I 

109TH CONGRESS 

2D SESSION H. R. 5070 

To extend certain trade preference programs, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 30, 2006 

Mr. RANGEL (for himself, Mr. MCDERMOTT, and Mr. JEFFERSON) introduced 

the following bill; which was referred to the Committee on Ways and 

Means, and in addition to the Committees on International Relations and 

Financial Services, 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 extend certain trade preference programs, and for other 

purposes. 

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 ‘‘Trade Preference Extension and Expansion Act of 

6 2006’’. 

7 (b) TABLE OF CONTENTS.—The table of contents of 

8 this Act is as follows: 

Sec. 1. Short title; table of contents. 


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TITLE I—GENERALIZED SYSTEM OF PREFERENCES (GSP) 

PROGRAM 

Sec. 101. Findings. 

Sec. 102. Extension of GSP program. 

TITLE II—ANDEAN TRADE PREFERENCE ACT 

Sec. 201. Findings. 

Sec. 202. Extension of Andean Trade Preference Act. 

TITLE III—AFRICAN GROWTH AND OPPORTUNITY ACT 

Sec. 301. Findings. 

Sec. 302. Designation of eligible countries. 

Sec. 303. United States–Sub-Saharan Africa Trade and Economic Cooperation 

Forum. 

Sec. 304. Treatment of certain textiles and apparel. 

Sec. 305. Executive branch initiative on agriculture. 

Sec. 306. Other agriculture provisions. 

Sec. 307. Use of resources of the Export-Import Bank of the United States and 

the Overseas Private Investment Corporation. 

Sec. 308. Tax policy with respect to sub-Saharan African countries. 

Sec. 309. Bilateral investment treaties. 

Sec. 310. Development and trade capacity for sub-Saharan Africa. 

Sec. 311. Sense of Congress regarding Liberia. 

1 TITLE I—GENERALIZED SYSTEM 

2 OF PREFERENCES (GSP) PRO3 GRAM 

4 SEC. 101. FINDINGS. 

5 Congress finds that— 

6 (1) for more than 30 years, the Generalized 

7 System of Preferences (GSP) program under title V 

8 of the Trade Act of 1974 (19 U.S.C. 2461 et seq.) 

9 has provided a framework of benefits that has 

10 helped to promote economic growth and improve 

11 standards of living in developing countries, while 

12 making United States businesses more competitive 

13 and lowering prices for United States consumers; 


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1 (2) the eligibility requirements of the GSP pro2 gram have provided important leverage to the 

3 United States to promote improvements in bene4 ficiary countries’ trade policies, protection of intel5 lectual property rights, and protection of inter6 nationally recognized worker rights; 

7 (3) the GSP program currently is scheduled to 

8 expire on December 31, 2006; 

9 (4) it is important that the GSP program be 

10 extended as soon as possible to ensure the continu11 ation of benefits that are critical to many developing 

12 countries and to provide United States trading part13 ners, as well as United States manufacturers and re14 tailers, the predictability necessary to make business 

15 and investment decisions for the near and longer16 term future; 

17 (5) a one-year extension of the GSP program is 

18 appropriate, in light of the fact that the United 

19 States and its trading partners currently are negoti20 ating new agreements as part of the Doha Develop21 ment Round of World Trade Organization (WTO) 

22 negotiations, which are scheduled to be concluded in 

23 2007, and the Doha Development Round agreements 

24 are expected to include a new duty-free/quota-free 

25 initiative for least developed countries; and 


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1 (6) the implementation of the duty-free/quota2 free initiative will provide an opportunity for Con3 gress to evaluate the operation of the GSP program 

4 and make any necessary changes to United States 

5 preference programs to ensure that the programs 

6 continue to promote the interests of both United 

7 States workers, farmers, and businesses and devel8 oping countries, particularly least developed and low9 income developing countries, seeking to expand and 

10 improve their economies through increased trade. 

11 SEC. 102. EXTENSION OF GSP PROGRAM. 

12 Section 505 of the Trade Act of 1974 (19 U.S.C. 

13 2465) is amended by striking ‘‘December 31, 2006’’ and 

14 inserting ‘‘December 31, 2007’’. 

15 TITLE II—ANDEAN TRADE 

16 PREFERENCE ACT 

17 SEC. 201. FINDINGS. 

18 Congress finds that— 

19 (1) since 1991, the United States has extended 

20 special trade preferences to imports from Bolivia, 

21 Colombia, Ecuador and Peru under the Andean 

22 Trade Preference Act (19 U.S.C. 3201 et seq.), in23 cluding as amended by the Andean Trade Promotion 

24 and Drug Eradication Act; 


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1 (2) the Andean Trade Preference Act has 

2 helped to promote economic growth in the Andean 

3 region, where per capita gross domestic product 

4 (GDP) averages less than $5,000, while making 

5 United States businesses more competitive and low6 ering prices for United States consumers; 

7 (4) the Andean Trade Preference Act currently 

8 is scheduled to expire on December 31, 2006; 

9 (5) the United States has negotiated bilateral 

10 free trade agreements with Colombia and Peru, and 

11 is currently engaged in free trade agreement nego12 tiations with Ecuador; 

13 (6) it is not clear whether the free trade agree14 ments with Colombia and Peru, or a future agree15 ment with Ecuador, can be implemented before Jan16 uary 1, 2007, and no such agreement is expected to 

17 be concluded with Bolivia in 2006; 

18 (7) it therefore is important that Congress ex19 tend the Andean Trade Preference Act as soon as 

20 possible to ensure the continuation of benefits that 

21 are critical to the economies of Bolivia, Colombia, 

22 Ecuador and Peru, and to provide United States 

23 trading partners, as well as United States manufac24 turers and retailers, the predictability necessary to 


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1 make business and investment decisions for the fu2 ture; and 

3 (8) a one-year extension of the Andean Trade 

4 Preference Act is appropriate, in light of the fact 

5 that the United States has concluded free trade 

6 agreements with Colombia and Peru, and may con7 clude negotiations with Ecuador in the near future, 

8 and the United States and its trading partners cur9 rently are negotiating new agreements as part of the 

10 Doha Development Round of World Trade Organiza11 tion (WTO) negotiations, which will affect United 

12 States trade obligations with respect to the Andean 

13 countries. 

14 SEC. 202. EXTENSION OF ANDEAN TRADE PREFERENCE 

15 ACT. 

16 Section 208 of the Andean Trade Preference Act (19 

17 U.S.C. 3206) is amended by striking ‘‘December 31, 

18 2006’’ and inserting ‘‘December 31, 2007’’. 

19 TITLE III—AFRICAN GROWTH 

20 AND OPPORTUNITY ACT 

21 SEC. 301. FINDINGS. 

22 Congress finds that— 

23 (1) the African Growth and Opportunity Act 

24 (19 U.S.C. 3701 et seq.) has helped to spur eco25 nomic growth and bolster economic reforms in the 


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1 countries in sub-Saharan Africa and fostered strong2 er economic ties between the countries in sub-Saha3 ran Africa and the United States; 

4 (2) the African Growth and Opportunity Act 

5 has helped to promote investment in sub-Saharan 

6 Africa, especially in the textile and apparel sectors; 

7 (3) the major challenges facing the often nas8 cent textile and apparel sector in sub-Saharan Africa 

9 are— 

10 (A) unrestrained competition from well-es11 tablished, and in some cases, subsidized, pro12 ducers, particularly following the January 1, 

13 2005, elimination of quotas previously main14 tained by members of the World Trade Organi15 zation (WTO); and 

16 (B) inadequate infrastructure and access 

17 to capital and other supply-side constraints; 

18 (4) during the first year since the elimination of 

19 quotas, United States imports of apparel from sub20 Saharan Africa declined by 16 percent, contributing 

21 to the closing of dozens of factories and the loss of 

22 an estimated 100,000 jobs in the region; 

23 (5) the rules of origin under the African 

24 Growth and Opportunity Act do not reflect the cur25 rent market reality, which is that African textile 


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1 mills cannot in general produce yarns or fabric in 

2 sufficient variety and quantity to meet the needs of 

3 African apparel producers or market demand in the 

4 United States and other countries; 

5 (6) to increase the ability of African apparel 

6 manufacturers to meet market demands, the rules of 

7 origin under the African Growth and Opportunity 

8 Act should be replaced by a simple value-added rule 

9 of origin, as advocated by the Commission for Africa 

10 and recognized by the World Bank; 

11 (7) sustainable development and economic 

12 growth in sub-Saharan Africa require the diversifica13 tion of the economies of countries in sub-Saharan 

14 Africa, utilizing the countries’ vast agricultural, nat15 ural, and human resources in a just and sustainable 

16 manner; and 

17 (8) to assist countries in sub-Saharan Africa in 

18 developing and diversifying their economies, the 

19 United States should continue to pursue trade liber20 alization bilaterally and multilaterally, and in addi21 tion, the United States should provide the technical 

22 assistance needed and identified in the AGOA Com23 petitiveness Report, published by the United States 

24 Trade Representative in 2005, and establish proVerDate Aug 31 2005 18:44 Apr 04, 2006 Jkt 049196 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H5070.IH H5070

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1 grams to provide sustainable technical assistance to 

2 small- and medium-sized African enterprises. 

3 SEC. 302. DESIGNATION OF ELIGIBLE COUNTRIES. 

4 Section 104 of the African Growth and Opportunity 

5 Act (19 U.S.C. 3703) is amended by striking subsection 

6 (b) and inserting the following: 

7 ‘‘(b) CONTINUING COMPLIANCE.—If the President 

8 determines that an eligible sub-Saharan African country 

9 no longer meets the criteria set forth in subsection (a), 

10 including by failing to maintain the institutions described 

11 in subparagraphs (A) through (F) of subsection (a)(1), 

12 the President may terminate the designation of the coun13 try made pursuant to subsection (a) if— 

14 ‘‘(1) the President transmits to the Congress 

15 notice of the proposed designation; and 

16 ‘‘(2) the Congress, within 90 days after receiv17 ing such notice, does not enact a law prohibiting 

18 such termination.’’. 

19 SEC. 303. UNITED STATES–SUB-SAHARAN AFRICA TRADE 

20 AND ECONOMIC COOPERATION FORUM. 

21 (a) GRANTS.— In order to ensure that nongovern22 mental organizations and the private sector continue to 

23 host the annual meetings described in section 105(c)(2) 

24 of the African Growth and Opportunity Act (19 U.S.C. 

25 3704(c)(2)), the United States Trade Representative, in 


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1 coordination with the heads of other appropriate Federal 

2 departments and agencies, is authorized to provide grants 

3 to United States nongovernmental organizations referred 

4 to in section 105(c)(2) of that Act and to United States 

5 representatives of the private sector referred to in section 

6 105(c)(2)(B) of that Act, for the purpose of hosting such 

7 meetings. 

8 (b) AUTHORIZATION OF APPROPRIATIONS.—There is 

9 authorized to be appropriated to the United States Trade 

10 Representative to carry out this section such sums as may 

11 be necessary. 

12 SEC. 304. TREATMENT OF CERTAIN TEXTILES AND AP13 PAREL. 

14 (a) CERTAIN OTHER APPAREL ARTICLES THAT ARE

15 BOTH CUT (OR KNIT-TO-SHAPE) AND SEWN OR OTHER16 WISE ASSEMBLED IN ONE OR MORE BENEFICIARY SUB17 SAHARAN AFRICAN COUNTRIES.— 

18 (1) AMENDMENTS.—Section 112(b)(3) of the 

19 African Growth and Opportunity Act (19 U.S.C. 

20 3721(b)(3)) is amended— 

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

22 ‘‘CERTAIN OTHER APPAREL ARTICLES THAT

23 ARE BOTH CUT (OR KNIT-TO-SHAPE) AND SEWN

24 OR OTHERWISE ASSEMBLED IN ONE OR MORE


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1 BENEFICIARY SUB-SAHARAN AFRICAN COUN2 TRIES.—’’; 

3 (B) by redesignating subparagraphs (A) 

4 through (C) as subparagraphs (B) through (D), 

5 respectively; and 

6 (C) by striking the matter preceding sub7 paragraph (B) (as redesignated) and inserting 

8 the following new subparagraph: 

9 ‘‘(A) CERTAIN OTHER APPAREL ARTI10 CLES.— 

11 ‘‘(i) IN GENERAL.—Apparel articles 

12 that are both cut (or knit-to-shape) and 

13 sewn or otherwise assembled in one or 

14 more beneficiary sub-Saharan African 

15 countries if— 

16 ‘‘(I) the articles are imported di17 rectly from a beneficiary sub-Saharan 

18 African country into the customs ter19 ritory of the United States; and 

20 ‘‘(II) the sum of— 

21 ‘‘(aa) the cost or value of 

22 the materials of the articles pro23 duced in the beneficiary sub-Sa24 haran African country or any two 

25 or more of such beneficiary subVerDate Aug 31 2005 18:44 Apr 04, 2006 Jkt 049196 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H5070.IH H5070

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1 Saharan African countries or the 

2 United States, plus 

3 ‘‘(bb) the direct costs of 

4 processing operations performed 

5 in such beneficiary country or 

6 such beneficiary countries or the 

7 United States, 

8 is not less than the applicable percent9 age of the appraised value of the arti10 cles at the time the articles are im11 ported into the customs territory of 

12 the United States. 

13 ‘‘(ii) APPLICABLE PERCENTAGE.—For 

14 purposes of clause (i), the term ‘applicable 

15 percentage’ means— 

16 ‘‘(I) 20 percent for the 10-year 

17 period beginning October 1, 2006, or 

18 the date of the enactment of the 

19 Trade Preference Extension and Ex20 pansion Act of 2006, whichever occurs 

21 later; and 

22 ‘‘(II) 35 percent thereafter.’’. 

23 (2) EFFECTIVE DATE; APPLICABILITY.—The 

24 amendments made by paragraph (1) shall take effect 

25 on October 1, 2006, or the date of the enactment of 


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1 this Act, whichever occurs later. The preferential 

2 treatment described in subsection (a) of section 112 

3 of the African Growth and Opportunity Act shall 

4 apply to apparel articles described in subparagraph 

5 (A) of section 112(b)(3) of such Act (as added by 

6 paragraph (1)) that are imported directly into the 

7 customs territory of the United States on or after 

8 such date. 

9 (3) TRANSITION RULE.—The preferential treat10 ment described in subsection (a) of section 112 of 

11 the African Growth and Opportunity Act shall con12 tinue to apply to apparel articles described in the 

13 matter preceding subparagraph (A) of section 

14 112(b)(3) of such Act (as such section is in effect 

15 on the day before the date of the enactment of this 

16 Act) that are imported directly into the customs ter17 ritory of the United States for— 

18 (A) the period beginning on the date of the 

19 enactment of this Act and ending March 31, 

20 2007, or 

21 (B) the 180-day period beginning on the 

22 date of the enactment of this Act, 

23 whichever occurs later. 

24 (b) SPECIAL RULE FOR LESSER DEVELOPED COUN25 TRIES.— 


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1 (1) APPLICABLE PERCENTAGE.—Clause (ii) of 

2 section 112(b)(3)(C) of the African Growth and Op3 portunity Act (as redesignated by subsection 

4 (a)(1)(B) of this section) is amended— 

5 (A) in subclause (II), by adding ‘‘and’’ at 

6 the end; 

7 (B) in subclause (III)— 

8 (i) by striking ‘‘1-year period’’ and in9 serting ‘‘2-year period’’; and 

10 (ii) by striking ‘‘; and’’ and inserting 

11 a period; and 

12 (C) by striking subclause (IV). 

13 (2) SEPARATE LIMITATION FOR MAURITIUS.— 

14 (A) AMENDMENT.—Clause (iv) of section 

15 112(b)(3)(C) of the African Growth and Oppor16 tunity Act (as redesignated by subsection 

17 (a)(1)(B) of this section) is amended to read as 

18 follows: 

19 ‘‘(iv) SEPARATE LIMITATION FOR

20 MAURITIUS.—For the 1-year period begin21 ning October 1, 2005, and the 1-year pe22 riod beginning October 1, 2006, the term 

23 ‘lesser developed beneficiary sub-Saharan 

24 African country’ includes Mauritius.’’. 


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1 (B) RETROACTIVE APPLICATION FOR CER2 TAIN LIQUIDATIONS AND RELIQUIDATIONS.— 

3 (i) IN GENERAL.—Notwithstanding 

4 section 514 of the Tariff Act of 1930 (19 

5 U.S.C. 1514) or any other provision of 

6 law, and subject to clause (ii), the entry of 

7 any article— 

8 (I) that was made on or after Oc9 tober 1, 2005, and before the date of 

10 the enactment of this Act, and 

11 (II) with respect to which pref12 erential treatment under section 

13 112(b)(3) of the African Growth and 

14 Opportunity Act would have applied if 

15 the amendment made by subpara16 graph (A) applied with respect to the 

17 entry of such article, 

18 shall be liquidated or reliquidated as if 

19 such amendment applied to the entry of 

20 such article. 

21 (ii) REQUESTS.—Liquidation or re22 liquidation may be made under clause (i) 

23 with respect to the entry of an article only 

24 if request therefor is filed upon proper re25 quest filed with the Bureau of Customs 


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1 and Border Protection of the Department 

2 of Homeland Security within 90 days after 

3 the date of the enactment of this Act. 

4 (iii) PAYMENT OF AMOUNTS OWED.— 

5 Any amounts owed by the United States 

6 pursuant to the liquidation or reliquidation 

7 made under clause (i) with respect to the 

8 entry of an article shall be paid not later 

9 180 days after the date of such liquidation 

10 or reliquidation. 

11 (iv) DEFINITION.—As used in this 

12 subparagraph, the term ‘‘entry’’ includes a 

13 withdrawal from warehouse for consump14 tion. 

15 (c) CERTAIN TEXTILE FABRICS AND OTHER MADE

16 UP TEXTILE ARTICLES.— 

17 (1) AMENDMENT.—Section 112(b) of the Afri18 can Growth and Opportunity Act (19 U.S.C. 

19 3721(b)) is amended by adding at the end the fol20 lowing new paragraph: 

21 ‘‘(8) CERTAIN TEXTILE FABRICS AND OTHER

22 MADE UP TEXTILE ARTICLES.— 

23 ‘‘(A) IN GENERAL.—Notwithstanding sec24 tion 503 of the Trade Act of 1974 (19 U.S.C. 

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1 rics and other made up textile articles classifi2 able under any heading of chapters 50 through 

3 60 and chapter 63 of the Harmonized Tariff 

4 Schedule of the United States (other than head5 ings 5101 through 5105 and headings 5201 

6 through 5203 of such Schedule) that are wholly 

7 the product of one or more beneficiary sub-Sa8 haran African countries. 

9 ‘‘(B) SURGE MECHANISM.—The require10 ments of subparagraph (D) of paragraph (3) 

11 shall apply with respect to imports of textile 

12 fabrics and other made up textile articles de13 scribed in this paragraph to the same extent 

14 and in the same manner as such requirements 

15 apply with respect to imports of articles de16 scribed in paragraph (3).’’. 

17 (2) EFFECTIVE DATE; APPLICABILITY.—The 

18 amendment made by paragraph (1) shall take effect 

19 on October 1, 2006, or the date of the enactment of 

20 this Act, whichever occurs later. The preferential 

21 treatment described in subsection (a) of section 112 

22 of the African Growth and Opportunity Act shall 

23 apply to textile fabrics and other made up textile ar24 ticles described in paragraph (8) of section 112(b) of 

25 such Act (as added by paragraph (1)) that are imVerDate Aug 31 2005 18:44 Apr 04, 2006 Jkt 049196 PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 E:\BILLS\H5070.IH H5070

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1 ported directly into the customs territory of the 

2 United States on or after such date. 

3 SEC. 305. EXECUTIVE BRANCH INITIATIVE ON AGRI4 CULTURE. 

5 Section 122(b)(3) of the African Growth and Oppor6 tunity Act (19 U.S.C. 3732(b)(3)) is amended to read as 

7 follows: 

8 ‘‘(3) addressing critical agricultural policy 

9 issues, in part, by developing a comprehensive plan, 

10 which shall be submitted to Congress, and shall take 

11 into consideration the October 2005 report of the 

12 International Trade Commission on Export Oppor13 tunities and Barriers in African Growth and Oppor14 tunity Act Eligible Countries and the July 2005 Af15 rican Growth and Opportunity Act Competitiveness 

16 Report prepared by the Office of the United States 

17 Trade Representative, to— 

18 ‘‘(A) increase market liberalization; 

19 ‘‘(B) develop agricultural exports; 

20 ‘‘(C) remove barriers and constraints to 

21 United States-Africa agricultural trade; 

22 ‘‘(D) increase investment in processing and 

23 transporting commodities; 

24 ‘‘(E) develop and increase capacity by 

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1 cially small farmers, in order to improve pro2 ductivity and ability to access local and inter3 national markets, as well as address other sup4 ply-side constraints; 

5 ‘‘(F) increase access to vital market infor6 mation, including prices, product quality and 

7 demand, inputs quality and costs, and customs 

8 rules and regulations, for farmers and farmer 

9 groups and cooperatives and for relevant gov10 ernment ministries; and 

11 ‘‘(G) enable public-private partnerships in 

12 eligible sub-Saharan African countries to pro13 mote trade in agricultural products between the 

14 United States and eligible sub- Saharan African 

15 countries;’’. 

16 SEC. 306. OTHER AGRICULTURE PROVISIONS. 

17 (a) ENHANCED TRADE IN AGRICULTURE.— 

18 (1) DUTY-FREE ACCESS.—In order to enhance 

19 the opportunities for increased agricultural trade, 

20 the President shall establish additional duty-free ac21 cess for countries designated as beneficiary sub-Sa22 haran African countries under section 506A(a)(1) of 

23 the Trade Act of 1974 (19 U.S.C. 2466a(a)(1)) for 

24 agricultural products governed by tariff-rate quotas 

25 as of the date of the enactment of this Act. The exVerDate Aug 31 2005 18:44 Apr 04, 2006 Jkt 049196 PO 00000 Frm 00019 Fmt 6652 Sfmt 6201 E:\BILLS\H5070.IH H5070

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1 panded access for countries described in the pre2 ceding sentence shall be subject to a safeguard 

3 mechanism to prevent market disruption or the 

4 threat of market disruption. 

5 (2) AMOUNT.—The amount of additional duty6 free access for agricultural products restrained by 

7 tariff rate quotas that is established pursuant to 

8 paragraph (1) shall be set at a level equal to actual 

9 imports of such products from beneficiary sub-Saha10 ran African countries during the 12-month period 

11 ending September 30, 2005. If an agricultural prod12 uct that is restrained by tariff rate quotas was not 

13 imported from any beneficiary sub-Saharan African 

14 country during the 12-month period ending Sep15 tember 30, 2005, the amount of additional duty-free 

16 access shall be set at a level equal to that portion 

17 of the applicable tariff rate quota that was reserved 

18 for ‘‘all other countries’’ for the quota period ending 

19 September 30, 2005. 

20 (3) ADDITIONAL DUTY-FREE ACCESS.—The 

21 President shall annually allocate such additional 

22 duty-free access among beneficiary sub-Saharan Af23 rican countries— 


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1 (A) that were net surplus producers of the 

2 agricultural product in question during the pre3 ceding year; and 

4 (B) on the basis of traditional market 

5 shares and such other criteria as the President 

6 shall consider appropriate, such as the level of 

7 economic development of the beneficiary coun8 tries, and that are consistent with United 

9 States obligations under Article XIII of GATT 

10 1994, provided that reasonable access is allo11 cated to new entrants. 

12 (4) DEFINITION.—As used in paragraph (3), 

13 the term ‘‘GATT 1994’’ means the General Agree14 ment on Tariffs and Trade annexed to the Agree15 ment Establishing the World Trade Organization en16 tered into on April 15, 1994. 

17 (b) ASSISTANCE TO AGRIBUSINESS.— The Adminis18 trator of the United States Agency for International De19 velopment is authorized to provide grants in each of fiscal 

20 years 2007 through 2020 to governmental and nongovern21 mental entities that are located in countries designated as 

22 beneficiary sub-Saharan African countries under section 

23 506A(a)(1) of the Trade Act of 1974 (19 U.S.C. 

24 2466a(a)(1)) and can provide assistance, consultation, 

25 and equipment to agribusinesses, particularly small- and 


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1 medium-sized, locally-owned enterprises, located in those 

2 countries in order to enable agricultural products of those 

3 businesses to meet the requirements under United States 

4 law when imported into the United States. Such funds 

5 may be used for grants to national plant protection organi6 zations for the purpose of obtaining equipment to achieve 

7 the purposes of this subsection. 

8 (c) FOREIGN AGRICULTURE SERVICE.— The Sec9 retary of Agriculture shall direct the Foreign Agriculture 

10 Service (FAS) to work with national African agricultural 

11 organizations to identify agricultural equipment and sup12 ply needs and implement programs that strengthen the 

13 ability of members of African agricultural organizations 

14 to fulfill these needs in conjunction with export credit 

15 guarantee programs. 

16 SEC. 307. USE OF RESOURCES OF THE EXPORT-IMPORT 

17 BANK OF THE UNITED STATES AND THE 

18 OVERSEAS PRIVATE INVESTMENT CORPORA19 TION. 

20 (a) EXPORT-IMPORT BANK OF THE UNITED

21 STATES.— Section 2(b)(1)(B) of the Export-Import Bank 

22 Act of 1945 (12 U.S.C. 635(b)(1)(B) is amended— 

23 (1) by inserting ‘‘(i)’’ after ‘‘(B)’’; and 

24 (2) by adding at the end the following: 


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1 ‘‘(ii) The Bank shall implement such regulations and 

2 procedures as may be appropriate to ensure that full con3 sideration is given to the extent to which any loan, guar4 antee, insurance, extension of credit, or participation in 

5 an extension of credit is likely to have a positive effect 

6 on industries, including the textile and apparel industry 

7 and agricultural production, in countries designated as 

8 beneficiary sub-Saharan African countries under section 

9 506A(a)(1) of the Trade Act of 1974 (19 U.S.C. 

10 2466a(a)(1)). To carry out the purposes of this clause, 

11 the Bank shall work with the Administrator of the United 

12 States Agency for International Development, the United 

13 States Trade Representative, and the Secretary of Com14 merce in identifying opportunities to use the resources of 

15 the Bank to encourage industrial and agricultural develop16 ment in such beneficiary sub-Saharan African countries.’’. 

17 (b) EXPORT-IMPORT BANK OF THE UNITED STATES

18 AND THE OVERSEAS PRIVATE INVESTMENT CORPORA19 TION.—In order to promote long-term, sustainable growth 

20 in the agriculture and textile sectors in countries des21 ignated as beneficiary sub-Saharan African countries 

22 under section 506A(a)(1) of the Trade Act of 1974 (19 

23 U.S.C. 2466a(a)(1)), the President shall direct the head 

24 of the Export-Import Bank of the United States and the 

25 Overseas Private Investment Corporation to— 


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1 (1) analyze and report annually on the potential 

2 of their operations to contribute to economic devel3 opment and job creation in such beneficiary coun4 tries with a particular emphasis on the agricultural 

5 and textiles sectors; and 

6 (2) convene a working group with participation 

7 from United States Agency for International Devel8 opment, the Department of Commerce, the Depart9 ment of Agriculture, as well as representatives from 

10 the private sector and civil society, to identify and 

11 evaluate specific opportunities for loans, guarantees, 

12 insurance, extension of credit or other benefits pro13 vided by the Export-Import Bank of the United 

14 States and Overseas Private Investment Corporation 

15 to be used to promote economic development and job 

16 creation in such beneficiary countries with a par17 ticular emphasis on the agricultural and textiles sec18 tors. 

19 SEC. 308. TAX POLICY WITH RESPECT TO SUB-SAHARAN AF20 RICAN COUNTRIES. 

21 (a) DEVELOPMENT OF DOMESTIC TAX POLICIES TO

22 REPLACE LOST TRADE TAX REVENUES.— 

23 (1) FINDINGS.—Congress finds that— 

24 (A) trade tax revenues remain important 

25 in many countries designated as beneficiary 


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1 sub-Saharan African countries under section 

2 506A(a)(1) of the Trade Act of 1974 (19 

3 U.S.C. 2466a(a)(1)); 

4 (B) studies conducted by the International 

5 Monetary Fund show that the revenue losses a 

6 developing country experiences due to trade lib7 eralization can be recovered by improving the 

8 domestic tax system in the affected country; 

9 and 

10 (C) technical assistance provided by the 

11 United States to such beneficiary countries in 

12 fiscal or economic policy programs has focused 

13 on tax system enhancement or development that 

14 has been helpful in moving tax regimes away 

15 from trade-related tax revenue toward other tax 

16 revenue sources. 

17 (2) SENSE OF THE CONGRESS.—It is the sense 

18 of Congress that— 

19 (A) the United States Agency for Inter20 national Development, in cooperation with the 

21 Department of the Treasury, the International 

22 Monetary Fund, the International Bank for Re23 construction and Development, and the African 

24 Development Bank, should exercise the authori25 ties it has to continue to provide technical asVerDate Aug 31 2005 18:44 Apr 04, 2006 Jkt 049196 PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 E:\BILLS\H5070.IH H5070

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1 sistance to countries designated as beneficiary 

2 sub-Saharan African countries under section 

3 506A(a)(1) of the Trade Act of 1974 (19 

4 U.S.C. 2466a(a)(1)) in tax policy, revenue ad5 ministration, and anti-corruption efforts; and 

6 (B) particular focus should be given to 

7 projects that assist such beneficiary countries in 

8 developing domestic policies and measures to 

9 replace lost trade tax revenues resulting from 

10 trade liberalization. 

11 (b) DOUBLE TAXATION TREATIES WITH ELIGIBLE

12 SUB-SAHARAN AFRICAN COUNTRIES.—In order to en13 courage investment in and certainty in the movement of 

14 capital, the Secretary of the Treasury shall seek negotia15 tions with those countries designated as beneficiary sub16 Saharan African countries under section 506A(a)(1) of 

17 the Trade Act of 1974 (19 U.S.C. 2466a(a)(1)) which the 

18 Secretary determines will benefit most from an income tax 

19 treaty with the United States. 

20 SEC. 309. BILATERAL INVESTMENT TREATIES. 

21 In order to encourage investment in countries des22 ignated as beneficiary sub-Saharan African countries 

23 under section 506A(a)(1) of the Trade Act of 1974 (19 

24 U.S.C. 2466a(a)(1)) and reduce the uncertainties that 

25 arise from investing in developing countries, the United 


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1 States Trade Representative shall seek to negotiate, with 

2 interested eligible sub-Saharan African countries, bilateral 

3 investment agreements. Any such agreement shall comply 

4 with section 2102(b)(3) of the Trade Act of 2002 (19 

5 U.S.C. 3802(b)(3)). 

6 SEC. 310. DEVELOPMENT AND TRADE CAPACITY FOR SUB7 SAHARAN AFRICA. 

8 (a) SENSE OF CONGRESS.—It is the sense of Con9 gress that— 

10 (1) sub-Saharan Africa faces critical challenges 

11 to economic growth and progress toward the United 

12 Nations Millennium Development Goals (as con13 tained United Nations General Assembly Resolution 

14 55/2 (September 2000)); 

15 (2) the January 1, 2005, elimination of textile 

16 and apparel quotas previously maintained by mem17 bers of the World Trade Organization (WTO) and 

18 competition from subsidized producers in countries 

19 such as the People’s Republic of China continue to 

20 reverse the economic gains in sub-Saharan Africa 

21 that resulted from implementation of the African 

22 Growth and Opportunity Act (19 U.S.C. 3701 et 

23 seq.); and 

24 (3) the United States should play a leadership 

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1 rica and providing a substantial increase in develop2 ment and trade capacity assistance for sub-Saharan 

3 Africa. 

4 (b) ASSISTANCE.—In order to give sub-Saharan Afri5 ca the necessary infrastructure and industry-building as6 sistance needed for sustainable economic development, the 

7 President shall— 

8 (1) provide targeted capacity building assist9 ance through bilateral assistance and seek to estab10 lish a multilateral capacity-building fund or facility 

11 for Africa, potentially within the World Bank, in a 

12 gender-sensitive manner, aimed at— 

13 (A) diversifying the economies of sub-Sa14 haran Africa, in part by promoting the growth 

15 of sub-Saharan Africa’s agricultural sector; 

16 (B) increasing the production of value17 added agriculture and food products; 

18 (C) lowering costs and increasing effi19 ciencies relating to the transport of food and 

20 agriculture; 

21 (D) increasing food storage capacity; 

22 (E) improving dissemination of market in23 formation for farmers and farmer groups; 

24 (F) providing technical assistance to small25 and medium-sized enterprises; 


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1 (G) providing technical assistance to local 

2 retail banks to provide loans to small- and me3 dium-sized enterprises; 

4 (H) facilitating the transfer of manufac5 turing and food production technology; 

6 (I) raising labor standards and produc7 tivity; and 

8 (J) promoting the rule of law, contract en9 forcement, and government transparency in the 

10 administration of trade and economic policy; 

11 (2) provide targeted assistance to sub-Saharan 

12 Africa to ensure the formal recognition of land and 

13 property rights in urban and rural settings to in14 crease access to capital and thereby promote eco15 nomic growth and investment, including training and 

16 capacity building programs, as well as multilateral 

17 aid, aimed at local legal officials, policymakers, and 

18 nongovernmental organizations regarding property 

19 law, surveying, land registration, and land use plan20 ning; 

21 (3) coordinate efforts under paragraph (2) with 

22 multinational organizations such as the World Bank, 

23 African Development Bank, and the High Level 

24 Commission on Legal Empowerment of the Poor; 

25 and 


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1 (4) establish a Legal Aid Corps, comprised of 

2 legally-trained volunteers from the United States, to 

3 provide technical advice to countries of sub-Saharan 

4 Africa regarding property law, surveying, land reg5 istration, and land use planning. 

6 (c) AUTHORIZATION OF APPROPRIATIONS.—There is 

7 authorized to be appropriated to the President to carry 

8 out this section such sums as may be necessary. 

9 SEC. 311. SENSE OF CONGRESS REGARDING LIBERIA. 

10 It is the sense of Congress that— 

11 (1) the October 2005 presidential elections in 

12 Liberia represented a key step in building peace in 

13 Liberia, following nearly two decades of civil war; 

14 (2) the election of Ms. Ellen Johnson Sirleaf as 

15 President of Liberia marks an important milestone 

16 for Africa, as President Johnson Sirleaf is the first 

17 elected female president in African history; 

18 (3) in her inaugural address, President Johnson 

19 Sirleaf laid out a detailed, multifaceted governance 

20 agenda emphasizing security, public and private-sec21 tor led economic revitalization, good governance and 

22 anti-corruption efforts, regional and international co23 operation, and political reconciliation and inclusive24 ness; 


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1 (4) President Johnson Sirleaf also has made 

2 improving worker rights a high priority, including 

3 through the repeal of a decree to prohibit strikes 

4 and inviting the International Labor Organization 

5 (ILO) to assist Liberia in bringing its laws into con6 formity with its ILO obligations; and 

7 (5) in light of the recent progress in Liberia, 

8 the President should make a determination as soon 

9 as possible, pursuant to section 104(a) of the Afri10 can Growth and Opportunity Act (19 U.S.C. 

11 3703(a)), regarding whether to designate Liberia as 

12 eligible for trade benefits under the African Growth 

13 and Opportunity Act. 

Æ 


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