II 

109TH CONGRESS 

2D SESSION S. 3843 

To amend the African Growth and Opportunity Act to extend certain trade 

benefits to eligible sub-Saharan African countries, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 5, 2006 

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

to the Committee on Finance 

A BILL 

To amend the African Growth and Opportunity Act to extend 

certain trade benefits to eligible sub-Saharan African 

countries, 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. 

4 This Act may be cited as the ‘‘AGOA Extension Act 

5 of 2006’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds that— 

8 (1) the African Growth and Opportunity Act 

9 (19 U.S.C. 3701 et seq.) has helped to spur eco10 nomic growth and bolster economic reforms in the 


jlentini on PROD1PC65 with BILLS
2 

•S 3843 IS

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 


jlentini on PROD1PC65 with BILLS
3 

•S 3843 IS

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 23:34 Sep 06, 2006 Jkt 049200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S3843.IS S3843

jlentini on PROD1PC65 with BILLS
4 

•S 3843 IS

1 grams to provide sustainable technical assistance to 

2 small- and medium-sized African enterprises. 

3 TITLE I—DESIGNATIONS AND 

4 CONSULTATIONS 

5 SEC. 101. DESIGNATION OF ELIGIBLE COUNTRIES. 

6 Section 104 of the African Growth and Opportunity 

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

8 (b) and inserting the following: 

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

10 determines that an eligible sub-Saharan African country 

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

12 including by failing to maintain the institutions described 

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

14 the President may terminate the designation of the coun15 try made pursuant to subsection (a) if— 

16 ‘‘(1) the President transmits to Congress notice 

17 of the proposed termination; and 

18 ‘‘(2) the Congress, within 90 days after receiv19 ing such notice, does not enact a law prohibiting 

20 such termination.’’. 

21 SEC. 102. UNITED STATES-SUB-SAHARAN AFRICA TRADE 

22 AND ECONOMIC COOPERATION FORUM. 

23 (a) GRANTS.—In order to ensure that nongovern24 mental organizations and the private sector continue to 

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


jlentini on PROD1PC65 with BILLS
5 

•S 3843 IS

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

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

3 coordination with the heads of other appropriate Federal 

4 departments and agencies, is authorized to provide grants 

5 to United States nongovernmental organizations referred 

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

7 representatives of the private sector referred to in section 

8 105(c)(2)(B) of that Act, for the purpose of hosting such 

9 meetings. 

10 (b) AUTHORIZATION OF APPROPRIATIONS.—There is 

11 authorized to be appropriated to the United States Trade 

12 Representative such sums as may be necessary to carry 

13 out this section. 

14 SEC. 103. SENSE OF CONGRESS REGARDING LIBERIA. 

15 It is the sense of Congress that— 

16 (1) the October 2005 presidential elections in 

17 Liberia represented a key step in building peace in 

18 Liberia, following nearly two decades of civil war; 

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

20 President of Liberia marks an important milestone 

21 for Africa, as President Johnson Sirleaf is the first 

22 elected female president in African history; 

23 (3) in her inaugural address, President Johnson 

24 Sirleaf laid out a detailed, multifaceted governance 

25 agenda emphasizing security, public- and privateVerDate Aug 31 2005 23:34 Sep 06, 2006 Jkt 049200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S3843.IS S3843

jlentini on PROD1PC65 with BILLS
6 

•S 3843 IS

1 sector led economic revitalization, good governance 

2 and anticorruption efforts, regional and inter3 national cooperation, and political reconciliation and 

4 inclusiveness; and 

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

6 the President should make a determination as soon 

7 as possible, pursuant to section 104(a) of the Afri8 can Growth and Opportunity Act (19 U.S.C. 

9 3703(a)), regarding whether to designate Liberia as 

10 eligible for trade benefits under the African Growth 

11 and Opportunity Act. 

12 TITLE II—TREATMENT OF CER13 TAIN TEXTILES AND APPAREL 

14 SEC. 201. TREATMENT OF CERTAIN TEXTILES. 

15 (a) CERTAIN OTHER APPAREL ARTICLES THAT ARE

16 BOTH CUT (OR KNIT-TO-SHAPE) AND SEWN OR OTHER17 WISE ASSEMBLED IN ONE OR MORE BENEFICIARY SUB18 SAHARAN AFRICAN COUNTRIES.— 

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

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

21 3721(b)(3)) is amended— 

22 (A) by amending the heading to read as 

23 follows: ‘‘CERTAIN OTHER APPAREL ARTICLES

24 THAT ARE BOTH CUT (OR KNIT-TO-SHAPE) AND

25 SEWN OR OTHERWISE ASSEMBLED IN ONE OR


jlentini on PROD1PC65 with BILLS
7 

•S 3843 IS

1 MORE BENEFICIARY SUB-SAHARAN AFRICAN

2 COUNTRIES.—’’; 

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 23:34 Sep 06, 2006 Jkt 049200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S3843.IS S3843

jlentini on PROD1PC65 with BILLS
8 

•S 3843 IS

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, is not less than 

8 the applicable percentage of the 

9 appraised value of the articles at 

10 the time the articles are imported 

11 into the customs territory of the 

12 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 AGOA Extension Act of 2006, which20 ever occurs later; and 

21 ‘‘(II) 35 percent thereafter.’’. 

22 (2) EFFECTIVE DATE; APPLICABILITY.—The 

23 amendments made by paragraph (1) shall take effect 

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

25 this Act, whichever occurs later. The preferential 


jlentini on PROD1PC65 with BILLS
9 

•S 3843 IS

1 treatment described in subsection (a) of section 112 

2 of the African Growth and Opportunity Act shall 

3 apply to apparel articles described in subparagraph 

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

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

6 customs territory of the United States on or after 

7 such date. 

8 (3) TRANSITION RULE.—The preferential treat9 ment described in subsection (a) of section 112 of 

10 the African Growth and Opportunity Act shall con11 tinue to apply to apparel articles described in the 

12 matter preceding subparagraph (A) of section 

13 112(b)(3) of such Act (as such section is in effect 

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

15 Act) that are imported directly into the customs ter16 ritory of the United States for— 

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

18 enactment of this Act and ending on March 31, 

19 2007; or 

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

21 date of the enactment of this Act, whichever oc22 curs later. 

23 (b) SPECIAL RULE FOR LESSER DEVELOPED COUN24 TRIES.— 


jlentini on PROD1PC65 with BILLS
10 

•S 3843 IS

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.’’. 


jlentini on PROD1PC65 with BILLS
11 

•S 3843 IS

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, shall be liq18 uidated or reliquidated as if such 

19 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 proper request therefor is filed with the 

25 Bureau of Customs and Border Protection 


jlentini on PROD1PC65 with BILLS
12 

•S 3843 IS

1 of the Department of Homeland Security 

2 within 90 days after the date of the enact3 ment 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 than 180 days after the date of such liq10 uidation 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 MADE16 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. 

25 2463) or any other provision of law, textile fabVerDate Aug 31 2005 23:34 Sep 06, 2006 Jkt 049200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S3843.IS S3843

jlentini on PROD1PC65 with BILLS
13 

•S 3843 IS

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 23:34 Sep 06, 2006 Jkt 049200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\S3843.IS S3843

jlentini on PROD1PC65 with BILLS
14 

•S 3843 IS

1 ported directly into the customs territory of the 

2 United States on or after such date. 

3 TITLE III—INITIATIVES ON 

4 AGRICULTURE 

5 SEC. 301. INCREASED ACCESS. 

6 Section 122(b)(3) of the African Growth and Oppor7 tunity Act (19 U.S.C. 3732(b)(3)) is amended to read as 

8 follows: 

9 ‘‘(3) addressing critical agricultural policy 

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

11 which shall be submitted to Congress, and shall take 

12 into consideration the October 2005 report of the 

13 International Trade Commission on Export Oppor14 tunities and Barriers in African Growth and Oppor15 tunity Act Eligible Countries and the July 2005 Af16 rican Growth and Opportunity Act Competitiveness 

17 Report prepared by the Office of the United States 

18 Trade Representative, to— 

19 ‘‘(A) increase market liberalization; 

20 ‘‘(B) develop agricultural exports; 

21 ‘‘(C) remove barriers and constraints to 

22 United States-Africa agricultural trade; 

23 ‘‘(D) increase investment in processing and 

24 transporting commodities; 


jlentini on PROD1PC65 with BILLS
15 

•S 3843 IS

1 ‘‘(E) develop and increase capacity by 

2 working with farmers and farmer groups, espe3 cially small farmers, in order to improve pro4 ductivity and ability to access local and inter5 national markets, as well as address other sup6 ply-side constraints; 

7 ‘‘(F) increase access to vital market infor8 mation, including prices, product quality and 

9 demand, inputs quality and costs, and customs 

10 rules and regulations, for farmers and farmer 

11 groups and cooperatives and for relevant gov12 ernment ministries; and 

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

14 eligible sub-Saharan African countries to pro15 mote trade in agricultural products between the 

16 United States and eligible sub-Saharan African 

17 countries;’’. 

18 SEC. 302. ENHANCED TRADE. 

19 (a) ENHANCED TRADE IN AGRICULTURE.— 

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

21 the opportunities for increased agricultural trade, 

22 the President shall establish additional duty-free ac23 cess for countries designated as beneficiary sub-Sa24 haran African countries under section 506A(a)(1) of 

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


jlentini on PROD1PC65 with BILLS
16 

•S 3843 IS

1 agricultural products governed by tariff-rate quotas 

2 as of the date of the enactment of this Act. The ex3 panded access for countries described in the pre4 ceding sentence shall be subject to a safeguard 

5 mechanism to prevent market disruption or the 

6 threat of market disruption. 

7 (2) AMOUNT.—The amount of additional duty8 free access for agricultural products restrained by 

9 tariff rate quotas that is established pursuant to 

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

11 imports of such products from beneficiary sub-Saha12 ran African countries during the 12-month period 

13 ending September 30, 2005. If an agricultural prod14 uct that is restrained by tariff rate quotas was not 

15 imported from any beneficiary sub-Saharan African 

16 country during the 12-month period ending Sep17 tember 30, 2005, the amount of additional duty-free 

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

19 of the applicable tariff rate quota that was reserved 

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

21 September 30, 2005. 

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

23 President shall annually allocate such additional 

24 duty-free access among beneficiary sub-Saharan Af25 rican countries— 


jlentini on PROD1PC65 with BILLS
17 

•S 3843 IS

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 the 

20 fiscal years 2007 through 2020 to governmental and non21 governmental entities that are located 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 can provide assistance, consulta25 tion, and equipment to agribusinesses, particularly smallVerDate Aug 31 2005 23:34 Sep 06, 2006 Jkt 049200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 E:\BILLS\S3843.IS S3843

jlentini on PROD1PC65 with BILLS
18 

•S 3843 IS

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

2 those countries in order to enable agricultural products 

3 of those businesses to meet the requirements under United 

4 States law when imported into the United States. Such 

5 funds may be used for grants to national plant protection 

6 organizations for the purpose of obtaining equipment to 

7 achieve 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 TITLE IV—INCREASED 

17 INVESTMENT 

18 SEC. 401. INCENTIVES THROUGH EXPORT-IMPORT BANK. 

19 (a) EXPORT-IMPORT BANK OF THE UNITED

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

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

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

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

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

25 procedures as may be appropriate to ensure that full conVerDate Aug 31 2005 23:34 Sep 06, 2006 Jkt 049200 PO 00000 Frm 00018 Fmt 6652 Sfmt 6201 E:\BILLS\S3843.IS S3843

jlentini on PROD1PC65 with BILLS
19 

•S 3843 IS

1 sideration is given to the extent to which any loan, guar2 antee, insurance, extension of credit, or participation in 

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

4 on industries, including the textile and apparel industry 

5 and agricultural production, in countries designated as 

6 beneficiary sub-Saharan African countries under section 

7 506A(a)(1) of the Trade Act of 1974 (19 U.S.C. 

8 2466a(a)(1)). To carry out the purposes of this clause, 

9 the Bank shall work with the Administrator of the United 

10 States Agency for International Development, the United 

11 States Trade Representative, and the Secretary of Com12 merce in identifying opportunities to use the resources of 

13 the Bank to encourage industrial and agricultural develop14 ment in such beneficiary sub-Saharan African countries.’’. 

15 TITLE V—TAX AND INVESTMENT 

16 POLICY 

17 SEC. 501. TAX REVENUES. 

18 (a) DEVELOPMENT OF DOMESTIC TAX POLICIES TO

19 REPLACE LOST TRADE TAX REVENUES.— 

20 (1) FINDINGS.—Congress finds that— 

21 (A) trade tax revenues remain important 

22 in many countries designated as beneficiary 

23 sub-Saharan African countries under section 

24 506A(a)(1) of the Trade Act of 1974 (19 

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


jlentini on PROD1PC65 with BILLS
20 

•S 3843 IS

1 (B) studies conducted by the International 

2 Monetary Fund show that the revenue losses a 

3 developing country experiences due to trade lib4 eralization can be recovered by improving the 

5 domestic tax system in the affected country; 

6 and 

7 (C) technical assistance provided by the 

8 United States to such beneficiary countries in 

9 fiscal or economic policy programs has focused 

10 on tax system enhancement or development that 

11 has been helpful in moving tax regimes away 

12 from trade-related tax revenue toward other tax 

13 revenue sources. 

14 SEC. 502. TECHNICAL ASSISTANCE. 

15 It is the sense of Congress that— 

16 (1) the United States Agency for International 

17 Development, in cooperation with the Department of 

18 the Treasury, the International Monetary Fund, the 

19 International Bank for Reconstruction and Develop20 ment, and the African Development Bank, should 

21 exercise the authorities it has to continue to provide 

22 technical assistance to countries designated as bene23 ficiary sub-Saharan African countries under section 

24 506A(a)(1) of the Trade Act of 1974 (19 U.S.C. 


jlentini on PROD1PC65 with BILLS
21 

•S 3843 IS

1 2466a(a)(1)) in tax policy, revenue administration, 

2 and anti-corruption efforts; and 

3 (2) particular focus should be given to projects 

4 that assist such beneficiary countries in developing 

5 domestic policies and measures to replace lost trade 

6 tax revenues resulting from trade liberalization. 

7 SEC. 503. TAXATION TREATIES. 

8 In order to encourage investment in and certainty in 

9 the movement of capital, the Secretary of the Treasury 

10 shall seek negotiations with those countries designated as 

11 beneficiary sub-Saharan African countries under section 

12 506A(a)(1) of the Trade Act of 1974 (19 U.S.C. 

13 2466a(a)(1)) which the Secretary determines will benefit 

14 most from an income tax treaty with the United States. 

15 SEC. 504. BILATERAL INVESTMENT TREATIES. 

16 In order to encourage investment in countries des17 ignated as beneficiary sub-Saharan African countries 

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

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

20 arise from investing in developing countries, the Secretary 

21 of State shall seek to negotiate, with interested eligible 

22 sub-Saharan African countries, bilateral investment trea23 ties. Any such agreement shall comply with section 

24 2102(b)(3) of the Trade Act of 2002 (19 U.S.C. 

25 3802(b)(3)). 


jlentini on PROD1PC65 with BILLS
22 

•S 3843 IS

1 TITLE VI—DEVELOPMENT AND 

2 TRADE CAPACITY BUILDING 

3 SEC. 601. SUB-SAHARAN AFRICAN ECONOMIC GROWTH. 

4 It is the sense of Congress that— 

5 (1) sub-Saharan Africa faces critical challenges 

6 to economic growth and progress toward the United 

7 Nations Millennium Development Goals (as con8 tained in United Nations General Assembly Resolu9 tion 55/2 (September 2000)); 

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

11 and apparel quotas previously maintained by mem12 bers of the World Trade Organization (WTO) and 

13 competition from subsidized producers in countries 

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

15 reverse the economic gains in sub-Saharan Africa 

16 that resulted from implementation of the African 

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

18 seq.); and 

19 (3) the United States should play a leadership 

20 role in expanding trade benefits to sub-Saharan Af21 rica and providing a substantial increase in develop22 ment and trade capacity assistance for sub-Saharan 

23 Africa. 


jlentini on PROD1PC65 with BILLS
23 

•S 3843 IS

1 SEC. 602. ASSISTANCE. 

2 (a) ASSISTANCE.—In order to give sub-Saharan Afri3 ca the necessary infrastructure and industry-building as4 sistance needed for sustainable economic development, the 

5 President shall— 

6 (1) provide targeted capacity building assist7 ance through bilateral assistance and seek to estab8 lish a multilateral capacity-building fund or facility 

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

10 gender-sensitive manner, aimed at— 

11 (A) diversifying the economies of sub-Sa12 haran Africa, in part by promoting the growth 

13 of sub-Saharan Africa’s agricultural sector; 

14 (B) increasing the production of value15 added agriculture and food products; 

16 (C) lowering costs and increasing effi17 ciencies relating to the transport of food and 

18 agriculture; 

19 (D) increasing food storage capacity; 

20 (E) improving dissemination of market in21 formation for farmers and farmer groups; 

22 (F) providing technical assistance to small23 and medium-sized enterprises; 

24 (G) providing technical assistance to local 

25 retail banks to provide loans to small- and me26 dium-sized enterprises; 


jlentini on PROD1PC65 with BILLS
24 

•S 3843 IS

1 (H) facilitating the transfer of manufac2 turing and food production technology; 

3 (I) raising labor standards and produc4 tivity; and 

5 (J) promoting the rule of law, contract en6 forcement, and government transparency in the 

7 administration of trade and economic policy; 

8 (2) provide targeted assistance to sub-Saharan 

9 Africa to ensure the formal recognition of land and 

10 property rights in urban and rural settings to in11 crease access to capital and thereby promote eco12 nomic growth and investment, including training and 

13 capacity building programs, as well as multilateral 

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

15 nongovernmental organizations regarding property 

16 law, surveying, land registration, and land use plan17 ning; 

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

19 multinational organizations such as the World Bank, 

20 the African Development Bank, and the High Level 

21 Commission on Legal Empowerment of the Poor; 

22 and 

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

24 legally-trained volunteers from the United States, to 

25 provide technical advice to countries of sub-Saharan 


jlentini on PROD1PC65 with BILLS
25 

•S 3843 IS

1 Africa regarding property law, surveying, land reg2 istration, and land use planning. 

3 (b) AUTHORIZATION OF APPROPRIATIONS.—There is 

4 authorized to be appropriated to the President to carry 

5 out this section such sums as may be necessary. 

Æ 


jlentini on PROD1PC65 with BILLS