II

106TH CONGRESS

1ST SESSION S. 1636

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

Africa.

IN THE SENATE OF THE UNITED STATES

SEPTEMBER 24, 1999

Mr. FEINGOLD introduced the following bill; which was read twice and

referred to the Committee on Finance

A BILL

To authorize a new trade, investment, and development

policy for sub-Saharan 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.

4 This Act may be cited as the ‘‘HOPE for Africa Act

5 of 1999’’.

6 SEC. 2. TABLE OF CONTENTS.

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

Sec. 1. Short title.

Sec. 2. Table of contents.

Sec. 3. Findings.

Sec. 4. Declarations of policy.

Sec. 5. Sense of Congress.

Sec. 6. Sub-Saharan Africa defined.
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TITLE I—CANCELLATION OF DEBT OWED BY SUB-SAHARAN

AFRICAN COUNTRIES

Sec. 101. Cancellation of debt owed to the United States Government by subSaharan African countries.

Sec. 102. Advocacy of cancellation of debt owed to foreign governments by subSaharan African countries.

Sec. 103. Report to Congress on plan of advocacy for the cancellation of debt

owed to the International Monetary Fund and the International Bank for Reconstruction and development by subSaharan African countries.

Sec. 104. Report on the cancellation of debt owed to United States lenders by

sub-Saharan African countries.

Sec. 105. Study on repayment of debt in local currencies by sub-Saharan African countries.

Sec. 106. Sense of Congress relating to the allocation of savings from debt relief of sub-Saharan African countries for basic services.

Sec. 107. Sense of Congress relating to level of interim debt payments prior to

full debt cancellation by sub-Saharan African countries.

TITLE II—TRADE PROVISIONS RELATING TO SUB-SAHARAN

AFRICA

Sec. 201. Encouraging mutually beneficial trade and investment.

Sec. 202. Generalized system of preferences.

Sec. 203. Additional enforcement.

TITLE III—DEVELOPMENT ASSISTANCE FOR SUB-SAHARAN

AFRICAN COUNTRIES

Sec. 301. Findings.

Sec. 302. Private and voluntary organizations.

Sec. 303. Types of assistance.

Sec. 304. Critical sectoral priorities.

Sec. 305. Reporting requirements.

Sec. 306. Separate account for Development Fund for Africa.

TITLE IV—SUB-SAHARAN AFRICA EQUITY AND INFRASTRUCTURE

FUNDS

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

TITLE V—OVERSEAS PRIVATE INVESTMENT CORPORATION AND

EXPORT-IMPORT BANK INITIATIVES

Sec. 501. Overseas private investment corporation initiatives.

Sec. 502. Export-Import Bank initiative.

TITLE VI—MISCELLANEOUS PROVISIONS

Sec. 601. Anticorruption efforts.

Sec. 602. Requirements relating to sub-Saharan African intellectual property

and competition law.

Sec. 603. Expansion of the United States and foreign commercial service in

sub-Saharan Africa.

TITLE VII—OFFSET
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Sec. 701. Private sector funding for research and development by NASA relating to aircraft performance.

1 SEC. 3. FINDINGS.

2 Congress finds the following:

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

4 States and the countries of sub-Saharan Africa to

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

7 Africa.

8 (2) Many sub-Saharan African countries have

9 made notable progress toward democratization in re10 cent years.

11 (3) Despite the enormous political and economic

12 potential in Africa, Africa has the largest number of

13 the poorest countries in the world, with an average

14 per capita income of less than $500 annually. Thir15 ty-three of the 41 highly indebted poor countries

16 (HIPC) are located in sub-Saharan Africa.

17 (4) A plan for sustainable, equitable develop18 ment for, and trade with, Africa must recognize the

19 different levels of development that exist between

20 countries and among different sectors within each

21 country.

22 (5) Sub-Saharan Africa is inordinately bur23 dened by $230,000,000,000 in bilateral and multi24 lateral debt whose service requirements—
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1 (A) now take over 20 percent of the export

2 earnings of the sub-Saharan African region, ex3 cluding South Africa; and

4 (B) constitute a serious impediment to the

5 development of stable democratic political struc6 tures, broad-based economic growth, poverty

7 eradication, and food security.

8 (6) The United Nations Declaration of Human

9 Rights guarantees the right to food, shelter, health

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

11 as rights to political freedoms.

12 (7)(A) The key principles guiding any United

13 States economic policy toward sub-Saharan Africa

14 should include those repeatedly identified by African

15 governments, including the priorities laid out in the

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

17 the sub-Saharan African countries in coordination

18 with the Organization for African Unity.

19 (B) The overriding priority expressed in the

20 ‘‘Lagos Plan’’ is freedom for each African country to

21 self-determine the economic policies that—

22 (i) suit the needs and development of their

23 people;

24 (ii) help achieve food self-sufficiency and

25 security; and
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1 (iii) provide broad access to potable water,

2 shelter, primary health care, education, and af3 fordable transport.

4 (8) Fair trade and mutually beneficial invest5 ment can be important tools for broad-based eco6 nomic development.

7 SEC. 4. DECLARATIONS OF POLICY.

8 Congress makes the following declarations:

9 (1) Economic relations between sub-Saharan

10 Africa and the United States must be oriented to11 ward benefiting the majority of the people of sub-Sa12 haran Africa and of the United States.

13 (2) Congress endorses the goals stated in the

14 Lagos Plan developed by sub-Saharan African Fi15 nance Ministers in cooperation with the Organiza16 tion for African Unity.

17 (3) In developing new economic relations with

18 sub-Saharan Africa, the United States should pur19 sue the following:

20 (A) Strengthening and diversifying the eco21 nomic production capacity of sub-Saharan Afri22 ca.

23 (B) Improving the level of people’s incomes

24 and the pattern of distribution in sub-Saharan

25 Africa.
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1 (C) Adjusting the pattern of public expend2 itures to satisfy people’s essential needs in sub3 Saharan Africa.

4 (D) Providing institutional support for

5 transition to functioning market economies in

6 sub-Saharan Africa through debt relief.

7 (E) Supporting environmentally sustain8 able development in sub-Saharan Africa.

9 (F) Promoting democracy, human rights,

10 and the strength of civil society in sub-Saharan

11 Africa.

12 (G) Assisting sub-Saharan African coun13 tries in efforts to make safe and efficacious

14 pharmaceuticals and medical technologies as

15 widely available to their populations as possible.

16 SEC. 5. SENSE OF CONGRESS.

17 It is the sense of Congress that—

18 (1) for the majority of people in sub-Saharan

19 Africa to be able to benefit from new trade, invest20 ment, and other economic opportunities provided by

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

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

23 African countries must be eliminated; and

24 (2) only significant debt relief will allow oper25 ation of local credit markets and eliminate distor-
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1 tions currently hindering development in sub-Saha2 ran Africa.

3 SEC. 6. SUB-SAHARAN AFRICA DEFINED.

4 In this Act, the terms ‘‘sub-Saharan Africa’’, ‘‘sub5 Saharan African country’’, ‘‘country in sub-Saharan Afri6 ca’’, ‘‘sub-Saharan African countries’’, and ‘‘countries in

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

8 Republic of Angola (Angola)

9 Republic of Benin (Benin)

10 Republic of Botswana (Botswana)

11 Burkina Faso (Burkina)

12 Republic of Burundi (Burundi)

13 Republic of Cameroon (Cameroon)

14 Republic of Cape Verde (Cape Verde)

15 Central African Republic

16 Republic of Chad (Chad)

17 Federal Islamic Republic of the Comorors

18 (Comoros)

19 Democratic Republic of Congo (DROC)

20 Republic of the Congo (Congo)

Republic of Coˆte d’Ivoire (Coˆ 21 te d’Ivoire)

22 Republic of Djibouti (Djibouti)

23 Republic of Equatorial Guinea (Equatorial

24 Guinea)

25 Ethiopia
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1 State of Eritrea (Eritrea)

2 Gabonese Republic (Gabon)

3 Republic of the Gambia (Gambia)

4 Republic of Ghana (Ghana)

5 Republic of Guinea (Guinea)

6 Republic of Guinea-Bissau (Guinea-Bissau)

7 Republic of Kenya (Kenya)

8 Kingdom of Lesotho (Lesotho)

9 Republic of Liberia (Liberia)

10 Republic of Madagascar (Madagascar)

11 Republic of Malawi (Malawi)

12 Republic of Mali (Mali)

13 Islamic Republic of Mauritania (Mauritania)

14 Republic of Mauritius (Mauritius)

15 Republic of Mozambique (Mozambique)

16 Republic of Namibia (Namibia)

17 Republic of Niger (Niger)

18 Federal Republic of Nigeria (Nigeria)

19 Republic of Rwanda (Rwanda)

20 Democratic Republic of Sao Tome and Principe

(Sao Tome ́ 21 and Principe)

22 Republic of Senegal (Senegal)

23 Repulbic of Seychelles (Seychelles)

24 Republic of Sierra Leone (Sierra Leone)

25 Somalia
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1 Republic of South Africa (South Africa)

2 Republic of Sudan (Sudan)

3 Kingdom of Swaziland (Swaziland)

4 United Republic of Tanzania (Tanzania)

5 Republic of Togo (Togo)

6 Republic of Uganda (Uganda)

7 Republic of Zambia (Zambia)

8 Republic of Zimbabwe (Zimbabwe)

9 TITLE I—CANCELLATION OF

10 DEBT OWED BY SUB-SAHARAN

11 AFRICAN COUNTRIES

12 SEC. 101. CANCELLATION OF DEBT OWED TO THE UNITED

13 STATES GOVERNMENT BY SUB-SAHARAN AF14 RICAN COUNTRIES.

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

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

17 ‘‘PART VI—CANCELLATION OF DEBT OWED TO

18 THE UNITED STATES BY SUB-SAHARAN AFRI19 CAN COUNTRIES

20 ‘‘SEC. 901. CANCELLATION OF DEBT.

21 ‘‘(a) IN GENERAL.—

22 ‘‘(1) IN GENERAL.—Except as provided in para23 graph (2), the President shall cancel all amounts

24 owed to the United States (or any agency of the

25 United States) by sub-Saharan African countries de-
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1 fined in section 6 of HOPE for Africa Act of 1999

2 resulting from—

3 ‘‘(A) concessional loans made or credits ex4 tended under any provision of law, including the

5 provisions of law described in subsection (b)(1);

6 and

7 ‘‘(B) nonconcessional loans made, guaran8 tees issued, or credits extended under any pro9 vision of law, including the provisions of law de10 scribed in subsection (b)(2).

11 ‘‘(2) EXCEPTION.—The provisions of paragraph

12 (1) relating to cancellation of debt shall not apply to

13 any sub-Saharan country if the government of the

14 country—

15 ‘‘(A) (including its military or other secu16 rity forces) engages in a pattern of significant

17 violations of internationally recognized human

18 rights;

19 ‘‘(B) has an excessive level of military ex20 penditures;

21 ‘‘(C) has repeatedly provided support for

22 acts of international terrorism, as determined

23 by the Secretary of State under section 6(j)(1)

24 of the Export Administration Act of 1979 (50

25 U.S.C. app. 2405(j)(1)) or section 620A(a) of
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1 the Foreign Assistance Act of 1961 (22 U.S.C.

2 2371(a)); or

3 ‘‘(D) is failing to cooperate on inter4 national narcotics control matters.

5 ‘‘(3) CERTIFICATION BY PRESIDENT.—The

6 President shall certify to Congress that any country

7 with respect to which debt is canceled under this

8 subsection is not engaged in an activity described in

9 paragraph (2).

10 ‘‘(b) PROVISIONS OF LAW.—

11 ‘‘(1) CONCESSIONAL PROVISIONS OF LAW.—The

12 provisions of law described in this paragraph are the

13 following:

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

15 II of this Act, or predecessor foreign economic

16 assistance legislation.

17 ‘‘(B) Title I of the Agricultural Trade De18 velopment and Assistance Act of 1954 (7

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

20 ‘‘(2) NONCONCESSIONAL PROVISIONS OF

21 LAW.—The provisions of law described in this para22 graph are the following:

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

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

25 U.S.C. 2751 et seq.).
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1 ‘‘(C) Section 5(f) of the Commodity Credit

2 Corporation Charter Act.

3 ‘‘(D) Sections 201 and 202 of the Agricul4 tural Trade Act of 1978 (7 U.S.C. 5621 and

5 5622).

6 ‘‘(E) The Export-Import Bank Act of

7 1945 (12 U.S.C. 635 et seq.).

8 ‘‘(c) TERMINATION OF AUTHORITY.—The authority

9 to cancel debt under this section shall terminate on Sep10 tember 30, 2002.

11 ‘‘SEC. 902. ADDITIONAL REQUIREMENTS.

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

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

14 not be considered to be assistance for purposes of any pro15 vision of law limiting assistance to a country.

16 ‘‘(b) INAPPLICABILITY OF CERTAIN PROHIBITIONS

17 RELATING TO REDUCTION OF DEBT.—The authority to

18 provide for reduction of debt under section 901 may be

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

20 ‘‘SEC. 903. REPORTS TO CONGRESS.

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

22 1999, and December 31 of each of the next 3 years, the

23 President shall prepare and transmit to the appropriate

24 congressional committees an annual report concerning the
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1 cancellation of debt under section 901 for the prior fiscal

2 year.

3 ‘‘(b) DEFINITION.—In this section, the term ‘appro4 priate congressional committees’ means—

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

6 Services and the Committee on International Rela7 tions of the House of Representatives; and

8 ‘‘(2) the Committee on Foreign Relations and

9 the Committee on Banking, Housing, and Urban Af10 fairs of the Senate.

11 ‘‘SEC. 904. AUTHORIZATION OF APPROPRIATIONS.

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

13 Federal Credit Reform Act of 1990) for the cancellation

14 of debt under section 901, there are authorized to be ap15 propriated to the President such sums as may be nec16 essary for each of the fiscal years 2000 through 2002.’’.

17 SEC. 102. ADVOCACY OF CANCELLATION OF DEBT OWED TO

18 FOREIGN GOVERNMENTS BY SUB-SAHARAN

19 AFRICAN COUNTRIES.

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

21 Secretary of State shall provide written notification to

22 each foreign government that has outstanding loans, guar23 antees, or credits to the government of a sub-Saharan Af24 rican country (qualifying under section 901(a) of the For25 eign Assistance Act of 1961, as added by this Act) that
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1 it is the policy of the United States to fully and uncondi2 tionally cancel all debts owed by each such sub-Saharan

3 African country to the United States. In addition, the Sec4 retary shall urge in writing each such foreign government

5 to follow the example of the United States and fully and

6 unconditionally cancel all debts owed by sub-Saharan Afri7 can countries to each such foreign government.

8 (b) REPORT.—Not later than 9 months after the date

9 of enactment of this Act, the Secretary of State shall pre10 pare and submit to Congress a report containing—

11 (1) a description of each written notification

12 provided to a foreign government under subsection

13 (a);

14 (2) a description of the response of each foreign

15 government to the notification; and

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

17 to the United States by any foreign government op18 posing the United States policy advocated pursuant

19 to subsection (a).
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1 SEC. 103. REPORT TO CONGRESS ON PLAN OF ADVOCACY

2 FOR THE CANCELLATION OF DEBT OWED TO

3 THE INTERNATIONAL MONETARY FUND AND

4 THE INTERNATIONAL BANK FOR RECON5 STRUCTION AND DEVELOPMENT BY SUB-SA6 HARAN AFRICAN COUNTRIES.

7 (a) IN GENERAL.—Not later than January 1, 2000,

8 the Secretary of the Treasury shall submit to Congress

9 a plan to advocate the cancellation of debt owed to the

10 International Monetary Fund and the International Bank

11 for Reconstruction and Development by sub-Saharan Afri12 can countries and report on its implementation. The plan

13 shall include proposed instructions to the United States

14 Executive Directors of the International Monetary Fund

15 and the International Bank for Reconstruction and Devel16 opment to use the voice, vote, and influence of the United

17 States to advocate that their respective institutions—

18 (1) fully and unconditionally cancel all debts

19 owed by any country in sub-Saharan Africa to such

20 institution;

21 (2) encourage each country that benefits from

22 such debt cancellation to allocate 20 percent of the

23 national budget of the country, including savings

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

25 country has committed to do under the United Na-
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1 tions 20/20 Initiative, with appropriate input from

2 civil society in developing basic service plans; and

3 (3) provide that until all debts owed to such in4 stitution have been fully and unconditionally can5 celed, such institution not be party to, and that no

6 future loan from such institution be used to finance

7 in whole or part the implementation of, any agree8 ment which requires the government of any such

9 country, during any 12-month period beginning on

10 the date of enactment of this section to pay an

11 amount exceeding 5 percent of the annual export

12 earnings of the country toward the servicing of for13 eign loans.

14 (b) DIRECTIONS TO EXECUTIVE DIRECTORS.—The

15 Executive Directors of the International Monetary Fund

16 and the International Bank for Reconstruction and Devel17 opment shall carry out the instructions described in sub18 section (a) by all appropriate means, including sending

19 written notice to the governing bodies of members, and

20 by requesting formal votes on the matters described in

21 subsection (a).
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1 SEC. 104. REPORT ON THE CANCELLATION OF DEBT OWED

2 TO UNITED STATES LENDERS BY SUB-SAHA3 RAN AFRICAN COUNTRIES.

4 Not later than January 1, 2000, the Secretary of the

5 Treasury shall submit to the Congress a report on the

6 amount of debt owed to any United States person by any

7 country in sub-Saharan Africa. The report shall specify

8 the amount owed to each such person by each country,

9 the face value and market value of the debt, and the

10 amount of interest paid to date on the debt. The report

11 shall also include a plan to acquire each debt obligation

12 owed to any United States person by any country in sub13 Saharan Africa at the market value of the debt obligation

14 as of January 1, 1999.

15 SEC. 105. STUDY ON REPAYMENT OF DEBT IN LOCAL CUR16 RENCIES BY SUB-SAHARAN AFRICAN COUN17 TRIES.

18 Section 603 of the Foreign Operations, Export Fi19 nancing, and Related Programs Appropriations Act, 1999

20 (as contained in section 101(d) of division A of the Omni21 bus Consolidated and Emergency Supplemental Appro22 priations Act, 1999) is amended—

23 (1) in subsection (e)—

24 (A) by striking ‘‘and’’ at the end of para25 graph (3);
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1 (B) by redesignating paragraph (4) as

2 paragraph (5); and

3 (C) by inserting after paragraph (3) the

4 following:

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

6 indebted country in sub-Saharan Africa (as defined

7 in section 6 of the HOPE for Africa Act of 1999)

8 repay foreign loans made to the country (whether

9 made bilaterally, multilaterally, or privately) in the

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

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

12 following:

13 ‘‘(6) The matters described in subsection

14 (e)(4).’’.

15 SEC. 106. SENSE OF CONGRESS RELATING TO THE ALLOCA16 TION OF SAVINGS FROM DEBT RELIEF OF

17 SUB-SAHARAN AFRICAN COUNTRIES FOR

18 BASIC SERVICES.

19 It is the sense of Congress that the government of

20 each sub-Saharan African country should allocate 20 per21 cent of its national budget, including the savings from the

22 cancellation of debt owed by the country to—

23 (1) the United States (pursuant to part VI of

24 the Foreign Assistance Act of 1961, as added by

25 section 101 of this Act);
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1 (2) other foreign countries (pursuant to section

2 103 of this Act);

3 (3) the International Monetary Fund and the

4 International Bank for Reconstruction and Develop5 ment (pursuant to section 104 of this Act); and

6 (4) United States persons (pursuant to section

7 106 of this Act);

8 for the provision of basic services to individuals in each

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

10 20 Initiative. In providing such basic services, each gov11 ernment should seek input from appropriate nongovern12 mental organizations.

13 SEC. 107. SENSE OF CONGRESS RELATING TO LEVEL OF IN14 TERIM DEBT PAYMENTS PRIOR TO FULL

15 DEBT CANCELLATION BY SUB-SAHARAN AFRI16 CAN COUNTRIES.

17 It is the sense of Congress that, prior to the full and

18 unconditional cancellation of all debts owed by sub-Saha19 ran African countries to the United States (pursuant to

20 part VI of the Foreign Assistance Act of 1961, as added

21 by section 101 of this Act), to other foreign countries, and

22 to United States persons, each sub-Saharan African coun23 try should not, in making debt payments described in this

24 title, pay in any calendar year an aggregate amount great-
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1 er than an amount equal to 5 percent of the export earn2 ings of the country for the preceding calendar year.

3 TITLE II—TRADE PROVISIONS

4 RELATING TO SUB-SAHARAN

5 AFRICA

6 SEC. 201. ENCOURAGING MUTUALLY BENEFICIAL TRADE

7 AND INVESTMENT.

8 (a) FINDINGS.—Congress makes the following find9 ings:

10 (1) A mutually beneficial United States Sub-Sa11 haran Africa trade policy will grant new access to

12 the United States market for a broad range of goods

13 produced in Africa, by Africans, and include safe14 guards to ensure that the corporations manufac15 turing these goods (or the product or manufacture

16 of the oil or mineral extraction industry) respect the

17 rights of their employees and the local environment.

18 Such trade opportunities will promote equitable eco19 nomic development and thus increase demand in Af20 rican countries for United States goods and service

21 exports.

22 (2) Recognizing that the global system of textile

23 and apparel quotas under the MultiFiber Arrange24 ment will be phased out under the Uruguay Round

25 Agreements over the next 5 years with the total ter-
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1 mination of the quota system in 2005, the grant of

2 additional access to the United States market in

3 these sectors is a short-lived benefit.

4 (b) TREATMENT OF QUOTAS.—

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

6 Agreement on Textiles and Clothing, the United

7 States shall eliminate the existing quotas on textile

8 and apparel imports to the United States from

9 Kenya and Mauritius, respectively, not later than 30

10 days after each country demonstrates the following:

11 (A) The country is not ineligible for bene12 fits under section 502(b)(2) of the Trade Act of

13 1974 (19 U.S.C. 2462(b)(2)).

14 (B) The country does not engage in signifi15 cant violations of internationally recognized

16 human rights and the Secretary of State agrees

17 with this determination.

18 (C)(i) The country is providing for effec19 tive enforcement of internationally recognized

20 worker rights throughout the country (including

21 in export processing zones) as determined under

22 paragraph (5), including the core labor stand23 ards enumerated in the appropriate treaties of

24 the International Labor Organization, and

25 including—
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1 (I) the right of association;

2 (II) the right to organize and bargain

3 collectively;

4 (III) a prohibition on the use of any

5 form of coerced or compulsory labor;

6 (IV) the international minimum age

7 for the employment of children (age 15);

8 and

9 (V) acceptable conditions of work with

10 respect to minimum wages, hours of work,

11 and occupational safety and health.

12 (ii) The government of the country ensures

13 that the Secretary of Labor, the head of the na14 tional labor agency of the government of that

15 country, and the head of the International Con16 federation of Free Trade Unions-Africa Region

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

18 appropriate records and other information of all

19 business enterprises in the country.

20 (D) The country is taking adequate meas21 ures to prevent illegal transshipment of goods

22 that is carried out by rerouting, false declara23 tion concerning country of origin or place of or24 igin, falsification of official documents, evasion

25 of United States rules of origin for textile and
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1 apparel goods, or any other means, in accord2 ance with the requirements of subsection (d).

3 (E) The country is taking adequate meas4 ures to prevent being used as a transit point for

5 the shipment of goods in violation of the Agree6 ment on Textiles and Clothing or any other ap7 plicable textile agreement.

8 (F) The cost or value of the textile or ap9 parel product produced in the country, or by

10 companies in any 2 or more sub-Saharan Afri11 can countries, plus the direct costs of proc12 essing operations performed in the country or

13 such countries, is not less than 60 percent of

14 the appraised value of the product at the time

15 it is entered into the customs territory of the

16 United States.

17 (G) Not less than 90 percent of employees

18 in business enterprises producing the textile

19 and apparel goods are citizens of that country,

20 or any 2 or more sub-Saharan African coun21 tries.

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

23 President shall continue the existing no quota policy

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

25 country is in compliance with the requirements ap-
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1 plicable to Kenya and Mauritius under subpara2 graphs (A) through (G) of paragraph (1).

3 (3) TECHNICAL ASSISTANCE.—The Customs

4 Service shall provide the necessary technical assist5 ance to sub-Saharan African countries in the devel6 opment and implementation of adequate measures

7 against the illegal transshipment of goods.

8 (4) OFFSETTING REDUCTION OF CHINESE

9 QUOTA.—When the quota for textile and apparel

10 products imported from Kenya or Mauritius is elimi11 nated, the quota for textile and apparel products

12 from the People’s Republic of China for each cal13 endar year in each product category shall be reduced

14 by the amount equal to the volume of all textile and

15 apparel products in that product category imported

16 from all sub-Saharan African countries into the

17 United States in the preceding calendar year, plus 5

18 percent of that amount.

19 (5) DETERMINATION OF COMPLIANCE WITH

20 INTERNATIONALLY RECOGNIZED WORKER RIGHTS.—

21 (A) DETERMINATION.—

22 (i) IN GENERAL.—For purposes of

23 carrying out paragraph (1)(C), the Sec24 retary of Labor, in consultation with the

25 individuals described in clause (ii) and pur-
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1 suant to the procedures described in clause

2 (iii), shall determine whether or not each

3 sub-Saharan African country is providing

4 for effective enforcement of internationally

5 recognized worker rights throughout the

6 country (including in export processing

7 zones).

8 (ii) INDIVIDUALS DESCRIBED.—The

9 individuals described in this clause are the

10 head of the national labor agency of the

11 government of the sub-Saharan African

12 country in question and the head of the

13 International Confederation of Free Trade

14 Unions-Africa Region Office (ICFTU15 AFRO).

16 (iii) PUBLIC COMMENT.—Not later

17 than 90 days before the Secretary of Labor

18 makes a determination that a country is in

19 compliance with the requirements of para20 graph (1)(C), the Secretary shall publish

21 notice in the Federal Register and an op22 portunity for public comment. The Sec23 retary shall take into consideration the

24 comments received in making a determina25 tion under such paragraph (1)(C).
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1 (B) CONTINUING COMPLIANCE.—In the

2 case of a country for which the Secretary of

3 Labor has made an initial determination under

4 subparagraph (A) that the country is in compli5 ance with the requirements of paragraph

6 (1)(C), the Secretary, in consultation with the

7 individuals described in subparagraph (A),

8 shall, not less than once every 3 years there9 after, conduct a review and make a determina10 tion with respect to that country to ensure con11 tinuing compliance with the requirements of

12 paragraph (1)(C). The Secretary shall submit

13 the determination to Congress.

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

15 after the date of enactment of this Act, and on

16 an annual basis thereafter, the Secretary of

17 Labor shall prepare and submit to Congress a

18 report containing—

19 (i) a description of each determination

20 made under this paragraph during the pre21 ceding year;

22 (ii) a description of the position taken

23 by each of the individuals described in sub24 paragraph (A)(ii) with respect to each such

25 determination; and
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1 (iii) a report on the public comments

2 received pursuant to subparagraph (A)(iii).

3 (6) REPORT.—Not later than March 31 of each

4 year, the President shall publish in the Federal Reg5 ister and submit to Congress a report on the growth

6 in textiles and apparel imported into the United

7 States from countries in sub-Saharan Africa in order

8 to inform United States consumers, workers, and

9 textile manufacturers about the effects of the no

10 quota policy.

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

12 provide an additional benefit of a 50 percent tariff reduc13 tion for any textile and apparel product of a sub-Saharan

14 African country that meets the requirements of subpara15 graphs (A) through (G) of subsections (b)(1) and (d) and

16 that is imported directly into the United States from such

17 sub-Saharan African country if the business enterprise, or

18 a subcontractor of the enterprise, producing the product

19 is in compliance with the following:

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

21 countries own not less than 51 percent of the busi22 ness enterprise.

23 (2) If the business enterprise involves a joint24 venture arrangement with, or related to as a sub25 sidiary, trust, or subcontractor, a business enterprise
28

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1 organized under the laws of the United States, the

2 European Union, Japan, or any other developed

3 country (or group of developed countries), or oper4 ating in such countries, the business enterprise com5 plies with the environmental standards that would

6 apply to a similar operation in the United States,

7 the European Union, Japan, or any other developed

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

9 case may be.

10 (d) CUSTOMS PROCEDURES AND ENFORCEMENT.—

11 (1) OBLIGATIONS OF IMPORTERS AND PARTIES

12 ON WHOSE BEHALF APPAREL AND TEXTILES ARE

13 IMPORTED.—

14 (A) IN GENERAL.—Notwithstanding any

15 other provision of law, all imports to the United

16 States of textile and apparel goods pursuant to

17 this Act shall be accompanied by—

18 (i)(I) the name and address of the

19 manufacturer or producer of the goods,

20 and any other information with respect to

21 the manufacturer or producer that the

22 Customs Service may require; and

23 (II) if there is more than one manu24 facturer or producer, or if there is a con25 tractor or subcontractor of the manufac-
29

•S 1636 IS

1 turer or producer with respect to the man2 ufacture or production of the goods, the in3 formation required under subclause (I)

4 with respect to each such manufacturer,

5 producer, contractor, or subcontractor, in6 cluding a description of the process per7 formed by each such entity;

8 (ii) a certification by the importer of

9 record that the importer has exercised rea10 sonable care to ascertain the true country

11 of origin of the textile and apparel goods

12 and the accuracy of all other information

13 provided on the documentation accom14 panying the imported goods, as well as a

15 certification of the specific action taken by

16 the importer to ensure reasonable care for

17 purposes of this paragraph; and

18 (iii) a certification by the importer

19 that the goods being entered do not violate

20 applicable trademark, copyright, and pat21 ent laws.

22 (B) LIABILITY.—The importer of record

23 and the final retail seller of the merchandise

24 shall be jointly liable for any material false
30

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1 statement, act, or omission made with the in2 tention or effect of—

3 (i) circumventing any quota that ap4 plies to the merchandise; or

5 (ii) avoiding any duty that would oth6 erwise be applicable to the merchandise.

7 (2) OBLIGATIONS OF COUNTRIES TO TAKE AC8 TION AGAINST TRANSSHIPMENT AND CIRCUMVEN9 TION.—The President shall ensure that any country

10 in sub-Saharan Africa that intends to import textile

11 and apparel goods into the United States—

12 (A) has in place adequate measures to

13 guard against unlawful transshipment of textile

14 and apparel goods and the use of counterfeit

15 documents; and

16 (B) will cooperate fully with the United

17 States to address and take action necessary to

18 prevent circumvention of any provision of this

19 section or of any agreement regulating trade in

20 apparel and textiles between that country and

21 the United States.

22 (3) STANDARDS OF PROOF.—

23 (A) FOR IMPORTERS AND RETAILERS.—

24 (i) IN GENERAL.—The United States

25 Customs Service (in this Act referred to as
31

•S 1636 IS

1 the ‘‘Customs Service’’) shall seek imposi2 tion of a penalty against an importer or re3 tailer for a violation of any provision of

4 this section if the Customs Service deter5 mines, after appropriate investigation, that

6 there is a substantial likelihood that the

7 violation occurred.

8 (ii) USE OF BEST AVAILABLE INFOR9 MATION.—If an importer or retailer fails to

10 cooperate with the Customs Service in an

11 investigation to determine if there has been

12 a violation of any provision of this section,

13 the Customs Service shall base its deter14 mination on the best available information.

15 (B) FOR COUNTRIES.—

16 (i) IN GENERAL.—The President may

17 determine that a country is not taking ade18 quate measures to prevent illegal trans19 shipment of goods or to prevent being used

20 as a transit point for the shipment of

21 goods in violation of this section if the

22 Customs Service determines, after con23 sultations with the country concerned, that

24 there is a substantial likelihood that a vio25 lation of this section occurred.
32

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1 (ii) USE OF BEST AVAILABLE INFOR2 MATION.—

3 (I) IN GENERAL.—If a country

4 fails to cooperate with the Customs

5 Service in an investigation to deter6 mine if an illegal transshipment has

7 occurred, the Customs Service shall

8 base its determination on the best

9 available information.

10 (II) EXAMPLES.—Actions indi11 cating failure of a country to cooper12 ate under subclause (I) include—

13 (aa) denying or unreason14 ably delaying entry of officials of

15 the Customs Service to inves16 tigate violations of, or promote

17 compliance with, this section or

18 any textile agreement;

19 (bb) providing appropriate

20 United States officials with inac21 curate or incomplete information,

22 including information required

23 under the provisions of this sec24 tion; and
33

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1 (cc) denying appropriate

2 United States officials access to

3 information or documentation re4 lating to production capacity of,

5 and outward processing done by,

6 manufacturers, producers, con7 tractors, or subcontractors within

8 the country.

9 (4) PENALTIES.—

10 (A) FOR IMPORTERS AND RETAILERS.—

11 The penalty for a violation of any provision of

12 this section by an importer or retailer of textile

13 and apparel goods—

14 (i) for a first offense (except as pro15 vided in clause (iii)), shall be a civil pen16 alty in an amount equal to 200 percent of

17 the declared value of the merchandise, plus

18 forfeiture of the merchandise;

19 (ii) for a second offense (except as

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

21 penalty in an amount equal to 400 percent

22 of the declared value of the merchandise,

23 plus forfeiture of the merchandise, and,

24 shall be punishable by a fine of not more
34

•S 1636 IS

1 than $100,000, imprisonment for not more

2 than 1 year, or both; and

3 (iii) for a third or subsequent offense,

4 or for a first or second offense if the viola5 tion of the provision of this section is com6 mitted knowingly and willingly, shall be

7 punishable by a fine of not more than

8 $1,000,000, imprisonment for not more

9 than 5 years, or both, and, in addition,

10 shall result in forfeiture of the merchan11 dise.

12 (B) FOR COUNTRIES.—If a country fails to

13 undertake the measures or fails to cooperate as

14 required by this section, the President shall im15 pose a quota on textile and apparel goods im16 ported from the country, based on the volume

17 of such goods imported during the first 12 of

18 the preceding 24 months, or shall impose a

19 duty on the apparel or textile goods of the

20 country, at a level designed to secure future co21 operation.

22 (5) APPLICABILITY OF UNITED STATES LAWS

23 AND PROCEDURES.—All provisions of the laws, regu24 lations, and procedures of the United States relating

25 to the denial of entry of articles or penalties against
35

•S 1636 IS

1 individuals or entities for engaging in illegal trans2 shipment, fraud, or other violations of the customs

3 laws, shall apply to imports of textiles and apparel

4 from sub-Saharan African countries, in addition to

5 the specific provisions of this section.

6 (6) MONITORING AND REPORTS TO CON7 GRESS.—Not later than March 31 of each year, the

8 Customs Service shall monitor and the Commis9 sioner of Customs shall submit to Congress a report

10 on the measures taken by each country in sub-Saha11 ran Africa that imports textiles or apparel goods

12 into the United States—

13 (A) to prevent transshipment; and

14 (B) to prevent circumvention of this sec15 tion or of any agreement regulating trade in

16 textiles and apparel between that country and

17 the United States.

18 (e) DEFINITION.—In this section, the term ‘‘Agree19 ment on Textiles and Clothing’’ means the Agreement on

20 Textiles and Clothing referred to in section 101(d)(4) of

21 the Uruguay Round Agreements Act (19 U.S.C.

22 3511(d)(4)).
36

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1 SEC. 202. GENERALIZED SYSTEM OF PREFERENCES.

2 (a) PREFERENTIAL TARIFF TREATMENT FOR CER3 TAIN ARTICLES.—Section 503(a)(1) of the Trade Act of

4 1974 (19 U.S.C. 2463(a)(1)) is amended—

5 (1) by redesignating subparagraph (C) as sub6 paragraph (D); and

7 (2) by inserting after subparagraph (B) the fol8 lowing:

9 ‘‘(C) ELIGIBLE COUNTRIES IN SUB-SAHA10 RAN AFRICA.—

11 ‘‘(i) IN GENERAL.—(I) Subject to

12 clause (ii), the President may provide duty13 free treatment for any article described in

14 subclause (II) that is imported directly into

15 the United States from a sub-Saharan Af16 rican country.

17 ‘‘(II) ARTICLE DESCRIBED.—

18 ‘‘(aa) IN GENERAL.—An article

19 described in this subclause is an arti20 cle set forth in the most current Lome

21 Treaty product list, that is the

22 growth, product, or manufacture of a

23 sub-Saharan African country that is a

24 beneficiary developing country and

25 that is in compliance with the require26 ments of subsections (b) and (d) of
37

•S 1636 IS

1 section 201 of the HOPE for Africa

2 Act of 1999, with respect to such arti3 cle, if, after receiving the advice of the

4 International Trade Commission in

5 accordance with subsection (e), the

6 President determines that such article

7 is not import-sensitive in the context

8 of all articles imported from United

9 States Trading partners. This sub10 paragraph shall not affect the des11 ignation of eligible articles under sub12 paragraph (B).

13 ‘‘(bb) OTHER REQUIREMENTS.—

14 In addition to meeting the require15 ments of division (aa), in the case of

16 an article that is the product or man17 ufacture of the oil or mineral extrac18 tion industry, and the business enter19 prise that produces or manufactures

20 the article is involved in a joint-ven21 ture arrangement with, or related to

22 as a subsidiary, trust, or subcon23 tractor, a business enterprise orga24 nized under the laws of the United

25 States, the European Union, Japan,
38

•S 1636 IS

1 or any other developed country (or

2 group of developed countries), or oper3 ating in such countries, the business

4 enterprise complies with the environ5 mental standards that would apply to

6 a similar operation in the United

7 States, the European Union, Japan,

8 or any other developed country (or

9 group of developed countries), as the

10 case may be.

11 ‘‘(ii) RULE OF CONSTRUCTION.—For

12 purposes of clause (i), in applying subpara13 graphs (A) through (G) of section

14 201(b)(1) and section 201(d) of the Hope

15 for Africa Act of 1999, any reference to

16 textile and apparel goods or products shall

17 be deemed to refer to the article provided

18 duty-free treatment under clause (i).’’.

19 (b) TERMINATION.—Title V of the Trade Act of 1974

20 is amended by inserting after section 505 the following

21 new section:

22 ‘‘SEC. 505A. TERMINATION OF BENEFITS FOR SUB-SAHARAN

23 AFRICAN COUNTRIES.

24 ‘‘No duty-free treatment provided under this title

25 shall remain in effect after September 30, 2006 in the case
39

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1 of a beneficiary developing country that is a sub-Saharan

2 African country.’’.

3 (d) DEFINITIONS.—Section 507 of the Trade Act of

4 1974 (19 U.S.C. 2467) is amended by adding at the end

5 the following:

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

7 terms ‘sub-Saharan African country’ and ‘sub-Saha8 ran African countries’ mean a country or countries

9 in sub-Saharan Africa, as defined in section 6 of the

10 HOPE For Africa Act of 1999.

11 ‘‘(7) LOME TREATY PRODUCT LIST.—The term

12 ‘Lome Treaty product list’ means the list of prod13 ucts that may be granted duty-free access into the

14 European Union according to the provisions of the

15 fourth iteration of the Lome Covention between the

16 European Union and the African-Caribbean and Pa17 cific States (commonly referred to as ‘Lome IV’)

18 signed on November 4, 1995.’’.

19 (e) CLERICAL AMENDMENT.—The table of contents

20 for title V of the Trade Act of 1974 is amended by insert21 ing after the item relating to section 505 the following

22 new item:

‘‘505A. Termination of benefits for sub-Saharan African countries.’’.

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

24 this section take effect on the date that is 30 days after

25 the date enactment of this Act.
40

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1 SEC. 203. ADDITIONAL ENFORCEMENT.

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

3 action in the United States district court in the district

4 in which the citizen resides or in any other appropriate

5 district to seek compliance with the standards set forth

6 under subparagraphs (A) through (G) of section

7 201(b)(1), section 201(c), and section 201(d) of this Act

8 with respect to any sub-Saharan African country, includ9 ing a cause of action in an appropriate United States dis10 trict court for other appropriate equitable relief. In addi11 tion to any other relief sought in such an action, a citizen

12 may seek three times the value of any damages caused

13 by the failure of a country or company to comply. The

14 amount of damages described in the preceding sentence

15 shall be paid by the business enterprise (or business enter16 prises) the operations or conduct of which is responsible

17 for the failure to meet the standards set forth under sub18 paragraphs (A) through (G) of section 201(b)(1), section

19 201(c), and section 201(d) of this Act.

20 TITLE III—DEVELOPMENT AS21 SISTANCE FOR SUB-SAHARAN

22 AFRICAN COUNTRIES

23 SEC. 301. FINDINGS.

24 (a) IN GENERAL.—Congress makes the following

25 findings:
41

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1 (1) In addition to drought and famine, the

2 HIV/AIDS epidemic has caused countless deaths

3 and untold suffering among the people of sub-Saha4 ran Africa.

5 (2) The Food and Agricultural Organization es6 timates that 543,000,000 people, representing nearly

7 40 percent of the population of sub-Saharan Africa,

8 are chronically undernourished.

9 (b) AMENDMENT TO FOREIGN ASSISTANCE ACT OF

10 1961.—Section 496(a)(1) of the Foreign Assistance Act

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

12 ‘‘drought and famine’’ and inserting ‘‘drought, famine,

13 and the HIV/AIDS epidemic’’.

14 SEC. 302. PRIVATE AND VOLUNTARY ORGANIZATIONS.

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

16 (22 U.S.C. 2293(e)) is amended—

17 (1) by redesignating paragraph (2) as para18 graph (3); and

19 (2) by inserting after paragraph (1) the fol20 lowing:

21 ‘‘(2) CAPACITY BUILDING.—In addition to as22 sistance provided under subsection (h), the United

23 States Agency for International Development shall

24 provide capacity building assistance through

25 participatory planning to private and voluntary orga-
42

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1 nizations that are involved in providing assistance

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

3 SEC. 303. TYPES OF ASSISTANCE.

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

5 (22 U.S.C. 2293(h)) is amended by adding at the end the

6 following:

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

8 Assistance under this section—

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

10 weapons; and

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

12 military training or the procurement of weap13 ons.’’.

14 SEC. 304. CRITICAL SECTORAL PRIORITIES.

15 (a) AGRICULTURE, FOOD SECURITY AND NATURAL

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

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

18 (1) in the heading, to read as follows:

19 ‘‘(1) AGRICULTURE, FOOD SECURITY AND NAT20 URAL RESOURCES.—’’;

21 (2) in subparagraph (A)—

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

23 ‘‘(A) AGRICULTURE AND FOOD SECU24 RITY.—’’;

25 (B) in the first sentence—
43

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1 (i) by striking ‘‘agricultural produc2 tion in ways’’ and inserting ‘‘food security

3 by promoting agriculture policies’’; and

4 (ii) by striking ‘‘, especially food pro5 duction,’’; and

6 (3) in subparagraph (B), in the matter pre7 ceding clause (i), by striking ‘‘agricultural produc8 tion’’ and inserting ‘‘food security and sustainable

9 resource use’’.

10 (b) HEALTH.—Section 496(i)(2) of the Foreign As11 sistance Act of 1961 (22 U.S.C. 2293(i)(2)) is amended

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

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

14 prevention and treatment programs)’’.

15 (c) VOLUNTARY FAMILY PLANNING SERVICES.—Sec16 tion 496(i)(3) of the Foreign Assistance Act of 1961 (22

17 U.S.C. 2293(i)(3)) is amended by adding at the end before

18 the period the following: ‘‘and access to prenatal

19 healthcare’’.

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

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

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

23 vocational education, with particular emphasis on primary

24 education and vocational education for women’’.
44

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1 (e) INCOME-GENERATING OPPORTUNITIES.—Section

2 496(i)(5) of the Foreign Assistance Act of 1961 (22

3 U.S.C. 2293(i)(5)) is amended—

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

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

6 following: ‘‘, including development of manufacturing

7 and processing industries and microcredit projects’’.

8 SEC. 305. REPORTING REQUIREMENTS.

9 Section 496 of the Foreign Assistance Act of 1961

10 (22 U.S.C. 2293) is amended by adding at the end the

11 following:

12 ‘‘(p) REPORTING REQUIREMENTS.—The Adminis13 trator of the United States Agency for International De14 velopment shall, on a semiannual basis, prepare and sub15 mit to Congress a report containing—

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

17 which, the Agency has consulted with nongovern18 mental organizations in sub-Saharan Africa regard19 ing the use of amounts made available for sub-Saha20 ran African countries under this chapter;

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

22 amounts has been successful in increasing food secu23 rity and access to health and education services

24 among the people of sub-Saharan Africa;
45

•S 1636 IS

1 ‘‘(3) the extent to which the provision of such

2 amounts has been successful in capacity building

3 among local nongovernmental organizations; and

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

5 which, the provision of such amounts has furthered

6 the goals of sustainable economic and agricultural

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

9 Africa.’’.

10 SEC. 306. SEPARATE ACCOUNT FOR DEVELOPMENT FUND

11 FOR AFRICA.

12 Amounts appropriated to the Development Fund for

13 Africa shall be appropriated to a separate account under

14 the heading ‘‘Development Fund for Africa’’ and not to

15 the account under the heading ‘‘Development Assistance’’.

16 TITLE IV—SUB-SAHARAN AFRICA

17 EQUITY AND INFRASTRUC18 TURE FUNDS

19 SEC. 401. SUB-SAHARAN AFRICA EQUITY AND INFRASTRUC20 TURE FUNDS.

21 (a) INITIATION OF FUNDS.—Not later than 12

22 months after the date of enactment of this Act, the Over23 seas Private Investment Corporation shall exercise the au24 thorities it has to initiate 1 or more equity funds in sup25 port of projects in the countries in sub-Saharan Africa,
46

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

2 Africa established by the Corporation before the date of

3 enactment of this Act.

4 (b) STRUCTURE AND TYPES OF FUNDS.—

5 (1) STRUCTURE.—Each fund initiated under

6 subsection (a) shall be structured as a partnership

7 managed by professional private sector fund man8 agers and monitored on a continuing basis by the

9 Corporation.

10 (2) CAPITALIZATION.—Each fund shall be cap11 italized with a combination of private equity capital,

12 which is not guaranteed by the Corporation, and

13 debt for which the Corporation provides guaranties.

14 (3) TYPES OF FUNDS.—One or more of the

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

16 shall be used in support of infrastructure projects in

17 countries of sub-Saharan Africa, including basic

18 health services (including AIDS prevention and

19 treatment), hospitals, potable water, sanitation,

20 schools, electrification of rural areas, and publicly21 accessible transportation in sub-Saharan African

22 countries.

23 (c) ADDITIONAL REQUIREMENTS.—The Corporation

24 shall ensure that—
47

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

2 and investment insurance provided through the eq3 uity funds established under subsection (a), and

4 through any existing equity fund for sub-Saharan

5 Africa established by the Corporation before the date

6 of enactment of this Act, are allocated to small,

7 women- and minority-owned businesses—

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

9 the ownership is comprised of citizens of sub10 Saharan African countries and 40 percent of

11 the ownership is comprised of citizens of the

12 United States; and

13 (B) that have assets of not more than

14 $1,000,000; and

15 (2) not less than 50 percent of the funds allo16 cated to energy projects are used for renewal or al17 ternative energy projects.
48

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1 TITLE V—OVERSEAS PRIVATE

2 INVESTMENT CORPORATION

3 AND EXPORT-IMPORT BANK

4 INITIATIVES

5 SEC. 501. OVERSEAS PRIVATE INVESTMENT CORPORATION

6 INITIATIVES.

7 Section 233 of the Foreign Assistance Act of 1961

8 (22 U.S.C. 2193) is amended by adding at the end the

9 following:

10 ‘‘(e) ADVISORY COMMITTEE.—

11 ‘‘(1) ESTABLISHMENT.—The President shall es12 tablish an advisory committee to work with and as13 sist the Board in developing and implementing poli14 cies, programs, and financial instruments with re15 spect to sub-Saharan Africa, including with respect

16 to equity and infrastructure funds established under

17 title IV of the HOPE for Africa Act of 1999.

18 ‘‘(2) MEMBERSHIP.—

19 ‘‘(A) IN GENERAL.—The advisory com20 mittee established under paragraph (1) shall

21 consist of 15 members appointed by the Presi22 dent, of which 7 members shall be employees of

23 the United States Government and 8 members

24 shall be representatives of the private sector, in25 cluding a representative from—
49

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1 ‘‘(i) a not-for-profit public interest or2 ganization;

3 ‘‘(ii) an organization with expertise in

4 development issues;

5 ‘‘(iii) an organization with expertise in

6 human rights issues;

7 ‘‘(iv) an organization with expertise in

8 environmental issues; and

9 ‘‘(v) an organization with expertise in

10 international labor rights.

11 ‘‘(B) TERMS.—Each member of the advi12 sory committee shall be appointed for a term of

13 2 years.

14 ‘‘(C) COMPENSATION OF MEMBERS.—

15 ‘‘(i) PRIVATE SECTOR.—Members of

16 the advisory committee who are represent17 atives of the private sector shall not receive

18 compensation by reason of their service on

19 the advisory committee.

20 ‘‘(ii) OFFICERS AND EMPLOYEES OF

21 GOVERNMENT.—Members of the advisory

22 committee who are officers or employees of

23 the Federal Government may not receive

24 additional pay, allowances, or benefits by
50

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1 reason of their service on the advisory

2 committee.

3 ‘‘(3) MEETINGS.—

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

5 advisory committee shall be open to the public.

6 ‘‘(B) ADVANCE NOTICE.—The advisory

7 committee shall provide advance notice in the

8 Federal Register of any meeting of the com9 mittee, shall provide notice of all proposals or

10 projects to be considered by the committee at

11 the meeting, and shall solicit written comments

12 from the public relating to such proposals or

13 projects.

14 ‘‘(C) DECISIONS.—Any decision of the ad15 visory committee relating to a proposal or

16 project shall be published in the Federal Reg17 ister with an explanation of the extent to which

18 the committee considered public comments re19 ceived with respect to the proposal or project,

20 if any.

21 ‘‘(4) ENVIRONMENTAL IMPACT ASSESS22 MENTS.—The Corporation shall complete and release

23 to the public the environmental impact assessments

24 in compliance with the National Environmental Pol25 icy Act with respect to any proposal or project not
51

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1 later than 120 days before the advisory committee,

2 or the Board, considers such proposal or project,

3 whichever occurs earlier.’’.

4 SEC. 502. EXPORT-IMPORT BANK INITIATIVE.

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

6 1945 (12 U.S.C. 635(b)(9)) is amended to read as follows:

7 ‘‘(9) For purposes of the funds allocated by the

8 Bank for projects in countries in sub-Saharan Africa

9 (as defined in section 6 of the HOPE for Africa Act

10 of 1999):

11 ‘‘(A) The President shall establish an advi12 sory committee to work with and assist the

13 Board in developing and implementing policies,

14 programs, and financial instruments with re15 spect to such countries.

16 ‘‘(B) The advisory committee established

17 under subparagraph (A) shall consist of 15

18 members, appointed by the President, of which

19 7 members shall be employees of the United

20 States Government and 8 members shall be rep21 resentatives of the private sector, including a

22 representative from—

23 ‘‘(i) a not-for-profit public interest or24 ganization;
52

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1 ‘‘(ii) an organization with expertise in

2 development issues;

3 ‘‘(iii) an organization with expertise in

4 human rights;

5 ‘‘(iv) an organization with expertise in

6 environmental issues; and

7 ‘‘(v) an organization with expertise in

8 international labor rights.

9 ‘‘(C) Each member of the advisory com10 mittee shall serve for a term of 2 years.

11 ‘‘(D)(i) Members of the advisory committee

12 who are representatives of the private sector

13 shall not receive compensation by reason of

14 their service on the advisory committee.

15 ‘‘(ii) Members of the advisory committee

16 who are officers or employees of the Federal

17 Government may not receive additional pay, al18 lowances, or benefits by reason of their service

19 on the advisory committee.

20 ‘‘(E) Meetings of the advisory committee

21 shall be open to the public.

22 ‘‘(F) The advisory committee shall give

23 timely advance notice of each meeting of the

24 advisory committee, including a description of

25 any matters to be considered at the meeting,
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1 shall establish a public docket, shall solicit writ2 ten comments in advance on each proposal, and

3 shall make each decision in writing with an ex4 planation of disposition of the public comments.

5 ‘‘(G) The Bank shall complete and release

6 to the public an environmental impact assess7 ment in compliance with the National Environ8 mental Policy Act with respect to a proposal or

9 project with potential environmental effects, not

10 later than 120 days before the advisory com11 mittee, or the Board, considers the proposal or

12 project, whichever occurs earlier.

13 ‘‘(H) Section 14(a)(2) of the Federal Advi14 sory Committee Act shall not apply to the advi15 sory committee.’’.

16 TITLE VI—MISCELLANEOUS

17 PROVISIONS

18 SEC. 601. ANTICORRUPTION EFFORTS.

19 (a) FINDINGS.—Congress makes the following find20 ings:

21 (1) Corruption and bribery of public officials is

22 a major problem in many African countries and rep23 resents a serious threat to the development of a

24 functioning domestic private sector, to United States

25 business and trade interests, and to prospects for
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1 democracy and good governance in African coun2 tries.

3 (2) Of the 17 countries in sub-Saharan Africa

4 rated by the international watchdog group, Trans5 parency International, as part of the 1998 Corrup6 tion Perception Index, 13 ranked in the bottom half.

7 (3) The Organization for Economic Cooperation

8 and Development (OECD) Convention on Combating

9 Bribery of Foreign Public Officials in International

10 Business Transactions, which has been signed by all

11 29 members of the OECD plus Argentina, Brazil,

12 Bulgaria, Chile, and the Slovak Republic and which

13 entered into force on February 15, 1999, represents

14 a significant step in the elimination of bribery and

15 corruption in international commerce.

16 (4) As a party to the OECD Convention on

17 Combating Bribery of Foreign Public Officials in

18 International Business Transactions, the United

19 States should encourage the highest standards pos20 sible with respect to bribery and corruption.

21 (b) SENSE OF CONGRESS.—It is the sense of Con22 gress that the United States should encourage at every

23 opportunity the accession of sub-Saharan African coun24 tries, as defined in section 6, to the OECD Convention
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1 on Combating Bribery of Foreign Public Officials in Inter2 national Business Transactions.

3 SEC. 602. REQUIREMENTS RELATING TO SUB-SAHARAN AF4 RICAN INTELLECTUAL PROPERTY AND COM5 PETITION LAW.

6 (a) FINDINGS.—Congress finds that—

7 (1) since the onset of the worldwide HIV/AIDS

8 epidemic, approximately 34,000,000 people living in

9 sub-Saharan Africa have been infected with the dis10 ease;

11 (2) of those infected, approximately 11,500,000

12 have died; and

13 (3) the deaths represent 83 percent of the total

14 HIV/AIDS-related deaths worldwide.

15 (b) SENSE OF CONGRESS.—It is the sense of Con16 gress that—

17 (1) it is in the interest of the United States to

18 take all necessary steps to prevent further spread of

19 infectious disease, particularly HIV/AIDS; and

20 (2) individual countries should have the ability

21 to determine the availability of pharmaceuticals and

22 health care for their citizens in general, and particu23 larly with respect to the HIV/AIDS epidemic.

24 (c) LIMITATIONS ON FUNDING.—Funds appropriated

25 or otherwise made available to any department or agency
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1 of the United States may not be obligated or expended

2 to seek, through negotiation or otherwise, the revocation

3 or revisions of any sub-Saharan African intellectual prop4 erty or competition law or policy that is designed to pro5 mote access to pharmaceuticals or other medical tech6 nologies if the law or policy, as the case may be, complies

7 with the Agreement on Trade-Related Aspects of Intellec8 tual Property Rights referred to in section 101(d)(15) of

9 the Uruguay Round Agreements Act.

10 SEC. 603. EXPANSION OF THE UNITED STATES AND FOR11 EIGN COMMERCIAL SERVICE IN SUB-SAHA12 RAN AFRICA.

13 (a) FINDINGS.—Congress makes the following find14 ings:

15 (1) The United States and Foreign Commercial

16 Service (in this section referred to as the ‘‘Commer17 cial Service’’) plays an important role in helping

18 United States businesses identify export opportuni19 ties and develop reliable sources of information on

20 commercial prospects in foreign countries.

21 (2) During the 1980’s, the presence of the

22 Commercial Service in sub-Saharan Africa consisted

23 of 14 professionals providing services in 8 countries.

24 By early 1997, that presence had been reduced by

25 one-half to 7, in only 4 countries.
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1 (3) Since 1997, the Department of Commerce

2 has slowly begun to increase the presence of the

3 Commercial Service in sub-Saharan Africa, adding 5

4 full-time officers to established posts.

5 (4) Although the Commercial Service Officers

6 in these countries have regional responsibilities, this

7 kind of coverage does not adequately service the

8 needs of United States businesses attempting to do

9 business in sub-Saharan Africa.

10 (5) Because market information is not widely

11 available in many sub-Saharan African countries,

12 the presence of additional Commercial Service Offi13 cers and resources can play a significant role in as14 sisting United States businesses in markets in those

15 countries.

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

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

18 Secretary of Commerce, acting through the Assistant Sec19 retary of Commerce and Director General of the United

20 States and Foreign Commercial Service, shall take steps

21 to ensure that—

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

23 employees are stationed in sub-Saharan Africa; and
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1 (2) full-time Commercial Service employees are

2 stationed in not less than 10 different sub-Saharan

3 African countries.

4 (c) REPORTS TO CONGRESS.—Not later than 1 year

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

6 thereafter for 5 years, the Secretary of Commerce, in con7 sultation with the Secretary of State, shall report to Con8 gress on actions taken to carry out subsection (b). Each

9 report shall specify—

10 (1) in what countries full-time Commercial

11 Service Officers are stationed, and the number of

12 such officers placed in each such country; and

13 (2) the effectiveness of the presence of the addi14 tional Commercial Service Officers in increasing

15 United States exports to sub-Saharan African coun16 tries.

17 TITLE VII—OFFSET

18 SEC. 701. PRIVATE SECTOR FUNDING FOR RESEARCH AND

19 DEVELOPMENT BY NASA RELATING TO AIR20 CRAFT PERFORMANCE.

21 The Administrator of the National Aeronautics and

22 Space Administration may not carry out research and de23 velopment activities relating to the performance of aircraft

24 (including supersonic aircraft and subsonic aircraft) un-
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1 less the Administrator receives payment in full for such

2 activities from the private sector.

Æ