;
(3) increase opportunities for trade and investment between
African countries and United States businesses, including those
owned by members of the African diaspora, thereby contributing
to potential United States economic growth; and
(4) promote the goals of the African Continental Free Trade
Area (AfCFTA), formed by the Agreement Establishing the African
Continental Free Trade Area, done at Kigali, Rwanda on March
21, 2018, to simplify and expedite trade and investment among
African countries and expand commercial opportunities for
underserved groups, women, and youth entrepreneurs.
SEC. 4. PRESIDENT'S STRATEGY TO PROMOTE THE AFRICAN CONTINENTAL FREE
TRADE AREA.
(a) Development of Strategy.--
(1) United states trade representative.--The President
shall, using existing interagency trade policy development and
coordination authority and mechanisms, direct the United States
Trade Representative to develop a 10-year Federal strategy to
promote the AfCFTA to achieve the following goals:
(A) Improving the efficacy, efficiency, and
coordination of United States development aid and
technical assistance focusing on trade capacity
building that is provided to African countries,
regional communities, and intergovernmental or
multinational entities, including to the AfCFTA
Secretariat.
(B) Implementing trade policy priorities of the
AfCFTA developed in coordination with continental,
regional, and country partners in Africa.
(2) Elements.--The strategy developed pursuant to paragraph
(1) shall also include policy or program plans to accomplish
the following:
(A) Increasing the volume and velocity of goods and
services trade between African countries by improving
customs operations, which may include--
(i) providing support for increased
automation or online processing of customs and
cross-border trade-related tasks; and
(ii) supporting efforts--
(I) to ensure adequate access to
reliable electrical power supplies and
internet access to foster
digitalization where necessary; and
(II) to provide paper-based or
other applicable technical alternatives
at border crossings where electricity
or internet access is unreliable or
unavailable, including in coordination
with the United States Power Africa
initiative where applicable.
(B) Expanding trade capacities and supporting
trade-related infrastructure development, prioritizing
major intra-African trade corridors.
(C) Supporting the implementation and success of
the AfCFTA and its goals as identified in consultation
with African counterparts at the continental, regional,
and country level, including by--
(i) advancing African regional and
intracontinental alignment of trade-related
legal and administrative procedures;
(ii) strengthening the technical capacity
of the AfCFTA Secretariat; and
(iii) promoting the development and
expansion of African regional economic
communities as they pertain to fostering trade,
including through direct consultation and
partnership with the AfCFTA Secretariat.
(D) Improving the efficacy of United States trade
capacity building to support the AfCFTA's
implementation, as appropriate, by preventing
duplication of or incompatibility between the
assistance activities of other major donors (such as
nongovernmental organizations, other countries, and
intergovernmental organizations) and the policies and
projects included in the strategy.
(E) Enabling more effective and inclusive
participation of stakeholders, including those
representing workers, environmental sustainability,
women, youth, marginalized, or underrepresented groups,
in the negotiation and implementation of the AfCFTA.
(F) Increasing United States trade and investment
to expand African regional value chains, especially as
it relates to increasing manufacturing and production
on the continent in industries expected to grow with
the implementation of the AfCFTA.
(G) Evaluating the industries in which the United
States has a comparative advantage in Africa relative
to other countries, and promote trade and investment
within those industries, especially in industries
expected to grow with the implementation of the AfCFTA.
(3) Prior approval and biennial updates.--The strategy
required by this subsection may only be developed through prior
consultation with, and submitted with the approval of, the
Trade Policy Staff Committee established pursuant to section
242(a) of the Trade Expansion Act of 1962 (19 U.S.C. 1872(a)).
Such strategy shall also be updated biennially with such prior
consultation and pursuant to such approval.
(4) Consultation.--In developing the strategy described in
this subsection, the United States Trade Representative shall,
as appropriate and practicable, consult with--
(A) stakeholders in the United States and in Africa
from the private sector, civil society, and African
diaspora;
(B) relevant African Union entities such as the
AfCFTA Secretariat;
(C) State, local, and Tribal governments; and
(D) United States development agencies and entities
not represented on the Trade Policy Staff Committee,
such as the Prosper Africa Initiative, Millennium
Challenge Corporation and Development Finance
Corporation.
(b) Initial Report.--Not later than 270 days after the date of the
enactment of this Act, the President shall (subject to the prior
approval required under subsection (a)(3)) submit to the relevant
congressional committees an initial report that includes the strategy
developed pursuant to subsection (a) and an implementation plan for
such strategy that includes each of the following:
(1) The rationale, objectives, and anticipated manner of
implementation of the strategy.
(2) The anticipated role of each agency represented in the
interagency in the implementation of such strategy.
(3) A summary of the current trade capacity-building
programs, projects, and activities of the United States in
support of the AfCFTA as of the date of the submission of the
report, and the relationships between such programs, projects,
and activities and the objectives of the strategy.
(4) Any gaps, inefficiencies, or unmet needs identified in
the course of preparing the summary described in paragraph (3).
(5) Qualitative and quantitative goals and metrics for the
implementation of the strategy, including the criteria to be
used in monitoring and evaluating progress towards the
objectives of the strategy.
(6) Recommendations, in consultation with the Director of
the Office of Management and Budget, relating to programmatic
or appropriations measures that could potentially enhance the
implementation of the strategy including legislative or
executive policy changes for such enhanced implementation.
(c) Biennial Update and Report.--Not later than 2 years after the
submission of the initial report required by subsection (b), and every
two years thereafter for 8 years, the President shall submit to the
relevant congressional committees a report containing revisions and
updates to the strategy required by subsection (a) and an assessment of
the progress made in implementing the strategy as described in such
initial report. Such biennial progress reports shall also include each
of the following:
(1) A description of the obligation and expenditure of all
amounts made available to carry out the strategy during the
preceding two fiscal years, disaggregated by fiscal year,
account, and activity.
(2) Notable successes and challenges relating to the
implementation of the strategy.
(3) An evaluation of the progress toward achieving the
qualitative and quantitative goals and metrics included in the
initial report pursuant to subsection (b)(5).
(4) Any updates and revisions made to the criteria
described in subsection (b)(5) and included in the initial
report.
(5) Updated recommendations as described in subsection
(b)(7).
(d) Final Report.--Not later than 10 years after the date of the
submission of the initial report required by subsection (b), the
President shall submit to the relevant congressional committees a
report that assesses progress over the preceding decade of the
strategy. Such report shall also include each of the following:
(1) An assessment of the progress made in the
implementation of the strategy over the preceding decade with
respect to each of the goals described in subsection (a)(3),
including with respect to the qualitative and quantitative
goals and metrics included in the initial report pursuant to
subsection (b)(5) and using the criteria described in such
subsection (b)(5).
(2) An assessment of the successes, challenges, and
effectiveness of the strategy.
(3) Recommended legislative or executive policy changes
relevant to addressing any gaps, policy or program
shortcomings, or other outstanding challenges relating to the
goals of the strategy, along with descriptions of prospective
follow-up activities necessary to address such challenges.
(4) Recommendations relating to fostering further synergies
between implementation of activities, as relevant and
appropriate, relating to the African Growth and Opportunity Act
(19 U.S.C. 3701 et seq.), the AfCFTA, and any other United
States trade policy initiatives towards Africa, including types
of activities and expected outcomes based on the implementation
of the strategy.
(5) A detailed description of the expenditure of all
amounts authorized to implement the strategy throughout the 10-
year period, including amounts appropriated pursuant to the
authorization under section 5(b), disaggregated by fiscal year,
account, and activity.
(e) Publication.--Each report required by this section shall be
submitted in unclassified form and may include a classified annex. The
unclassified portion of each such report shall be posted on publicly
available websites of the Office of the United States Trade
Representative.
SEC. 5. AFCFTA TRADE CAPACITY BUILDING PROGRAM.
(a) Trade Capacity Building Implementation.--The Administrator of
the United States Agency for International Development shall establish
an AfCFTA Trade Capacity Building Program to support the implementation
of the strategy required by section 4 through existing authorities
granted by the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.),
in collaboration with continental, regional, and country partners in
Africa. In carrying out such Program, the Administrator--
(1) may designate the Prosper Africa Initiative to
administer the AfCFTA Trade Capacity Building Program;
(2) may support multi-year and renewable activities with
the AfCFTA Trade Capacity Building Program;
(3) shall consult with the United States Trade
Representative in making programmatic decisions; and
(4) shall receive approval from the Trade Policy Staff
Committee established pursuant to section 242(a) of the Trade
Expansion Act of 1962 (19 U.S.C. 1872(a)) for all activities
for which funds are planned to be made available (including any
transfers to other Federal departments, agencies, or entities)
in a fiscal year from the AfCFTA Trade Capacity Building
Program before the start of such fiscal year.
(b) Authorization of Appropriations.--There is authorized to be
appropriated $200,000,000 for each of fiscal years 2025 through 2034
for the United States Agency for International Development to carry out
the AfCFTA Trade Capacity Building Program described in subsection (a).
Amounts so authorized--
(1) shall be in addition to amounts otherwise authorized
for existing projects, programs, and activities that support
the goals of such Program;
(2) may also be made available for consulting or technical
services, equipment, new personnel, or other project-related
administrative expenses associated with the development,
implementation, and reporting requirements of the President's
strategy required by section 4(a); and
(3) are authorized to be transferred from the United States
Agency for International Development to other appropriate
Federal departments or agencies to the extent provided in
advance by appropriations Acts.
SEC. 6. RULE OF CONSTRUCTION.
Nothing in this Act may be construed to--
(1) limit any authority or responsibility of the United
States Trade Representative relating to the establishment or
implementation of the trade policies of the United States
(including under section 141 of the Trade Act of 1974 (19
U.S.C. 2171)); or
(2) transfer any such authority or responsibility to the
Administrator of the United States Agency for International
Development.
SEC. 7. DEFINITIONS.
In this Act:
(1) AfCFTA.--The term ``AfCFTA'' means the African
Continental Free Trade Area authorized to be created under the
Agreement Establishing the African Continental Free Trade Area,
adopted by its African Union signatories in Kigali, Rwanda, on
March 21, 2018.
(2) Relevant congressional committees.--The term ``relevant
congressional committees'' means the following:
(A) The Committee on Foreign Affairs, the Committee
on Ways and Means, and the Committee on Appropriations
of the House of Representatives.
(B) The Committee on Foreign Relations, the
Committee on Finance, and the Committee on
Appropriations of the Senate.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Ways and Means, and in addition to the Committee on Foreign Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committee on Foreign Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
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