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85–644PDF 2014

INCREASING AMERICAN JOBS THROUGH GREATER

EXPORTS TO AFRICA ACT OF 2013

MARKUP

BEFORE THE

SUBCOMMITTEE ON AFRICA, GLOBAL HEALTH, 

GLOBAL HUMAN RIGHTS, AND 

INTERNATIONAL ORGANIZATIONS

OF THE

COMMITTEE ON FOREIGN AFFAIRS 

HOUSE OF REPRESENTATIVES

ONE HUNDRED THIRTEENTH CONGRESS

FIRST SESSION

ON

H.R. 1777

NOVEMBER 21, 2013

Serial No. 113–122

Printed for the use of the Committee on Foreign Affairs

(

Available via the World Wide Web: http://www.foreignaffairs.house.gov/ or

http://www.gpo.gov/fdsys/

(II)

COMMITTEE ON FOREIGN AFFAIRS 

EDWARD R. ROYCE, California, Chairman 

CHRISTOPHER H. SMITH, New Jersey 

ILEANA ROS-LEHTINEN, Florida 

DANA ROHRABACHER, California 

STEVE CHABOT, Ohio 

JOE WILSON, South Carolina 

MICHAEL T. MCCAUL, Texas 

TED POE, Texas 

MATT SALMON, Arizona 

TOM MARINO, Pennsylvania 

JEFF DUNCAN, South Carolina 

ADAM KINZINGER, Illinois 

MO BROOKS, Alabama 

TOM COTTON, Arkansas 

PAUL COOK, California 

GEORGE HOLDING, North Carolina 

RANDY K. WEBER SR., Texas 

SCOTT PERRY, Pennsylvania 

STEVE STOCKMAN, Texas 

RON DESANTIS, Florida 

TREY RADEL, Florida 

DOUG COLLINS, Georgia 

MARK MEADOWS, North Carolina 

TED S. YOHO, Florida 

LUKE MESSER, Indiana 

ELIOT L. ENGEL, New York 

ENI F.H. FALEOMAVAEGA, American 

Samoa 

BRAD SHERMAN, California 

GREGORY W. MEEKS, New York 

ALBIO SIRES, New Jersey 

GERALD E. CONNOLLY, Virginia 

THEODORE E. DEUTCH, Florida 

BRIAN HIGGINS, New York 

KAREN BASS, California 

WILLIAM KEATING, Massachusetts 

DAVID CICILLINE, Rhode Island 

ALAN GRAYSON, Florida 

JUAN VARGAS, California 

BRADLEY S. SCHNEIDER, Illinois 

JOSEPH P. KENNEDY III, Massachusetts 

AMI BERA, California 

ALAN S. LOWENTHAL, California 

GRACE MENG, New York 

LOIS FRANKEL, Florida 

TULSI GABBARD, Hawaii 

JOAQUIN CASTRO, Texas

AMY PORTER, Chief of Staff THOMAS SHEEHY, Staff Director

JASON STEINBAUM, Democratic Staff Director 

SUBCOMMITTEE ON AFRICA, GLOBAL HEALTH, GLOBAL HUMAN RIGHTS, AND

INTERNATIONAL ORGANIZATIONS

CHRISTOPHER H. SMITH, New Jersey, Chairman 

TOM MARINO, Pennsylvania 

RANDY K. WEBER SR., Texas 

STEVE STOCKMAN, Texas 

MARK MEADOWS, North Carolina 

KAREN BASS, California 

DAVID CICILLINE, Rhode Island 

AMI BERA, California 

(III)

C O N T E N T S 

Page

MARKUP OF 

H.R. 1777, To create jobs in the United States by increasing United States 

exports to Africa by at least 200 percent in real dollar value within 10 

years, and for other purposes .............................................................................. 2

Amendment in the Nature of a Substitute to H.R. 1777 offered by the 

Honorable Christopher H. Smith, a Representative in Congress from 

the State of New Jersey, and chairman, Subcommittee on Africa, Global 

Health, Global Human Rights, and International Organizations ................ 24

LETTERS, STATEMENTS, ETC., SUBMITTED FOR THE RECORD 

APPENDIX 

Markup notice .......................................................................................................... 44

Markup minutes ...................................................................................................... 45

Markup summary .................................................................................................... 46

(1)

INCREASING AMERICAN JOBS THROUGH 

GREATER EXPORTS TO AFRICA ACT OF 2013

THURSDAY, NOVEMBER 21, 2013

HOUSE OF REPRESENTATIVES,

SUBCOMMITTEE ON AFRICA, GLOBAL HEALTH,

GLOBAL HUMAN RIGHTS, AND INTERNATIONAL ORGANIZATIONS,

COMMITTEE ON FOREIGN AFFAIRS,

Washington, DC. 

The subcommittee met, pursuant to notice, at 10 o’clock a.m., in 

room 2172 Rayburn House Office Building, Hon. Christopher H. 

Smith (chairman of the subcommittee) presiding. 

Mr. SMITH. The subcommittee will come to order. Pursuant to notice, the subcommittee will meet this morning to markup H.R. 

1777, the Increasing American Jobs Through Greater Exports to 

Africa Act of 2013. As our members are aware, this measure enjoys 

strong bipartisan support. There are competing hearings and other 

events taking place this morning so we will move quickly to its consideration. 

It is the intent of the Chair to consider this measure en bloc, 

along with a substitute amendment sent to you on Tuesday. 

All members have copies of these documents before them, and 

then after we have concluded our expedited consideration I will recognize myself, Mr. Cicilline, who is sitting in for Ranking Member 

Bass, and any other members who would like to make a statement. 

All members are given leave to insert written remarks in the 

record should they choose to do so. 

Seeing that a reporting quorum is present and without objection, 

the following are considered as read and will be considered en 

bloc—H.R. 1777, the Increasing American Jobs Through Greater 

Exports to Africa Act of 2013 and the Smith Amendment 36 to H.R. 

1777 sent to your offices on Tuesday. 

[The information referred to follows:]

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113m CONGRESS 

ls'1' S:r.:SSlOl\ H. R.1777 

To (:n:ate jobs in the United States by increasing United States f:Allorts 

to Africa by at leas\. 200 percen\. in real dollar value within 10 years, 

and for o\.her purposes. 

IK THE HOUSE OF REPRESE~TATIVES 

APRIL 26, 2013 

.Vlr. S1fTI'H of :'\cw .jrrsey (for himself, .vIr. !inRH, and Ms. BARR) introduced 

the folJO\ving bilL which was referred to the Committee on Forpig11 Affairs, and in addition to the Committees on 'Ways and }Ieans, Small 

Bm,iness, and Financial Senices, for a period to be subsequently determilled by tlle Speaker, in each case for considerat.ion of such prov~siol1s 

at': fa.ll within the jurisdid.ion of the (·ollunitT.e(~ con(:erned 

A BILL 

To (~reate jobs in the rnited States hy inm'easing- United 

States exports to j.\1rica by at least 200 percent ill real 

dollar value v.~thin 10 years, and for other purposes. 

Be d enacted by the 8enate and House of Rr:presenta2 Nves of the United States of~~mel'icam d)1I.1l'noSS assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Ad may he eited as the "In(~rea8ing Ameri(~an 

5 ,Jobs Through Greater Exports to Africa Act of 2013". 
3


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2 

1 SEC. 2. FINDINGS; PURPOSE. 

2 

3 

4 

5 

6 

7 

8 

lUgS: 

FIKDINGS.-Congress makes the follmving fin<1-

(1) E).lJort growth helps United Statf's businesses gro'vV and create American jobs. In 2011, 

United States e).lJorts supported 9,700,000 jobs and 

97.S pereent of rnited States e}q)orts (~ame from 

small- and medium-sized businesses in 2010. 

9 (2) The more than 20 Federal agencies that are 

10 involved ill export promotion and finallcillg are Hot 

11 snfficiently coordinated to adequately e)q)and rnited 

12 States eommereial e).lJorts to Africa. 

13 (3) The President has taken steps to improve 

14 how the United States Government supports Amer15 lcan busitlesses by maHdatiIl~t an exeeutive reVIeW 

16 across agencies and a nevr Doing Business in Africa 

17 initiative, hut a substantially greater high-level fo('us 

18 on Afriea is needed. 

19 (4) Many other eountries have trade promotion 

20 programs that aggTessivcly compete against l:uited 

21 States e).lJOrts in Africa and around the ·world. For 

22 example, in 2010, rnedium- and long·-term offieial ex23 port eredit general volumes from the Group of 7 

24 countries (Canada, France, Germany, Italy, ,Japan, 

25 the Ullited Kitlgdom, and the Uuited States) totaled 

26 $65,400,000,000. Germany provided the largest level 
4


85644a-3.eps

:1 

of support at $22,500,000,000, followed by Franee 

2 at $17,400,000,000 and the United States at 

3 $1:1,000,000,000. Offieial e}q)()rt ere !lit support by 

4 emel'g'ing market economies such as Brazil, China, 

5 and India are significant as well. 

6 (5) Between 2008 and 2010, China alone pt'O7 videcl more than $110,000,000,000 in loans to the 

8 developing world, and, in 2008, China surpassetl the 

9 United States as the leading trade partner of Afri10 can countries. In the last 10 years, African trade 

11 with Chi11a has increased from $11,000,000,000 to 

12 $1 GG,OOO,OOO,OOO. 

13 (()) The EA1)Ort-Import Bank of the r nited 

14 States substantially increased lending to rl1ited 

15 States lJUsinesses fo(mse!l on ~Vri(~a from 

16 $400,000,000 in 2009 to $1,400,000,000 ill 2011, 

17 but the EA1)Ort-Import. Banl<: of China dwarfed this 

18 effort with all estimated $12,000,000,000 worth of 

19 financing. Overall, China is outpacing the rnited 

20 States in selling goods to Africa at a rate of :3 to 

21 1. 

22 (7) Other countries such as India, Turkey, Rus23 SIa, and Brazil are also aggressively seeking markets 

24 in l'lirica using their national eA1l0rt banks to pro25 vide concessional assistance. 
5


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2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

4: 

(R) The Chinese pradi(~e of eOlwessional final1(~­

ing runs contrary to the principles of the Organization of Eeonomie Co-operation amI Development related to opell market rates, uudermines naturally 

competitive rates, and can allow governments ill Africa to overlook the troubling' reeord on labor practices, human rights, and environmental impact. 

(9) As stated in a reeent report entitled "Ernbracing Africa's Economic Potential" Senator 

Chris Coons, "Economic growth in Africa has risen 

dramatically, but the cOtltinent's vast economic potential has not yet been fully reali7.ed by the U.S. 

Government or the Ameriea n private sedor.". 

(10) The klfricall continent is undergoing a periot1 of rapid gTo\vth and middle dass development, 

as seen from major indicators such as luternet use, 

clean water access, and real income grclIvth. In the 

last decade a1011e, the percelltage of the populatioll 

with access to the Internet has doubled. Seventyeight percent of Africa's mral popnlation now has 

access to clean water. Over the past 10 years, real 

income per person in Africa has grcflvll by more than 

30 percent. 

(11) Economists have designated Africa as the 

"next frontier market", with profitability of many 
6


85644a-5.eps

lliriean firms and gTovvth rates of Afriean eountries 

2 exceeding global averages in recent years. Countries 

3 in 1liriea have a eolleetive spemling po\ver of almost 

4 $B,OOO,OOO,OOO and a gross domestic product of 

5 $1,600,000,000,000, which are projected to double 

6 in the llext 10 years. 

7 (12) In the past 10 years, Mrica has been 

8 home to 6 of the 10 fastest gTowing- eeonomies in 

9 the world. Sub-Saharan 1:Vrica is projected to have 

10 the fastest growing economies in the world over the 

11 next 10 ,Years, with 7 of the 10 fastest growmg 

12 economies located in sub-Saharan Africa. 

l3 (1~) \';11en eountries suell as China assist I'rith 

14 large-scale government projects, they also gain an 

15 upper hand in relations yvith Mriean leaders and cW16 eess to valuable commodities such as oil and eoppcr, 

17 t:n)ically yvithout regard to environmental, human 

18 rights, labor, or 12uveruanee standards. 

19 (14) Unless the United States can offer COlIl20 petitive financing for its firms in Africa, it will be 

21 deprived of opportunities to partieipate in Afriean 

22 efforts to dose the continent's significant infrastrue23 ture gap that amounts to an estimated 

24 $100,000,000,000. 
7


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6 

(1)) PURP08E.-The purpo~e of this Ad, is to ere ate 

2 jobs in the United States by e)q)anding programs that ,NiH 

3 result in inerea~ing United State~ e::q)()rt~ to Afriea by 200 

4 percent in real dollar value within 10 years. 

5 SEC. 3. DEFINITIONS. 

6 In this Act; 

7 (1) AFRICA.-The term "Africa" refers to the 

8 entire wntinent of Afriea and its fS4 eountries, in9 cluding the Republic of South Sudan. 

10 (2) AFRICAN DTASPORA.-The term "African 

11 diaspora" means the people of ~\fricall or'igill living 

12 in the United States, irrespective of their citi7.enship 

13 and nationality, who are ,\rUling to eontrihute to the 

14 development of Africa. 

15 (8) AGOA.-The term "AGOA" means the ",,'li16 ["ican Growth and Oppoltunity Act (H) e.S.C. 3701 

17 et seq.). 

18 (4) ApPROPRIATE CO.:-.rGH.ESSlONAL COlVL\ll'1'-

19 TEES.-The term "appropriate congressional COUl20 mittees" means21 (A) the Committee on Appropriations, the 

22 Committee on Banking, Housing, and rrban 

23 .Affairs, the Committee on Foreign Relations, 

24 and the Committee on Finance of the Senate; 

25 and 
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7 

(B) the Committee on Appropriation14, the 

2 Committee on Energy and Commerce, the Com3 rnittee on Finaneial Serviees, the Committee on 

4 }'oreign Affairs, alld the Committee em Ways 

5 and IVfeans of the House of R,epresentatives. 

6 (5) Ih:v~LOPIVmN'l' AG~.:-.Icms.-The term "de7 velopment agencies" includes the Department of 

8 State, the United States Ageney for International 

9 Development (USAID), the Millennium Challenge 

10 Corporation (MCC), the Overseas Private Tnvest11 meat Corporation (OPIC), the United States Trade 

12 and Development Agency (lTSTDA), the rnited 

13 State14 Department of Agrieulture (USDA), and rel14 evant multilateral development banks. 

15 (6) TRADE POLICY STAFF COMlVIITTEE.-The 

16 term "Trade Policy Staff Committee" means the 

17 Trade Policy Staff Committee established pursuant 

18 to section 2002.2 of title 15, Code of }1'ederal Hqm19 lations, and is composed of representatives of Fed20 era] agencies in charge of developing and coordi21 nating rnited States positions on international trade 

22 and trade-related investment issues. 

23 (7) MULTILATERAL D~V~LOPlvmN'1' Bih"1KS.-

24 The term "multilateral development banks" has the 

25 meaning given that term in section 1701(c)(4) of the 
9


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R 

International Finaneial Institutions Aet (22 U.s.C. 

2 2621'(c)(4)) and includes the African Development 

3 Foundation. 

4 (~) SUB-SAHARill,\) RBGlON.-The term "sub-Su5 hRran region" refers to the 49 countries listpd in 

6 section 107 of the Africau Cfrowth atld Opportunity 

7 Act (19 U.S.C. :3706) and includes the Republic of 

8 South Sudan. 

9 (9) TrcADE PROl\IOTIO:-r COORDIKATIKG COM10 lVfTTTER.-The term "Trade Promotion Coordinating 

11 Committee" meallS the Trade Promotioll COOl·di12 nating Committee established by Executive Order 

13 12870 (5R Fea. Reg. 51758). 

14 (10) UNITED STATES AKD FOFmION CO lV[\IER15 CIAL SERVICE.-The term "United States and For16 eign Commercial Service" meatlS the United States 

17 and Foreign Commercial Service established by sec18 tion 2801 of the Export IDnhanccmcut Act of H)88 

19 (15 U.S.C. 4721). 

20 SEC. 4. STRATEGY. 

21 (a) IN GENERAL.-Kot later than 180 days after the 

22 date of the enactment of this Act, the President shall es23 tablish a comprchcllsivc Unitcd States stratc~y for public 

24 and private investment, trade, and development in "Africa. 
10


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9 

(h) Focus OF STRATEGY.-The strategy re(111ired by 

2 subsection (a) shall focus on3 (1) inereasing e~l)orts of rnited States goods 

4 and services to Africa by 200 percent ill real dollar 

5 value ~within 10 years from the date of the enact6 mCllt of this Aet; 

7 (2) pro111oting the alignment of rnited States 

8 eommer<~ial intere8t8 with development prioritie8 in 

9 Africa; 

10 (3) developing relationships between the govern11 mCtlts of countrics in Afriea aud U lilt cd Statcs busi12 nesses that have an eXl)ertise in sueh issues as infra13 strudure development, tedmology, teleeommuni14 cations, energy, and agriculture; 

15 (4) improving the ('ornpditivenes8 of 1~nited 

16 States businesses ill Africa, iucluding' the role thc 

17 African diaspora can play in enhancing such C0111-

18 petitivcllcss; 

19 (5) e~l)loring ways that African diaspora remit20 tanees can help communities in Africa tackle eco21 nounc, development, and infrastructure financing 

22 needs: 

23 (6) pl"Omotiug economIC intcgration in ~\frica 

24 through working with the subregional eeonomic C0111-

25 munities, supporting efforts for deeper integration 
11


85644a-10.eps

10 

through the development of (;Hstoms U1110ns within 

2 western and central Africa and ~within eastern and 

3 southern Afriea, eliminating tirne-(:onsuming border 

4 formalities illto aucl vvithin these areas, atld sup5 porting regionally based infrastrncture projects; 

6 (7) cneouragillg a greater uuderstanding among 

7 United States business and financial eommunities of 

8 the opportunities Afri('a hohls for United States ex9 ports; 

10 (8) fostering partnership opportunities between 

11 United States alld l'uriean small- and medium-si;.-;ed 

12 entel1wises; and 

13 (9) monitoring14 (A) market loan rates and the availability 

15 of (~apital for United States business investment 

16 in lliric3j 

17 (B) loan rates offered by the governments 

18 of other countries fot' illvestmetlt in Afriea; alld 

19 (C) the policies of other countries ~with re20 spect to e}q)ort financing for investment ill Afri21 ca that are predatory or distort markets. 

22 (c) CONSUljTATIONS.-In developing the strategy re23 quired by subseetioll (a), the President shall consult 

24 vvith25 (1) Congress; 
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11 

(2) ea eh agen(~y that i~ a memher of the Trade 

2 Promotion Coordinating Committee; 

3 (0) the relevant multilateral development bank~, 

4 Hi coordillatioll with the Secretary of the Treasury 

5 and the respective United States Executive Directors 

6 of such banks; 

7 (4) each agency that participates in the Trade 

8 Poli('y Staff Committee; 

9 (5) the President's Kational E:X1lort Council; 

]0 (6) each of the development agencies; 

11 (7) an,Y other Federal agencies with respOllSl12 hility for export promotion or financing and develop13 ment.; and 

14 (8) the private sector, induding businesses, 

15 nongovernmental organizations, and Afriean dias16 pora groups. 

17 (d) SUmu88IO~ TO COXGRE88.-

18 (1) S'1'RA'rEGY.-Not latcr than 180 days aftcr 

19 the date of the enactment of this Act, the President 

20 shall submit to Congress the strategy required by 

21 subsection (a). 

22 (2) PROGRE88 REPORT.-Not later than 3 

23 years after the date of the enactment of this Act, the 

24 President shall submit to Congress a report on the 
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12 

implementation of the strategy required by suh2 section (a). 

3 CCH,TENT OF REPORT.-The report re4 qui red by paragraph (2) shall illclude an assessment 

5 of the extent to ,vhich the strategy required by sub6 sectiotl (a)-

7 (A) has been successful in developing crit8 i(~al analyses of policies to increase e}.11orts to 

9 Africa; 

10 (TIl has been successful in increasing the 

11 competitiveness of United States businesses ill 

12 Africa; 

13 (C) has been sueeessful in ereating jobs in 

14 the United States, including the nature and 

15 sustainahility of SUdl jobs; 

16 (D) has provided sufficicnt United States 

17 Government support to meet third country com18 petition in the rcgioll; 

19 (E) has been successful m helping the Af20 ricall diaspora in the United States participate 

21 in economic gruvvth in Africa; 

22 (F) has been successful in promoting eco23 nomic integratiotl in l\£rica; and 

24 (G) has made a meaningful contribution to 

25 the transformation of Africa and its full illte-
14


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2 

3 

4 

5 

18 

gration into the 2 bt (~entury worM eeonOlllY, 

not only as a supplier of primary products but 

also as full partieipant in international supply 

alld clistrirmtioll chains aad as a consumer of 

international goods and services. 

6 SEC. 5. SPECIAL AFRICA STRATEGY COORDINATOR. 

7 The President shall designate an individual to serve 

8 as Spe(;ial Afriea E::qlOrt Strategy Coonlinator9 (1) to oversee the development and implement a10 tioll of the strategy required by section 4; and 

11 (2) to coordinate with the Trade Promotion Co12 ordinating Committee, (the interagency AGOA comB mittees), and !levelopment ageneies with resped to 

14 developing and implementing the strategy. 

15 SEC. 6. TRADE MISSION TO AFRICA. 

16 It is the sense of Congress that, not later than 1 year 

17 after the date of the enactment of this Act, the Secretary 

18 of Commerce and other high-level officials of the Luited 

19 States Government with responsibility for e:X'Port pro20 rnotion, financing, and development should conduct a joint 

21 trade mission to Africa. 

22 SEC. 7. PERSONNEL. 

23 (a) UNITED STATES ~!li"D FOREIGN CO~\llVillRCLU 

24 SERVICE.-
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14 

(1) I~ (m~EHAL.-The Reeretary of Commeree 

2 shall ensure that not less than 10 total rnited 

3 RtateN and ForeigTl C()mrnen~ial Rerviee offieerN are 

4 assigned to Africa for each of the first [) fisea1 years 

5 beginning after the date of the enactment of this 

6 Act. 

7 (2) AS8IGKlYIE,{T.-The Secretary shall, in COB8 Nultation \vith the Trade Promotion Coordinating 

9 Committee and the Special Africa E:x~ort Strategy 

10 Coordinator, assigl1 the rllited States and Foreign 

11 Commcrcial Scrviec offiecrs dcseribcd ill paragraph 

12 (1) to United States embassies in Afriea after conn dueting a timely reNouree allo(~ation analYNi8 that 

14 represents a forward-looking assessment of future 

15 Unite a Rtate8 trade opportunit.ies in Afri(~a. 

16 (3) ~\lUL'l'lLATl£R,,'i.L DEVl£LOP~\1K:--,rT K~,\K8.-

17 (A) L"J GEKERAL.-As soon as practieable 

18 aftcr thc datc of the enactment of this Act, the 

19 Secretary of Commeree shall, using existing 

20 staff, assign not less than 1 full-time rnited 

21 States and Foreign Commercial Serviee offieer 

22 to the office of the United States Executive Di23 rcctor at thc ~Wodd Batlk and the ""lirican Dc24 velopment Bank. 
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2 

3 

4 

5 

6 

7 

8 

9 

]0 

15 

(B) RE8PON8IBILITIE8.-Eadl rnited 

States and Foreign Commercial Sen/ice officer 

3ssignea under suhparagraph (A) shall he responsible £0["-

(i) increasing the access of rnited 

States businesses to procuremetlt contracts 

with the multilateral development bank to 

whieh the offieer is assigned; amI 

(ii) facilitating the access of rnited 

States businesses to risk insurance, equity 

11 investments, consulting services, and lend12 ing provlded by that bank. 

13 (1)) ExpC>RT-IMPORT BL\NK OF THE U.:-JITED 

14 STATEs.-Of the amounts collected by the Ezq)ort-Import 

15 Bank that remain after pa)ing the expenses the Bank is 

16 authoriz;ed to pay from such amoullts for administrative 

17 ezq)enses, the Bank shall use sufficient funds to do the 

18 following: 

19 (1) Increase the number of staff dedicated to 

20 exl)anding business development for Africa, including 

21 increasing the number of business development trips 

22 the Bank conducts to Africa and the amount of time 

23 staff spemls in ~\friea to meet the goals set forth ill 

24 section 9 and paragraph (4) of section 6(a) of the 
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16 

E:A1)Ort-Irnport Bank of 1945, as H(lded hy seetion 

2 9(a)(2). 

3 (2) Maintain an appropriate number of employ4 ees of the Bank assigned to United States field of5 fices of the Bank to be distributed as geogTaphically 

6 appropriate through the U luted Statcs. Sueh offiees 

7 shall coordinate w"ith the related e:A1lort efforts un8 dertaken hy the Small Business Administration re9 gional field offices. 

]0 (3) Upgrade the Bank's equipment and soft11 ware to morc expeditiously, effeetively, and cffi12 ciently process and track applications for financing 

13 re(~eived by the Bank. 

14 OVERSEAS PRIVATE Il\TV"ESTMENT CORPORA15 TIO:--J.-

16 

17 

18 

19 

20 

21 

23 

24 

(1) S'1'A1"1<'I1\O.-Of the net offsettitlg colledions 

collected by the Overseas Private Investment Corporatioll used for administrative expenses, the Corporation shall use sufficient funds to increase by not 

more than 5 the staff needed to promote stahle and 

sustainable economic growth and development in Africa, to strengthen and e:A1lanc1 the private sector in 

l\:trica, and to facilitate the general eeonomic development of Africa, \vith a particular focus on helping 
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17 

Unite a States businesses e::-qmnd into Afriean mar2 kets. 

3 (2) REPoRT.-The Corporation shall report to 

4 the appropriate congressional committees on whether 

5 recent teehnology upgTades have resulted in more ef6 fcctivc and efficieut processing aud tracking of appli7 eations for financing received by the COl1)oration. 

8 (8) CERTAl~ COSTS NOT COKSIDERED ADlVIINIS9 TR~TIVE EXPENSES.-For pUl1)oses of this sub10 section, systems infrastructure eosts assoeiated with 

11 activities authoriwd b.y title IV of chapter 2 of part 

12 T of the Foreign Assistanee Aet of 19G1 (22 U.S.C. 

l3 2:11 et serl.) shall not he eonsiaered administrative 

14 expenses. 

15 (d) RULE OF CONSTRUCTION.-Kothing in this se(~-

16 tio[1 shall be construed as pennitting the reduction of De17 partment of Commeree, Department of State, E~~ort Im18 port Ballk, or Overseas Private Investment Corporation 

19 personnel or the alteration of planned personnel increases 

20 in other regions, except where a personnel decrease was 

21 previously antieipated or where decreased e~~ort opportu22 nities justif~y personnel reduetiol1s. 

23 SEC. 8. TRAINING. 

24 The President shall develop a plan-
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18 

(1) to ~tandardize the training re('eived hy 

2 United States and Foreign Commercial Service offi3 eer~, eeonorni(~ offieer~ of the Department of State, 

4 and economic offieers of the United States Agelley 

5 for International Development vvith respect to the 

6 programs and proecdurcs of thc Export-Import 

7 Bank of the United States, the Overseas Private In8 ve::;tment Corporation, the Small Bu::;ines::; Adrnini~-

9 tration, and the rnited States Trade and Develop10 ment Agency; and 

11 (2) to cnsurc that, not later than 1 ycar aftcr 

12 the date of the enaetment of this Aet13 (A) all United States and Foreign Corn14 mercial Serviee offieers that are stationed over15 ~eas re(~eive the training ae~(~rihed in paragraph 

16 (1); and 

17 (B) m the ease of a eountry to which no 

18 U Ilited States and Foreign Commereial Service 

19 offieer is assigLled, any economie offieer of the 

20 Department of State stationed ill that eountry 

21 shall receive that training. 

22 SEC. 9. EXPORT-IMPORT BANK FINANCING. 

23 FIKAKCING l"OR PROJECTS IN LU'RlCA.-

24 (1) SENSE OF COKGRE8S.-It is the sense of 

25 Congress that foreigl1 e);.llort eredit agencies are pro-
20


85644a-19.eps

19 

viding llOll-OECD arrang'ement eompliant fillan(~ing 

2 in Africa, which is trade distorting and threatens 

3 Unitell States johs. 

4 (2) IN GEi\ERAL.-Section 6(a) of the Export5 Import Dank Act of 1945 (12 U.S.c. 6:35e(a)) 1S 

6 amended by adding' at the end the following: 

7 PEIWE'JT OF FINANCI:'-JG TO BE USED FOR 

8 PRO.TECTS IN AFRICA.-The Bank shall, to the ex9 tent that there are acceptable final applications, iu10 crease the amount it finances to Africa over the 

11 prior year's financing' fot' each of the first five fiscal 

12 years beginning after the date of the enactment of 

13 the Inereasing Arneri(~an ,Tobs Through Greater Ex14 ports to "Africa Act of 201:3.", 

15 (8) REPORT.-Kot later than 1 year after the 

16 date of the enactment of this Act, and allIlually 

17 thereafter for 5 years, the Export-Import Bank shall 

18 report to the Committee on Banking', Housing, and 

19 Urban Affairs, the Committee on Foreign Relations, 

20 and the Committee on Appropriations of the Senate 

21 and the Committee on Financial Services, the Com22 mittee on Foreign Affairs, and the Committee on 

23 Appropriations of the House of Representatives if 

24 the Bank has not used at least 10 percent of its 

25 lending capabilities for projects m Africa as de-
21


85644a-20.eps

20 

s(~rihed in paragraph (4) of seetion 6(a) of the Ex2 port-Import Bank of 1945, as added by paragraph 

3 (2). The report shall indude the reasons why the 

4 Bank failed to reach this goal and a description of 

5 all final applications for projects in Africa that were 

6 deemed unworthy of Bank support. 

7 (b) A VA]h~BILITY OF PORTION OF CAPIT AIJIZATIO~ 

8 To COMPETE ACL41KST FOREIGN CONCE88IO~AL 

9 Lo~~'Js.-

]0 (1) TN (m~ERAh-The Bank shall make avail11 able tlllHually such amounts as are llecessary for 

12 loans that counter trade distorting non-OECD arB rangement ('ornpliant finan(~ing or preferential, tied 

14 aid, or other related nOll-market loans offered by 

15 other nations for whieh United States ('.olllparues are 

16 also competing or illterested in competing. 

17 (2) REPORT.-l\ot later than 1 year after the 

18 date of the enactment of this Act, and allIlually 

19 thereafter for 5 years, the E:X'Port-Import Bank shall 

20 submit to the Committee on Banking, Housing, and 

21 Urban Affairs, the Committee on Foreign Relations, 

22 and the Committee on Appropriations of the Senate 

23 and the Committee on Financial Serviees, the Com24 mittee on ForeigIl~ Affairs, and the Committee on 

25 Appropriations of the Honse of R.epresentatives a re-
22


85644a-21.eps

21 

port on all loans made or rt,je('ted that were (;onsid2 ered to counter non-OECD arrangement compliant 

3 finaneing offered by other nations to its firms. The 

4 report shall not disclose any information that is COIl5 fidential or business proprietary, or that would vio6 late section H)05 of title 18, United States Code 

7 (commonly referred to as the "Trade Secrets Act"). 

8 The report shall indude 11 des('ription of tra de ais9 tOltillg non-OECD arrangement compliant financing 

10 loans made by other countries during that fiscal year 

11 to firms that competed against the United States 

12 firms. 

13 SEC. 10. SMALL BUSINESS ADMINISTRATION. 

14 Section 22(b) of the Small Business Act (15 U.S.C. 

15 649(b)) is amended16 (1) in the matter precedillg paragraph (1), b,Y 

17 inserting "the Trade Promotion Coordinating Com18 mittee," after "Director of the eluted States Trade 

19 and Development Agency, "; and 

20 (2) in paragraph (3), by inserting "regional of21 fices of the E:lI..'J)ort-Import Bank," after "Retired 

22 Executives,". 
23


85644a-22.eps

22 

1 SEC. 11. BILATERAL, SUBREGIONAL AND REGIONAL, AND 

2 MUL TILATERAL AGREEMENTS. 

3 \\There applicable, the President shall explore oppor4 tunities to negotiate bilateral, tmbregional, and regional 

5 agreements that encourage trade and eliminate llontariff 

6 balTiers to trade between countries, such as negotiating 

7 investor friendly douhle-taxation treaties amI investment 

8 promotion agreements. United States negotiators in multi9 lateral forum should take into account the ol:dectives of 

10 this ~~ct. '1'0 the extcnt any such agrecments exist betweetl 

11 the United States and an African country, the President 

12 shall ensnre that the agreement is being implemented in 

l3 a manner that maximizes the positive effects for rnited 

14 States trade, export, and labor interests as well as the eco15 llomic dcvclopmcut of the countries in Africa. 
24


85644b-1.eps

AMENDMENT IN THE NATURE OF A SUBSTITUTE 

TO H.R. 1777 

OFFERED BY MR. SMITH OF NEW JERSEY 

Strike all after the enacting clause and insert the 

follmving: 

1 SECTION 1. SHORT TITLE. 

2 This Aet may he (~ited as the "In(~reasing Ameri(~an 

3 Jobs Through Greater Exports to llirica Act of 2013". 

4 SEC. 2. FINDINGS; PURPOSE. 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

illgS: 

(a) Pll\DlNGS.-Congress makes the following find-

(1) Exl)Ort growth helps United States businesses grow and create American jobs. In 2011, 

United States e)q)orts supported 9,700,000 jobs and 

97.M pen~ent of 1~nited States e:Al)orts (~ame from 

small- and medium-sized businesses in 2010. 

(2) The more than 20 Federal agencies that are 

involved in export promotion and financing arc not 

sufficiently coordinated to adequately exl)and rnited 

States eommereial e:AllOrts to Afriea. 

(3) The President has taken steps to improve 

how the United States Government supports American businesses by mandating an executive reVIeW 
25


85644b-2.eps

2 

c:wro~~ ageneie~ and a new Doing Busine~~ in Mriml 

2 initiative, but a substantially greater high-level focus 

3 on Afriea is neelled. 

4 (4) Many other countries have trade promotion 

5 progTams that aggressively compete against rnited 

6 States exports in "Africa and around the world. ]1'or 

7 example, in 2010, medium- and long-term official ex8 port credit general volumes from the Group of 7 

9 countries (Canada, France, Germany, Italy, Japan, 

10 the United Kingdom, and the United States) totaled 

11 $65,400,000,000. Germany provided the large~t level 

12 of support at $22,500,000,000, followed by France 

13 at $17,400,000,000 and the United States at 

14 $13,000,000,000. Official export credit support by 

15 emerging market economies such as Brazil, China, 

16 and India are ~ignifimlllt as well. 

17 (5) Between 2008 and 2010, China alone pro18 vided more than $110,000,000,000 in loans to the 

19 developing' world, and, in 2009, China surpassed the 

20 United States as the leading trade partner of Afri21 can countries. Tn the last 10 years, African trade 

22 yvith China has increased from $11,000,000,000 to 

23 $166,000,000,000. 

24 (6) Other eonntrie~ sneh a~ Imlia, Turkey, Ru~-

25 sia, and Brazil are also aggressively seeking markets 
26


85644b-3.eps

in Mriea mung their national e::ql0rt hanks to pro2 vide concessional assistance. 

3 (7) The Chinese pra(~ti(~e of eoneessional finall(~-

4 ing runs cOlltrary to the principles of the Orgalli;.-;a5 tion of Economic Co-operation and Development re6 lated to opell market rates, ulldermines llaturally 

7 competitive rates, and can allow governments in M8 rica to overlook the troubling record on labor prac9 tices, human rights, and environmental impact. 

10 (8) As stated in a recent report entitled "EmIl hraeing Afriea's E(~onornie Potential" hy Senator 

12 Chris Coons, "Economic growth in Africa has risen 

13 dramatically, but the continent's vast economic po14 telltial has not yet been fully reali;.-;ed by the U.S. 

15 <Jovernment or the ~t\Jnerican private sector.". 

16 (9) The Afri(~an eontinent is undergoing a pe17 riod of rapid grmvth and midcUe class development, 

18 as seen from major indicators such as Internet use, 

19 clean water access, alld real income growth. In the 

20 last decade alone, the percentage of the population 

21 vvith access to the Internet has doubled. Seventy22 eight percent of Mrica's rural population now has 

23 access to clean water. Over the past 10 years, real 

24 ineorne per person in Mriea has gTOWTI by more than 

25 30 percent. 
27


85644b-4.eps

4 

(10) Eeonomists have designated Africa as the 

2 "next frontier market'" with profitability of many 

3 Afriean firms and gTmvth rates of African (~ountries 

4 exceedillg global averages in recent years. Coulltries 

5 in Africa have a collective spending power of almost 

6 $9,000,000,000 alld a gross domestic product of 

7 $1,600,000,000,000, which are projected to double 

8 in the next 10 years. 

9 (11) In the past 10 years, Africa has been 

10 home to 6 of the 10 fastest growing economies in 

11 the world. Sub-Saharan Afri(~a is prqje(~ted to have 

12 the fastest growing economies in the world over the 

13 next 10 years, v.ith 7 of the 10 fastest grovving 

14 economics located in sub-Saharan lV'rica. 

15 (12) "Vhen countries such as China assist v.ith 

16 large-seale government prqje(~ts, they also gain an 

17 upper hand in relations Yvith African leaders and ac18 cess to valuable commodities such as oil and copper, 

19 typically without regard to environmental, humall 

20 rights, labor, or governance standards. 

21 (13) Unless the United States can offer com22 petitive financing for its firms in Africa, it will be 

23 deprived of opportunities to participate in African 

24 efforts to dose the eontinent's signifi(~ant infrastnw-
28


85644b-5.eps

ture gap that amounts to an estimated 

2 $100,000,000,000. 

3 (h) PURPOSE.-The purpose of this Ad, is to create 

4 jobs in the United States by expanding programs that will 

5 result in increasing United States exports to Africa by 200 

6 percent in real dollar value within 10 ,Years. 

7 SEC. 3. DEFINITIONS. 

8 Tn this Act: 

9 (1) Al"RlCA.-'1'hc term "lV'rica" refers to the 

10 entire continent of Africa and its 54 countries. in11 dU(ling the Repuhli(~ of South Sudan. 

12 (2) AFRICAN DLABPORA.-The term "African 

13 diaspora" means the people of African origin living 

14 in the United States, irrespective of their citillenship 

15 and nationality, who are vvilling to contribute to the 

16 development of MrimL 

17 (3) AGOA.-The term "AGOA" means the M18 rican Growth and Opportunity Act (19 r.s.c. 3701 

19 et seq.). 

20 (4) APPROPRIATE CO~GRE8SIONAL COlVDIIT21 TRES.-The term "appropriate congressional com22 mittees" means23 (A) the Committee on Appropriations, the 

24 Committee on Banking, Housing. and 1~rban 

25 Affairs, the Committee on Foreign Relations, 
29


85644b-6.eps

6 

and the Committee on Finanee of the Senate; 

2 and 

3 (B) the Committee on Appropriation~, the 

4 Committee on Energy and Commerce, the Com5 mittee on Finaneial Serviees, the Committee on 

6 Poreign l\ffairs, and the Committee on Ways 

7 and Means of the House of Representatives. 

8 (5) DEV1<JLOPMRNT Mm~cms.-The term "de9 velopment agencies" includes the Department of 

10 State, the United States Ageney for International 

11 Development (USAID), the Millennium Challenge 

12 COl1)oration (MCC), the Overseas Private Invest13 ment Corporation (OPIC), the United States Trade 

14 and Development Ageney (USTDA), the C Ilited 

15 States Department of Agrieulture (USDA), and rel16 evant multilateral development bank~. 

17 (6) TRADE POLICY STAFF COMlYIITTEE.-The 

18 term "Trade Poliey Staff Committee" means the 

19 Trade Policy Staff Committee established pursuant 

20 to seetion 2002.2 of title 15, Code of Federal Regu21 lations, and is eomposed of representatives of Fed22 eral ageneies in charg'e of developing and eoordi23 nating rnited States positions on international trade 

24 and trade-related inve~trnent i~~ues. 
30


85644b-7.eps

7 

(7) lVluLTILATERAL DE\7ELOPMENT BANKS.-

2 The term "multilateral development banks" has the 

3 meaning given that term in sedjon 1701(e)(4) of the 

4 International Pinancial Institutiolls Act (22 U.S.C. 

5 2G2r(c)(4)) and includes the African Development 

6 Foundation. 

7 (8) SUB-SAHARAN REGION.-The term "sub-Sa8 haran region" refers to the 49 countries listed in 

9 section 107 of the .Africall Growth and Opportunity 

10 Act (19 U.S.C. ;370 G) and includes the R,epublic of 

11 South Sudan. 

12 (9) TRADE PROl\IOTIO~ COORDIKATIKG COM13 lVrTTTER.-The term "Trade Promotion Coordinating 

14 Committee" meallS the Trade Promotioll COOl·di15 nating Committee established by Executive Order 

16 12870 (58 Fed. R,eg. 51758). 

17 (10) UNITED STATES AKD FOREIGN CO lVDIER18 CIAL SERVlCE.-The term "United States and For19 eign Commercial Service" means the United States 

20 and Foreign Commercial Service established by sec21 tion 2301 of the Export Enhancement Act of 1988 

22 (15 U.S.C. 4721). 

23 SEC. 4. STRATEGY. 

24 (a) IN GENERAL.-Kot later than 180 days after the 

25 date of the enactment of this Act, the President shall es-
31


85644b-8.eps

tahlish a (~omprehensive United States strategy for publie 

2 and private investment, trade, and development in Mrica. 

3 (h) Focus OF STRATE<W.-The strategy re(luired by 

4 subsectioll (a) shall focus 011-

S (1) increasing exports of rnited States goods 

6 alld services to lV'rica by 200 pcr'cellt ill real dollar 

7 value ~within 10 years from the date of the enact8 ment of this Act; 

9 (2) promoting the alignment of r nited States 

10 commercial interests vvith development priorities in 

11 Mriea: 

12 (3) developing relationships between the govern13 ments of countries in Africa and United States busi14 nesses that have an expertise in such issues as infra15 structure development, technology, telecolllllluni16 eations, energy, and agrienlture; 

17 (4) improving the competitiveness of rnited 

18 States businesses in Africa, including the role the 

19 lV'rican diaspora can play in enhancillg' such com20 petitiveness; 

21 (5) e}q)loring ways that African diaspora remit22 tances can help communities in Africa tackle eco23 nomic, development, and infrastructure financing 

24 neecls: 
32


85644b-9.eps

(6) promoting e(~()nomw integration in Mri(~a 

2 through working with the subregional economic com3 munitie~, supporting efforts for deeper integration 

4 through the development of customs unions within 

5 western and central Africa and v.ithin eastern and 

6 southern Africa, eliminating' time-consuming' border 

7 formalities into and within these areas, and sup8 porting regionally based infrastmcture projects; 

9 (7) encouraging a greater understanding alllong 

10 United States business and financial communities of 

11 the opportunitie~ Afriea hohl~ for United 8tate~ ex12 ports; 

13 (8) fostering partnership opportunities between 

14 United States and "African small- and medium-sized 

15 entel1)rises; and 

16 (9) monitoring17 (A) market loan rates and the availability 

18 of capital for United States business investment 

19 in llirica; 

20 (B) loan rates offered by the governments 

21 of other countries for investment in Africa; and 

22 (C) the policies of other countries ~with re23 spect to eJq)ort financing for investment in Afri24 ea that are predatmy or di~tort markets. 
33


85644b-10.eps

10 

(e) CONS1TLTATIONs.-In lleveloping the strategy re2 quired by subsection (a), the President shall consult 

3 vvith4 (1) Congrcss; 

5 (2) each agency that is a member of the Trade 

6 Promotion Coordinating Committcc; 

7 (3) the relevant multilateral development banks, 

8 III coordination with the Secretary of the Treasury 

9 and the respective United States Executive Directors 

10 of such banks; 

11 (4) eaeh agen(~y that partieipates in the Trade 

12 Policy Staff Committee; 

13 (5) the President's Kational Exl)Ort Council; 

14 (6) cach of thc dcvelopmcnt agcncics: 

15 (7) any other Federal agencies with responsi16 hility for e:Al)ort promotion or finaneing and develop17 ment; and 

18 (8) the private sector, including businesses, 

19 nongovcrnmclltal organillatiolls, alld African dias20 pora groups. 

21 (d) SUmfTSSTO~ TO CO:\Cm.RSS.-

22 (1) STRATEGY.-Not later than 180 days after 

23 the date of the enactment of this Act, the President 

24 shall suhmit to Congress the strategy requirell hy 

25 subsection (a). 
34


85644b-11.eps

11 

(2) PROCtRE88 REPORT.-Not later than :1 

2 years after the date of the enactment of this Act, the 

3 President shall submit to CongTess a report on the 

4 implementation of the strategy required by subS section (a). 

6 (3) COl\'l'EN'l' 01<' REPOR'l'.-'1'he report re7 quired by paragraph (2) shall include an assessment 

8 of the extent to which the strategy required by sub9 section (a)-

10 (A) has been successful in developing crit11 i(~al analyses of polieies to inerease e:Al)orts to 

12 Africa; 

13 (TIl has been successful in increasing the 

14 competitiveness of United States businesses in 

15 Africa; 

16 (C) has been slle(~essful in (~reating jobs in 

17 the United States, including the nature and 

18 sustainability of such jobs; 

19 (D) has provided sufficient United States 

20 Government support to meet third country com21 petition in the region; 

22 (E) has been successful in helping the Af23 rican diaspora in the United States participate 

24 in eeonomi(~ grovvill in Afriea: 
35


85644b-12.eps

2 

3 

4 

5 

6 

7 

8 

9 

12 

(F) has been sueeessfnl in promoting eeonomic integration in Africa; and 

(G) has made a meaningful eontrihution to 

the transformation of llirica and its full integration into the 21 st century world economy, 

not only as a supplier of primary products but 

also as full participant in international supply 

and distribution chains and as a consumer of 

international goods and services. 

10 SEC. 5. TRADE MISSION TO AFRICA. 

11 It is the sense of Congress that, not later than 1 year 

12 after the date of the enactment of this Act, the Secretary 

13 of Commerce and other high-level officials of the rnited 

14 States Government with responsibility for export pro15 motion, financing, and development should conduct a joint 

16 trade mission to Afriea. 

17 SEC. 6. PERSONNEL. 

18 (a) UNITED STATES AKD FOREIGN CmIMERCLU 

19 Sl£RVICK20 (1) I~ GE~ERAL.-The Secretary of Commerce 

21 shall ensure that not less than 10 total existing 

22 United States and Foreign Commercial Service offi23 cers are assigned to Africa for each of the first;) fis24 eal years heginning after the date of the emwtment 

25 of this Act. 
36


85644b-13.eps

1:1 

(2) A88IC{t\l\m~T.-The Se(~retary 'lhall, in eon2 sultation ''lith the Trade Promotion Coordinating 

3 Committee and the Speeial Afriea E}"1)oli, Strategy 

4 Coordinator, assign the L nited States and j1'oreign 

5 Commereial Seniee offieers deseribed in paragraph 

6 (1) to United States embassies in .Afriea after eon7 dueting a timely resouree alloeation analysis that 

8 represents a forward-looking assessment of future 

9 United States trade opportunities in Afriea. 

10 (:3) :\fULTILATERAL DEVELOP:\IE~T BAKKS.-

11 (A) IN CmKERAL.-A'l 'loon a'l prad.ieable 

12 after the date of the enaetment of this Aet, the 

13 Seeretary of Commeree shall, using existing 

14 staff, assign not less than 1 full-time L Ilited 

15 States anel Foreign Commereial Ser'liee offieer 

16 to the offiee of the United State'l Exe(mtive Di17 reetor at the 'V orIel Bank and the Afriean De18 velopment Bank. 

19 

20 

21 

22 

23 

24 

(B) RESPONSlBILITLES.-Each LIlited 

States and Foreign Commereial Serviee offieer 

assigned under subparagraph (A) shall be responsible for-

(i) inereasing the aeeess of rnited 

State'l bU'line'l'le'l to pn)(mrement eontre:wt'l 
37


85644b-14.eps

2 

3 

14 

with the multilateral lleveloprnent hank to 

which the officer is assigned; and 

(ii) f~wilitating the ae(~e~~ of 1~nited 

4 States businesses to risk insurance, equity 

5 investments, consulting services, and lend6 ing provided by that barlie 

7 (b) OVERSEAS PRIVATE INVESTMENT CORPORA8 l'TO~.-

9 (1) S'l'AFl"Il\G.-Of the net offsetting collections 

10 collected by the Overseas Private Investment Cor11 poration u~ell for allmini~trative e:Al)en~e~, the Cor12 poration shall use sufficient funds to increase by not 

13 more than 5 the staff needed to promote stable and 

14 sustainable economic growth and development in 1V'-

15 rica, to strengthen and e:AlJand the private sector in 

16 Afriea, and to f1:wilitate the general eeonomie devel17 opment of Africa, yvith a particular focus on helping 

18 United States businesses expand into African mar19 kets. 

20 (2) HEPORT.-The Corporation shall report to 

21 the appropriate congressional committees on whether 

22 recent technology upgrades have resulted in more ef23 fective and efficient processing and tracking of appli24 eation~ for finan(~ing reeeivell by the C0l1)Oration. 
38


85644b-15.eps

If) 

(8) CERTAI~ COSTS NOT COKSIDERED ADlVIINIS2 TR~TIVE EXPENSES.-For purposes of this sub3 sedjon, systems infrastI1wture eosts asso(~iatea with 

4 activities authori~ed by title IV of chapter 2 of part 

5 T of the Foreign Assistance Act of 19G1 (22 U.S.C. 

6 231 et seq.) shall not be cOllsidered administrative 

7 expenses. 

8 (c) RUTJR OF CONSTRUCTTON.-Nothing in this sec9 tion shall be construed as pel1nitting the reduction of De10 partment of Commerce, Department of State, or Overseas 

11 Private Investment Corporation personnel or the alter12 ation of planned personnel increases in other regions, ex13 cept where a personnel decrease was previously anticipated 

14 or where decreased export opportunities .iusti~v personnel 

15 reductions. 

16 SEC. 7. TRAINING. 

17 The President shall develop a plan18 (I) to standardize the training received by 

19 United States and ]11oreign Commercial Service offi20 cers, economic officers of the Department of State, 

21 and economic officers of the United States Agency 

22 for International Development vvith respect to the 

23 progTams and procedures of the Overseas Private 

24 Investment Corporation, the Small Business Adrnin-
39


85644b-16.eps

16 

istration, and the United States Trade and Develop2 ment Agency; and 

3 (2) to ensure that, not later than 1 year after 

4 thc datc of the enactment of this ActS (A) all United States and Foreign Com6 mercial Service officers that are stationed over7 seas receive the training described in paragraph 

8 (1); and 

9 (B) III the case of a country to which no 

10 United States and Foreign Commercial Service 

11 offieer is assigned, any e(~onornie offieer of the 

12 Department of State stationed in that country 

13 shall receive that training. 

14 SEC. 8. SMALL BUSINESS ADMINISTRATION. 

15 Section 22(b) of the Small Business Act (15 U.S.C. 

16 649(h)) is amended in the matter preeeding paragTaph (1) 

17 by inselting "the Trade Promotion Coordinating Com18 mittee," after "Director of the United States Trade and 

19 Development Agency,". 
40

Mr. SMITH. The Chair moves that the en bloc items be adopted. 

All those in favor say aye. 

[Chorus of ayes.] 

Mr. SMITH. Those opposed? In the opinion of the Chair, the ayes 

have it and the items considered en bloc are adopted. Without objection, the measures as amended are reported favorably to the full 

committee and the staff is directed to make technical and conforming changes. Now that we have completed the formal considerations of these measures, again I would like to recognize myself for 

a brief explanation of the bill, H.R. 1777, the Increasing American 

Jobs Through Greater Exports to Africa Act of 2013. This bill, 

which I am happy to say is cosponsored by our Ranking Member 

Karen Bass and Congressman Bobby Rush, directs the President to 

establish a comprehensive U.S. strategy for public and private investment, trade, and development in Africa. This legislation focuses, among other things, on increasing exports of U.S. goods and 

services to Africa by 200 percent in real dollar value within 10 

years. According to the Department of Commerce, every $1 billion 

in U.S. exports creates some 6,000 jobs in this country. 

My legislation calls for the alignment of U.S. commercial interests in the development of priorities in Africa. Trade and aid are 

not mutually exclusive. Capacity building, for example, is a development tool and it must be used to enable African countries to become more proficient in promoting trade and expanding wealth opportunities in their countries. Improving the competitiveness of 

U.S. businesses in Africa is in America’s interest as well since more 

prosperous Africans can afford U.S.-manufactured goods. 

This legislation encourages a greater understanding among U.S. 

financial and business communities of the opportunities that Africa 

holds for U.S. exports. Today, U.S. publications only occasionally 

describe the commercial opportunities available in Africa. If you 

read Fortune, Business Week, or even Black Enterprise magazines, 

you will read perhaps an annual Africa-focused issue that is in general in its description of business in Africa, but there is little ongoing discussion of the kind of linkages that U.S. businesses are 

missing. Chinese, Japanese, and even Turkish businesspeople are 

taking full advantage of those opportunities today, and American 

businesspeople should have the same chances to benefit from them. 

The legislation fosters partnership opportunities between U.S. 

and African small- and medium-sized enterprises, especially among 

the African diaspora businesses which have not benefited from the 

African Growth and Opportunity Act, or AGOA, as they might 

have. Again, this is a function of not having sufficient information 

on which to base important commercial decisions. 

The President is required, pursuant to the bill, if it becomes law, 

to designate a special Africa export strategy coordinator. U.S. trade 

policy is too often stovepiped, meaning that various agencies pursue their missions without sufficient coordination. In an increasingly competitive global trade environment, this practice must end. 

The Secretary of Commerce is directed to ensure that at least 10 

total U.S. and Foreign Commercial Service Officers are assigned to 

U.S. Embassies in Africa for each of the first 5 fiscal years after 

enactment of the act. We tried to increase foreign commercial servVerDate 0ct 09 2002 13:12 Apr 08, 2014 Jkt 000000 PO 00000 Frm 00044 Fmt 6633 Sfmt 6633 F:\WORK\_AGH\131121M\85644 SHIRL
41

ice officers under AGOA, but their numbers are currently, in fact, 

shrinking. 

I see this legislation as complementing AGOA. It is absolutely 

not replacing it. When AGOA is reauthorized, and we hope that 

will be next year, this legislation will be a worthy companion to 

balance the benefits of U.S.-Africa trade for businesspeople on both 

sides of the Atlantic Ocean. 

I would like to now yield to Mr. Cicilline. 

Mr. CICILLINE. Thank you, Mr. Chairman. I want to begin by 

thanking you and Ranking Member Bass for your leadership in 

moving to markup H.R. 1777, the Increasing American Jobs 

Through Greater Exports to Africa Act of 2013. You and Congressman Rush have shown incredible leadership in introducing a bill 

that is both good for our country and good for African nations. I 

also want to acknowledge the bipartisan Senate companion too, S. 

718, introduced by Senator Durbin, and that includes 10 other Senate members who have shown their support for this measure. 

We are now well familiar with the facts that African economies 

are growing at a respectable pace, and several consistently beyond 

that. Over the last dozen years some of the world’s fastest growing 

economies are in Africa. With over 1 billion Africans participating 

in the global marketplace, we see new consumers who are eager to 

take part in the flow of goods and services and who have increasing 

purchasing power for those goods and services. I am pleased and 

strongly support this bill which calls for comprehensive United 

States strategy for public and private investment, trade, and development in Africa. Such a strategy is important and essential to 

U.S. private sectors to engage effectively and support this type of 

engagement that African nations require if we are to transition 

from transitional aid models to that of trade and investment. 

I would particularly note the important role played by the U.S. 

Foreign Commercial Service Officers. These dedicated representatives of the Department of Commerce play an integral role in our 

efforts to expand U.S. investment in Africa. They are key to the 

local private sector and can introduce visiting U.S. companies to 

local government and private sector representatives. We need more 

of these experts in Africa and I heartily support the bill’s call for 

an increase in the number of Foreign Commercial Service Officers 

assigned to countries in Africa. 

If our Nation seeks to be competitive on the continent, it will require new steps, new strategies, and new thinking to recognize that 

the U.S. can be a market leader and key business partner on the 

continent if we want to be. Indeed, for all of the discussion about 

the aggressive marketing tactics displayed by China and others, 

neither BRICs nations nor former colonial powers in Africa can 

match U.S. companies in terms of the marketing of quality of goods 

and services, the provision of sound maintenance contracts, and the 

development of outstanding executive training. This is why so 

many countries worldwide like to work with the U.S. private sector, 

and in this respect Africa is no different. 

It is against this backdrop that I support this bill which focuses 

on an assertive and comprehensive whole of government approach 

to U.S. Government and U.S. private sector engagement with the 

countries of Africa. Mr. Chairman, earlier this year President 

42

Obama visited Senegal, South Africa, and Tanzania. During his 

visit to the continent, he spoke of his strong support for the reauthorization of AGOA and announced two landmark Presidential initiatives—Power Africa, aimed at building the continent’s access to 

electrical power to help grow businesses, and Trade Africa, aimed 

at developing greater interregional trade and augmenting U.S. 

trade and investment. This bill complements these initiatives by 

promoting greater U.S. Government synergy, facilitating public-private partnership, and augmenting U.S. bilateral relations with the 

countries of Africa. 

Mr. Chairman, in closing I want to once again acknowledge the 

bipartisan, bicameral support under your leadership for not only 

the African Growth and Opportunity Act (AGOA) but the greater 

goal of growing partnership between the U.S. and African private 

sector. You and many of my colleagues in this committee have long 

recognized the importance of this goal for the United States and 

the countries of Africa. I thank you for your continued support and 

look forward in continuing to work with you and Ranking Member 

Bass and my colleagues in this regard. I thank you, Mr. Chairman. 

I yield back. 

Mr. SMITH. Mr. Cicilline, thank you very much. Would any other 

members like to be heard? 

Mr. Meadows? 

Mr. MEADOWS. Just would like to thank the chairman for his 

foresight and his unrelenting pursuit to make sure that we have 

a good relationship with the continent of Africa, but also in terms 

of creating jobs here in America. And so just my compliments to 

him and wish him a happy Thanksgiving. 

Mr. SMITH. Thank you. 

Mr. Weber? 

Mr. WEBER. What he said. 

Mr. SMITH. Okay, thank you. I want to thank my colleagues for 

their support of this legislation, their cosponsorship of it, and we 

will move to the full committee. The markup session of this subcommittee is adjourned. 

[Whereupon, at 10:13 a.m., the subcommittee was adjourned.] 

(43)

A P P E N D I X 

MATERIAL SUBMITTED FOR THE RECORD

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85644n.eps

SlJBCOMMITTEE MARKlJP NOTICE 

COMMITTEE ON FOREIGN AFFAIRS 

US HOUSE OF REPRESENTATIVES 

WASHINGTON, DC 20515-6128 

Subcommittee on Africa, Global Health, Global Human Rights, and International 

Organizations 

Christopher H. Smith (R-NJ), Chairman 

November 14, 2013 

TO: MEMBERS OF THE COMMITTEE ON FOREIGN AFFAIRS 

You are respecttully requested to attend an OPEN meeting of the Subcommittee on 

Africa, Global Health, Global Human Rights, and International Organizations, to be held in 

Room 2172 of the Rayburn House OfIice Building (and available live on the Committee website 

at lillJ:1.j/W\H\'Joreignaffu!rs.h()u~Q\C): 

DATE: 

TIME: 

MARKUP OF: 

Thursday, November 21,2013 

10:00 a.m. 

HR. 1777, Increasing American Jobs Through Greater Exports to Africa 

Actof2013 

*NOTE: Further measures may be added. 

By Direction of the Chairman 
45

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85644m.eps

COMMITTEE ON FOREIGN AFFAIRS 

MINUTES OF SUBCOMMITTEE MARKUP 

MINUTES OF SUBCOMMITTEE ON Africa, Global Heallfl, Global Hllmall Rights, alld MARKUP 

nay Thursday Date November 21,2013 Room 2172 RaybuJ'Jl "~.-A 0'3 .... ~-ao..\t."s 

Startillg Time 10:00 {I. III. Elldlllg Time 10:13 ({.III. 

Recesses [0 I <-to-> <-to -> <-to -> <-to-> <-to -> <-to-> 

P,.."siding Member(s) 

CSmith 

Check all oJlheJollowillg I"al app!,,: 

Open Sessioll [ZJ 

Executive (closed) Session D Televised [Z] 

Electronically Rcconl£!!jtaIJed) [Z] 

Stenogrl-{l'hic Rcconl lLJ 

BILLS ~'OR MARKUP: (i1/clude billnul1Ibcr(s) and lille(s) of/egis/alion.) 

H.R. 1777, blcreasillg American Jobs Through Greater };:'1)O/·ts to Afl'ica Act of 2013 

COMMITfEE MEMBERS PRESENT: 

WeIJel; Cicillille, Rem, MNtdows 

NON-COMMITTEE MEMBERS PRESENT: 

STATEMENTS FOR THE RECORD: (List any slatements submitted jor Ihe record.) 

ACTIONS TAKEN DlJRING TIlE MARKUP: (AI/aclt copies oJlegis/aflon and amendments) 

H.ll. 1777 passed, (IS amellded by Sm/tlt (NJ) #36, by III/am/mOllS COl/sent 

RECORDED VOTES TAKEN (FOR MARKUP): (AllachjiJI<l1 vole lally shcellistiJlg each member.) 

TIME SCHEDULED TO RECONVENE ___ _ 

01' 

TIME ADJOURNED 10.;13.<1.111, 

Subcolll'illitte Staff DirettoI' 
46

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85644s.eps

1112112013 Subcommittee on Africa, Global Health, Global Human Rights, and International 

Organizatious Markup Summary 

The Chair called up the following measure for consideration by the Committee. By unanimous 

consent, the one measure and one amendment (previously provided to Members of the Committee) 

were considered en bloc: 

UK 1777 (Smith - NJl, "fucreasing American Jobs Through Greater Exports to Aliica Act 01'2013." 

a. As amended by Smith 36 (an amendment in the nature of a substitute olTered by Rep. 

Smith of New Jersey) 

The amendment and measure and were adopted by voice vote, and favorably reported to the Full 

Committee, as amended, by unanimous consent. 

The Subcommittee adjourned.