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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3572 Introduced in House (IH)]

108th CONGRESS
  1st Session
                                H. R. 3572

To amend the African Growth and Opportunity Act to expand certain trade 
   benefits to eligible sub-Saharan African countries, and for other 
                               purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           November 21, 2003

 Mr. McDermott (for himself, Mr. Royce, Mr. Rangel, Mr. Jefferson, Mr. 
  Neal of Massachusetts, Mr. Payne, and Mr. Houghton) introduced the 
following bill; which was referred to the Committee on Ways and Means, 
and in addition to the Committees on International Relations, Financial 
 Services, and Agriculture, 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 amend the African Growth and Opportunity Act to expand certain trade 
   benefits to eligible sub-Saharan African countries, 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 ``AGOA III Act''.

SEC. 2. FINDINGS.

    The Congress finds that--
            (1) the African Growth and Opportunity Act (in this section 
        referred to as ``the Act'') has helped to spur economic growth 
        and bolster economic reforms in the countries of sub-Saharan 
        Africa and has fostered stronger economic ties between the 
        countries of sub-Saharan Africa and the United States; as a 
        result, exports from the United States to sub-Saharan Africa 
        reached record levels after the enactment of the Act, while 
        exports from sub-Saharan Africa to the United States have 
        increased considerably;
            (2) the Act's eligibility requirements have reinforced 
        democratic values and the rule of law, and have strengthened 
        adherence to core labor standards in eligible sub-Saharan 
        African countries;
            (3) the Act's eligibility criterion on elimination of the 
        worst forms of child labor has supported efforts to implement 
        Convention 182 of the International Labor Organization, 
        including efforts to strengthen laws to prohibit child 
        trafficking;
            (4) the Act has helped to bring about substantial increases 
        in foreign investment in sub-Saharan Africa, especially in the 
        textile and apparel sectors, where tens of thousands of new 
        jobs have been created;
            (5) despite gains in fiber and fabric production, countries 
        in sub-Saharan Africa cannot produce enough fiber or fabric to 
        meet the needs of African apparel producers;
            (6) as a result of the Agreement on Textiles and Apparel of 
        the World Trade Organization, under which quotas maintained by 
        WTO member countries on textile and apparel products end on 
        January 1, 2005, sub-Saharan Africa's textile and apparel 
        industry will be severely challenged by countries whose 
        industries are more developed and have greater capacity, 
        economies of scale, and better infrastructure;
            (7) sustainable development and economic growth in sub-
        Saharan Africa will require a healthy workforce and a diverse 
        economy that utilizes sub-Saharan Africa's vast agriculture and 
        other natural resources in a sustainable manner;
            (8) trade ministers from sub-Saharan Africa have identified 
        two key impediments to the development of sub-Saharan Africa's 
        agricultural sector: an inability to compete with subsidized 
        agricultural products from developed countries, and 
        difficulties in complying with sanitary and phytosanitary 
        restrictions of developed countries;
            (9) the underdeveloped physical and financial 
        infrastructure in sub-Saharan Africa continues to discourage 
        investment in the region;
            (10) the United States-Sub-Saharan Africa Trade and 
        Economic Cooperation Forum, established under section 105 of 
        the Act, has proven to be useful in building trade and 
        investment ties between United States and African government 
        agencies, businesses, and nongovernmental organizations; and
            (11) regional integration establishes a foundation on which 
        sub-Saharan African countries can coordinate and pursue 
        policies grounded in African interests and history to achieve 
        sustainable development.

SEC. 3. STATEMENT OF POLICY.

    The Congress supports--
            (1) a continued commitment to increase trade between the 
        United States and sub-Saharan Africa and increase investment in 
        sub-Saharan Africa to the benefit of workers, businesses, and 
        farmers in the United States and in sub-Saharan Africa, 
        including by developing innovative approaches to encourage 
        development and investment in sub-Saharan Africa;
            (2) a reduction of tariff and nontariff barriers and other 
        obstacles to trade between the countries of sub-Saharan African 
        and the United States, with particular emphasis on reducing 
        barriers to trade in emerging sectors of the economy that have 
        the greatest potential for development;
            (3) development of sub-Saharan Africa's physical and 
        financial infrastructure;
            (4) international efforts to fight HIV/AIDS, malaria, 
        tuberculosis, other infectious diseases, and serious public 
        health problems;
            (5) the aims of the New Partnership for African Development 
        (NEPAD), which include--
                    (A) reducing poverty and increasing economic 
                growth;
                    (B) promoting peace, democracy, security, and human 
                rights;
                    (C) promoting African integration by deepening 
                linkages between African countries and by accelerating 
                Africa's economic and political integration into the 
                rest of the world;
                    (D) attracting investment, debt relief, and 
                development assistance;
                    (E) promoting trade and economic diversification;
                    (F) broadening global market access for United 
                States and African exports;
                    (G) improving transparency, good governance, and 
                political accountability;
                    (H) expanding access to social services, education, 
                and health services with a high priority given to 
                addressing HIV/AIDS, malaria, tuberculosis, other 
                infectious diseases, and other public health problems;
                    (I) promoting the role of women in social and 
                economic development by reinforcing education and 
                training and by assuring their participation in 
                political and economic arenas; and
                    (J) building the capacity of governments in sub-
                Saharan Africa to set and enforce a legal framework, as 
                well as enforcing the rule of law; and
            (6) negotiation of reciprocal trade agreements between the 
        United States and sub-Saharan African countries, with the 
        overall goal of expanding trade across all of sub-Saharan 
        Africa.

SEC. 4. SENSE OF CONGRESS ON RECIPROCITY AND REGIONAL ECONOMIC 
              INTEGRATION.

    It is the sense of the Congress that--
            (1) the preferential market access opportunities for 
        eligible sub-Saharan African countries will be complemented and 
        enhanced if those countries are implementing actively and 
        fully, consistent with any remaining applicable phase-in 
        periods, their obligations under the World Trade Organization, 
        including obligations under the Agreement on Trade-Related 
        Aspects of Intellectual Property, the Agreement on the 
        Application of Sanitary and Phytosanitary Measures, and the 
        Agreement on Trade-Related Investment Measures, as well as the 
        other agreements described in section 101(d) of the Uruguay 
        Round Agreements Act (19 U.S.C. 3511(d));
            (2) eligible sub-Saharan African countries should 
        participate in ongoing negotiations under the auspices of the 
        World Trade Organization, including by making reciprocal 
        commitments with respect to improving market access for 
        industrial and agricultural goods, and for services, 
        recognizing that such commitments may need to be asymmetrical 
        to reflect differences in development; and
            (3) some of the most pernicious trade barriers against 
        exports by developing countries are the trade barriers 
        maintained by other developing countries, and, therefore, 
        eligible sub-Saharan African countries will benefit from the 
        increased regional economic integration that results from 
        intra-regional free trade agreements, particularly where such 
        agreements eliminate barriers to regional trade.

SEC. 5. DEFINITION.

    In this Act, the term ``eligible sub-Saharan African country'' 
means an eligible sub-Saharan African country under the African Growth 
and Opportunity Act.

                        TITLE I--TRADE BENEFITS

SEC. 101. ENHANCED BENEFITS UNDER GENERALIZED SYSTEM OF PREFERENCES.

    (a) Removal of Import Sensitivity Requirement.--Section 506A(b)(1) 
of the Trade Act of 1974 (19 U.S.C. 2466a(b)(1)) is amended to read as 
follows:
            ``(1) In general.--The President shall provide duty-free 
        treatment for any article described in section 503(b)(1)(B) 
        through (G) that is the growth, product, or manufacture of a 
        beneficiary sub-Saharan African country described in subsection 
        (a).''.
    (b) Termination Date.--Section 506B of the Trade Act of 1974 (19 
U.S.C. 2466b) is amended by striking ``2008'' and inserting ``2020''.

SEC. 102. APPAREL TRADE BENEFITS.

    (a) Products Covered.--Section 112(b) of the African Growth and 
Opportunity Act (19 U.S.C. 3721(b)) is amended--
            (1) by striking paragraphs (5) and (7);
            (2) by redesignating paragraph (4) as paragraph (5);
            (3) by redesignating paragraph (6) as paragraph (8);
            (4) by striking paragraphs (1) through (3) and inserting 
        the following:
            ``(1) Apparel articles assembled in beneficiary sub-saharan 
        african countries.--Apparel articles sewn or otherwise 
        assembled in one or more beneficiary sub-Saharan African 
        countries for which the component that determines the 
        classification under the Harmonized Tariff Schedule of the 
        United States is--
                    ``(A) formed from fabrics formed and cut in the 
                United States, from yarns formed in the United States 
                (including fabrics not formed from yarns, if such 
                fabrics are classifiable under heading 5602 or 5603 of 
                the Harmonized Tariff Schedule of the United States and 
                are formed and cut in the United States);
                    ``(B) knit-to-shape in the United States from yarns 
                formed in the United States;
                    ``(C) formed from fabrics formed in the United 
                States, from yarns formed in the United States 
                (including fabrics not formed from yarns, if such 
                fabrics are classifiable under heading 5602 or 5603 of 
                the Harmonized Tariff Schedule of the United States and 
                are formed in the United States) and cut in one or more 
                beneficiary sub-Saharan African countries;
                    ``(D) formed from fabrics formed in one or more 
                beneficiary sub-Saharan African countries from yarns 
                originating either in the United States or in one or 
                more beneficiary sub-Saharan African countries 
                (including fabrics not formed from yarns, if such 
                fabrics are classifiable under heading 5602 or 5603 of 
                the Harmonized Tariff Schedule of the United States and 
                are formed in one or more beneficiary sub-Saharan 
                African countries), without regard to where the fabric 
                is cut;
                    ``(E) knit-to-shape in one or more beneficiary sub-
                Saharan African countries from yarns originating either 
                in the United States or one or more beneficiary sub-
                Saharan African countries; or
                    ``(F)(i) cut in the United States and one or more 
                beneficiary sub-Saharan African countries from fabric 
                formed in the United States from yarns formed in the 
                United States;
                    ``(ii) knit-to-shape in the United States and one 
                or more beneficiary sub-Saharan African countries from 
                yarns formed in the United States; or
                    ``(iii) both cut as described in clause (i) and 
                knit-to-shape as described in clause (ii) (including 
                from fabrics not formed from yarns, if such fabrics are 
                classifiable under heading 5602 or 5603 of the 
                Harmonized Tariff Schedule of the United States).
            ``(2) Apparel articles from nonoriginating fabric or 
        yarn.--Apparel articles that are both cut (or knit-to-shape) 
        and sewn or otherwise assembled in one or more beneficiary sub-
        Saharan African countries--
                    ``(A) from fabric or yarn which need not be 
                originating under General Note 12(t) of the Harmonized 
                Tariff Schedule of the United States for the apparel 
                article to qualify as originating under that Note; or
                    ``(B) from fabric or yarn which--
                            ``(i) is the component that determines the 
                        classification of the articles under the 
                        Harmonized Tariff Schedule of the United 
                        States;
                            ``(ii) is not commercially available; and
                            ``(iii) which the President proclaims as 
                        eligible for use under this paragraph without 
                        regard to where the fabric or yarn is formed 
                        pursuant to the procedures set forth in 
                        paragraph (6).
            ``(3) Apparel articles formed on seamless knitting 
        machines.--Apparel articles formed on seamless knitting 
        machines in a beneficiary sub-Saharan African country from 
        yarns originating either in the United States or one or more 
        beneficiary sub-Saharan African countries.
            ``(4) Special rule for lesser developed countries.--
                    ``(A) In general.--Subject to paragraph (7), 
                preferential treatment under paragraphs (1)(D), (1)(E), 
                and (3) shall be extended through September 30, 2008, 
                for apparel articles assembled in one or more lesser 
                developed beneficiary sub-Saharan African countries 
                regardless of the country of origin of the yarn or 
                fabric used to make such apparel articles, and 
                regardless of the country of origin of components (cut 
                or knit-to-shape) which do not determine the 
                classification of the apparel articles.
                    ``(B) Lesser developed beneficiary sub-saharan 
                african country.--For purposes of this subparagraph, 
                the term `lesser developed beneficiary sub-Saharan 
                African country' means--
                            ``(i) a beneficiary sub-Saharan African 
                        country that had a per capita gross national 
                        product of less than $1,500 a year in 1998, as 
                        measured by the International Bank for 
                        Reconstruction and Development;
                            ``(ii) Botswana; and
                            ``(iii) Namibia.'';
            (5) by inserting after paragraph (5), as redesignated by 
        paragraph (2) of this subsection, the following:
            ``(6) Procedures for designating fabrics or yarns eligible 
        under paragraph (2)(b).--At the request of any interested party 
        and subject to the following requirements, the President is 
        authorized to proclaim fabrics or yarns as not commercially 
        available and thus eligible for use in the production of cut 
        components or knit-to-shape components described in paragraph 
        (2)(B) if--
                    ``(A) the President determines that such yarns or 
                fabrics cannot be supplied by the domestic industry in 
                commercial quantities in a timely manner;
                    ``(B) the President has obtained advice regarding 
                the proposed action from the appropriate advisory 
                committee established under section 135 of the Trade 
                Act of 1974 and the United States International Trade 
                Commission;
                    ``(C) within 60 calendar days after the request, 
                the President has submitted a report to the Committee 
                on Ways and Means of the House of Representatives and 
                the Committee on Finance of the Senate that sets 
                forth--
                            ``(i) the action proposed to be proclaimed 
                        and the reasons for such action; and
                            ``(ii) the advice obtained under 
                        subparagraph (B);
                    ``(D) a period of 60 calendar days, beginning with 
                the first day on which the President has met the 
                requirements of clauses (i) and (ii) of subparagraph 
                (C), has expired; and
                    ``(E) the President has consulted with such 
                committees regarding the proposed action during the 
                period referred to in subparagraph (C).
            ``(7) Limitations on benefits on apparel articles described 
        in paragraphs (1)(d), (1)(e), (3), and (4).--
                    ``(A) Paragraphs (1)(d), (1)(e), and (3).--
                            ``(i) In general.--Preferential treatment 
                        under paragraphs (1)(D), (1)(E), and (3) shall 
                        be extended in the 1-year period beginning on 
                        October 1, 2000, and in each of the 14 
                        succeeding 1-year periods, to imports of 
                        apparel articles in an amount not to exceed the 
                        applicable percentage of the aggregate square 
                        meter equivalents of all apparel articles 
                        imported into the United States in the 
                        preceding 12-month period for which data are 
                        available.
                            ``(ii) Applicable percentage.--For purposes 
                        of this subparagraph, the term `applicable 
                        percentage' means 3.67 percent for the 1-year 
                        period beginning on October 1, 2002, increased 
                        by equal increments in each succeeding 1-year 
                        period so that for the 1-year period beginning 
                        on October 1, 2014, the applicable percentage 
                        does not exceed 10 percent.
                    ``(B) Paragraph (4).--
                            ``(i) In general.--Preferential treatment 
                        under paragraph (4) shall be extended in the 1-
                        year period beginning on October 1, 2000, and 
                        in each of the 7 succeeding 1-year periods, to 
                        imports of apparel articles in an amount not to 
                        exceed the applicable percentage of the 
                        aggregate square meter equivalents of all 
                        apparel articles imported into the United 
                        States in the preceding 12-month period for 
                        which data are available.
                            ``(ii) Applicable percentage.--For purposes 
                        of this subparagraph, the term `applicable 
                        percentage' means 1.5 percent for the 1-year 
                        period beginning October 1, 2000, increased in 
                        each of the seven succeeding 1-year periods by 
                        equal increments, so that for the 1-year period 
                        beginning October 1, 2007, the applicable 
                        percentage does not exceed 3.5 percent.
                            ``(iii) Continued application of 
                        preferential treatment.--If the President 
                        determines, not later than September 1, 2008, 
                        that a lesser developed beneficiary sub-Saharan 
                        African country under paragraph (4) lacks 
                        sufficient domestic fabric-making capacity, 
                        taking into account the extent to which the 
                        country has taken steps to increase such 
                        capacity by attracting investment or otherwise, 
                        then preferential treatment under paragraph (4) 
                        shall be extended to imports of eligible 
                        apparel articles under paragraph (4) that are 
                        assembled in that country--
                                    ``(I) in the 1-year period 
                                beginning October 1, 2008, in an amount 
                                equal to two-thirds of the amount 
                                permitted in the 1-year period 
                                beginning October 1, 2007; and
                                    ``(II) in the 1-year period 
                                beginning October 1, 2009, in an amount 
                                equal to one-third of the amount 
                                permitted under this paragraph in the 
                                1-year period beginning October 1, 
                                2007.
                    ``(C) Surge mechanism.--
                            ``(i) Import monitoring.--The Secretary of 
                        Commerce shall monitor imports of articles to 
                        which this paragraph applies on a monthly basis 
                        to determine if there has been a surge in 
                        imports of such articles. In order to permit 
                        public access to preliminary international 
                        trade data and to facilitate the early 
                        identification of potentially disruptive import 
                        surges, the Director of the Office of 
                        Management and Budget may grant an exception to 
                        the publication dates established for the 
                        release of data on United States international 
                        trade in covered articles, if the Director 
                        notifies Congress of the early release of the 
                        data.
                            ``(ii) Determination of damage or threat 
                        thereof.--Whenever the Secretary of Commerce 
                        determines, based on the data described in 
                        clause (i), or pursuant to a written request 
                        made by an interested party, that there has 
                        been a surge in imports of an article to which 
                        this paragraph applies from a beneficiary sub-
                        Saharan African country, the Secretary shall 
                        determine whether such article from such 
                        country is being imported in such increased 
                        quantities as to cause serious damage, or 
                        threat thereof, to the domestic industry 
                        producing a like or directly competitive 
                        article. If the Secretary's determination is 
                        affirmative, the President shall suspend the 
                        duty-free treatment provided for such article 
                        under this paragraph. If the inquiry is 
                        initiated at the request of an interested 
                        party, the Secretary shall make the 
                        determination within 60 days after the date of 
                        the request.
                            ``(iii) Factors to consider.--In 
                        determining whether a domestic industry has 
                        been seriously damaged, or is threatened with 
                        serious damage, the Secretary shall examine the 
                        effect of the imports on relevant economic 
                        indicators such as domestic production, sales, 
                        market share, capacity utilization, 
                        inventories, employment, profits, exports, 
                        prices, and investment.
                            ``(iv) Procedure.--
                                    ``(I) Initiation.--The Secretary of 
                                Commerce shall initiate an inquiry 
                                within 10 days after receiving a 
                                written request and supporting 
                                information for an inquiry from an 
                                interested party. Notice of initiation 
                                of an inquiry shall be published in the 
                                Federal Register.
                                    ``(II) Participation by interested 
                                parties.--The Secretary of Commerce 
                                shall establish procedures to ensure 
                                participation in the inquiry by 
                                interested parties.
                                    ``(III) Notice of determination.--
                                The Secretary shall publish the 
                                determination described in clause (ii) 
                                in the Federal Register.
                                    ``(IV) Information available.--If 
                                relevant information is not available 
                                on the record or any party withholds 
                                information that has been requested by 
                                the Secretary, the Secretary shall make 
                                the determination on the basis of the 
                                facts available. When the Secretary 
                                relies on information submitted in the 
                                inquiry as facts available, the 
                                Secretary shall, to the extent 
                                practicable, corroborate the 
                                information from independent sources 
                                that are reasonably available to the 
                                Secretary.
                            ``(v) Interested party.--For purposes of 
                        this subparagraph, the term `interested party' 
                        means any producer of a like or directly 
                        competitive article, a certified union or 
                        recognized union or group of workers which is 
                        representative of an industry engaged in the 
                        manufacture, production, or sale in the United 
                        States of a like or directly competitive 
                        article, a trade or business association 
                        representing producers or sellers of like or 
                        directly competitive articles, producers 
                        engaged in the production of essential inputs 
                        for like or directly competitive articles, a 
                        certified union or group of workers which is 
                        representative of an industry engaged in the 
                        manufacture, production, or sale of essential 
                        inputs for the like or directly competitive 
                        article, or a trade or business association 
                        representing companies engaged in the 
                        manufacture, production, or sale of such 
                        essential inputs.''; and
            (6) by striking paragraph (8), as redesignated by paragraph 
        (2) of this section, and inserting the following:
            ``(8) Handloomed, handmade, folklore articles and ethnic 
        printed fabrics.--
                    ``(A) In general.--A handloomed, handmade, folklore 
                article or an ethnic printed fabric of a beneficiary 
                sub-Saharan African country or countries that is 
                certified as such by the competent authority of such 
                beneficiary country or countries. For purposes of this 
                section, the President, after consultation with the 
                beneficiary country or countries concerned, shall 
                determine which, if any particular textile and apparel 
                goods of the country (or countries) shall be treated as 
                being handloomed, handmade, or folklore articles or an 
                ethic printed fabric--
                    ``(B) Requirements for ethnic printed fabric.--
                Ethnic printed fabrics qualified under this paragraph 
                are--
                            ``(i) fabrics containing a selvedge on both 
                        edges, having a width of less than 50 inches, 
                        classifiable under the heading 5208.52.30 or 
                        5208.52.40 of the Harmonized Tariff Schedule of 
                        the United States;
                            ``(ii) of the type that contains designs, 
                        symbols, and other characteristics of African 
                        prints--
                                    ``(I) normally produced for and 
                                sold on the indigenous African market; 
                                and
                                    ``(II) normally sold in Africa by 
                                the piece as opposed to being tailored 
                                into garments before being sold in 
                                indigenous African markets;
                            ``(iii) printed, including waxed, in one or 
                        more eligible beneficiary sub-Saharan 
                        countries; and
                            ``(iv) fabrics formed in the United States, 
                        from yarns formed in the United States, or from 
                        fabric formed in one or more beneficiary sub-
                        Saharan African country from yarn originating 
                        in either the United States or one or more 
                        beneficiary sub-Saharan African country.''.
    (b) Findings and Trimmings.--Section 112(d) of the African Grown 
and Opportunity Act is amended by striking
    ``(d) Special Rules.--'' and all that follows through
            ``(2) De minimis rule.--An article'' and inserting
    ``(d) Special Rule.--An article''.
    (c) Conforming Amendment.--Section 3108 of the Trade Act of 2002 
(Public Law 107-210; 116 Stat. 1038) is amended--
            (1) by striking ``(a) In General.--''; and
            (2) by striking subsection (b).
    (d) Sense of Congress on Rules of Origin.--It is the sense of the 
Congress that in negotiating free trade agreements with other 
countries, the President should negotiate rules of origin for textile 
and apparel products that allow the use of inputs from countries 
designated under section 506A(a)(1) of the Trade Act of 1974.

                TITLE II--ENHANCING TRADE IN AGRICULTURE

SEC. 201. REMOVAL OF AGRICULTURE TARIFF-RATE QUOTA LIMITATION; 
              AGRICULTURAL SAFEGUARD.

    Section 503(b) of the Trade Act of 1974 (19 U.S.C. 2463(b)) is 
amended by striking paragraph (3) and inserting the following:
            ``(3) Agricultural products.--
                    ``(A) In general.--No quantity of an agricultural 
                product subject to a tariff-rate quota that exceeds the 
                in-quota amount shall be eligible for duty-free 
                treatment under this title, except as provided in 
                subparagraph (B).
                    ``(B) Imports from countries designated under 
                section 506a.--Subparagraph (A) shall not apply to 
                over-quota imports of agricultural products subject to 
                a tariff-rate quota that are the growth, product, or 
                manufacture of a country designated as a beneficiary 
                sub-Saharan African country under section 506A(a)(1).
            ``(4) Safeguard for agricultural products.--
                    ``(A) In general.--The President shall assess a 
                duty, in the amount prescribed under subparagraph (B), 
                on over-quota imports of any agricultural product 
                described in paragraph (3)(B) for which preferential 
                treatment is claimed, if the President determines that 
                the unit import price of the product when it enters the 
                United States, determined on an F.O.B. basis, is less 
                than the annual trigger price determined in accordance 
                with subparagraph (D).
                    ``(B) Calculation of additional duties.--The amount 
                of the additional duty assessed under this subsection 
                shall be determined as follows:
                            ``(i) If the difference between the unit 
                        import price and the trigger price is less 
                        than, or equal to, 10 percent of the trigger 
                        price, no additional duty shall be imposed.
                            ``(ii) If the difference between the unit 
                        import price and the trigger price is greater 
                        than 10 percent, but less than or equal to 40 
                        percent, of the trigger price, the additional 
                        duty shall be equal to 30 percent of the 
                        difference between the preferential tariff rate 
                        and the column 1 general rate of duty imposed 
                        under the HTS on like articles at the time the 
                        additional duty is imposed.
                            ``(iii) If the difference between the unit 
                        import price and the trigger price is greater 
                        than 40 percent, but less than or equal to 60 
                        percent, of the trigger price, the additional 
                        duty shall be equal to 50 percent of the 
                        difference between the preferential tariff rate 
                        and the column 1 general rate of duty imposed 
                        under the HTS on like articles at the time the 
                        additional duty is imposed.
                            ``(iv) If the difference between the unit 
                        import price and the trigger price is greater 
                        than 60 percent, but less than or equal to 75 
                        percent, of the trigger price, the additional 
                        duty shall be equal to 70 percent of the 
                        difference between the preferential tariff rate 
                        and the column 1 general rate of duty imposed 
                        under the HTS on like articles at the time the 
                        additional duty is imposed.
                            ``(v) If the difference between the unit 
                        import price and the trigger price is greater 
                        than 75 percent of the trigger price, the 
                        additional duty shall be equal to 100 percent 
                        of the difference between the preferential 
                        tariff rate and the column 1 general rate of 
                        duty imposed under the HTS on like articles at 
                        the time the additional duty is imposed.
                    ``(C) Exceptions.--No additional duty under this 
                paragraph shall be assessed on an agricultural product 
                if, at the time of entry into the customs territory of 
                the United States, the product is subject to import 
                relief under chapter 1 of title II of the Trade Act of 
                1974 (19 U.S.C. 2251 et seq.).
                    ``(D) Calculation of trigger price.--(i) Not later 
                than 60 days after the date of the enactment of the 
                AGOA III Act, and annually thereafter, the President 
                shall, in consultation with the Secretary of 
                Agriculture, establish the annual trigger price for 
                each over-quota agricultural product described in 
                paragraph (3)(B), and shall publish such prices in the 
                Federal Register. The President shall establish the 
                trigger price for a product at a level not below the 3-
                year average import price for that product.
                    ``(ii) Not later than 30 days before publishing the 
                trigger prices in the Federal Register under clause 
                (i), the President shall notify and consult with the 
                Committees on Ways and Means and Agriculture of the 
                House of Representatives and the Committees on Finance 
                and Agriculture of the Senate on the proposed trigger 
                prices.
                    ``(E) Notice to country concerned.--Not later than 
                60 days after the President first assesses additional 
                duties under this paragraph on over-quota imports of 
                agricultural products described in paragraph (3)(B), 
                the President shall notify the beneficiary sub-Saharan 
                African country where the product was grown, 
                manufactured, or produced, in writing of such action 
                and shall provide to the country data supporting the 
                assessment of the additional duties.
                    ``(F) Definitions.--In this paragraph:
                            ``(i) F.O.B.--The term `F.O.B.' means free 
                        on board, regardless of the mode of 
                        transportation, at the point of direct shipment 
                        by the seller to the buyer.
                            ``(ii) HTS.--The term `HTS' means the 
                        Harmonized Tariff Schedule of the United 
                        States.
                            ``(iii) Unit import price.--The term `unit 
                        import price' means the price expressed in 
                        dollars per kilogram.''.

SEC. 202. AGRICULTURAL TRADE ASSISTANCE.

    Section 130 of the African Growth and Opportunity Act (19 U.S.C. 
3740) is amended by adding at the end the following:
    ``(c) Comprehensive Plan.--The Secretary of Agriculture, based on 
results of the study described in subsection (a), shall develop a 
comprehensive plan to implement public sector policies and incentives 
for the private sector to--
            ``(1) identify current United States agricultural imports 
        with the potential for competitive production for export in 
        sub-Saharan Africa;
            ``(2) identify current agricultural exports from sub-
        Saharan Africa;
            ``(3) identify the primary agricultural export products 
        under this Act;
            ``(4) analyze critical constraints to United States-Africa 
        agricultural trade;
            ``(5) identify potential value-added and processed 
        agricultural products that can be exported from sub-Saharan 
        Africa to the United States under this Act;
            ``(6) analyze critical constraints to producing and 
        exporting to the United States such value-added and processed 
        agricultural products;
            ``(7) develop a strategy, with African national public and 
        private sectors, and regional organizations, for removing or 
        ameliorating the critical constraints identified;
            ``(8) develop a strategy for increasing investments to 
        diversify and add value to agricultural exports under this Act; 
        and
            ``(9) develop a strategy for increasing the tradable volume 
        of agricultural exports from eligible sub-Saharan African 
        countries.
    ``(d) Report.--The results of the study and details of the 
comprehensive plan shall be included in the annual report to Congress 
submitted under section 106.''.

SEC. 203. EXECUTIVE BRANCH INITIATIVES.

    Section 122(b)(3) of the African Growth and Opportunity Act (19 
U.S.C. 3732(b)(3)) is amended to read as follows:
            ``(3) addressing critical agricultural policy issues, in 
        part, by developing a comprehensive plan, which shall be 
        submitted to the Congress, to--
                    ``(A) increase market liberalization;
                    ``(B) develop agricultural exports;
                    ``(C) increase investment in processing and 
                transporting commodities;
                    ``(D) develop and increase capacity by working with 
                farmers and farmer groups;
                    ``(E) increase access to vital market information, 
                including prices, product quality and demand, inputs 
                quality and costs, and customs rules and regulations, 
                for farmers and farmer groups and cooperatives and for 
                relevant government ministries; and
                    ``(F) enable public-private partnerships in 
                eligible sub-Saharan African countries to promote trade 
                in agricultural products between the United States and 
                eligible sub-Saharan African countries.''.

SEC. 204. TECHNICAL ASSISTANCE.

    (a) Technical Assistance by APHIS Personnel.--
            (1) Assignment of personnel.--The President shall assign at 
        least 20 full-time personnel of the Animal and Plant Health 
        Inspection Service, to not less than 10 eligible sub-Saharan 
        African countries identified by the President as having the 
        greatest potential to increase marketable exports of 
        agricultural products to the United States and the greatest 
        need for technical assistance, particularly in conducting pest 
        risk assessments, for the purpose of providing technical 
        assistance to such countries to ensure that exports of any 
        products will meet the requirements under United States law 
        when imported into the United States.
            (2) Authorization of appropriations.--There is authorized 
        to be appropriated to the United States Agency for 
        International Development to carry out paragraph (1) 
        $85,000,000 for fiscal years 2005 through 2020.
    (b) Assistance to Agribusiness.--The United States Agency for 
International Development is authorized to provide grants in each of 
fiscal years 2005 through 2020 to governmental and nongovernmental 
entities that are located in eligible sub-Saharan African countries and 
can provide assistance, consultation, and equipment to agribusinesses 
located in those countries in order to enable agricultural products of 
those businesses to meet the requirements under United States law when 
imported into the United States. Such funds may be used for grants to 
national plant protection organizations for the purpose of obtaining 
equipment to achieve the purposes of this subsection.

SEC. 205. THE FOREIGN AGRICULTURE SERVICE.

    The Secretary of Agriculture shall direct the Foreign Agriculture 
Service (FAS) to work with national African agricultural organizations 
to identify agricultural equipment and supply needs and implement 
programs that strengthen the ability of members of African agricultural 
organizations to fulfill these needs in conjunction with export credit 
guarantee programs.

            TITLE III--INCREASING CERTAINTIES IN INVESTMENT

SEC. 301. DESIGNATION OF ELIGIBLE COUNTRIES.

    Section 104 of the African Growth and Opportunity Act is amended by 
striking subsection (b) and inserting the following:
    ``(b) Continuing Compliance.--If the President determines that an 
eligible sub-Saharan African country no longer meets the criteria set 
forth in subsection (a), including by failing to maintain the 
institutions described in subparagraphs (A) through (F) of subsection 
(a)(1), the President may terminate the designation of the country made 
pursuant to subsection (a) if--
            ``(1) the President transmits to the Congress notice of the 
        proposed designation; and
            ``(2) the Congress, within 90 days after receiving such 
        notice, does not enact a law prohibiting such termination.''.

SEC. 302. OVERSEAS PRIVATE INVESTMENT CORPORATION.

    (a) OPIC Initiatives.--Section 123(b)(4) of the African Growth and 
Opportunity Act (19 U.S.C. 3733(b)(4)) is amended to read as follows:
            ``(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, in part by including a focus on 
        investments in agriculture, tourism, and nature tourism.''.
    (b) Exception to Restrictions on OPIC Activities.--Section 231 of 
the Foreign Assistance Act of 1961 (22 U.S.C. 2191) is amended by 
adding at the end the following flush sentence: ``The prohibitions set 
forth in subsections (k)(1) and (l), and the requirement set forth in 
subsection (k)(2), shall not apply to any contract of insurance or 
reinsurance, guaranty, or agreement to provide financing for an 
eligible investor's proposed investment if the investment is in country 
designated as a beneficiary sub-Saharan African country under section 
506A(a)(1) of the Trade Act of 1974 (19 U.S.C. 2466a(a)(1)).''.
    (c) Sense of Congress.--It is the sense of the Congress that--
            (1) the Overseas Private Investment Corporation should be 
        commended for creating the African Millennium Fund, which will 
        encourage vital investments in the infrastructure of eligible 
        sub-Saharan African countries; and
            (2) it is critically important that the Fund be fully 
        subscribed and disbursing funds as soon as possible.

SEC. 303. EXPORT-IMPORT BANK.

    Section 2(b)(1)(B) of the Export-Import Bank Act of 1945 (12 U.S.C. 
635(b)(1)(B) is amended--
            (1) by inserting ``(i)'' after ``(B)''; and
            (2) by adding at the end the following:
    ``(ii) The Bank shall implement such regulations and procedures as 
may be appropriate to ensure that full consideration is given to the 
extent to which any loan, guarantee, insurance, extension of credit, or 
participation in an extension of credit is likely to have a positive 
effect on industries, including the textile and apparel industry and 
agricultural production, in countries designated as beneficiary sub-
Saharan African countries under section 506A(a)(1) of the Trade Act of 
1974 (19 U.S.C. 2466a(a)(1)). To carry out the purposes of this clause, 
the Bank shall work with the Administrator of the United States Agency 
for International Development, the United States Trade Representative, 
and the Secretary of Commerce in identifying opportunities to use the 
resources of the Bank to encourage industrial and agricultural 
development in such beneficiary sub-Saharan African countries.''.

SEC. 304. TAX POLICY.

    (a) Development of Domestic Tax Policies To Replace Lost Trade Tax 
Revenues.--
            (1) Findings.--The Congress finds that--
                    (A) trade tax revenues remain important in many 
                eligible sub-Saharan African countries;
                    (B) studies conducted by the International Monetary 
                Fund show that the revenue losses a developing country 
                experiences due to trade liberalization can be 
                recovered by improving the domestic tax system in the 
                affected country; and
                    (C) technical assistance provided by the United 
                States to eligible sub-Saharan African countries in 
                fiscal or economic policy programs has focused on tax 
                system enhancement or development that has been helpful 
                in moving tax regimes away from trade-related tax 
                revenue toward other tax revenue sources.
            (2) Sense of the congress.--It is the sense of the Congress 
        that--
                    (A) the United States Agency for International 
                Development, in cooperation with the United States 
                Department of the Treasury, the International Monetary 
                Fund, the International Bank for Reconstruction and 
                Development, and the African Development Bank, should 
                exercise the authorities it has to continue to provide 
                technical assistance to eligible sub-Saharan African 
                countries in the tax policy and revenue administration; 
                and
                    (B) particular focus should be given to projects 
                that assist such countries in developing domestic 
                policies and measures to replace lost trade tax 
                revenues resulting from trade liberalization.
    (b) Double Taxation Treaties With Eligible Sub-Saharan African 
Countries.--In order to encourage investment in and certainty in the 
movement of capital, the Secretary of the Treasury shall seek 
negotiations with those eligible sub-Saharan African countries which 
the Secretary determines will benefit most from an income tax treaty 
with the United States.
    (c) Deduction for Cash Contributions to Global Fund To Fight HIV/
AIDS, Tuberculosis, and Malaria.--
            (1) In general.--Part VI of subchapter B of chapter 1 of 
        the Internal Revenue Code of 1986 (relating to itemized 
        deductions for individuals and corporations) is amended by 
        adding at the end the following new section:

``SEC. 199. CASH CONTRIBUTIONS TO GLOBAL FUND TO FIGHT HIV/AIDS, 
              TUBERCULOSIS AND MALARIA.

    ``(a) Allowance of Deduction.--There shall be allowed as a 
deduction an amount equal to the cash contributions made by the 
taxpayer during the taxable year to the Global Fund to Fight HIV/AIDS, 
Tuberculosis and Malaria.
    ``(b) Limitation.--The amount allowed as a deduction under 
subsection (a) shall not exceed the portion of taxable income 
(determined without regard to this section) directly or indirectly 
attributable to active conduct of all trades and businesses of the 
taxpayer during the taxable year.
    ``(c) Definition.--For purposes of this section, the term `eligible 
sub-Saharan African country' means an eligible sub-Saharan African 
country under the African Growth and Opportunity Act.
    ``(d) Aggregation Rule.--For purposes of this section, all persons 
treated as a single employer under subsection (a) or (b) of section 52 
or subsection (n) or (o) of section 414 shall be treated as one 
person.''.
            (2) Clerical amendment.--The table of sections for part VI 
        of subchapter B of chapter 1 of such Code is amended by adding 
        at the end the following new item:

                              ``Sec. 199. Cash contributions to Global 
                                        Fund to fight HIV/AIDS, 
                                        Tuberculosis and Malaria.''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to taxable years beginning after December 31, 2003.

SEC. 305. BILATERAL INVESTMENT TREATIES.

    In order to encourage investment in eligible sub-Saharan African 
countries and reduce the uncertainties that arise from investing in 
developing countries, the United States Trade Representative shall seek 
to negotiate, with interested eligible sub-Saharan African countries, 
bilateral investment agreements. Any such agreement shall comply with 
section 2102(b)(3) of the Trade Act of 2002 (19 U.S.C. 3802(b)(3)).

SEC. 306. DEVELOPMENT STUDY AND CAPACITY BUILDING.

    (a) Reports.--The Administrator of the United States Agency for 
International Development shall, by not later than 1 year after the 
date of the enactment of this Act, conduct a study on each eligible 
sub-Saharan African country, that--
            (1) identifies sectors of the economy of that country with 
        the greatest potential for growth, including through export 
        sales;
            (2) identifies barriers, both domestically and 
        internationally, that are impeding growth in such sectors; and
            (3) makes recommendations on how the United States 
        Government and the private sector can provide technical 
        assistance to that country to assist in dismantling such 
        barriers and in promoting investment in such sectors.
    (b) Dissemination of Information.--The President shall disseminate 
information in each study conducted under subsection (a) to the 
appropriate United States agencies for the purpose of implementing 
recommendations on the provision of technical assistance and in 
identifying opportunities for United States investors, businesses, and 
farmers.

                     TITLE IV--BOOSTING TRADE FLOWS

SEC. 401. ACTIVITIES IN SUPPORT OF INFRASTRUCTURE TO SUPPORT INCREASING 
              TRADE CAPACITY AND ECOTOURISM.

    (a) Findings.--The Congress finds the following:
            (1) Ecotourism, which consists of--
                    (A) responsible and sustainable travel and 
                visitation to relatively undisturbed natural areas in 
                order to enjoy and appreciate nature (and any 
                accompanying cultural features, both past and present) 
                and animals, including species that are rare or 
                endangered,
                    (B) promotion of conservation and provision for 
                beneficial involvement of local populations, and
                    (C) visitation designed to have low negative impact 
                upon the environment,
        is expected to expand 30 percent globally over the next decade.
            (2) Ecotourism will increase trade capacity by sustaining 
        otherwise unsustainable infrastructure, such as road, port, 
        water, energy, and telecommunication development.
            (3) According to the United States Department of State and 
        the United Nations Environment Programme, sustainable tourism, 
        such as ecotourism, can be an important part of the economic 
        development of a region, especially a region with natural and 
        cultural protected areas.
            (4) Sub-Saharan Africa enjoys an international comparative 
        advantage in ecotourism because it features extensive protected 
        areas that host a variety of ecosystems and traditional 
        cultures that are major attractions for nature-oriented 
        tourism.
            (5) National parks and reserves in sub-Saharan Africa 
        should be considered a basis for regional development, 
        involving communities living within and adjacent to them and, 
        given their strong international recognition, provide an 
        advantage in ecotourism marketing and promotion.
            (6) Desert areas in sub-Saharan Africa represent complex 
        ecotourism attractions, showcasing natural, geological, and 
        archaeological features, and nomad and other cultures and 
        traditions.
            (7) Many natural zones in sub-Saharan Africa cross the 
        political borders of several countries; therefore, 
        transboundary cooperation is fundamental for all types of 
        ecotourism development.
            (8) The commercial viability of ecotourism is enhanced when 
        small and medium enterprises, particularly microenterprises, 
        successfully engage with the tourism industry in sub-Saharan 
        Africa.
            (9) Adequate capacity building is an essential component of 
        ecotourism development if local communities are to be real 
        stakeholders that can sustain an equitable approach to 
        ecotourism management.
            (10) Ecotourism needs to generate local community benefits 
        by utilizing sub-Saharan Africa's natural heritage, parks, 
        wildlife reserves, and other protected areas that can play a 
        significant role in encouraging local economic development by 
        sourcing food and other locally produced resources.
    (b) Action by the President.--The President shall develop and 
implement policies to--
            (1) assist and encourage the development of infrastructure 
        projects that will help to increase trade capacity and a 
        sustainable ecotourism industry in eligible sub-Saharan African 
        countries;
            (2) encourage and facilitate transboundary cooperation in 
        sub-Saharan African countries to establish and protect cross-
        border parks and natural zones;
            (3) provide technical assistance to eligible sub-Saharan 
        African countries to establish and sustain adequate capacity 
        development; and
            (4) provide assistance to micro-, small-, and medium-sized 
        enterprises in eligible sub-Saharan African countries to 
        participate in the ecotourism industry.

SEC. 402. ACTIVITIES IN SUPPORT OF TRANSPORTATION, ENERGY, AGRICULTURE, 
              AND TELECOMMUNICATIONS INFRASTRUCTURE.

    (a) Findings.--The Congress finds the following:
            (1) In order to increase exports from, and trade among, 
        eligible sub-Saharan African countries, transportation systems 
        in those countries must be improved to increase transport 
        efficiencies and lower transport costs.
            (2) Vibrant economic growth requires a developed 
        telecommunication and energy infrastructure.
            (3) Sub-Saharan Africa is rich in exportable agricultural 
        goods, but development of this industry remains stymied because 
        of an underdeveloped infrastructure.
    (b) Action by the President.--The President shall develop and 
implement policies to encourage, and assist with, investment in 
eligible sub-Saharan African countries in the following:
            (1) Infrastructure projects that support, in particular, 
        development of land transport road and railroad networks and 
        ports, and the continued upgrading and liberalization of the 
        energy and telecommunications sectors.
            (2) The establishment and expansion of modern information 
        and communication technologies and practices to improve the 
        ability of citizens to research and disseminate information 
        relating to, among other things, the economy, education, trade, 
        health, agriculture, the environment, and the media.
            (3) Agriculture, particularly in processing and capacity 
        enhancement.

SEC. 403. TRANSPORTATION.

    In order to increase trade flows and the efficiency of 
transportation links between eligible sub-Saharan African countries and 
the United States, the Administrator of the United States Agency for 
International Development shall foster port-to-port and airport-to-
airport relationships. These relationships should facilitate--
            (1) increased coordination between ports and airports in 
        the United States and such countries in order to reduce time in 
        transit;
            (2) interaction between technical staff from ports and 
        airports in the United States and such countries in order to 
        increase efficiency and safety procedures and protocols;
            (3) coordination between chambers of commerce, freight 
        forwarders, customs brokers, and others involved in 
        consolidating and moving freight; and
            (4) flights between ports and airports in the United States 
        and such countries in order to increase frequency and capacity.

SEC. 404. AGOA FORUMS.

    In order to ensure that nongovernmental organizations and the 
private sector continue to host the annual meetings described in 
section 105(c)(2) of the African Growth and Opportunity Act (19 U.S.C. 
3704(c)(2)), the United States Trade Representative is authorized to 
provide grants in each of the fiscal years 2004 through 2020, to United 
States nongovernmental organizations referred to in section 105(c)(2) 
of that Act and to United States representatives of the private sector 
referred to in section 105(c)(2)(B) of that Act, for the purpose of 
hosting such meetings.

SEC. 405. TASK FORCE.

    The President shall assemble an interagency task force composed of 
representatives from the Office of the United States Trade 
Representative, the Department of Commerce, the Department of State, 
the United States Agency for International Development, the Department 
of Treasury, and the Department of Agriculture to facilitate the goals 
and objectives of this Act and maintain ongoing discussions with 
African trade and agriculture ministries and private sector 
organizations on issues of mutual concern, including regional and 
international trade concerns and World Trade Organization issues.
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