I

106TH CONGRESS

1ST SESSION H. R. 772

To authorize a new trade, investment, and development policy for sub-Saharan

Africa that is mutually beneficial to the majority of people in subSaharan Africa and the United States.

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 23, 1999

Mr. JACKSON of Illinois (for himself, Mr. BONIOR, Mr. CLYBURN, Mr.

GEORGE MILLER of California, Ms. MCKINNEY, Ms. LEE, Mr. CONYERS,

Mr. CUMMINGS, Mr. KUCINICH, Mr. THOMPSON of Mississippi, Mr.

BROWN of Ohio, Ms. SCHAKOWSKY, Mr. CLAY, Ms. JACKSON-LEE of

Texas, Ms. KILPATRICK, Mr. SANDERS, Mr. CAPUANO, Mr. MCGOVERN,

Mr. BRADY of Pennsylvania, Mr. OLVER, Mr. PALLONE, Mr. BROWN of

California, Mr. PASCRELL, Mr. BALDACCI, Mrs. JONES of Ohio, Mr.

STARK, Mr. DELAHUNT, Mr. EVANS, Mr. HASTINGS of Florida, Mr. STUPAK, and Mr. KLINK) introduced the following bill; which was referred

to the Committee on International Relations, and in addition to the Committees on Banking and Financial Services, and Ways and Means, 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 authorize a new trade, investment, and development policy for sub-Saharan Africa that is mutually beneficial

to the majority of people in sub-Saharan Africa and

the United States.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. SHORT TITLE.

2 This Act may be cited as the ‘‘Human Rights, Oppor3 tunity, Partnership, and Empowerment for Africa Act’’ or

4 the ‘‘HOPE for Africa Act’’.

5 SEC. 2. TABLE OF CONTENTS.

6 The table of contents for this Act is as follows:

Sec. 1. Short title.

Sec. 2. Table of contents.

Sec. 3. Findings.

Sec. 4. Declarations of policy.

TITLE I—CANCELLATION OF DEBT OWED BY SUB-SAHARAN

AFRICAN COUNTRIES

Sec. 101. Declarations of policy.

Sec. 102. Cancellation of debt owed to the United States Government by subSaharan African countries.

Sec. 103. Advocacy of cancellation of debt owed to foreign governments by subSaharan African countries.

Sec. 104. Advocacy of cancellation of debt owed to the International Monetary

Fund and the International Bank for Reconstruction and Development by sub-Saharan African countries.

Sec. 105. Cancellation of debt owed to United States lenders by sub-Saharan

African countries.

Sec. 106. Study on repayment of debt in local currencies by sub-Saharan African countries.

Sec. 107. Allocation of percentage of national budgets of sub-Saharan African

countries for basic services.

Sec. 108. Sense of the Congress relating to level of interim debt payments prior

to full debt cancellation by sub-Saharan African countries.

TITLE II—TRADE PROVISIONS RELATING TO SUB-SAHARAN

AFRICA

Sec. 201. Encouraging mutually beneficial trade and investment.

Sec. 202. Generalized system of preferences.

Sec. 203. Additional enforcement.

TITLE III—DEVELOPMENT ASSISTANCE FOR SUB-SAHARAN

AFRICAN COUNTRIES

Sec. 301. Findings.

Sec. 302. Private and voluntary organizations.

Sec. 303. Types of assistance.

Sec. 304. Critical sectoral priorities.

Sec. 305. Minimum levels of assistance for certain critical sectors.

Sec. 306. Reporting requirements.

Sec. 307. Authorization of appropriations for Development Fund for Africa.
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TITLE IV—SUB-SAHARAN AFRICA EQUITY AND INFRASTRUCTURE

FUNDS

Sec. 401. Sub-Saharan Africa equity and infrastructure funds.

TITLE V—OVERSEAS PRIVATE INVESTMENT CORPORATION AND

EXPORT-IMPORT BANK INITIATIVES

Sec. 501. Overseas Private Investment Corporation initiatives.

Sec. 502. Export-Import Bank initiative.

TITLE VI—MISCELLANEOUS PROVISIONS

Sec. 601. Requirements relating to sub-Saharan Africa intellectual property

and competition law.

Sec. 602. Review and reporting requirements.

Sec. 603. Sub-Saharan Africa defined.

1 SEC. 3. FINDINGS.

2 The Congress finds the following:

3 (1) It is in the mutual interest of the United

4 States and the countries of sub-Saharan Africa to

5 promote broad-based economic development and eq6 uitable trade and investment policies in sub-Sahara

7 Africa.

8 (2) The countries of sub-Saharan Africa form a

9 region of tremendous human creativity, vast natural

10 and cultural wealth, enormous economic potential,

11 and enduring political significance.

12 (3) Many sub-Saharan African countries have

13 made notable progress toward democratization in re14 cent years.

15 (4) Despite this enormous potential, Africa has

16 the largest number of the poorest countries in the

17 world. Thirty-three of the 41 highly indebted poor

18 countries (HIPC) are located in sub-Saharan Africa.
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1 Indeed, 50 percent of Africans live below the poverty

2 line, and 40 percent live on less than $1 per day. In

3 addition, 40 percent of Africans suffer from mal4 nutrition and hunger, while 1 in 5 children in Africa

5 die before the age of 5.

6 (5)(A) Africa is the only continent where eco7 nomic production per person has declined through8 out the last two decades.

9 (B) The per capita income for sub-Saharan Af10 rica averages less than $500 annually and per capita

11 income fell from $752 in 1980, when the neo-liberal

12 development model was initially imposed on numer13 ous African countries, to $613 in 1988 (in constant

14 1980 United States dollars).

15 (C) According to the International Bank for

16 Reconstruction and Development, in sub-Saharan

17 Africa wages have not grown since 1970 and in the

18 last decade alone family incomes have fallen by a

19 third and the number of African families unable to

20 meet their basic needs has doubled.

21 (D) In 1996, 20 sub-Saharan African countries

22 were still below their per capita incomes of 20 years

23 ago.
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1 (6) African women, the region’s chief food pro2 ducers, are often excluded from the benefits of cur3 rent trade and investment regimes.

4 (7) Africa’s wealth in natural resources, oil, and

5 minerals is immense. However, current development

6 and economic models have denied the majority of Af7 rican people any benefits from this vast wealth.

8 (8) A plan for sustainable, equitable develop9 ment for, and trade with, Africa must recognize the

10 asymmetries of power and different levels of develop11 ment that exist between countries. Certain fun12 damental pre-existing hindrances to African develop13 ment and trade must be addressed.

14 (9) Sub-Saharan Africa, especially the poorest

15 people of sub-Saharan Africa, are inordinately bur16 dened by a $230,000,000,000 debt whose service re17 quirements now take over 20 percent of the export

18 earnings of the sub-Saharan African region, exclud19 ing South Africa.

20 (10) The bilateral and multilateral debt bur21 dens of sub-Saharan Africa constitute a serious im22 pediment to private-sector development, stable demo23 cratic political structures, broad-based economic

24 growth, poverty eradication, the expansion of small

25 and women-owned businesses, food security, agricul-
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1 tural development aimed at feeding the continent’s

2 people, environmental sustainability, and regional in3 tegration.

4 (11)(A) Any policy for development in Africa

5 that is intended to benefit Africa must be premised

6 on unconditional debt cancellation.

7 (B) The history of United States cancellation of

8 debt includes reversal of the United States demand

9 that Germany pay 10 percent of its post-World War

10 II export earnings to recover debts owed prior to the

11 war.

12 (C) Germany successfully negotiated for a rate

13 which resulted in annual payments of less than 3.5

14 percent of export earnings.

15 (D) Currently Mozambique, one of the world’s

16 poorest countries, pays over 20 percent of export

17 earnings in debt service.

18 (11)(A) The International Monetary Fund, the

19 International Bank for Reconstruction and Develop20 ment, and other international financial institutions

21 and aid agencies have required African nations to

22 adhere to ‘‘structural adjustment programs’’ which

23 have imposed enormous preventable suffering on Af24 rican people.
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1 (B) These programs orient economies toward

2 export production, placing downward pressure on

3 wages, encouraging unsustainable resource exploi4 tation, and undermining food security.

5 (C) These programs lead to major reductions in

6 government spending, including in the crucial areas

7 of education, healthcare, and environmental protec8 tion, and they particularly harm women, who are

9 most severely hurt by the elimination of the social

10 safety net and the policy’s neglect of small and do11 mestically oriented farmers.

12 (D) The programs impose a deregulatory and

13 trade liberalization agenda that removes crucial gov14 ernment protections for society and leaves local busi15 ness vulnerable to foreign multinational corpora16 tions. They also encourage wage cuts, including re17 ductions in the minimum wage, weakening of labor

18 laws and labor rights, and government and private

19 sector reductions in employment.

20 (E) Structural adjustment programs force re21 cessionary policies that most seriously victimize the

22 poor, and these programs tend to exacerbate income

23 and wealth inequalities and undermine basic well24 being, as measured by access to food, shelter, medi25 cal services, and a sustainable livelihood, even when
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1 traditional economic indicators show economic

2 growth.

3 (12) The recent turmoil in the global economy

4 has demonstrated the limitations of the Inter5 national Monetary Fund model of trade and capital

6 liberalization.

7 (13) The United Nations Declaration of Human

8 Rights guarantees the right to food, shelter, health

9 care, education, and a sustainable livelihood, as well

10 as rights to political freedoms. United States policy

11 toward Africa must further these goals for the ma12 jority of people in sub-Saharan African and the

13 United States.

14 (14)(A) Many economic and ‘‘development’’

15 policies imposed on sub-Saharan Africa under Inter16 national Monetary Fund programs and other inter17 national loan programs are focused on generating

18 hard currency through exports to service foreign

19 debt rather than on production for domestic African

20 food and other needs.

21 (B) Net transfer of resources from sub-Saharan

22 Africa to developed countries has increased substan23 tially for almost every sub-Saharan African nation.

24 (C) Two prominent examples are Zambia,

25 whose debt service ratio was 25.3 in 1980 and
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1 174.44 in 1995—a 600 percent increase—and Si2 erra Leone, whose debt service nearly tripled from

3 1980 to 1995.

4 (15) Certain industrial agriculture practices im5 posed on sub-Saharan Africa under International

6 Monetary Fund programs and other international

7 loan programs, including substitution of export crops

8 for staple food production, use of chemical fer9 tilizers, hybrid seeds and other products, have re10 sulted in damage to local farmers and agriculture

11 and loss of food security.

12 (16)(A) Current large scale ‘‘development’’

13 projects have not been designed in a manner that

14 produces benefits to most Africans.

15 (B) For instance, oil and mining projects such

16 as Sierra Rutile and Terebebe have not benefited

17 most Africans economically and have caused severe

18 environmental damage and led to conflicts with local

19 communities.

20 (C) More projects of this sort are now under

21 consideration, such as the International Bank for

22 Reconstruction and Development’s pending May

23 1999 decision on a $3,000,000,000 request for a

24 Chad-Cameroon oil pipeline that has been harshly

25 criticized on social and environmental grounds.
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1 (17) Many sub-Saharan African countries are

2 suffering from epidemics of HIV/AIDS, tuberculosis,

3 malaria and other diseases, many of which are treat4 able or preventable with existing pharmaceutical and

5 medical treatments.

6 (18)(A) The key principles that must guide any

7 United States economic policy toward sub-Saharan

8 Africa are those repeatedly identified by African gov9 ernments.

10 (B) Documents providing a concrete guide to

11 these sub-Saharan African priorities include the

12 ‘‘Lagos Plan’’ developed by the finance ministers of

13 the sub-Saharan African countries in coordination

14 with the Organization for African Unity.

15 (C) The overriding priority expressed in such

16 African policies is freedom for each African country

17 to self-determine what economic policies suit the

18 needs of their people and development.

19 (D) The priority goals these policies are aimed

20 to meet are food self-sufficiency and security, and

21 broad access to potable water, shelter, primary

22 health care, education, and affordable transport.

23 (19) Fair trade and mutually beneficial invest24 ment can be important tools for broad-based eco25 nomic development.
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1 (20)(A) Global production utilizing free trade

2 among developed countries that have a common eco3 nomic and social system often carries significant

4 benefits—an expansion of demand, employment, pro5 ductivity, and a general increase in living standards.

6 (B) However, global production utilizing free

7 trade between developed and underdeveloped coun8 tries that have different economic and social systems

9 and standards appears to produce significantly dif10 ferent results—a general reduction of wages and de11 mand resulting in over-production and under-con12 sumption, a reduction in worker rights and safety,

13 fewer environmental protections and social welfare

14 mandates, and a transfer of income and wealth from

15 underdeveloped countries to the wealthy in developed

16 countries—thus increasing income and wealth dis17 parities both within developed countries and between

18 developed and underdeveloped countries and a gen19 eral lowering of living standards in developed coun20 tries.

21 (C) Therefore, mutually beneficial trade ar22 rangements among countries with significantly dif23 ferent levels of development will require a more com24 prehensive approach that combines trade opportuni-
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1 ties with other necessary policies that raise living

2 standards rather than lower them.

3 SEC. 4. DECLARATIONS OF POLICY.

4 The Congress makes the following declarations:

5 (1)(A) The worth of economic development of a

6 country is measured only by the well-being of the

7 people of the country.

8 (B) A program of adjustment or development

9 that causes a deterioration in conditions for most

10 people is a failure that must be remedied.

11 (2) Economic relations between sub-Saharan

12 Africa and the United States must be oriented to13 ward benefiting the majority of the people of sub-Sa14 haran Africa and of the United States.

15 (3) The Congress endorses the goals stated in

16 the Lagos Plan developed by sub-Saharan African

17 Finance Ministers in cooperation with the Organiza18 tion for African Unity.

19 (4) In accordance with the goals of the Lagos

20 Plan, the primary goals of the United States with

21 respect to developing new economic relations with

22 sub-Saharan Africa include the following:

23 (A) Strengthening and diversifying the eco24 nomic production capacity of sub-Saharan

25 Africa.
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1 (B) Improving the level of people’s incomes

2 and the pattern of distribution in sub-Saharan

3 Africa.

4 (C) Adjusting the pattern of public expend5 itures to satisfy people’s essential needs in sub6 Saharan Africa.

7 (D) Providing institutional support for

8 transition to functioning market economies in

9 sub-Saharan Africa through debt relief.

10 (E) Supporting environmentally sustain11 able development in sub-Saharan Africa.

12 (F) Promoting democracy, human rights,

13 and the strength of civil society in sub-Saharan

14 Africa.

15 (5) To achieve these primary goals of the

16 United States with respect to developing new eco17 nomic relations with sub-Saharan Africa, the Con18 gress calls for the following:

19 (A)(i) Full and unconditional cancellation

20 of all debts owed by sub-Saharan African coun21 tries to the United States, to other foreign

22 countries, to the International Monetary Fund

23 and the International Bank for Reconstruction

24 and Development.
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1 (ii) Prior to this full and unconditional

2 cancellation of debt owed by sub-Saharan Afri3 can countries, each sub-Saharan African coun4 try shall not, in making debt payments de5 scribed in subclause (i), pay in any calendar

6 year an aggregate amount greater than an

7 amount equal to 5 percent of the export earn8 ings of the country for the prior calendar year.

9 (B) Encouraging sub-Saharan African

10 countries to adhere to their United Nations

11 20/20 Initiative commitment to support invest12 ment in human development by directing at

13 least 20 percent of savings from debt cancella14 tion to basic social services, with appropriate

15 input from civil society in developing basic serv16 ice plans as called for in the 20/20 Initiative.

17 (C) Targeting United States assistance

18 and trade initiatives so as to encourage local

19 processing of raw materials, using environ20 mentally protective techniques rather than seek21 ing export of raw commodities for processing in

22 other countries, will increase sub-Saharan Afri23 can employment, create an industrial base, and

24 encourage sustainable rates of resource extrac25 tion.
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1 (D) Targeting United States assistance

2 and trade opportunities to sub-Saharan African

3 nations that allocate the levels recommended in

4 the Lagos Plan—25 percent to food production

5 and security and 30 percent to health, edu6 cation and other vital social services will in7 crease the equity and sustainability of develop8 ment.

9 (E) United States representatives at all

10 multilateral banks and other international eco11 nomic institutions should vote for and otherwise

12 support these policies and others aimed at solu13 tions that do not contribute to exacerbating so14 cial and environmental ills.

15 (F) United States corporations and foreign

16 corporations operating in sub-Saharan Africa

17 and doing business with the United States must

18 operate under the same core environmental

19 standards as those used in the operations and

20 facilities of those corporations in the United

21 States or other developed countries.

22 (G) United States policy toward sub-Saha23 ran Africa provides an opportunity to redress

24 issues of racial inequities in the United States.

25 United States economic policy toward sub-Saha-
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1 ran Africa must provide African Americans

2 with the opportunities and potential benefits of

3 new economic relations between the United

4 States and Africa.

5 (6) It is the policy of the United States Govern6 ment to assist sub-Saharan African countries in ef7 forts to make safe and efficacious pharmaceuticals

8 and medical technologies as widely available as pos9 sible.

10 TITLE I—CANCELLATION OF

11 DEBT OWED BY SUB-SAHARAN

12 AFRICAN COUNTRIES

13 SEC. 101. DECLARATIONS OF POLICY.

14 The Congress makes the following declarations:

15 (1)(A) For the majority of people in sub-Saha16 ran Africa to be able to benefit from new trade, in17 vestment, and other economic opportunities provided

18 by this Act, and amendments made by this Act, the

19 pre-existing burden of external debt of sub-Saharan

20 African countries must be eliminated.

21 (B) This fresh start will allow operation of local

22 credit markets and eliminate distortions currently

23 hindering development in sub-Saharan Africa.

24 (2) The cancellation of debt provisions con25 tained in this title, and amendments made by this
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1 title, shall serve to help establish a more level play2 ing field on which sub-Saharan African countries

3 may move forward under the provisions of this Act.

4 SEC. 102. CANCELLATION OF DEBT OWED TO THE UNITED

5 STATES GOVERNMENT BY SUB-SAHARAN AF6 RICAN COUNTRIES.

7 The Foreign Assistance Act of 1961 (22 U.S.C. 2151

8 et seq.) is amended by adding at the end the following:

9 ‘‘PART VI—CANCELLATION OF DEBT OWED TO

10 THE UNITED STATES BY SUB-SAHARAN AFRI11 CAN COUNTRIES.

12 ‘‘SEC. 901. CANCELLATION OF DEBT.

13 ‘‘(a) IN GENERAL.—The President shall cancel all

14 amounts owed to the United States (or any agency of the

15 United States) by sub-Saharan African countries defined

16 in section 603 of the Human Rights, Opportunity, Part17 nership, and Empowerment for Africa Act as a result of—

18 ‘‘(1) concessional loans made or credits ex19 tended under any provision of law, including the pro20 visions of law described in subsection (b)(1); and

21 ‘‘(2) nonconcessional loans made, guarantees

22 issued, or credits extended under any of provisions

23 of law, including the provisions of law described in

24 subsection (b)(2).

25 ‘‘(b) PROVISIONS OF LAW.—
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1 ‘‘(1) CONCESSIONAL PROVISIONS OF LAW.—The

2 provisions of law described in this paragraph are the

3 following:

4 ‘‘(A) Part I of this Act, chapter 4 of part

5 II of this Act, or predecessor foreign economic

6 assistance legislation.

7 ‘‘(B) Title I of the Agricultural Trade De8 velopment and Assistance Act of 1954 (7

9 U.S.C. 1701 et seq.).

10 ‘‘(2) NONCONCESSIONAL PROVISIONS OF

11 LAW.—The provisions of law described in this para12 graph are the following:

13 ‘‘(A) Sections 221 and 222 of this Act.

14 ‘‘(B) The Arms Export Control Act (22

15 U.S.C. 2751 et seq.).

16 ‘‘(C) Section 5(f) of the Commodity Credit

17 Corporation Charter Act.

18 ‘‘(D)(i) Section 201 of the Agricultural

19 Trade Act of 1978 (7 U.S.C. 5621).

20 ‘‘(ii) Section 202 of such Act (7 U.S.C.

21 5622).

22 ‘‘(E) The Export-Import Bank Act of

23 1945 (12 U.S.C. 635 et seq.).
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1 ‘‘(c) TERMINATION OF AUTHORITY.—The authority

2 to cancel debt under this section shall terminate on Sep3 tember 30, 2002.

4 ‘‘SEC. 902. ADDITIONAL REQUIREMENTS.

5 ‘‘(a) REDUCTION OF DEBT NOT CONSIDERED TO BE

6 ASSISTANCE.—A reduction of debt under section 901 shall

7 not be considered to be assistance for purposes of any pro8 vision of law limiting assistance to a country.

9 ‘‘(b) INAPPLICABILITY OF CERTAIN PROHIBITIONS

10 RELATING TO REDUCTION OF DEBT.—The authority to

11 provide for reduction of debt under section 901 may be

12 exercised notwithstanding section 620(r) of this Act.

13 ‘‘SEC. 903. REPORTS TO THE CONGRESS.

14 ‘‘(a) IN GENERAL.—Not later than December 31,

15 1999, and December 31 of each of the next 3 years, the

16 President shall prepare and transmit to the appropriate

17 congressional committees an annual report concerning the

18 cancellation of debt under section 901 for the prior fiscal

19 year.

20 ‘‘(b) DEFINITION.—In this section, the term ‘appro21 priate congressional committees’ means—

22 ‘‘(1) the Committee on Banking and Financial

23 Services and the Committee on International Rela24 tions of the House of Representatives; and
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1 ‘‘(2) the Committee on Foreign Relations of the

2 Senate.

3 ‘‘SEC. 904. AUTHORIZATION OF APPROPRIATIONS.

4 ‘‘For the cost (as defined in section 502(5) of the

5 Federal Credit Reform Act of 1990) for the cancellation

6 of debt under section 901, there are authorized to be ap7 propriated to the President such sums as may be nec8 essary for each of the fiscal years 2000 through 2002.’’.

9 SEC. 103. ADVOCACY OF CANCELLATION OF DEBT OWED TO

10 FOREIGN GOVERNMENTS BY SUB-SAHARAN

11 AFRICAN COUNTRIES.

12 (a) ADVOCACY OF CANCELLATION OF DEBT.—The

13 Secretary of State shall provide written notification to

14 each foreign government that has provided loans, guaran15 tees, or credits to the government of a sub-Saharan Afri16 can country (and such loans, guarantees, or credits are

17 outstanding) that it is the policy of the United States to

18 fully and unconditionally cancel all debts owed by each

19 such sub-Saharan African country to the United States.

20 In addition, the Secretary shall urge in writing each such

21 foreign government to follow the example of the United

22 States and fully and unconditionally cancel all debts owed

23 by sub-Saharan African countries to each such foreign

24 government.
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1 (b) REPORT.—Not later than 9 months after the date

2 of the enactment of this Act, the Secretary of State shall

3 prepare and submit to the Congress a report containing—

4 (1) a description of each written notification

5 provided to foreign governments under the first sen6 tence of subsection (a);

7 (2) a description of the response of each such

8 foreign government to such notification; and

9 (3) a description of the amount (if any) owed

10 to the United States by any foreign government op11 posing the United States policy advocated pursuant

12 to subsection (a).

13 SEC. 104. ADVOCACY OF CANCELLATION OF DEBT OWED TO

14 THE INTERNATIONAL MONETARY FUND AND

15 THE INTERNATIONAL BANK FOR RECON16 STRUCTION AND DEVELOPMENT BY SUB-SA17 HARAN AFRICAN COUNTRIES.

18 Title XVI of the International Financial Institutions

19 Act (22 U.S.C. 262c–262p–5) is amended by redesignat20 ing section 1622 as section 1623 and by inserting after

21 section 1621 the following:
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1 ‘‘SEC. 1622. ADVOCACY OF CANCELLATION OF DEBT OWED

2 TO THE INTERNATIONAL MONETARY FUND

3 AND THE INTERNATIONAL BANK FOR RECON4 STRUCTION AND DEVELOPMENT BY SUB-SA5 HARAN AFRICAN COUNTRIES.

6 ‘‘(a) IN GENERAL.—The Secretary of Treasury shall

7 instruct the United States Executive Directors at the

8 International Monetary Fund and the International Bank

9 for Reconstruction and Development to use the voice, vote,

10 and influence of the United States to advocate that their

11 respective institutions—

12 ‘‘(1) fully and unconditionally cancel all debts

13 owed by any country in sub-Saharan Africa (as de14 fined in section 603 of the Human Rights, Oppor15 tunity, Partnership, and Empowerment for Africa

16 Act) to such institution; and

17 ‘‘(2) encourage each country benefiting from

18 such debt cancellation to allocate 20 percent of the

19 national budget of the country, including savings

20 from such debt cancellation, to basic services, as the

21 country has committed to do under the United Na22 tions 20/20 Initiative, with appropriate input from

23 civil society in developing basic service plans.

24 ‘‘(b) ADVOCACY OF POLICY TO PREVENT SUB-SAHA25 RAN AFRICAN COUNTRIES FROM PAYING MORE THAN 5

26 PERCENT OF ANNUAL EXPORT EARNINGS FOR DEBT
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1 SERVICE ON IMF OR WORLD BANK LOANS.—The Sec2 retary of Treasury shall instruct the United States Execu3 tive Directors at the International Monetary Fund and the

4 International Bank for Reconstruction and Development,

5 until their respective institutions have fully and uncondi6 tionally canceled all debts owed to such institutions by any

7 country in sub-Saharan Africa (within the meaning of sub8 section (a)(1)) to use the voice, vote, and influence of the

9 United States to advocate that their respective institutions

10 not be party to, and that no future loan from their respec11 tive institutions be used to finance in whole or part the

12 implementation of, any agreement which requires the gov13 ernment of any such country, during any 12-month period

14 beginning on the date of the enactment of this section or

15 any anniversary of such date, to pay an amount exceeding

16 5 percent of the annual export earnings of the country

17 during the year toward the servicing of foreign loans.

18 ‘‘(c) ADVOCACY METHODS.—The Secretary of Treas19 ury shall instruct the United States Executive Directors

20 at the International Monetary Fund and the International

21 Bank for Reconstruction and Development to carry out

22 such instructions by all appropriate means, including by

23 letter to the country representative members governing

24 bodies of their respective institutions, and by requesting

25 formal votes on these matters.
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1 ‘‘(d) REPORT.—Within 1 year after the date of the

2 enactment of this section, the Secretary of the Treasury

3 shall submit to the Committees on International Relations

4 and on Banking and Financial Services of the House of

5 Representatives and the Committees on Foreign Relations

6 of the Senate a report that contains—

7 ‘‘(1) a description of the response by foreign

8 governments to the policies advocated pursuant to

9 this section;

10 ‘‘(2) the result of any votes taken pursuant to

11 requests made under subsection (c);

12 ‘‘(3) the amount (if any) owed to the United

13 States by any country opposing any such policy; and

14 ‘‘(4) a copy of the letter referred to in sub15 section (c).’’.

16 SEC. 105. CANCELLATION OF DEBT OWED TO UNITED

17 STATES LENDERS BY SUB-SAHARAN AFRICAN

18 COUNTRIES.

19 (a) REPORT.—Not later than January 1, 2000, the

20 Secretary of the Treasury shall submit to the Congress

21 a report on the amount of debt owed to any United States

22 person by any country in sub-Saharan Africa. The report

23 shall specify the amount owed to each such person by each

24 such country, the face value and market value of the debt,

25 and the amount of interest paid to date on the debt.
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1 (b) ACQUISITION OF THE DEBT BY THE UNITED

2 STATES.—Not later than September 1, 2000, the Sec3 retary of the Treasury shall acquire each debt obligation

4 owed to any United States person by any country in sub5 Saharan Africa. It is the sense of the Congress that the

6 price at which such an obligation is acquired should be

7 the market value of the debt obligation as of January 1,

8 1999.

9 (c) DEBT CANCELLATION.—On the acquisition of a

10 debt obligation pursuant to this section, the debt obliga11 tion is hereby canceled.

12 SEC. 106. STUDY ON REPAYMENT OF DEBT IN LOCAL CUR13 RENCIES BY SUB-SAHARAN AFRICAN COUN14 TRIES.

15 Section 603 of the Foreign Operations, Export Fi16 nancing, and Related Programs Appropriations Act, 1999

17 (as contained in section 101(d) of division A of the Omni18 bus Consolidated and Emergency Supplemental Appro19 priations Act, 1999) is amended—

20 (1) in subsection (e)—

21 (A) by striking ‘‘and’’ at the end of para22 graph (3);

23 (B) by redesignating paragraph (4) as

24 paragraph (5); and
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1 (C) by inserting after paragraph (3) the

2 following:

3 ‘‘(4) the viability and desirability of having each

4 indebted country in sub-Saharan Africa (as defined

5 in section 603 of the Human Rights, Opportunity,

6 Partnership, and Empowerment for Africa Act)

7 repay foreign loans made to the country (whether

8 made bilaterally, multilaterally, or privately) in the

9 currency of the indebted country; and’’; and

10 (2) in subsection (g), by adding at the end the

11 following:

12 ‘‘(6) The matters described in subsection

13 (e)(4).’’.

14 SEC. 107. ALLOCATION OF PERCENTAGE OF NATIONAL

15 BUDGETS OF SUB-SAHARAN AFRICAN COUN16 TRIES FOR BASIC SERVICES.

17 The Secretary of State shall encourage the govern18 ment of each sub-Saharan African country to allocate 20

19 percent of its national budget, including the savings from

20 the cancellation of debt owed by the country to the United

21 States (pursuant to part VI of the Foreign Assistance Act

22 of 1961, as added by section 102 of this Act), to other

23 foreign countries (as called for in section 103 of this Act),

24 to the International Monetary Fund and the International

25 Bank for Reconstruction and Development (as called for
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1 in section 1622 of the International Financial Institutions

2 Act, as added by section 104 of this Act), and to United

3 States persons (as called for in section 105 of this Act),

4 for the provision of basic services to individuals in each

5 such country, as provided for in the United Nations 20/

6 20 Initiative. In providing such basic services, each such

7 government should seek input from appropriate non8 governmental organizations.

9 SEC. 108. SENSE OF THE CONGRESS RELATING TO LEVEL

10 OF INTERIM DEBT PAYMENTS PRIOR TO

11 FULL DEBT CANCELLATION BY SUB-SAHARAN

12 AFRICAN COUNTRIES.

13 It is the sense of the Congress that, prior to the full

14 and unconditional cancellation of all debts owed by sub15 Saharan African countries to the United States (pursuant

16 to part VI of the Foreign Assistance Act of 1961, as added

17 by section 102 of this Act), to other foreign countries (as

18 called for in section 103 of this Act), and to United States

19 persons (as called for in section 105 of this Act), each

20 sub-Saharan African country should not, in making debt

21 payments described in the prior provisions of law, pay in

22 any calendar year an aggregate amount greater than an

23 amount equal to 5 percent of the export earnings of the

24 country for the prior calendar year.
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1 TITLE II—TRADE PROVISIONS

2 RELATING TO SUB-SAHARAN

3 AFRICA

4 SEC. 201. ENCOURAGING MUTUALLY BENEFICIAL TRADE

5 AND INVESTMENT.

6 (a) FINDINGS.—The Congress makes the following

7 findings:

8 (1) A mutually beneficial United States-Sub-Sa9 haran Africa trade policy will grant new access to

10 the United States market for a broad range of goods

11 produced in Africa, by Africans, and include safe12 guards to ensure that the corporations manufactur13 ing these goods respect the rights of their employees

14 and the local environment. Such trade opportunities

15 will promote equitable economic development and

16 thus increase demand in African countries for

17 United States goods and service exports.

18 (2) Recognizing that the global system of textile

19 and apparel quotas under the MultiFiber Arrange20 ment will be phased out under the Uruguay Round

21 Agreements over the next 5 years with the total ter22 mination of the quota system in 2005, the grant of

23 additional access to the United States market in

24 these sectors is a short-lived benefit. Indeed, exclu25 sive focus on this sector may create incentives for in-
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1 vestment in Africa in a sector that will become un2 competitive for Africa when the quota system termi3 nates and Chinese textile and apparel production

4 predominates world markets.

5 (b) TREATMENT OF QUOTAS.—

6 (1) KENYA AND MAURITIUS.—Pursuant to the

7 Agreement on Textiles and Clothing, the United

8 States shall eliminate the existing quotas on textile

9 and apparel exports to the United States from

10 Kenya and Mauritius, respectively, not later than 30

11 days after each country demonstrates the following:

12 (A) The country does not engage in signifi13 cant violations of internationally recognized

14 human rights.

15 (B)(i) The country is providing for effec16 tive enforcement of internationally recognized

17 worker rights throughout the country (including

18 in export processing zones) as determined under

19 paragraph (5), including the core labor stand20 ards enumerated in the appropriate treaties of

21 the International Labor Organization,

22 including—

23 (I) the right of association;

24 (II) the right to organize and bargain

25 collectively;
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1 (III) a prohibition on the use of any

2 form of coerced or compulsory labor;

3 (IV) the international minimum age

4 for the employment of children (age 15);

5 and

6 (V) acceptable conditions of work with

7 respect to minimum wages, hours of work,

8 and occupational safety and health.

9 (ii) The government of the country ensures

10 that the Secretary of Labor, the head of the na11 tional labor agency of the government of that

12 country, and the head of the International Con13 federation of Free Trade Unions-Africa Region

14 Office (ICFTU-AFRO) each has access to all

15 appropriate records and other information of all

16 business enterprises in the country.

17 (C) The country is taking adequate meas18 ures to prevent illegal transshipment of goods

19 that is carried out by rerouting, false declara20 tion concerning country of origin or place of or21 igin, falsification of official documents, evasion

22 of United States rules of origin for textile and

23 apparel goods, or any other means, in accord24 ance with the requirements of subsection (d).
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1 (D) The cost or value of the textile or ap2 parel product produced in the country, or any

3 2 or more sub-Saharan African countries, plus

4 the direct costs of processing operations per5 formed in the country or such countries, is not

6 less than 60 percent of the appraised value of

7 the product at the time it is entered into the

8 customs territory of the United States.

9 (E) Not less than 90 percent of employees

10 in business enterprises producing the textile

11 and apparel goods are citizens of that country,

12 or any 2 or more sub-Saharan African coun13 tries.

14 (F) The country is taking adequate meas15 ures to prevent being used as a transit point for

16 the shipment of goods in violation of the Agree17 ment on Textiles and Clothing or any other ap18 plicable textile agreement.

19 (2) OTHER SUB-SAHARAN COUNTRIES.—The

20 President shall continue the existing no quota policy

21 for each other country in sub-Saharan Africa if the

22 country is in compliance with the requirements ap23 plicable to Kenya and Mauritius under subpara24 graphs (A) through (F) of paragraph (1).
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1 (3) TECHNICAL ASSISTANCE.—The Customs

2 Service shall provide the necessary technical assist3 ance to sub-Saharan African countries in the devel4 opment and implementation of adequate measures

5 against the illegal transshipment of goods.

6 (4) OFFSETTING REDUCTION OF CHINESE

7 QUOTA.—When the quota for either Kenya or Mau8 ritius is first eliminated, the quota for textile and

9 apparel products from the People’s Republic of

10 China for each calendar year in each product cat11 egory shall be reduced by the amount equal to the

12 volume of imports of all textile and apparel products

13 in that product category from all sub-Saharan Afri14 can countries into the United States in the preced15 ing calendar year, plus 5 percent of that amount.

16 (5) DETERMINATION OF COMPLIANCE WITH

17 INTERNATIONALLY RECOGNIZED WORKER RIGHTS.—

18 (A) DETERMINATION.—

19 (i) IN GENERAL.—For purposes of

20 carrying out paragraph (1)(B), the Sec21 retary of Labor, in consultation with the

22 individuals described in clause (ii), shall

23 determine whether or not each sub-Saha24 ran African country is providing for effec25 tive enforcement of internationally recog-
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1 nized worker rights throughout the country

2 (including in export processing zones)

3 under such paragraph.

4 (ii) INDIVIDUALS DESCRIBED.—The

5 individuals described in this clause are the

6 head of the national labor agency of the

7 government of the sub-Saharan African

8 country in question and the head of the

9 International Confederation of Free Trade

10 Unions-Africa Region Office (ICFTU11 AFRO).

12 (B) CONTINUING COMPLIANCE.—In the

13 case of a country for which the Secretary of

14 Labor has made an initial determination under

15 subparagraph (A) that the country is in compli16 ance with the requirements of paragraph

17 (1)(B), the Secretary, in consultation with the

18 individuals described in subparagraph (A),

19 shall, not less than once every 3 years there20 after, conduct a review and make a determina21 tion with respect to that country to ensure con22 tinuing compliance with the requirements of

23 paragraph (1)(B).

24 (C) REPORT.—Not later than 6 months

25 after the date of the enactment of this Act, and
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1 on an annual basis thereafter, the Secretary of

2 Labor shall prepare and submit to the Congress

3 a report containing—

4 (i) a description of each determination

5 made under this paragraph during the pre6 ceding year; and

7 (ii) a description of the position taken

8 by each of the individuals described in sub9 paragraph (A)(ii) with respect to each such

10 determination.

11 (6) REPORT.—The President shall publish in

12 the Federal Register and submit to the Congress,

13 not later than March 31 of each year, a report on

14 the growth in textiles and apparel exports to the

15 United States from countries in sub-Saharan Africa

16 in order to inform United States consumers, work17 ers, and textile manufacturers about the effects of

18 the no quota policy.

19 (c) TREATMENT OF TARIFFS.—The President shall

20 provide an additional benefit of a 50 percent tariff reduc21 tion for any textile and apparel product of a sub-Saharan

22 African country that meets the requirements of subpara23 graphs (A) through (F) of subsection (b)(1) and (d) and

24 that is imported directly into the United States from such

25 sub-Saharan African country if the business enterprise, or
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1 a subcontractor of the enterprise, producing the product

2 is in compliance with the following:

3 (1) Citizens of 1 or more sub-Saharan African

4 countries own not less than 51 percent of such busi5 ness enterprise.

6 (2) If the business enterprise involves a joint7 venture arrangement with, or related to as a subsidi8 ary, trust, or subcontractor, a business enterprise

9 organized under the laws of the United States, the

10 European Union, Japan, or any other developed

11 country (or group of developed countries), or operat12 ing in such countries, the business enterprise shall

13 comply with the environmental standards that would

14 apply to a similar operation in the United States,

15 the European Union, Japan, or any other developed

16 country (or group of developed countries), as the

17 case may be.

18 (d) CUSTOMS PROCEDURES AND ENFORCEMENT.—

19 (1) OBLIGATIONS OF IMPORTERS AND PARTIES

20 ON WHOSE BEHALF APPAREL AND TEXTILES ARE

21 IMPORTED.—

22 (A) IN GENERAL.—Notwithstanding any

23 other provision of law, all imports to the United

24 States of textile and apparel goods pursuant to

25 this Act shall be accompanied by—
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1 (i)(I) the name and address of the

2 manufacturer or producer of the goods,

3 and any other information with respect to

4 the manufacturer or producer that the

5 Customs Service may require; and

6 (II) if there is more than one manu7 facturer or producer, or if there is a con8 tractor or subcontractor of the manufac9 turer or producer with respect to the man10 ufacture or production of the goods, the in11 formation required under subclause (I)

12 with respect to each such manufacturer,

13 producer, contractor, or subcontractor, in14 cluding a description of the process per15 formed by each such entity;

16 (ii) a certification by the importer of

17 record that the importer has exercised rea18 sonable care to ascertain the true country

19 of origin of the textile and apparel goods

20 and the accuracy of all other information

21 provided on the documentation accompany22 ing the imported goods, as well as a certifi23 cation of the specific action taken by the

24 importer to ensure reasonable care for pur25 poses of this paragraph; and
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1 (iii) a certification by the importer

2 that the goods being entered do not violate

3 applicable trademark, copyright, and pat4 ent laws.

5 (B) LIABILITY.—The importer of record

6 and the final retail seller of the merchandise

7 shall be jointly liable for any material false

8 statement, act, or omission made with the in9 tention or effect of—

10 (i) circumventing any quota that ap11 plies to the merchandise; or

12 (ii) avoiding any duty that would oth13 erwise be applicable to the merchandise.

14 (2) OBLIGATIONS OF COUNTRIES TO TAKE AC15 TION AGAINST TRANSSHIPMENT AND CIRCUMVEN16 TION.—The President shall ensure that any country

17 in sub-Saharan Africa that intends to export textile

18 and apparel goods to the United States—

19 (A) has in place adequate measures to

20 guard against unlawful transshipment of textile

21 and apparel goods and the use of counterfeit

22 documents; and

23 (B) will cooperate fully with the United

24 States to address and take action necessary to

25 prevent circumvention of any provision of this
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1 section or of any agreement regulating trade in

2 apparel and textiles between that country and

3 the United States.

4 (3) STANDARDS OF PROOF.—

5 (A) FOR IMPORTERS AND RETAILERS.—

6 (i) IN GENERAL.—The Customs Serv7 ice shall seek imposition of a penalty

8 against an importer or retailer for a viola9 tion of any provision of this section if the

10 Customs Service determines, after appro11 priate investigation, that there is a sub12 stantial likelihood that the violation oc13 curred.

14 (ii) USE OF BEST AVAILABLE INFOR15 MATION.—If an importer or retailer fails to

16 cooperate with the Customs Service in an

17 investigation to determine if there has been

18 a violation of any provision of this section,

19 the Customs Service shall base its deter20 mination on the best available information.

21 (B) FOR COUNTRIES.—

22 (i) IN GENERAL.—The President may

23 determine that a country is not taking ade24 quate measures to prevent illegal trans25 shipment of goods or to prevent being used
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1 as a transit point for the shipment of

2 goods in violation of this section if the

3 Customs Service determines, after con4 sultations with the country concerned, that

5 there is a substantial likelihood that such

6 a violation of this section occurred.

7 (ii) USE OF BEST AVAILABLE INFOR8 MATION.—

9 (I) IN GENERAL.—If a country

10 fails to cooperate with the Customs

11 Service in an investigation to deter12 mine if an illegal transshipment has

13 occurred, the Customs Service shall

14 base its determination on the best

15 available information.

16 (II) EXAMPLES.—Actions indi17 cating failure of a country to cooper18 ate under subclause (I) include—

19 (aa) denying or unreason20 ably delaying entry of officials of

21 the Customs Service to inves22 tigate violations of, or promote

23 compliance with, this section or

24 any textile agreement;
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1 (bb) providing appropriate

2 United States officials with inac3 curate or incomplete information,

4 including information required

5 under the provisions of this sec6 tion; and

7 (cc) denying appropriate

8 United States officials access to

9 information or documentation re10 lating to production capacity of,

11 and outward processing done by,

12 manufacturers, producers, con13 tractors, or subcontractors within

14 the country.

15 (4) PENALTIES.—

16 (A) FOR IMPORTERS AND RETAILERS.—

17 The penalty for a violation of any provision of

18 this section by an importer or retailer of textile

19 and apparel goods—

20 (i) for a first offense (except as pro21 vided in clause (iii)), shall be a civil pen22 alty in an amount equal to 200 percent of

23 the declared value of the merchandise plus

24 forfeiture of the merchandise;
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1 (ii) for a second offense (except as

2 provided in clause (iii)), shall be a civil

3 penalty in an amount equal to 400 percent

4 of the declared value of the merchandise

5 plus forfeiture of the merchandise, and, in

6 addition shall be prosecuted as an offense

7 punishable by a fine of not more than

8 $100,000, imprisonment for not more than

9 1 year, or both; and

10 (iii) for a third or subsequent offense,

11 or for a first or second offense if the viola12 tion of the provision of this section is com13 mitted knowingly and willingly, shall be

14 prosecuted as an offense punishable by a

15 fine of not more than $1,000,000, impris16 onment for not more than 5 years, or both,

17 and, in addition, shall result in forfeiture

18 of the merchandise.

19 (B) FOR COUNTRIES.—The failure of a

20 country to undertake the measures or the co21 operation required by this section shall result in

22 an automatic imposition of a quota, based on

23 the first 12 of the prior 24 months of ship24 ments of apparel or textile product category or

25 categories involved, or the imposition of duty on
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1 apparel or textile products, as necessary to se2 cure future cooperation.

3 (5) APPLICABILITY OF UNITED STATES LAWS

4 AND PROCEDURES.—All provisions of the laws, regu5 lations, and procedures of the United States relating

6 to the denial of entry of articles or penalties against

7 individuals or entities for engaging in illegal trans8 shipment, fraud, or other violations of the customs

9 law, shall apply to imports of textiles and apparel

10 from sub-Saharan African countries, in addition to

11 the specific provisions of this section.

12 (6) MONITORING AND REPORTS TO CON13 GRESS.—The Customs Service shall monitor and the

14 Commissioner of Customs shall submit to the Con15 gress, not later than March 31 of each year, a report

16 on the measures taken by countries in sub-Saharan

17 Africa which export textiles or apparel goods to the

18 United States to prevent transshipment as provided

19 in this section and circumvention of this section or

20 of any agreement regulating trade in textiles and ap21 parel between that country and the United States.

22 (d) DEFINITION.—For purposes of this section, the

23 term ‘‘Agreement on Textiles and Clothing’’ means the

24 Agreement on Textiles and Clothing referred to in section
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1 101(d)(4) of the Uruguay Round Agreements Act (19

2 U.S.C. 3511(d)(4)).

3 SEC. 202. GENERALIZED SYSTEM OF PREFERENCES.

4 (a) PREFERENTIAL TARIFF TREATMENT FOR CER5 TAIN ARTICLES.—Section 503(a)(1) of the Trade Act of

6 1974 (19 U.S.C. 2463(a)(1)) is amended—

7 (1) by redesignating subparagraph (C) as sub8 paragraph (D); and

9 (2) by inserting after subparagraph (B) the fol10 lowing:

11 ‘‘(C) ELIGIBLE COUNTRIES IN SUB-SAHA12 RAN AFRICA.—

13 ‘‘(i) IN GENERAL.—(I) Subject to

14 clause (ii), the President may provide duty15 free treatment for any article described in

16 subclause (II) that is imported directly into

17 the United States from a sub-Saharan Af18 rican country.

19 ‘‘(II)(aa) An article described in this

20 subclause is an article set forth in para21 graph (1) of subsection (b), or an article

22 set forth in the product list of the Lome

23 Treaty, that is the growth, product, or

24 manufacture of a sub-Saharan African

25 country that is a beneficiary developing
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1 country and that is in compliance with the

2 requirements of subsections (b) and (d) of

3 section 201 of the Human Rights, Oppor4 tunity, Partnership, and Empowerment for

5 Africa Act, with respect to such article, if,

6 after receiving the advice of the Inter7 national Trade Commission in accordance

8 with subsection (e), the President deter9 mines that such article is not import-sen10 sitive in the context of imports from sub11 Saharan African countries. This subpara12 graph shall not affect the designation of el13 igible articles under subparagraph (B).

14 ‘‘(bb) In addition to meeting the re15 quirements of division (aa), in the case of

16 an article that is the product or manufac17 ture of the oil or mineral extraction indus18 try, and the business enterprise that pro19 duces or manufacures the article is in20 volved in a joint-venture arrangement with,

21 or related to as a subsidiary, trust, or sub22 contractor, a business enterprise organized

23 under the laws of the United States, the

24 European Union, Japan, or any other de25 veloped country (or group of developed
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1 countries), or operating in such countries,

2 then the business enterprise complies with

3 the environmental standards that would

4 apply to a similar operation in the United

5 States, the European Union, Japan, or any

6 other developed country (or group of devel7 oped countries), as the case may be.

8 ‘‘(ii) RULE OF CONSTRUCTION.—For

9 purposes of clause (i), in applying subpara10 graphs (A) through (F) of section

11 201(b)(1) and section 201(d) of the

12 Human Rights, Opportunity, Partnership,

13 and Empowerment for Africa Act, any ref14 erence to textile and apparel goods or

15 products shall be deemed to refer to the

16 article provided duty-free treatment under

17 clause (i).’’.

18 (b) RULES OF ORIGIN.—Section 503(a)(2) of the

19 Trade Act of 1974 (19 U.S.C. 2463(a)(2)) is amended by

20 adding at the end the following:

21 ‘‘(C) ELIGIBLE COUNTRIES IN SUB-SAHA22 RAN AFRICA.—For purposes of determining the

23 percentage referred to in subparagraph (A) in

24 the case of an article of a sub-Saharan African
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1 country that is a beneficiary developing

2 country—

3 ‘‘(i) if the cost or value of materials

4 produced in the customs territory of the

5 United States is included with respect to

6 that article, an amount not to exceed 15

7 percent of the appraised value of the arti8 cle at the time it is entered that is attrib9 uted to such United States cost or value

10 may be applied toward determining the

11 percentage referred to in subparagraph

12 (A); and

13 ‘‘(ii) the cost or value of the materials

14 included with respect to that article that

15 are produced in any beneficiary developing

16 country that is a sub-Saharan African

17 country shall be applied in determining

18 such percentage.’’.

19 (c) EXTENSION OF PROGRAM.—Section 505 of the

20 Trade Act of 1974 (19 U.S.C. 2465) is amended to read

21 as follows:

22 ‘‘SEC. 505. DATE OF TERMINATION.

23 ‘‘(a) SUB-SAHARAN AFRICAN COUNTRIES.—No duty24 free treatment provided under this title shall remain in
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1 effect after June 30, 2005, with respect to beneficiary de2 veloping countries that are sub-Saharan African countries.

3 ‘‘(b) OTHER COUNTRIES.—No duty-free treatment

4 provided under this title shall remain in effect after June

5 30, 1999, with respect to beneficiary developing countries

6 other than those provided for in subsection (a).’’.

7 (e) DEFINITION.—Section 507 of the Trade Act of

8 1974 (19 U.S.C. 2467) is amended by adding at the end

9 the following:

10 ‘‘(6) SUB-SAHARAN AFRICAN COUNTRY.—The

11 term ‘sub-Saharan African country’ and ‘sub-Saha12 ran African countries’ mean a country or countries

13 in sub-Saharan Africa, as defined in section 603 of

14 the Human Rights, Opportunity, Partnership, and

15 Empowerment for Africa Act.’’.

16 (f) EFFECTIVE DATE.—The amendments made by

17 this section take effect on July 1, 1999.

18 SEC. 203. ADDITIONAL ENFORCEMENT.

19 A citizen of the United States shall have a cause of

20 action in the United States district court in the district

21 in which he or she lives or in any other appropriate district

22 to seek compliance with the standards set forth under sub23 paragraphs (A) through (F) of section 201(b)(1), section

24 201(c), and section 201(d) of this Act with respect to any

25 sub-Saharan African country, including a cause of action
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1 in an appropriate United States district court for other

2 appropriate equitable relief. In addition to any other relief

3 sought in such an action, a citizen may seek three times

4 the value of any damages caused by the failure of a coun5 try or company to comply. The amount of damages de6 scribed in the preceding sentence shall be paid by the busi7 ness enterprise (or business enterprises) the operations or

8 conduct of which is responsible for the failure to meet the

9 standards set forth under subparagraphs (A) through (F)

10 of section 201(b)(1), section 201(c), and section 201(d)

11 of this Act.

12 TITLE III—DEVELOPMENT AS13 SISTANCE FOR SUB-SAHARAN

14 AFRICAN COUNTRIES

15 SEC. 301. FINDINGS.

16 Section 496(a)(1) of the Foreign Assistance Act of

17 1961 (22 U.S.C. 2293(a)(1)) is amended by striking

18 ‘‘drought and famine’’ and inserting ‘‘drought, famine,

19 and the HIV/AIDS epidemic’’.

20 SEC. 302. PRIVATE AND VOLUNTARY ORGANIZATIONS.

21 Section 496(e) of the Foreign Assistance Act of 1961

22 (22 U.S.C. 2293(e)) is amended—

23 (1) by redesignating paragraph (2) as para24 graph (3); and
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1 (2) by inserting after paragraph (1) the follow2 ing:

3 ‘‘(2) CAPACITY BUILDING.—In addition to as4 sistance provided under subsection (h), the United

5 States Agency for International Development shall

6 provide capacity building assistance through

7 participatory planning to private and voluntary orga8 nizations that are involved in providing assistance

9 for sub-Saharan Africa under this chapter.’’.

10 SEC. 303. TYPES OF ASSISTANCE.

11 Section 496(h) of the Foreign Assistance Act of 1961

12 (22 U.S.C. 2293(h)) is amended by adding at the end the

13 following:

14 ‘‘(4) PROHIBITION ON MILITARY ASSISTANCE.—

15 Assistance under this section—

16 ‘‘(A) may not include military training or

17 weapons; and

18 ‘‘(B) may not be obligated or expended for

19 military training or the procurement of weap20 ons.’’.

21 SEC. 304. CRITICAL SECTORAL PRIORITIES.

22 (a) AGRICULTURE, FOOD SECURITY AND NATURAL

23 RESOURCES.—Section 496(i)(1) of the Foreign Assistance

24 Act of 1961 (22 U.S.C. 2293(i)(1)) is amended—

25 (1) in the heading, to read as follows:
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1 ‘‘(1) AGRICULTURE, FOOD SECURITY AND NAT2 URAL RESOURCES.—’’;

3 (2) in subparagraph (A)—

4 (A) in the heading, to read as follows:

5 ‘‘(A) AGRICULTURE AND FOOD SECU6 RITY.—’’;

7 (B) in the first sentence—

8 (i) by striking ‘‘agricultural produc9 tion in ways’’ and inserting ‘‘food security

10 by promoting agriculture policies’’; and

11 (ii) by striking ‘‘, especially food pro12 duction,’’; and

13 (3) in subparagraph (B), in the matter preced14 ing clause (i), by striking ‘‘agricultural production’’

15 and inserting ‘‘food security and sustainable re16 source use’’.

17 (b) HEALTH.—Section 496(i)(2) of the Foreign As18 sistance Act of 1961 (22 U.S.C. 2293(i)(2)) is amended

19 by striking ‘‘(including displaced children)’’ and inserting

20 ‘‘(including displaced children and improving HIV/AIDS

21 prevention and treatment programs)’’.

22 (c) VOLUNTARY FAMILY PLANNING SERVICES.—Sec23 tion 496(i)(3) of the Foreign Assistance Act of 1961 (22

24 U.S.C. 2293(i)(3)) is amended by adding at the end before
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1 the period the following: ‘‘and access to prenatal

2 healthcare’’.

3 (d) EDUCATION.—Section 496(i)(4) of the Foreign

4 Assistance Act of 1961 (22 U.S.C. 2293(i)(4)) is amended

5 by adding at the end before the period the following: ‘‘and

6 vocational education, with particular emphasis on primary

7 education and vocational education for women’’.

8 (e) INCOME-GENERATING OPPORTUNITIES.—Section

9 496(i)(5) of the Foreign Assistance Act of 1961 (22

10 U.S.C. 2293(i)(5)) is amended—

11 (1) by striking ‘‘labor-intensive’’; and

12 (2) by adding at the end before the period the

13 following: ‘‘, including development of manufacturing

14 and processing industries and microcredit projects’’.

15 SEC. 305. MINIMUM LEVELS OF ASSISTANCE FOR CERTAIN

16 CRITICAL SECTORS.

17 Section 496(j) of the Foreign Assistance Act of 1961

18 (22 U.S.C. 2293(j)) is amended—

19 (1) in the matter preceding paragraph (1), by

20 striking ‘‘10 percent’’ and inserting ‘‘15 percent’’;

21 (2) by redesignating paragraphs (1) through

22 (3) as paragraphs (2) through (4), respectively;

23 (3) by inserting before paragraph (2) (as so re24 designated) the following:
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1 ‘‘(1) The activities described in subsection

2 (i)(1)(A).’’;

3 (4) in paragraph (2) (as redesignated), by strik4 ing ‘‘, including identifiable components of agricul5 tural production projects’’; and

6 (5) by adding at the end the following:

7 ‘‘(5) The activities described in subsection

8 (i)(4).’’.

9 SEC. 306. REPORTING REQUIREMENTS.

10 Section 496 of the Foreign Assistance Act of 1961

11 (22 U.S.C. 2293) is amended by adding at the end the

12 following:

13 ‘‘(p) REPORTING REQUIREMENTS.—The Adminis14 trator of the United States Agency for International De15 velopment shall, on a semiannual basis, prepare and sub16 mit to the Congress a report containing—

17 ‘‘(1) a description of how, and the extent to

18 which, the Agency has consulted with nongovern19 mental organizations in sub-Saharan Africa regard20 ing the use of amounts made available for sub-Saha21 ran African countries under this chapter;

22 ‘‘(2) the extent to which the provision of such

23 amounts has been successful in increasing food secu24 rity and access to health and education services

25 among the people of sub-Saharan Africa;
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1 ‘‘(3) the extent to which the provision of such

2 amounts has been successful in capacity building

3 among local nongovernmental organizations; and

4 ‘‘(4) a description of how, and the extent to

5 which, the provision of such amounts has furthered

6 the goals of sustainable economic and agricultural

7 development, gender equity, environmental protec8 tion, and respect for workers’ rights in sub-Saharan

9 Africa.’’.

10 SEC. 307. AUTHORIZATION OF APPROPRIATIONS FOR DE11 VELOPMENT FUND FOR AFRICA.

12 (a) IN GENERAL.—Section 497 of the Foreign Assist13 ance Act of 1961 (22 U.S.C. 2294) is amended by insert14 ing before the first sentence the following: ‘‘There is au15 thorized to be appropriated to carry out this chapter for

16 fiscal year 2000 and each subsequent year an amount not

17 less than the amount appropriated to carry out this chap18 ter for fiscal year 1994.’’.

19 (b) ADDITIONAL REQUIREMENT.—Amounts appro20 priated under the Foreign Operations, Export Financing,

21 and Related Programs Appropriations Act pursuant to the

22 authorization of appropriations established under the first

23 sentence of section 497 of the Foreign Assistance Act of

24 1961 (22 U.S.C. 2294), as added by subsection (a), shall

25 be appropriated to a separate account under the heading
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1 ‘‘Development Fund for Africa’’ and not to the account

2 under the heading ‘‘Development Assistance’’.

3 TITLE IV—SUB-SAHARAN AFRICA

4 EQUITY AND INFRASTRUC5 TURE FUNDS

6 SEC. 401. SUB-SAHARAN AFRICA EQUITY AND INFRASTRUC7 TURE FUNDS.

8 (a) INITIATION OF FUNDS.—The Overseas Private

9 Investment Corporation shall, not later than 12 months

10 after the date of the enactment of this Act, exercise the

11 authorities it has to initiate 1 or more equity funds in

12 support of projects in the countries in sub-Saharan Africa,

13 in addition to any existing equity fund for sub-Saharan

14 Africa established by the Corporation before the date of

15 the enactment of this Act.

16 (b) STRUCTURE AND TYPES OF FUNDS.—

17 (1) STRUCTURE.—Each fund initiated under

18 subsection (a) shall be structured as a partnership

19 managed by professional private sector fund man20 agers and monitored on a continuing basis by the

21 Corporation.

22 (2) CAPITALIZATION.—Each fund shall be cap23 italized with a combination of private equity capital,

24 which is not guaranteed by the Corporation, and

25 debt for which the Corporation provides guaranties.
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1 (3) TYPES OF FUNDS.—One or more of the

2 funds, with combined assets of up to $500,000,000,

3 shall be used in support of infrastructure projects in

4 countries of sub-Saharan Africa, including basic

5 health services (including AIDS prevention and

6 treatment), including hospitals, potable water, sani7 tation, schools, electrification of rural areas, and

8 publicly-accessible transportation in sub-Saharan Af9 rican countries.

10 (c) ADDITIONAL REQUIREMENTS.—The Corporation

11 shall ensure that—

12 (1) not less than 70 percent of trade financing

13 and investment insurance provided through the eq14 uity funds established under subsection (a), and

15 through any existing equity fund for sub-Saharan

16 Africa established by the Corporation before the date

17 of the enactment of this Act, are allocated to small,

18 women- and minority-owned businesses—

19 (A) of which not less than 60 percent of

20 the ownership is comprised of citizens of sub21 Saharan African countries and 40 percent of

22 the ownership is comprised of citizens of the

23 United States; and

24 (B) that have assets of not more than

25 $1,000,000; and
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1 (2) not less than 50 percent of the funds allo2 cated to energy projects are used for renewal or al3 ternative energy projects.

4 TITLE V—OVERSEAS PRIVATE

5 INVESTMENT CORPORATION

6 AND EXPORT-IMPORT BANK

7 INITIATIVES

8 SEC. 501. OVERSEAS PRIVATE INVESTMENT CORPORATION

9 INITIATIVES.

10 Section 233 of the Foreign Assistance Act of 1961

11 is amended by adding at the end the following:

12 ‘‘(e) ADVISORY COMMITTEE.—

13 ‘‘(1) ESTABLISHMENT.—The Board shall estab14 lish and work with an advisory committee to assist

15 the Board in developing and implementing policies,

16 programs, and financial instruments with respect to

17 sub-Saharan Africa, including with respect to equity

18 and infrastructure funds established under title IV

19 of the Human Rights, Opportunity, Partnership,

20 and Empowerment for Africa Act.

21 ‘‘(2) MEMBERSHIP.—

22 ‘‘(A) IN GENERAL.—The advisory commit23 tee established under paragraph (1) shall con24 sist of 15 members, of which 7 members shall

25 be employees of the United States Government
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1 and 8 members shall be representatives of the

2 private sector.

3 ‘‘(B) APPOINTMENT.—The members of the

4 advisory committee shall be appointed as fol5 lows:

6 ‘‘(i) The Speaker and Minority Leader

7 of the House of Representatives and the

8 Majority and Minority Leaders of the Sen9 ate shall each appoint 2 members who are

10 representatives of the private sector and 1

11 member who is an employee of the United

12 States Government.

13 ‘‘(ii) The Speaker and Minority Lead14 er of the House of Representatives and the

15 Majority and Minority Leaders of the Sen16 ate shall jointly appoint the remaining 3

17 members who are employees of the United

18 States Government.

19 ‘‘(C) ADDITIONAL REQUIREMENTS.—Of

20 the 8 members of advisory committee who are

21 representatives of the private sector—

22 ‘‘(i) at least 4 members shall be rep23 resentatives of not-for-profit public interest

24 organizations;
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1 ‘‘(ii) at least 1 member shall be a rep2 resentative of an organization with exper3 tise in development issues;

4 ‘‘(iii) at least 1 member shall be a

5 representative of an organization with ex6 pertise in human rights issues;

7 ‘‘(iv) at least 1 member shall be a rep8 resentative of an organization with exper9 tise in environmental issues; and

10 ‘‘(v) at least 1 member shall be a rep11 resentative of an organization with exper12 tise in international labor rights.

13 ‘‘(D) TERMS.—Each member of the advi14 sory committee shall be appointed for a term of

15 2 years.

16 ‘‘(3) MEETINGS.—

17 ‘‘(A) OPEN TO PUBLIC.—Meetings of the

18 advisory committee shall be open to the public.

19 ‘‘(B) ADVANCE NOTICE.—The advisory

20 committee shall provide advance notice in the

21 Federal Register of any meeting of the commit22 tee, shall provide notice of all proposals or

23 projects to be considered by the committee at

24 the meeting, and shall solicit written comments
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1 from the public relating to such proposals or

2 projects.

3 ‘‘(C) DECISIONS.—Any decision of the ad4 visory committee relating to a proposal or

5 project shall be published in the Federal Reg6 ister with an explanation of the extent to which

7 the committee considered public comments re8 ceived with respect to the proposal or project,

9 if any.

10 ‘‘(4) ENVIRONMENTAL IMPACT ASSESS11 MENTS.—The Corporation shall carry out environ12 mental impact assessments with respect to any pro13 posal or project not later than 120 days before the

14 advisory committee, or the Board, considers such

15 proposal or project, whichever occurs earlier.’’.

16 SEC. 502. EXPORT-IMPORT BANK INITIATIVE.

17 Section 2(b)(9) of the Export-Import Bank Act of

18 1945 (12 U.S.C. 635(b)(9)) is amended to read as follows:

19 ‘‘(9) For purposes of the funds allocated by the Bank

20 for projects in countries in sub-Saharan Africa (as defined

21 in section 603 of the Human Rights, Opportunity, Part22 nership, and Empowerment for Africa Act):

23 ‘‘(A) The Bank shall establish an advisory

24 committee to work with and assist the Board in

25 developing and implementing policies, pro-
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1 grams, and financial instruments with respect

2 to such countries.

3 ‘‘(B) The members of the advisory commit4 tee shall be appointed as follows:

5 ‘‘(i) The Speaker and Minority Leader

6 of the House of Representatives and the

7 Majority and Minority Leaders of the Sen8 ate shall each appoint 2 members who are

9 representatives of the private sector and 1

10 member who is an officer or employee of

11 the Federal Government.

12 ‘‘(ii) The Speaker and Minority Lead13 er of the House of Representatives and the

14 Majority and Minority Leaders of the Sen15 ate shall jointly appoint the remaining 3

16 members who are officers or employees of

17 the Federal Government.

18 ‘‘(C)(i) At least half of the members of the

19 advisory committee who are representatives of

20 the private sector shall be representatives of

21 not-for-profit public interest organizations.

22 ‘‘(ii) At least 1 of such private sector rep23 resentatives shall be a representative of an or24 ganization with expertise in development issues.
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1 ‘‘(iii) At least 1 of such private sector rep2 resentatives shall be a representative of an or3 ganization with expertise in human rights.

4 ‘‘(iv) At least 1 of such private sector rep5 resentatives shall be a representative of an or6 ganization with expertise in environmental

7 issues.

8 ‘‘(v) At least 1 of such private sector rep9 resentatives shall have expertise in international

10 labor rights.

11 ‘‘(D) Each member of the advisory com12 mittee shall serve for a term of 2 years.

13 ‘‘(E)(i) Members of the advisory committee

14 who are representatives of the private sector

15 shall not receive compensation by reason of

16 their service on the advisory committee.

17 ‘‘(ii) Members of the advisory committee

18 who are officers or employees of the Federal

19 Government may not receive additional pay, al20 lowances, or benefits by reason of their service

21 on the advisory committee.

22 ‘‘(F) Meetings of the advisory committee

23 shall be open to the public.

24 ‘‘(G) The advisory committee shall give

25 timely advance notice of each meeting of the
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1 advisory committee, including a description of

2 any matters to be considered at the meeting,

3 shall establish a public docket, shall solicit writ4 ten comments in advance on each proposal, and

5 shall make each decision in writing with an ex6 planation of disposition of the public comments.

7 ‘‘(H) The Bank shall complete and release

8 to the public an environmental impact assess9 ment with respect to a proposal or project with

10 potential environmental effects, not later than

11 120 days before the advisory committee, or the

12 Board, considers the proposal or project, which13 ever occurs earlier.

14 ‘‘(I) Section 14(a)(2) of the Federal Advi15 sory Committee Act shall not apply to the advi16 sory committee.’’.

17 TITLE VI—MISCELLANEOUS

18 PROVISIONS

19 SEC. 601. REQUIREMENTS RELATING TO SUB-SAHARAN AF20 RICA INTELLECTUAL PROPERTY AND COM21 PETITION LAW.

22 Funds appropriated or otherwise made available to

23 any department or agency of the United States may not

24 be used to seek, through negotiation or otherwise, the rev25 ocation or revisions of any sub-Saharan African intellec-
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1 tual property or competition law or policy that is designed

2 to promote access to pharmaceuticals or other medical

3 technologies and such law or policy, as the case may be,

4 complies with the Agreement on Trade-Related Aspects of

5 Intellectual Property Rights referred to in section

6 101(d)(15) of the Uruguay Round Agreements Act.

7 SEC. 602. REVIEW AND REPORTING REQUIREMENTS.

8 (a) REVIEW.—

9 (1) IN GENERAL.—Not later than 3 years after

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

11 shall, through publication in the Federal Register,

12 provide notice and opportunity to the public for com13 ments on the success or failure of the implementa14 tion of this Act, or any amendments made by this

15 Act.

16 (2) PUBLIC AVAILABILITY.—Any comments re17 ceived under paragraph (1) shall be published in the

18 Federal Register.

19 (b) REPORTS.—Not later than 4 years after the date

20 of the enactment of this Act, the President shall prepare

21 and transmit to the Congress a report containing the pub22 lic comments received under section 701.

23 SEC. 603. SUB-SAHARAN AFRICA DEFINED.

24 In this Act, the terms ‘‘sub-Saharan Africa’’, ‘‘sub25 Saharan African country’’, ‘‘country in sub-Saharan Afri-
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1 ca’’, ‘‘sub-Saharan African countries’’, and ‘‘countries in

2 sub-Saharan Africa’’ refer to the following:

3 Republic of Angola (Angola)

4 Republic of Botswana (Botswana)

5 Republic of Burundi (Burundi)

6 Republic of Cape Verde (Cape Verde)

7 Republic of Chad (Chad)

8 Democratic Republic of Congo

9 Republic of the Congo (Congo)

10 Republic of Djibouti (Djibouti)

11 State of Eritrea (Eritrea)

12 Gabonese Republic (Gabon)

13 Republic of Ghana (Ghana)

14 Republic of Guinea-Bissau (Guinea-Bissau)

15 Kingdom of Lesotho (Lesotho)

16 Republic of Madagascar (Madagascar)

17 Republic of Mali (Mali)

18 Republic of Mauritius (Mauritius)

19 Republic of Namibia (Namibia)

20 Federal Republic of Nigeria (Nigeria)

21 Democratic Republic of Sao Tome ́ and Principe

22 (Sao Tome ́ and Principe)

23 Republic of Sierra Leone (Sierra Leone)

24 Somalia

25 Kingdom of Swaziland (Swaziland)
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1 Republic of Togo (Togo)

2 Republic of Zimbabwe (Zimbabwe)

3 Republic of Benin (Benin)

4 Burkina Faso (Burkina)

5 Republic of Cameroon (Cameroon)

6 Central African Republic

7 Federal Islamic Republic of the Comorors

8 (Comoros)

9 Republic of Coˆte d’Ivoire (Coˆte d’Ivoire)

10 Republic of Equatorial Guinea (Equatorial

11 Guinea)

12 Ethiopia

13 Republic of the Gambia (Gambia)

14 Republic of Guinea (Guinea)

15 Republic of Kenya (Kenya)

16 Republic of Liberia (Liberia)

17 Republic of Malawi (Malawi)

18 Islamic Republic of Mauritania (Mauritania)

19 Republic of Mozambique (Mozambique)

20 Republic of Niger (Niger)

21 Republic of Rwanda (Rwanda)

22 Republic of Senegal (Senegal)

23 Repulbic of Seychelles (Seychelles)

24 Republic of South Africa (South Africa)

25 Republic of Sudan (Sudan)
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1 United Republic of Tanzania (Tanzania)

2 Republic of Uganda (Uganda)

3 Republic of Zambia (Zambia)

Æ