29–010 

Calendar No. 181 

113TH CONGRESS REPORT " ! SENATE 1st Session 113–103 

INCREASING AMERICAN JOBS THROUGH GREATER 

EXPORTS TO AFRICA ACT OF 2013 

SEPTEMBER 10, 2013.—Ordered to be printed 

Mr. MENENDEZ, from the Committee on Foreign Relations, 

submitted the following 

R E P O R T 

[To accompany S. 718] 

The Committee on Foreign Relations, to which was referred the 

bill S. 718, to create jobs in the United States by increasing United 

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

within 10 years, and for other purposes, reports favorably thereon 

which an amendment and recommends that the bill, as amended, 

do pass. 

CONTENTS 

Page 

I. Purpose ........................................................................................................... 1 

II. Committee Action .......................................................................................... 2 

III. Discussion ....................................................................................................... 2 

IV. Cost Estimate ................................................................................................. 4 

V. Evaluation of Regulatory Impact .................................................................. 7 

VI. Changes in Existing Law .............................................................................. 7 

I. PURPOSE

The purpose of S. 718 is ‘‘to create jobs in the United States by 

expanding programs that will result in increasing United States exports to Africa by 200 percent in real dollar value within 10 years.’’ 

S. 718 directs the President to establish, implement, and submit to 

Congress a comprehensive strategy for public and private investment, trade, and development in Africa. It requires the President 

to designate a Special Africa Export Strategy Coordinator and directs the Department of Commerce, the Department of State, the 

Export-Import Bank of the United States, and the Overseas Private 

Investment Corporation to improve staffing in support of trade 

with Africa. To achieve this objective, S. 718 also directs the Export-Import Bank to expand financing for projects in Africa and ensure adequate funding to counter foreign export credit finance that 

is noncompliant with agreements of the Organisation for Economic 

Co-operation and Development (OECD). 


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II. COMMITTEE ACTION

S. 718 was introduced on April 11, 2013, by Senator Durbin and 

co-sponsored by Senators Boozman, Coons, Landrieu, and Cardin. 

On June 25, 2013, the committee considered S. 718 and ordered it 

reported favorably, with amendments. 

III. DISCUSSION

A section-by-section discussion of the legislation follows. 

Section 2 includes the findings and explains the purpose of the 

bill, calling for a substantially greater high-level focus on trade 

with Africa. Improved coordination among the Federal agencies involved in export promotion and financing, and a greater focus on 

and expansion of efforts and programs of Federal agencies to support United States exports to Africa, are necessary to ensure 

United States competitiveness in Africa. Export growth helps 

United States business grow and create American jobs. This section 

highlights the economic potential of the African continent, identifies Africa as a potential growth market for United States exports, 

and outlines the strong competition created by other countries’ 

trade promotion programs and the activities of their export credit 

agencies in Africa. 

Section 3 defines the terms used in the bill. 

Section 4 requires the President to establish, within 180 days of 

the enactment of the Act, a comprehensive strategy for public and 

private investment, trade, and development in Africa. The strategy 

would focus on the objective of achieving a 200% real increase in 

exports of goods and services to Africa. The strategy shall focus on: 

aligning United States commercial interests with African development priorities; developing relationships between African governments and United States businesses; improving the competitiveness of United States businesses in Africa; exploring the role the 

African diaspora can play; promoting economic integration in Africa; and other objectives. Section 4 requires the President, in developing the strategy, to consult with Congress, the Trade Promotion 

Coordinating Committee, relevant multilateral development banks, 

the Trade Policy Staff Committee, the President’s National Export 

Council, United States development agencies, Federal agencies responsible for export promotion or financing, and the private sector, 

including businesses, non-governmental organizations, and African 

diaspora groups. 

Section 4 requires the President to submit the strategy to Congress no later than 180 days after the date of the enactment of the 

Act, and to submit a progress report within three years of enactment. The progress report would include an accounting of all 

United States Government programs to promote exports and trade 

with Africa and to assist United States businesses competing in the 

African market, as well as an assessment of the extent to which 

the strategy has succeeded in achieving its objectives, including: (1) 

development of critical analyses of policies to increase exports to 

Africa; (2) increased competitiveness of United States businesses; 

(3) creation of jobs in the United States; (4) provision of sufficient 

support to meet third country competition in the region; (5) assistance to the African diaspora to participate in economic growth in 

Africa; (6) promotion of economic integration in Africa; (7) encourVerDate Mar 15 2010 23:20 Sep 11, 2013 Jkt 029010 PO 00000 Frm 00002 Fmt 6659 Sfmt 6602 E:\HR\OC\SR103.XXX SR103

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agement of African policies and programs that provide a stable, 

safe, and transparent business environment; and (8) contribution to 

transforming and integrating Africa into the 21st Century world 

economy. 

Section 5 of the bill requires the President to designate a Special 

Africa Export Strategy Coordinator to: (1) oversee development and 

implementation of the strategy required by section 4; and (2) coordinate with the Trade Promotion Coordinating Committee and 

development agencies on developing and implementing the strategy. The purpose of this section is to improve the coordination of 

United States Government agencies involved in the promotion of 

exports and investment abroad. 

Section 6 states the sense of the Congress that the Secretary of 

Commerce and other high-level United States Government officials 

responsible for export promotion, financing, and development, 

should conduct a joint trade mission to Africa no later than one 

year after the enactment of the Act. 

Section 7 directs specific Federal agencies to allocate adequate 

personnel and ensure adequate information technology systems, in 

order to successfully implement the strategy required by section 4. 

The Secretary of Commerce is directed to assign at least 10 United 

States and Foreign Commercial Service officers to United States 

Embassies in Africa for each of the first five fiscal years after the 

enactment of the Act, with their location based on an assessment 

of future trade opportunities. The Secretary of Commerce is also directed to use existing staff to assign at least one full-time United 

States and Foreign Commercial Officer to the office of the United 

States Executive Director at the World Bank and African Development Bank. Section 7 directs the Export-Import Bank to increase 

staff dedicated to expanding business development for Africa, increase the number of business development trips to Africa and the 

amount of time staff spends in Africa, maintain an appropriate 

number of Bank employees assigned to field offices in the United 

States, and upgrade equipment and software in order to improve 

processing and tracking of applications for financing. Section 7 directs the Overseas Private Investment Corporation to use sufficient 

funds to increase the staff needed to promote economic growth and 

development in Africa and strengthen and expand the private sector in Africa, with a focus on helping United States businesses expand into African markets. Finally, section 7 includes a Rule of 

Construction, which clarifies that nothing in section 7 of the Act 

permits the Department of Commerce, Department of State, Export-Import Bank, and Overseas Private Investment Corporation to 

reduce personnel or alter planned personnel increases in other regions, except where previously anticipated or justified by decreased 

export opportunities. 

Section 8 directs the President to develop a plan to: (1) standardize the training for relevant Department of Commerce, Department of State, and United States Agency for International Development officers on the programs and procedures of the Export-Import 

Bank, Overseas Private Investment Corporation, Small Business 

Administration, and Trade and Development Agency; and (2) ensure that, no later than one year after enactment, all United States 

and Foreign Commercial Service Officers stationed overseas, as 


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well as economic officers of the Department of State in posts where 

there no such officer is assigned, receive the training. 

Section 9 amends section 6(a) of the Export-Import Bank Act of 

1945 (12 U.S.C. 635e(a)) to increase, to the extent there are acceptable final applications, the amount it finances to Africa over the 

prior year’s financing for each of the first five fiscal years following 

enactment, and an attendant periodic report to the relevant Senate 

and House committees. It requires the Export-Import Bank to 

make financing available to counter trade distorting non-OECD arrangement compliant financing or preferential, tied aid, or other related non-market loans offered by other nations in cases where 

United States companies are competing or interested in competing, 

as well as an attendant periodic report to the relevant Senate and 

House committees. During the business meeting Senators Corker 

and Durbin discussed their agreement that certain changes related 

to section 9 would be made prior to the bill going to the Senate 

floor. Section 9 makes clear that this report shall not disclose information that would violate section 1905 of title 18, United States 

Code (‘‘Trade Secrets Act’’), and shall describe trade distorting nonOECD arrangement compliant financing loans made by other countries to firms competing with United States firms. 

Section 10 makes technical and conforming amendments to section 22(b) of the Small Business Act (15 U.S.C. 649(b)). 

Finally, section 11 states that, where applicable, the President 

shall explore opportunities to negotiate bilateral, subregional, and 

regional agreements that encourage trade and eliminate nontariff 

barriers to trade with African countries. It also directs the President to ensure implementation of existing agreements between the 

United States and African countries, in a manner that maximizes 

the positive effects for the United States trade, export, and labor 

interests as well as the economic development of African countries. 

IV. COST ESTIMATE

In accordance with Rule XXVI, paragraph 11(a) of the Standing 

Rules of the Senate, the committee provides this estimate of the 

costs of this legislation prepared by the Congressional Budget Office. 

UNITED STATES CONGRESS, CONGRESSIONAL BUDGET OFFICE, Washington, DC, July 22, 2013. 

Hon. ROBERT MENENDEZ, 

Chairman, Committee on Foreign Relations, 

U.S. Senate, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for S. 718, the Increasing American Jobs Through Greater Exports to Africa Act of 2013. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Sunita D’Monte. 

Sincerely, 

DOUGLAS W. ELMENDORF

Enclosure. 


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S. 718, the Increasing American Jobs Through Greater Exports to 

Africa Act of 2013 

Summary: S. 718 would expand federal programs and initiatives 

to promote exports to Africa. CBO estimates that implementing the 

bill would have discretionary costs of $15 million over the 2014– 

2018 period, assuming appropriation of the necessary amounts. 

Pay-as-you-go procedures do not apply to this legislation because 

it would not affect direct spending or revenues. 

S. 718 contains no intergovernmental or private-sector mandates 

as defined in the Unfunded Mandates Reform Act (UMRA) and 

would not affect the budgets of state, local, or tribal governments. 

Estimated Cost to the Federal Government: The estimated budgetary impact of S. 718 is shown in the following table. The costs 

of this legislation fall within budget functions 150 (international affairs) and 370 (commerce and housing credit). 

Changes in Spending Due to S. 718 

By Fiscal Year, in Millions of Dollars 

2014 2015 2016 2017 2018 2014– 

2018 

CHANGES IN SPENDING SUBJECT TO APPROPRIATION 

Trade Financing Agencies 

Estimated Authorization Level ................ 2 2 3 3 3 13 

Estimated Outlays ................................... 2 2 2 2 3 11 

International Trade Administration 

Estimated Authorization Level ................ 1 * * * * 2 

Estimated Outlays ................................... 1 * * * * 2 

Trade Promotion Strategy 

Estimated Authorization Level ................ * * * * * 2 

Estimated Outlays ................................... * * * * * 2 

Total Changes 

Estimated Authorization Level ................ 3 3 4 4 4 17 

Estimated Outlays ................................... 3 3 3 3 4 15 

Notes: Components may not sum to totals because of rounding. 

* = less than $500,000. 

Basis of Estimate: For this estimate, CBO assumes that S. 718 

will be enacted early in fiscal year 2014, that the necessary 

amounts will be appropriated each year, and that outlays will follow historical spending patterns for existing programs. 

Trade Financing Agencies: Section 7 of the bill would require the 

Export-Import Bank of the United States (Ex-Im) and the Overseas 

Private Investment Corporation (OPIC) to increase their staffing 

levels to promote trade and investment in Africa. Based on information from those agencies, CBO estimates that Ex-Im would hire 

three additional employees to serve overseas at an annual cost of 

about $350,000 per person and two additional employees to serve 

in the United States at an annual cost of about $200,000 per person, and that OPIC would require five additional employees at an 

annual cost of about $200,000 per person. In total, those additional 

personnel would require annual appropriations of $2 million to 


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$3 million a year, and would cost $11 million over the 2014–2018 

period, assuming appropriation of the necessary amounts. 

Section 9 would require Ex-Im to increase its activity in Africa 

or to report annually to the Congress if it cannot provide at least 

10 percent of its financing to that region. Ex-Im currently provides 

about 5.5 percent of its financing to Africa. Because the bill would 

not increase the overall cap on Ex-Im’s financing, implementing 

that provision would require the bank to reduce its financing to 

other regions of the world. New financing provided to Africa could 

be more or less risky than financing in other regions and could 

therefore increase or decrease the appropriations needed to cover 

Ex-Im’s subsidy costs; however, CBO has no basis for estimating 

the net effect of such changes in the bank’s financing. 

Finally, section 9 would require Ex-Im to report on its activity 

to counter tied aid or other concessional lending by foreign governments. Tied aid is a form of concessional lending that requires the 

recipient to buy goods or services from the donor. CBO estimates 

that those annual reporting requirements would cost less than 

$500,000 over the 2014–2018 period, assuming the availability of 

appropriated funds. 

International Trade Administration: Sections 7 and 8 would 

increase costs to the International Trade Administration (ITA) by 

requiring a commercial service officer to be placed at the African 

Development Bank and requiring the agency to develop a training 

program for foreign commercial service and economic officers with 

respect to programs of the Ex-Im, OPIC, the Small Business 

Administration, and the United States Trade and Development 

Agency. 

Based on information from the ITA, CBO estimates that the 

agency would spend about $400,000 per year for salaries and administrative costs incurred elsewhere in the agency to reassign an 

officer to serve at the African Development Bank. In addition, CBO 

estimates that providing training for foreign commercial service 

and economic officers would cost about $400,000 to develop the 

curriculum and to cover the costs incurred by attendees to travel 

to a central location to receive the training. Taken together, CBO 

estimates that implementing those provisions would cost $2 million 

over the 2014–2018 period, assuming appropriation of the necessary amounts. 

Trade Promotion Strategy: Section 4 would require the President 

to develop and implement a strategy to promote exports to Africa 

and section 5 would require him to designate a special coordinator 

to oversee those efforts. Based on information from the ITA, CBO 

estimates that implementing those provisions would cost less than 

$500,000 a year over the 2014–2018 period, assuming the availability of appropriated funds. 

Pay-as-You-Go Considerations: None. 

Intergovernmental and Private-Sector Impact: S. 718 contains no 

intergovernmental or private-sector mandates as defined in UMRA 

and would not affect the budgets of state, local, or tribal governments. 

Estimate Prepared By: Federal Costs: Sunita D’Monte and Susan 

Willie; Impact on State, Local, and Tribal Governments: J’nell L. 

Blanco; Impact on the Private Sector: Marin Burnett 


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Estimate Approved By: Theresa Gullo, Deputy Assistant Director 

for Budget Analysis 

V. EVALUATION OF REGULATORY IMPACT

Pursuant to Rule XXVI, paragraph 11(b) of the Standing Rules 

of the Senate, the committee has determined that there is no regulatory impact as a result of this legislation. 

VI. CHANGES IN EXISTING LAW

In compliance with Rule XXVI, paragraph 12 of the Standing 

Rules of the Senate, changes in existing law made by the bill, as 

reported, are shown as follows (existing law proposed to be omitted 

is enclosed in black brackets, new matter is printed in italic, existing law in which no change is proposed is shown in roman). 

TITLE 12 USC—BANKS AND BANKING 

* * * * * * * 

Chapter 6A—Export-Import Bank Act of 1945 

* * * * * * * 

§ 635e. AGGREGATE LOAN, GUARANTEE, AND INSURANCE AUTHORITY 

(a) LIMITATION ON OUTSTANDING AMOUNTS.— 

(1) IN GENERAL.—The Export-Import Bank of the United 

States shall not have outstanding at any one time loans, guarantees, and insurance in an aggregate amount in excess of the 

applicable amount. 

(2) APPLICABLE AMOUNT.—In paragraph (1), the term ‘‘applicable amount’’ means— 

(A) during fiscal year 2002, $80,000,000,000; 

(B) during fiscal year 2003, $85,000,000,000; 

(C) during fiscal year 2004, $90,000,000,000; 

(D) during fiscal year 2005, $95,000,000,000; 

(E) during fiscal year 2006, and each fiscal year thereafter through fiscal year 2011; 1 and 

(F) during fiscal year 2012 and each succeeding fiscal 

year, $120,000,000,000, except that— 

(i) the applicable amount for each of fiscal years 

2013 and 2014 shall be $130,000,000,000 if— 

(I) the Bank has submitted a report as required 

by section 4(a) of the Export-Import Bank Reauthorization Act of 2012; and 

(II) the rate calculated under section 635g(g)(1) 

of this title is less than 2 percent for the quarter 

ending with the beginning of the fiscal year, or for 

any quarter in the fiscal year; and 

(ii) notwithstanding clause (i), the applicable 

amount for fiscal year 2014 shall be $140,000,000,000 

if— 

(I) the rate calculated under section 635g(g)(1) 

of this title is less than 2 percent for the quarter 

ending with the beginning of the fiscal year, or for 

any quarter in the fiscal year; 


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(II) the Bank has submitted a report as required 

by subsection (b) of section 5 of the Export-Import 

Bank Reauthorization Act of 2012, except that the 

preceding provisions of this subclause shall not 

apply if the Comptroller General has not submitted the report required by subsection (a) of 

such section 5 on or before July 1, 2013; and 

(III) the Secretary of the Treasury has submitted the reports required by section 635a–5(b) 

of this title. 

(3) SUBJECT TO APPROPRIATIONS.—All spending and credit 

authority provided under this subchapter shall be effective for 

any fiscal year only to such extent or in such amounts as are 

provided in appropriation Acts. 

(4) PERCENT OF FINANCING TO BE USED FOR PROJECTS IN AF- RICA.—The Bank shall, to the extent that there are acceptable 

final applications, increase the amount it finances to Africa 

over the prior year’s financing for each of the first five fiscal 

years beginning after the date of the enactment of the Increasing American Jobs Through Greater Exports to Africa Act of 

2013. 

* * * * * * * 

SMALL BUSINESS ACT 

* * * * * * * 

§ 649.—OFFICE OF INTERNATIONAL TRADE 

* * * * * * * 

(b) TRADE DISTRIBUTION NETWORK.—The Associate Administrator, working in close cooperation with the Secretary of Commerce, the United States Trade Representative, the Secretary of 

Agriculture, the Secretary of State, the President of the Export-Import Bank of the United States, the President of the Overseas Private Investment Corporation, Director of the United States Trade 

and Development Agency, the Trade Promotion Coordinating Committee, and other relevant Federal agencies, small business development centers engaged in export promotion efforts, Export Assistance Centers, regional and district offices of the Administration, 

the small business community, and relevant State and local export 

promotion programs, shall- 

(1) maintain a distribution network, using regional and district offices of the Administration, the small business development center network, networks of women’s business centers, 

the Service Corps of Retired Executives authorized by section 

637(b)(1) of this title, and Export Assistance Centers, for programs relating to— 

(A) trade promotion; 

(B) trade finance; 

(C) trade adjustment assistance; 

(D) trade remedy assistance; and 

(E) trade data collection; 

(2) aggressively market the programs described in paragraph 

(1) and disseminate information, including computerized marketing data, to small business concerns on exporting trends, 


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market-specific growth, industry trends, and international 

prospects for exports; 

(3) promote export assistance programs through the district 

and regional offices of the Administration, the small business 

development center network, Export Assistance Centers, the 

network of women’s business centers, chapters of the Service 

Corps of Retired Executives, regional offices of the Export-Import Bank, State and local export promotion programs, and 

partners in the private sector; and 

(4) give preference in hiring or approving the transfer of any 

employee into the Office or to a position described in subsection (c)(9) to otherwise qualified applicants who are fluent 

in a language in addition to English, to— 

(A) accompany small business concerns on foreign trade 

missions; and 

(B) translate documents, interpret conversations, and facilitate multilingual transactions, including by providing 

referral lists for translation services, if required. 

Æ 


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