II

106TH CONGRESS

1ST SESSION S. 666

To authorize a new trade and investment policy for sub-Saharan Africa.

IN THE SENATE OF THE UNITED STATES

MARCH 18, 1999

Mr. LUGAR (for himself, Mr. GRAMM, Mr. MCCAIN, Mr. DEWINE, Mr.

HAGEL, Mr. GRAMS, Mr. JEFFORDS, Ms. LANDRIEU, and Mr.

LIEBERMAN) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To authorize a new trade and investment policy for subSaharan Africa.

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘African Growth and Opportunity Act’’.

6 (b) TABLE OF CONTENTS.—

Sec. 1. Short title; table of contents.

Sec. 2. Findings.

Sec. 3. Statement of policy.

Sec. 4. Eligibility requirements.

Sec. 5. Sub-Saharan Africa defined.

TITLE I—TRADE POLICY FOR SUB-SAHARAN AFRICA
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Sec. 101. United States-Sub-Saharan Africa Trade and Economic Cooperation

Forum.

Sec. 102. United States-Sub-Saharan Africa Free Trade Area.

Sec. 103. Eliminating trade barriers and encouraging exports.

Sec. 104. Generalized system of preferences.

Sec. 105. Assistant United States trade representative for Sub-Saharan Africa.

Sec. 106. Reporting requirement.

TITLE II—INTERNATIONAL FINANCIAL AND FOREIGN RELATIONS

POLICY FOR SUB-SAHARAN AFRICA

Sec. 201. International financial institutions and debt reduction.

Sec. 202. Executive branch initiatives.

Sec. 203. Sub-Saharan Africa Infrastructure Fund.

Sec. 204. Overseas Private Investment Corporation and Export-Import Bank

initiatives.

Sec. 205. Expansion of the United States and foreign commercial service in

Sub-Saharan Africa.

Sec. 206. Donation of air traffic control equipment to eligible Sub-Saharan African countries.

1 SEC. 2. FINDINGS.

2 The Congress finds that it is in the mutual economic

3 interest of the United States and sub-Saharan Africa to

4 promote stable and sustainable economic growth and de5 velopment in sub-Saharan Africa and that sustained eco6 nomic growth in sub-Saharan Africa depends in large

7 measure upon the development of a receptive environment

8 for trade and investment. To that end, the United States

9 seeks to facilitate market-led economic growth in, and

10 thereby the social and economic development of, the coun11 tries of sub-Saharan Africa. In particular, the United

12 States seeks to assist sub-Saharan African countries, and

13 the private sector in those countries, to achieve economic

14 self-reliance by—
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1 (1) strengthening and expanding the private

2 sector in sub-Saharan Africa, especially women3 owned businesses;

4 (2) encouraging increased trade and investment

5 between the United States and sub-Saharan Africa;

6 (3) reducing tariff and nontariff barriers and

7 other trade obstacles;

8 (4) expanding United States assistance to sub9 Saharan Africa’s regional integration efforts;

10 (5) negotiating free trade areas;

11 (6) establishing a United States-Sub-Saharan

12 Africa Trade and Investment Partnership;

13 (7) focusing on countries committed to account14 able government, economic reform, and the eradi15 cation of poverty;

16 (8) establishing a United States-Sub-Saharan

17 Africa Economic Cooperation Forum; and

18 (9) continuing to support development assist19 ance for those countries in sub-Saharan Africa at20 tempting to build civil societies.

21 SEC. 3. STATEMENT OF POLICY.

22 The Congress supports economic self-reliance for sub23 Saharan African countries, particularly those committed

24 to—

25 (1) economic and political reform;
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1 (2) market incentives and private sector growth;

2 (3) the eradication of poverty; and

3 (4) the importance of women to economic

4 growth and development.

5 SEC. 4. ELIGIBILITY REQUIREMENTS.

6 (a) IN GENERAL.—A sub-Saharan African country

7 shall be eligible to participate in programs, projects, or

8 activities, or receive assistance or other benefits under this

9 Act if the President determines that the country does not

10 engage in gross violations of internationally recognized

11 human rights and has established, or is making continual

12 progress toward establishing, a market-based economy,

13 such as the establishment and enforcement of appropriate

14 policies relating to—

15 (1) promoting free movement of goods and serv16 ices between the United States and sub-Saharan Af17 rica and among countries in sub-Saharan Africa;

18 (2) promoting the expansion of the production

19 base and the transformation of commodities and

20 nontraditional products for exports through joint

21 venture projects between African and foreign inves22 tors;

23 (3) trade issues, such as protection of intellec24 tual property rights, improvements in standards,
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1 testing, labeling and certification, and government

2 procurement;

3 (4) the protection of property rights, such as

4 protection against expropriation and a functioning

5 and fair judicial system;

6 (5) appropriate fiscal systems, such as reducing

7 high import and corporate taxes, controlling govern8 ment consumption, participation in bilateral invest9 ment treaties, and the harmonization of such trea10 ties to avoid double taxation;

11 (6) foreign investment issues, such as the provi12 sion of national treatment for foreign investors, re13 moving restrictions on investment, and other meas14 ures to create an environment conducive to domestic

15 and foreign investment;

16 (7) supporting the growth of regional markets

17 within a free trade area framework;

18 (8) governance issues, such as eliminating gov19 ernment corruption, minimizing government inter20 vention in the market such as price controls and

21 subsidies, and streamlining the business license proc22 ess;

23 (9) supporting the growth of the private sector,

24 in particular by promoting the emergence of a new

25 generation of African entrepreneurs;
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1 (10) encouraging the private ownership of gov2 ernment-controlled economic enterprises through di3 vestiture programs; and

4 (11) observing the rule of law, including equal

5 protection under the law and the right to due proc6 ess and a fair trial.

7 (b) ADDITIONAL FACTORS.—In determining whether

8 a sub-Saharan African country is eligible under subsection

9 (a), the President shall take into account the following fac10 tors:

11 (1) An expression by such country of its desire

12 to be an eligible country under subsection (a).

13 (2) The extent to which such country has made

14 substantial progress toward—

15 (A) reducing tariff levels;

16 (B) binding its tariffs in the World Trade

17 Organization and assuming meaningful binding

18 obligations in other sectors of trade; and

19 (C) eliminating nontariff barriers to trade.

20 (3) Whether such country, if not already a

21 member of the World Trade Organization, is actively

22 pursuing membership in that Organization.

23 (4) Where applicable, the extent to which such

24 country is in material compliance with its obligations
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1 to the International Monetary Fund and other inter2 national financial institutions.

3 (5) The extent to which such country has a rec4 ognizable commitment to reducing poverty, increas5 ing the availability of health care and educational

6 opportunities, the expansion of physical infrastruc7 ture in a manner designed to maximize accessibility,

8 increased access to market and credit facilities for

9 small farmers and producers, and improved eco10 nomic opportunities for women as entrepreneurs and

11 employees, and promoting and enabling the forma12 tion of capital to support the establishment and op13 eration of micro-enterprises.

14 (6) Whether or not such country engages in ac15 tivities that undermine United States national secu16 rity or foreign policy interests.

17 (c) CONTINUING COMPLIANCE.—

18 (1) MONITORING AND REVIEW OF CERTAIN

19 COUNTRIES.—The President shall monitor and re20 view the progress of sub-Saharan African countries

21 in order to determine their current or potential eligi22 bility under subsection (a). Such determinations

23 shall be based on quantitative factors to the fullest

24 extent possible and shall be included in the annual

25 report required by section 106.
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1 (2) INELIGIBILITY OF CERTAIN COUNTRIES.—A

2 sub-Saharan African country described in paragraph

3 (1) that has not made continual progress in meeting

4 the requirements with which it is not in compliance

5 shall be ineligible to participate in programs,

6 projects, or activities, or receive assistance or other

7 benefits, under this Act.

8 SEC. 5. SUB-SAHARAN AFRICA DEFINED.

9 For purposes of this Act, the terms ‘‘sub-Saharan Af10 rica’’, ‘‘sub-Saharan African country’’, ‘‘country in sub11 Saharan Africa’’, and ‘‘countries in sub-Saharan Africa’’

12 refer to the following or any successor political entities:

13 Republic of Angola (Angola)

14 Republic of Botswana (Botswana)

15 Republic of Burundi (Burundi)

16 Republic of Cape Verde (Cape Verde)

17 Republic of Chad (Chad)

18 Democratic Republic of Congo

19 Republic of the Congo (Congo)

20 Republic of Djibouti (Djibouti)

21 State of Eritrea (Eritrea)

22 Gabonese Republic (Gabon)

23 Republic of Ghana (Ghana)

24 Republic of Guinea-Bissau (Guinea-Bissau)

25 Kingdom of Lesotho (Lesotho)
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1 Republic of Madagascar (Madagascar)

2 Republic of Mali (Mali)

3 Republic of Mauritius (Mauritius)

4 Republic of Namibia (Namibia)

5 Federal Republic of Nigeria (Nigeria)

6 Democratic Republic of Sao Tome ́ and Principe

7 (Sao Tome ́ and Principe)

8 Republic of Sierra Leone (Sierra Leone)

9 Somalia

10 Kingdom of Swaziland (Swaziland)

11 Republic of Togo (Togo)

12 Republic of Zimbabwe (Zimbabwe)

13 Republic of Benin (Benin)

14 Burkina Faso (Burkina)

15 Republic of Cameroon (Cameroon)

16 Central African Republic

17 Federal Islamic Republic of the Comoros

18 (Comoros)

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

20 Republic of Equatorial Guinea (Equatorial

21 Guinea)

22 Ethiopia

23 Republic of the Gambia (Gambia)

24 Republic of Guinea (Guinea)

25 Republic of Kenya (Kenya)
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1 Republic of Liberia (Liberia)

2 Republic of Malawi (Malawi)

3 Islamic Republic of Mauritania (Mauritania)

4 Republic of Mozambique (Mozambique)

5 Republic of Niger (Niger)

6 Republic of Rwanda (Rwanda)

7 Republic of Senegal (Senegal)

8 Republic of Seychelles (Seychelles)

9 Republic of South Africa (South Africa)

10 Republic of Sudan (Sudan)

11 United Republic of Tanzania (Tanzania)

12 Republic of Uganda (Uganda)

13 Republic of Zambia (Zambia)

14 TITLE I—TRADE POLICY FOR

15 SUB-SAHARAN AFRICA

16 SEC. 101. UNITED STATES-SUB-SAHARAN AFRICA TRADE

17 AND ECONOMIC COOPERATION FORUM.

18 (a) DECLARATION OF POLICY.—The President shall

19 convene annual high-level meetings between appropriate

20 officials of the United States Government and officials of

21 the governments of sub-Saharan African countries in

22 order to foster close economic ties between the United

23 States and sub-Saharan Africa.

24 (b) ESTABLISHMENT.—Not later than 12 months

25 after the date of the enactment of this Act, the President,
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1 after consulting with Congress and the governments con2 cerned, shall establish a United States-Sub-Saharan Afri3 ca Trade and Economic Cooperation Forum (in this sec4 tion referred to as the ‘‘Forum’’).

5 (c) REQUIREMENTS.—In creating the Forum, the

6 President shall meet the following requirements:

7 (1) The President shall direct the Secretary of

8 Commerce, the Secretary of the Treasury, the Sec9 retary of State, and the United States Trade Rep10 resentative to host the first annual meeting with the

11 counterparts of such Secretaries from the govern12 ments of sub-Saharan African countries eligible

13 under section 4, the Secretary General of the Orga14 nization of African Unity, and government officials

15 from other appropriate countries in Africa, to dis16 cuss expanding trade and investment relations be17 tween the United States and sub-Saharan Africa

18 and the implementation of this Act including encour19 aging joint ventures between small and large busi20 nesses.

21 (2)(A) The President, in consultation with the

22 Congress, shall encourage United States nongovern23 mental organizations to host annual meetings with

24 nongovernmental organizations from sub-Saharan

25 Africa in conjunction with the annual meetings of
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1 the Forum for the purpose of discussing the issues

2 described in paragraph (1).

3 (B) The President, in consultation with the

4 Congress, shall encourage United States representa5 tives of the private sector to host annual meetings

6 with representatives of the private sector from sub7 Saharan Africa in conjunction with the annual meet8 ings of the Forum for the purpose of discussing the

9 issues described in paragraph (1).

10 (3) The President shall, to the extent prac11 ticable, meet with the heads of governments of sub12 Saharan African countries eligible under section 4

13 not less than once every two years for the purpose

14 of discussing the issues described in paragraph (1).

15 The first such meeting should take place not later

16 than twelve months after the date of the enactment

17 of this Act.

18 (d) DISSEMINATION OF INFORMATION BY USIA.—In

19 order to assist in carrying out the purposes of the Forum,

20 the United States Information Agency shall disseminate

21 regularly, through multiple media, economic information

22 in support of the free market economic reforms described

23 in this Act.
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1 (e) AUTHORIZATION OF APPROPRIATIONS.—There

2 are authorized to be appropriated such sums as may be

3 necessary to carry out this section.

4 (f) LIMITATION ON USE OF FUNDS.—None of the

5 funds authorized under this section may be used to create

6 or support any nongovernmental organization for the pur7 pose of expanding or facilitating trade between the United

8 States and sub-Saharan Africa.

9 SEC. 102. UNITED STATES–SUB-SAHARAN AFRICA FREE

10 TRADE AREA.

11 (a) DECLARATION OF POLICY.—The Congress de12 clares that a United States–Sub-Saharan Africa Free

13 Trade Area should be established, or free trade agree14 ments should be entered into, in order to serve as the cata15 lyst for increasing trade between the United States and

16 sub-Saharan Africa and increasing private sector develop17 ment in sub-Saharan Africa.

18 (b) PLAN REQUIREMENT.—

19 (1) IN GENERAL.—The President, taking into

20 account the provisions of the treaty establishing the

21 African Economic Community and the willingness of

22 the governments of sub-Saharan African countries to

23 engage in negotiations to enter into free trade agree24 ments, shall develop a plan for the purpose of enter25 ing into one or more trade agreements with sub-Sa-
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1 haran African countries eligible under section 4 in

2 order to establish a United States–Sub-Saharan Af3 rica Free Trade Area (in this section referred to as

4 the ‘‘Free Trade Area’’).

5 (2) ELEMENTS OF PLAN.—The plan shall in6 clude the following:

7 (A) The specific objectives of the United

8 States with respect to the establishment of the

9 Free Trade Area and a suggested timetable for

10 achieving those objectives.

11 (B) The benefits to both the United States

12 and sub-Saharan Africa with respect to the

13 Free Trade Area.

14 (C) A mutually agreed-upon timetable for

15 establishing the Free Trade Area.

16 (D) The implications for and the role of

17 regional and sub-regional organizations in sub18 Saharan Africa with respect to the Free Trade

19 Area.

20 (E) Subject matter anticipated to be cov21 ered by the agreement for establishing the Free

22 Trade Area and United States laws, programs,

23 and policies, as well as the laws of participating

24 eligible African countries and existing bilateral

25 and multilateral and economic cooperation and
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1 trade agreements, that may be affected by the

2 agreement or agreements.

3 (F) Procedures to ensure the following:

4 (i) Adequate consultation with the

5 Congress and the private sector during the

6 negotiation of the agreement or agree7 ments for establishing the Free Trade

8 Area.

9 (ii) Consultation with the Congress re10 garding all matters relating to implementa11 tion of the agreement or agreements.

12 (iii) Approval by the Congress of the

13 agreement or agreements.

14 (iv) Adequate consultations with the

15 relevant African governments and African

16 regional and subregional intergovernmental

17 organizations during the negotiations of

18 the agreement or agreements.

19 (c) REPORTING REQUIREMENT.—Not later than 12

20 months after the date of the enactment of this Act, the

21 President shall prepare and transmit to the Congress a

22 report containing the plan developed pursuant to sub23 section (b).
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1 SEC. 103. ELIMINATING TRADE BARRIERS AND ENCOUR2 AGING EXPORTS.

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

4 findings:

5 (1) The lack of competitiveness of sub-Saharan

6 Africa in the global market, especially in the manu7 facturing sector, make it a limited threat to market

8 disruption and no threat to United States jobs.

9 (2) Annual textile and apparel exports to the

10 United States from sub-Saharan Africa represent

11 less than 1 percent of all textile and apparel exports

12 to the United States, which totaled $54,001,863,000

13 in 1997.

14 (3) Sub-Saharan Africa has limited textile man15 ufacturing capacity. During 1999 and the suc16 ceeding 4 years, this limited capacity to manufacture

17 textiles and apparel is projected to grow at a modest

18 rate. Given this limited capacity to export textiles

19 and apparel, it will be very difficult for these exports

20 from sub-Saharan Africa, during 1999 and the suc21 ceeding 9 years, to exceed 3 percent annually of

22 total imports of textile and apparel to the United

23 States. If these exports from sub-Saharan Africa re24 main around 3 percent of total imports, they will not

25 represent a threat to United States workers, con26 sumers, or manufacturers.
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1 (b) SENSE OF THE CONGRESS.—It is the sense of

2 the Congress that—

3 (1) it would be to the mutual benefit of the

4 countries in sub-Saharan Africa and the United

5 States to ensure that the commitments of the World

6 Trade Organization and associated agreements are

7 faithfully implemented in each of the member coun8 tries, so as to lay the groundwork for sustained

9 growth in textile and apparel exports and trade

10 under agreed rules and disciplines;

11 (2) reform of trade policies in sub-Saharan Af12 rica with the objective of removing structural im13 pediments to trade, consistent with obligations under

14 the World Trade Organization, can assist the coun15 tries of the region in achieving greater and greater

16 diversification of textile and apparel export commod17 ities and products and export markets; and

18 (3) the President should support textile and ap19 parel trade reform in sub-Saharan Africa by, among

20 other measures, providing technical assistance, shar21 ing of information to expand basic knowledge of how

22 to trade with the United States, and encouraging

23 business-to-business contacts with the region.

24 (c) TREATMENT OF QUOTAS.—
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1 (1) KENYA AND MAURITIUS.—Pursuant to the

2 Agreement on Textiles and Clothing, the United

3 States shall eliminate the existing quotas on textile

4 and apparel exports to the United States—

5 (A) from Kenya within 30 days after that

6 country adopts an efficient visa system to guard

7 against unlawful transshipment of textile and

8 apparel goods and the use of counterfeit docu9 ments; and

10 (B) from Mauritius within 30 days after

11 that country adopts such a visa system.

12 The Customs Service shall provide the necessary

13 technical assistance to Kenya and Mauritius in the

14 development and implementation of those visa sys15 tems.

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

17 President shall continue the existing no quota policy

18 for countries in sub-Saharan Africa. The President

19 shall submit to the Congress, not later than March

20 31 of each year, a report on the growth in textiles

21 and apparel exports to the United States from coun22 tries in sub-Saharan Africa in order to protect

23 United States consumers, workers, and textile manu24 facturers from economic injury on account of the no

25 quota policy.
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1 (d) CUSTOMS PROCEDURES AND ENFORCEMENT.—

2 (1) ACTIONS BY COUNTRIES AGAINST TRANS3 SHIPMENT AND CIRCUMVENTION.—The President

4 should ensure that any country in sub-Saharan Afri5 ca that intends to export textile and apparel goods

6 to the United States—

7 (A) has in place a functioning and effective

8 visa system and domestic laws and enforcement

9 procedures to guard against unlawful trans10 shipment of textile and apparel goods and the

11 use of counterfeit documents; and

12 (B) will cooperate fully with the United

13 States to address and take action necessary to

14 prevent circumvention, as provided in Article 5

15 of the Agreement on Textiles and Clothing.

16 (2) PENALTIES AGAINST EXPORTERS.—If the

17 President determines, based on sufficient evidence,

18 that an exporter has willfully falsified information

19 regarding the country of origin, manufacture, proc20 essing, or assembly of a textile or apparel article for

21 which duty-free treatment under section

22 503(a)(1)(C) of the Trade Act of 1974 is claimed,

23 then the President shall deny to such exporter, and

24 any successors of such exporter, for a period of 2
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1 years, duty-free treatment under such section for

2 textile and apparel articles.

3 (3) 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 laws shall apply to imports from sub-Saharan coun10 tries.

11 (4) MONITORING AND REPORTS TO CON12 GRESS.—The Customs Service shall monitor and the

13 Commissioner of Customs shall submit to the Con14 gress, not later than March 31 of each year, a report

15 on the effectiveness of the visa systems described in

16 subsection (c)(1) and paragraph (1) of this sub17 section and on measures taken by countries in sub18 Saharan Africa which export textiles or apparel to

19 the United States to prevent circumvention as de20 scribed in Article 5 of the Agreement on Textiles

21 and Clothing.

22 (e) 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. 104. 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.—The President may provide duty13 free treatment for any article set forth in para14 graph (1) of subsection (b) that is the growth,

15 product, or manufacture of an eligible country

16 in sub-Saharan Africa that is a beneficiary de17 veloping country, if, after receiving the advice

18 of the International Trade Commission in ac19 cordance with subsection (e), the President de20 termines that such article is not import-sen21 sitive in the context of imports from eligible

22 countries in sub-Saharan Africa. This subpara23 graph shall not affect the designation of eligible

24 articles under subparagraph (B).’’.
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1 (b) RULES OF ORIGIN.—Section 503(a)(2) of the

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

3 adding at the end the following:

4 ‘‘(C) ELIGIBLE COUNTRIES IN SUB-SAHA5 RAN AFRICA.—For purposes of determining the

6 percentage referred to in subparagraph (A) in

7 the case of an article of an eligible country in

8 sub-Saharan Africa that is a beneficiary devel9 oping country—

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

11 produced in the customs territory of the

12 United States is included with respect to

13 that article, an amount not to exceed 15

14 percent of the appraised value of the arti15 cle at the time it is entered that is attrib16 uted to such United States cost or value

17 may be applied toward determining the

18 percentage referred to in subparagraph

19 (A); and

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

21 included with respect to that article that

22 are produced in any beneficiary developing

23 country that is an eligible country in sub24 Saharan Africa shall be applied in deter25 mining such percentage.’’.
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1 (c) WAIVER OF COMPETITIVE NEED LIMITATION.—

2 Section 503(c)(2)(D) of the Trade Act of 1974 (19 U.S.C.

3 2463(c)(2)(D)) is amended to read as follows:

4 ‘‘(D) LEAST-DEVELOPED BENEFICIARY

5 DEVELOPING COUNTRIES AND ELIGIBLE COUN6 TRIES IN SUB-SAHARAN AFRICA.—Subpara7 graph (A) shall not apply to any least-developed

8 beneficiary developing country or any eligible

9 country in sub-Saharan Africa.’’.

10 (d) EXTENSION OF PROGRAM.—Section 505 of the

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

12 as follows:

13 ‘‘SEC. 505. DATE OF TERMINATION.

14 ‘‘(a) COUNTRIES IN SUB-SAHARAN AFRICA.—No

15 duty-free treatment provided under this title shall remain

16 in effect after June 30, 2009, with respect to beneficiary

17 developing countries that are eligible countries in sub-Sa18 haran Africa.

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

20 provided under this title shall remain in effect after June

21 30, 1999, with respect to beneficiary developing countries

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

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

24 1974 (19 U.S.C. 2467) is amended by adding at the end

25 the following:
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1 ‘‘(6) ELIGIBLE COUNTRY IN SUB-SAHARAN AF2 RICA.—The terms ‘eligible country in sub-Saharan

3 Africa’ and ‘eligible countries in sub-Saharan Africa’

4 mean a country or countries that the President has

5 determined to be eligible under section 4 of the Afri6 can Growth and Opportunity Act.’’.

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

8 this section take effect on July 1, 1999.

9 SEC. 105. ASSISTANT UNITED STATES TRADE REPRESENTA10 TIVE FOR SUB-SAHARAN AFRICA.

11 (a) SENSE OF CONGRESS.—It is the sense of the Con12 gress that the position of Assistant United States Trade

13 Representative for African Affairs is integral to the

14 United States commitment to increasing United States–

15 sub-Saharan African trade and investment.

16 (b) MAINTENANCE OF POSITION.—The President

17 shall maintain a position of Assistant United States Trade

18 Representative for African Affairs within the Office of the

19 United States Trade Representative to direct and coordi20 nate interagency activities on United States-Africa trade

21 policy and investment matters and serve as—

22 (1) a primary point of contact in the executive

23 branch for those persons engaged in trade between

24 the United States and sub-Saharan Africa; and
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1 (2) the chief advisor to the United States Trade

2 Representative on issues of trade with Africa.

3 (c) FUNDING AND STAFF.—The President shall en4 sure that the Assistant United States Trade Representa5 tive for African Affairs has adequate funding and staff

6 to carry out the duties described in subsection (b), subject

7 to the availability of appropriations.

8 SEC. 106. REPORTING REQUIREMENT.

9 The President shall submit to the Congress, not later

10 than 1 year after the date of the enactment of this Act,

11 and not later than the end of each of the next 6 1-year

12 periods thereafter, a comprehensive report on the trade

13 and investment policy of the United States for sub-Saha14 ran Africa, and on the implementation of this Act. The

15 last report required by section 134(b) of the Uruguay

16 Round Agreements Act (19 U.S.C. 3554(b)) shall be con17 solidated and submitted with the first report required by

18 this section.
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1 TITLE II—INTERNATIONAL FI2 NANCIAL AND FOREIGN RE3 LATIONS POLICY FOR SUB-SA4 HARAN AFRICA

5 SEC. 201. INTERNATIONAL FINANCIAL INSTITUTIONS AND

6 DEBT REDUCTION.

7 (a) BETTER MECHANISMS TO FURTHER GOALS FOR

8 SUB-SAHARAN AFRICA.—It is the sense of the Congress

9 that the Secretary of the Treasury should instruct the

10 United States Executive Directors of the International

11 Bank for Reconstruction and Development, the Inter12 national Monetary Fund, and the African Development

13 Bank to use the voice and votes of the Executive Directors

14 to encourage vigorously their respective institutions to de15 velop enhanced mechanisms which further the following

16 goals in eligible countries in sub-Saharan Africa:

17 (1) Strengthening and expanding the private

18 sector, especially among women-owned businesses.

19 (2) Reducing tariffs, nontariff barriers, and

20 other trade obstacles, and increasing economic inte21 gration.

22 (3) Supporting countries committed to account23 able government, economic reform, the eradication of

24 poverty, and the building of civil societies.
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1 (4) Supporting deep debt reduction at the ear2 liest possible date with the greatest amount of relief

3 for eligible poorest countries under the ‘‘Heavily In4 debted Poor Countries’’ (HIPC) debt initiative.

5 (b) SENSE OF CONGRESS.—It is the sense of the

6 Congress that relief provided to countries in sub-Saharan

7 Africa which qualify for the Heavily Indebted Poor Coun8 tries debt initiative should primarily be made through

9 grants rather than through extended-term debt, and that

10 interim relief or interim financing should be provided for

11 eligible countries that establish a strong record of macro12 economic reform.

13 SEC. 202. EXECUTIVE BRANCH INITIATIVES.

14 (a) STATEMENT OF CONGRESS.—The Congress rec15 ognizes that the stated policy of the executive branch in

16 1997, the ‘‘Partnership for Growth and Opportunity in

17 Africa’’ initiative, is a step toward the establishment of

18 a comprehensive trade and development policy for sub-Sa19 haran Africa. It is the sense of the Congress that this

20 Partnership is a companion to the policy goals set forth

21 in this Act.

22 (b) TECHNICAL ASSISTANCE TO PROMOTE ECO23 NOMIC REFORMS AND DEVELOPMENT.—In addition to

24 continuing bilateral and multilateral economic and devel-
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1 opment assistance, the President shall target technical as2 sistance toward—

3 (1) developing relationships between United

4 States firms and firms in sub-Saharan Africa

5 through a variety of business associations and net6 works;

7 (2) providing assistance to the governments of

8 sub-Saharan African countries to—

9 (A) liberalize trade and promote exports;

10 (B) bring their legal regimes into compli11 ance with the standards of the World Trade Or12 ganization in conjunction with membership in

13 that Organization;

14 (C) make financial and fiscal reforms; and

15 (D) promote greater agribusiness linkages;

16 (3) addressing such critical agricultural policy

17 issues as market liberalization, agricultural export

18 development, and agribusiness investment in proc19 essing and transporting agricultural commodities;

20 (4) increasing the number of reverse trade mis21 sions to growth-oriented countries in sub-Saharan

22 Africa;

23 (5) increasing trade in services; and

24 (6) encouraging greater sub-Saharan participa25 tion in future negotiations in the World Trade Orga-
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1 nization on services and making further commit2 ments in their schedules to the General Agreement

3 on Trade in Services in order to encourage the re4 moval of tariff and nontariff barriers.

5 SEC. 203. SUB-SAHARAN AFRICA INFRASTRUCTURE FUND.

6 (a) INITIATION OF FUNDS.—It is the sense of the

7 Congress that the Overseas Private Investment Corpora8 tion should exercise the authorities it has to initiate an

9 equity fund or equity funds in support of projects in the

10 countries in sub-Saharan Africa, in addition to the exist11 ing equity fund for sub-Saharan Africa created by the Cor12 poration.

13 (b) STRUCTURE AND TYPES OF FUNDS.—

14 (1) STRUCTURE.—Each fund initiated under

15 subsection (a) should be structured as a partnership

16 managed by professional private sector fund man17 agers and monitored on a continuing basis by the

18 Corporation.

19 (2) CAPITALIZATION.—Each fund should be

20 capitalized with a combination of private equity cap21 ital, which is not guaranteed by the Corporation,

22 and debt for which the Corporation provides guaran23 ties.

24 (3) INFRASTRUCTURE FUND.—One or more of

25 the funds, with combined assets of up to
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1 $500,000,000, should be used in support of infra2 structure projects in countries of sub-Saharan

3 Africa.

4 (4) EMPHASIS.—The Corporation shall ensure

5 that the funds are used to provide support in par6 ticular to women entrepreneurs and to innovative in7 vestments that expand opportunities for women and

8 maximize employment opportunities for poor individ9 uals.

10 SEC. 204. OVERSEAS PRIVATE INVESTMENT CORPORATION

11 AND EXPORT-IMPORT BANK INITIATIVES.

12 (a) OVERSEAS PRIVATE INVESTMENT CORPORA13 TION.—

14 (1) ADVISORY COMMITTEE.—Section 233 of the

15 Foreign Assistance Act of 1961 (22 U.S.C. 2193) is

16 amended by adding at the end the following:

17 ‘‘(e) ADVISORY COMMITTEE.—The Board shall take

18 prompt measures to increase the loan, guarantee, and in19 surance programs, and financial commitments, of the Cor20 poration in sub-Saharan Africa, including through the use

21 of an advisory committee to assist the Board in developing

22 and implementing policies, programs, and financial instru23 ments with respect to sub-Saharan Africa. In addition, the

24 advisory committee shall make recommendations to the

25 Board on how the Corporation can facilitate greater sup-
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1 port by the United States for trade and investment with

2 and in sub-Saharan Africa. The advisory committee shall

3 terminate 4 years after the date of the enactment of this

4 subsection.’’.

5 (2) REPORTS TO THE CONGRESS.—Within 6

6 months after the date of the enactment of this Act,

7 and annually for each of the 4 years thereafter, the

8 Board of Directors of the Overseas Private Invest9 ment Corporation shall submit to the Congress a re10 port on the steps that the Board has taken to imple11 ment section 233(e) of the Foreign Assistance Act

12 of 1961 (as added by paragraph (1)) and any rec13 ommendations of the advisory board established pur14 suant to such section.

15 (b) EXPORT-IMPORT BANK.—

16 (1) ADVISORY COMMITTEE FOR SUB-SAHARAN

17 AFRICA.—Section 2(b) of the Export-Import Bank

18 Act of 1945 (12 U.S.C. 635(b)) is amended by in19 serting after paragraph (12) the following:

20 ‘‘(13)(A) The Board of Directors of the Bank shall

21 take prompt measures, consistent with the credit stand22 ards otherwise required by law, to promote the expansion

23 of the Bank’s financial commitments in sub-Saharan Afri24 ca under the loan, guarantee, and insurance programs of

25 the Bank.
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1 ‘‘(B)(i) The Board of Directors shall establish and

2 use an advisory committee to advise the Board of Direc3 tors on the development and implementation of policies

4 and programs designed to support the expansion described

5 in subparagraph (A).

6 ‘‘(ii) The advisory committee shall make rec7 ommendations to the Board of Directors on how the Bank

8 can facilitate greater support by United States commercial

9 banks for trade with sub-Saharan Africa.

10 ‘‘(iii) The advisory committee shall terminate 4 years

11 after the date of the enactment of this subparagraph.’’.

12 (2) REPORTS TO THE CONGRESS.—Within 6

13 months after the date of the enactment of this Act,

14 and annually for each of the 4 years thereafter, the

15 Board of Directors of the Export-Import Bank of

16 the United States shall submit to the Congress a

17 report on the steps that the Board has taken to im18 plement section 2(b)(13)(B) of the Export-Import

19 Bank Act of 1945 (as added by paragraph (1)) and

20 any recommendations of the advisory committee es21 tablished pursuant to such section.
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1 SEC. 205. EXPANSION OF THE UNITED STATES AND FOR2 EIGN COMMERCIAL SERVICE IN SUB-SAHA3 RAN AFRICA.

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

5 findings:

6 (1) The United States and Foreign Commercial

7 Service (hereafter in this section referred to as the

8 ‘‘Commercial Service’’) plays an important role in

9 helping United States businesses identify export op10 portunities and develop reliable sources of informa11 tion on commercial prospects in foreign countries.

12 (2) During the 1980s, the presence of the Com13 mercial Service in sub-Saharan Africa consisted of

14 14 professionals providing services in eight coun15 tries. By early 1997, that presence had been reduced

16 by half to seven, in only four countries.

17 (3) Since 1997, the Department of Commerce

18 has slowly begun to increase the presence of the

19 Commercial Service in sub-Saharan Africa, adding

20 five full-time officers to established posts.

21 (4) Although the Commercial Service Officers

22 in these countries have regional responsibilities, this

23 kind of coverage does not adequately service the

24 needs of United States businesses attempting to do

25 business in sub-Saharan Africa.
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1 (5) The Congress has, on several occasions, en2 couraged the Commercial Service to focus its re3 sources and efforts in countries or regions in Europe

4 or Asia to promote greater United States export ac5 tivity in those markets.

6 (6) Because market information is not widely

7 available in many sub-Saharan African countries,

8 the presence of additional Commercial Service Offi9 cers and resources can play a significant role in as10 sisting United States businesses in markets in those

11 countries.

12 (b) APPOINTMENTS.—Subject to the availability of

13 appropriations, by not later than December 31, 2000, the

14 Secretary of Commerce, acting through the Assistant Sec15 retary of Commerce and Director General of the United

16 States and Foreign Commercial Service, shall take steps

17 to ensure that—

18 (1) at least 20 full-time Commercial Service

19 employees are stationed in sub-Saharan Africa; and

20 (2) full-time Commercial Service employees are

21 stationed in not less than ten different sub-Saharan

22 African countries.

23 (c) COMMERCIAL SERVICE INITIATIVE FOR SUB-SA24 HARAN AFRICA.—In order to encourage the export of

25 United States goods and services to sub-Saharan African
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1 countries, the Commercial Service shall make a special ef2 fort to—

3 (1) identify United States goods and services

4 which are not being exported to sub-Saharan African

5 countries but which are being exported to those

6 countries by competitor nations;

7 (2) identify, where appropriate, trade barriers

8 and noncompetitive actions, including violations of

9 intellectual property rights, that are preventing or

10 hindering sales of United States goods and services

11 to, or the operation of United States companies in,

12 sub-Saharan Africa;

13 (3) present, periodically, a list of the goods and

14 services identified under paragraph (1), and any

15 trade barriers or noncompetitive actions identified

16 under paragraph (2), to appropriate authorities in

17 sub-Saharan African countries with a view to secur18 ing increased market access for United States ex19 porters of goods and services;

20 (4) facilitate the entrance by United States

21 businesses into the markets identified under para22 graphs (1) and (2); and

23 (5) monitor and evaluate the results of efforts

24 to increase the sales of goods and services in such

25 markets.
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1 (d) REPORTS TO CONGRESS.—Not later than one

2 year after the date of the enactment of this Act, and each

3 year thereafter for five years, the Secretary of Commerce,

4 in consultation with the Secretary of State, shall report

5 to the Congress on actions taken to carry out subsections

6 (b) and (c). Each report shall specify—

7 (1) in what countries full-time Commercial

8 Service Officers are stationed, and the number of

9 such officers placed in each such country;

10 (2) the effectiveness of the presence of the addi11 tional Commercial Service Officers in increasing

12 United States exports to sub-Saharan African coun13 tries; and

14 (3) the specific actions taken by Commercial

15 Service Officers, both in sub-Saharan African coun16 tries and in the United States, to carry out sub17 section (c), including identifying a list of targeted

18 export sectors and countries.

19 SEC. 206. DONATION OF AIR TRAFFIC CONTROL EQUIP20 MENT TO ELIGIBLE SUB-SAHARAN AFRICAN

21 COUNTRIES.

22 It is the sense of the Congress that, to the extent

23 appropriate, the United States Government should make

24 every effort to donate to governments of sub-Saharan Afri25 can countries (determined to be eligible under section 4
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1 of this Act) air traffic control equipment that is no longer

2 in use, including appropriate related reimbursable tech3 nical assistance.

Æ