106TH CONGRESS
1ST SESSION
H. R. 1993
AN ACT
To reauthorize the Overseas Private Investment
Corporation and the Trade and Development
Agency, and for other purposes.
106TH CONGRESS
1ST SESSION
H. R. 1993
AN ACT
To reauthorize the Overseas Private Investment Corporation
and the Trade and Development Agency, and for other
purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Export Enhancement
Act of 1999’’.
SEC. 2. FINDINGS.
The Congress makes the following findings:
(1) Since it began operations in 1971, the Over-
seas Private Investment Corporation (in this Act re-
ferred to as ‘‘OPIC’’) has sold investment services
and mobilized private sector resources to assist de-
veloping countries and emerging democracies in the
transition from nonmarket to market economies.
(2) In an era of declining Federal budgetary re-
sources, OPIC has consistently demonstrated an
ability to operate on a self-sustaining basis to sup-
port United States companies and promote economic
reform in emerging economies in Africa, the newly
independent states of the former Soviet Union,
Latin America, and the Caribbean.
(3) OPIC has played an important role in rein-
forcing United States foreign policy goals and in
strengthening the United States economy by cre-
ating jobs and promoting exports.
(4) Over the past 28 years, projects supported
by OPIC have generated over $58,000,000,000 in
United States exports, mobilized $121,000,000,000
of United States private sector investment, and cre-
ated more than 237,000 United States jobs.
(5) OPIC has been run on a sound financial
basis 
with 
reserves 
totaling 
approximately
$3,300,000,000 and with an estimated net budget
contribution to the international affairs account of
some $204,000,000 in fiscal year 2000.
(6) OPIC has maintained a claims recovery rate
of 95 percent, settling 254 insurance claims for
$541,000,000 and recovering all but $29,000,000
since 1971.
(7) OPIC programs have served to rectify mar-
ket failures, including limited market information in
developing countries and underdeveloped capital
markets, by insuring United States firms against
economic and market uncertainties.
(8) The Trade and Development Agency (in
this Act referred to as ‘‘TDA’’) promotes United
States 
business 
involvement 
in 
infrastructure
projects in developing and middle income countries.
(9) TDA has generated $12,300,000,000 in ex-
ports since its inception, with every $1 in spending
for TDA projects leading to the sale of $32 in
United States goods and services overseas.
ITA and recommends that priority be given to fund-
ing for this unit to ensure that adequate resources
are available for it to fully implement its mission.
SEC. 3. POLICY RECOMMENDATIONS.
The Congress makes the following declarations:
(1) OPIC should set its fees at levels sufficient
to cover all operating costs, repay any subsidy ap-
propriations, and set aside adequate reserves against
future losses.
(2) OPIC should maintain a conservative ratio
of reserves to contingent liabilities and limit its obli-
gations in any one country in its worldwide finance
or insurance portfolio.
(3) Projects supported by OPIC should not dis-
place commercial finance or insurance offerings and
should encourage private sector financing and insur-
ance participation.
(4) Independent auditors should report annually
to the Congress on the level of OPIC’s reserves in
relation to its liabilities and provide an analysis of
the trends in the levels of reserves and liabilities and
the composition of its insurance and finance port-
folios, including OPIC’s investment funds.
(5) OPIC should double the dollar value of its
support for small businesses over the next 4 years.
(6) In administering the programs and activi-
ties of the ITA, the Secretary of Commerce should
give particular emphasis to obtaining market access
for United States firms and to securing full compli-
ance with bilateral and multilateral trade agree-
ments.
(7) The ITA should facilitate the entrance of
United States businesses into the countries of sub-
Saharan Africa and Latin America.
(8) The Commercial Service, within the ITA,
should consider expanding its presence in urban
areas and in urban enterprise areas.
(9) OPIC must address concerns that it does
not promptly dispose of legitimate claims brought
with respect to projects insured or guaranteed by
OPIC. The Congress understands the desire of
OPIC to explore all possible arrangements with for-
eign parties. However, OPIC must be aware that
private parties with legitimate claims face financial
obligations that cannot be deferred indefinitely.
SEC. 4. OPIC ISSUING AUTHORITY.
Section 235(a)(2) of the Foreign Assistance Act of
1961 (22 U.S.C. 2195(a)(3)) is amended by striking
‘‘1999’’ and inserting ‘‘2003’’.
SEC. 5. ENVIRONMENTAL IMPACT OF OPIC PROGRAMS.
(a) ADDITIONAL REQUIREMENTS.—Section 231A of
the Foreign Assistance Act of 1961 (22 U.S.C. 2191a)
is amended—
(1) by redesignating subsection (b) as sub-
section (c);
(2) by inserting after subsection (a) the fol-
lowing new subsection:
‘‘(b) ENVIRONMENTAL IMPACT.—
‘‘(1) 
ENVIRONMENTAL
ASSESSMENT
OR
AUDIT.—The Board of Directors of the Corporation
shall not vote in favor of any action proposed to be
taken by the Corporation that is likely to have sig-
nificant adverse environmental impacts that are sen-
sitive, diverse, or unprecedented, unless for at least
60 days before the date of the vote—
‘‘(A) an environmental impact assessment
or initial environmental audit, analyzing the en-
vironmental impacts of the proposed action and
of alternatives to the proposed action has been
completed by the project applicant and made
available to the Board of Directors; and
‘‘(B) such assessment or audit has been
made available to the public of the United
States, locally affected groups in the host coun-
try, and host country nongovernmental organi-
zations.
‘‘(2) DISCUSSIONS
WITH
BOARD
MEMBERS.—
Prior to any decision by the Corporation regarding
insurance, reinsurance, guarantees, or financing for
any project, the President of the Corporation or the
President’s designee shall meet with at least one
member of the public who is representative of indi-
viduals who have concerns regarding any significant
adverse environmental impact of that project.
‘‘(3) CONSIDERATION AT BOARD MEETINGS.—
In making its decisions regarding insurance, reinsur-
ance, guarantees, or financing for any project, the
Board of Directors shall fully take into account any
recommendations made by other interested Federal
agencies, interested members of the public, locally
affected groups in the host country, and host coun-
try nongovernmental organizations with respect to
the assessment or audit described in paragraph (1)
or any other matter related to the environmental ef-
fects of the proposed support to be provided by the
Corporation for the project.’’; and
(3) in subsection (c), as so redesignated, by
striking ‘‘each year’’ and inserting ‘‘every 6
months’’.
(b) STUDY ON PROCESS FOR OPIC ASSISTANCE.—
The Inspector General of the Agency for International De-
velopment shall review OPIC’s procedures for undertaking
to conduct financing, insurance, and reinsurance oper-
ations in order to determine whether OPIC receives suffi-
cient information from project applicants, agencies of the
United States Government, and members of the public of
the United States and other countries on the environ-
mental impact of investments insured, reinsured, or fi-
nanced by OPIC. Not later than 120 days after the date
of the enactment of this Act, the Inspector General shall
report to the Committee on International Relations of the
House of Representatives and the Committee on Foreign
Relations of the Senate on the results of its review. The
report shall include—
(1) recommendations for ways in which the
views of the public could be better reflected in
OPIC’s procedures;
(2) recommendations for what additional infor-
mation should be required of project applicants; and
(3) recommendations for environmental stand-
ards that should be used by OPIC in conducting its
financing, insurance, and reinsurance operations.
(c) EFFECTIVE DATE.—The amendments made by
subsection (a) shall take effect 90 days after the date of
the enactment of this Act.
SEC. 6. PROHIBITION ON OPIC FUNDING FOR FOREIGN
MANUFACTURING ENTERPRISES.
Section 231 of the Foreign Assistance Act of 1961
(21 U.S.C. 2191) is amended by adding at the end the
following flush sentence:
‘‘In addition, the Corporation shall decline to issue any
contract of insurance or reinsurance, or any guaranty, or
to enter into any agreement to provide financing for an
eligible investor’s investment if the investment is to be
made in a manufacturing enterprise in a foreign country,
if such investment would cause a reduction in manufac-
turing in the United States.’’.
SEC. 7. REVIEW OF CLAIMS PROCESSING FOR OPIC.
The General Accounting Office is requested to pro-
vide a report not later than 6 months after the date of
the enactment of this Act to the Committee on Inter-
national Relations of the House of Representatives and
the Committee on Foreign Relations of the Senate, which
reviews the claims activity of the Overseas Private Invest-
ment Corporation. The report shall include—
(1) an analysis of claims paid, settled and de-
nied by OPIC;
(2) the number of claims determinations made
by OPIC which are challenged in arbitration;
(3) the number of OPIC’s claims denials which
are reversed in arbitration;
(4) the number of claims which are withdrawn;
and
(5) recommendations for ways in which the in-
terests of OPIC insureds and the public could be
better served by OPIC’s claims procedures.
SEC. 8. RESTRICTION ON CONTACTS RELATING TO OPIC
CLAIMS SETTLEMENTS.
(a) PUBLICATION OF FEDERAL AGENCY INTERVEN-
TIONS.—Section 237(i) of the Foreign Assistance Act of
1961 (22 U.S.C. 2197(i)) is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(i)’’; and
(2) by adding at the end the following:
‘‘(2) No other department or agency of the United
States, or officer or employee thereof, may intervene with
the intent to impede or delay in any pending settlement
determination on any claim arising as a result of insur-
ance, reinsurance, or guaranty operations under this title
or under predecessor guaranty authority unless such inter-
vention is published in the Federal Register.
‘‘(3) The Corporation shall report to the Congress on
any intervention, with the intent to impede to delay a set-
tlement determination by any other department or agency
of the United States, or officer or employee thereof, re-
garding the timing or settlement of any claim arising as
a result of insurance, reinsurance, or guaranty operations
under this title or under predecessor guaranty authority.
The report shall be submitted within 30 days after the
intervention is made.’’.
SEC. 9. TRADE AND DEVELOPMENT AGENCY.
(a) PURPOSE.—Section 661(a) of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2421(a)) is amended by in-
serting before the period at the end of the second sentence
the following: ‘‘, with special emphasis on economic sectors
with significant United States export potential, such as
energy, transportation, telecommunications, and environ-
ment’’.
(b) CONTRIBUTIONS OF COSTS.—Section 661(b) of
the Foreign Assistance Act of 1961 (22 U.S.C. 2421(b))
is amended by adding at the end the following:
‘‘(5) CONTRIBUTIONS
TO
COSTS.—The Trade
and Development Agency shall, to the maximum ex-
tent practicable, require corporations and other enti-
ties to—
‘‘(A) share the costs of feasibility studies
and other project planning services funded
under this section; and
‘‘(B) reimburse the Trade and Develop-
ment Agency those funds provided under this
section, if the corporation or entity concerned
succeeds in project implementation.’’.
(c) FUNDING.—Section 661(f) of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2421(f)) is amended—
(1) 
in 
paragraph 
(1)(A) 
by 
striking
‘‘$77,000,000’’ and all that follows through ‘‘1996’’
and inserting ‘‘$48,000,000 for fiscal year 2000 and
such sums as may be necessary for each fiscal year
thereafter’’; and
(2) in paragraph (2)(A), by striking ‘‘in fiscal
years’’ and all that follows through ‘‘provides’’ and
inserting ‘‘in carrying out its program, provide, as
appropriate, funds’’.
SEC. 10. PROGRAMS OF THE INTERNATIONAL TRADE AD-
MINISTRATION.
(a) FUNDING.—There are authorized to be appro-
priated to the ITA—
(1) for fiscal year 2000, $24,000,000 for its
Market 
Access 
and 
Compliance 
program,
$68,000,000 for its Trade Development program,
and $202,000,000 for the Commercial Service pro-
gram; and
(2) for each fiscal year thereafter, such sums as
may be necessary for the programs referred to in
paragraph (1).
(b) APPOINTMENTS.—Subject to the availability of
appropriations, the Secretary of Commerce, acting
through the Assistant Secretary of Commerce and Direc-
tor General of the United States and Foreign Commercial
Service, shall take steps to ensure that Commercial Serv-
ice employees are stationed in no fewer than 10 sub-Saha-
ran African countries and one full-time Commercial Serv-
ice employee is stationed in the Baltic states, and that
the Commercial Service has full-time employees in each
country in South and Central America and an adequate
number of employees in the Caribbean to ensure that
United States businesses are made aware of existing mar-
ket opportunities for goods and services.
(c) INITIATIVE
FOR SUB-SAHARAN AFRICA
AND
LATIN AMERICA.—The Secretary of Commerce, acting
through the Undersecretary of Commerce for the Inter-
national Trade Administration, shall make a special effort
to—
(1) identify those goods and services of United
States companies which are not being exported to
Latin America and sub-Saharan Africa but which
are being exported to countries in those regions by
competitor nations;
(2) identify trade barriers and noncompetitive
actions, including violations of intellectual property
rights, that are preventing or hindering the oper-
ation of United States companies in sub-Saharan
Africa and Latin America;
(3) publish on an annual basis the information
obtained under paragraphs (1) and (2);
(4) bring such information to the attention of
authorities in sub-Saharan Africa and Latin Amer-
ica with the goal of securing greater market access
for United States exporters of goods and services;
and
(5) report to the Speaker of the House of Rep-
resentatives and the President of the Senate the re-
sults of the efforts to increase the sales of United
States goods and services in sub-Saharan Africa and
Latin America.
(d) REPORTS ON MARKET ACCESS.—
(1) ANNUAL REPORTS.—Not later than March
30 after the date of the enactment of this Act, and
annually thereafter, the TPCC should submit to the
Congress, and make available to the public, a report
with respect to those countries selected by the TPCC
in which goods or services produced or originating in
the United States, that would otherwise be competi-
tive in those countries, do not have market access.
Each report should contain the following with re-
spect to each such country:
(A) ASSESSMENT OF POTENTIAL MARKET
ACCESS.—An assessment of the opportunities
that would, but for the lack of market access,
be available in the market in that country, for
goods and services produced or originating in
the United States in those sectors selected by
the TPCC. In making such assessment, the
TPCC should consider the competitive position
of such goods and services in similarly devel-
oped markets in other countries. Such assess-
ment should specify the time periods within
which such market access opportunities should
reasonably be expected to be obtained.
(B) CRITERIA
FOR
MEASURING
MARKET
ACCESS.—Objective criteria for measuring the
extent to which those market access opportuni-
ties described in subparagraph (A) have been
obtained. The development of such objective cri-
teria may include the use of interim objective
criteria to measure results on a periodic basis,
as appropriate.
(C) COMPLIANCE
WITH
TRADE
AGREE-
MENTS.—An assessment of whether, and to
what extent, the country concerned has materi-
ally complied with existing trade agreements be-
tween the United States and that country. Such
assessment should include specific information
on the extent to which United States suppliers
have achieved additional access to the market in
the country concerned and the extent to which
that country has complied with other commit-
ments under such agreements and under-
standings.
(D) ACTIONS TAKEN BY ITA.—An identi-
fication of steps taken by the USTR and ITA
on behalf of United States companies affected
by the lack of market access in that country.
(2) SELECTION OF COUNTRIES AND SECTORS.—
(A) IN GENERAL.—In selecting countries
and sectors that are to be the subject of a re-
port under paragraph (1), the USTR and ITA
should give priority to—
(i) any country with which the United
States has a trade deficit if access to the
markets in that country is likely to have
significant potential to increase exports of
United States goods and services; and
(ii) any country, and sectors therein,
in which access to the markets will result
in significant employment benefits for pro-
ducers of United States goods and services.
The USTR and ITA should also give priority to
sectors which represent critical technologies, in-
cluding those identified by the National Critical
Technologies Panel under section 603 of the
National Science and Technology Policy, Orga-
nization, and Priorities Act of 1976 (42 U.S.C.
6683).
(B) FIRST REPORT.—The first report sub-
mitted under paragraph (1) should include
those countries with which the United States
has a substantial portion of its trade deficit.
(C) TRADE
SURPLUS
COUNTRIES.—The
TPCC may include in reports after the first re-
port such countries as the USTR and ITA con-
siders appropriate with which the United States
has a trade surplus but which are otherwise de-
scribed in paragraph (1) and subparagraph (A)
of this paragraph.
(e) GLOBAL DIVERSITY AND URBAN EXPORT INITIA-
TIVE FOR THE ITA.—The ITA shall undertake an initia-
tive entitled the ‘‘Global Diversity and Urban Export Ini-
tiative’’ to increase exports from businesses that, because
of their minority ownership, may have been excluded from
export trade, and from businesses in under-served areas,
including inner-city urban areas and urban enterprise
zones. The initiative should use electronic commerce tech-
nology and products as another means of helping such
businesses export overseas.
(f) STANDARDS ATTACHES.—Subject to the avail-
ability of appropriations, the International Trade Admin-
istration shall take the necessary steps to increase the
number of standards attaches in the European Union and
in developing countries.
(g) EXPANSION OF PROGRAMS TO ASSIST SMALL
BUSINESSES.—The International Trade Administration
shall expand its efforts to assist small businesses in ex-
porting their products and services abroad by using elec-
tronic commerce technology and other electronic means—
(1) to communicate with significantly larger
numbers of small businesses about the assistance of-
fered by the ITA to small businesses in exporting
their products and services abroad; and
(2) to provide such assistance.
(h) AUTHORIZATION FOR ADVERTISING.—The ITA is
authorized to advertise in newspapers, business journals,
and other relevant publications and related media to in-
form businesses about the services offered by the ITA.
SEC. 11. BOARD OF DIRECTORS.
Section 233(b) of the Foreign Assistance Act of 1961
(22 U.S.C. 2193(b)) is amended—
(1) by striking the second and third sentences;
(2) in the fourth sentence by striking ‘‘(other
than the President of the Corporation, appointed
pursuant to subsection (c) who shall serve as a Di-
rector, ex officio)’’;
(3) in the second undesignated paragraph—
(A) by inserting ‘‘the President of the Cor-
poration, the Administrator of the Agency for
International Development, the United States
Trade Representative, and’’ after ‘‘including’’;
and
(B) by adding at the end the following:
‘‘The United States Trade Representative may
designate a Deputy United States Trade Rep-
resentative to serve on the Board in place of the
United States Trade Representative.’’; and
(4) by inserting after the second undesignated
paragraph the following:
‘‘There shall be a Chairman and a Vice Chairman
of the Board, both of whom shall be designated by the
President of the United States from among the Directors
of the Board other than those appointed under the second
sentence of the first paragraph of this subsection.’’.
SEC. 12. STRATEGIC EXPORT PLAN.
Section 2312(c) of the Export Enhancement Act of
1988 (15 U.S.C. 4727(c)) is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(5);
(2) by striking the period at the end of para-
graph (6) and inserting a semicolon; and
(3) by adding at the end the following:
‘‘(7) ensure that all export promotion activities
of the Agency for International Development are
fully coordinated and consistent with those of other
agencies;
‘‘(8) identify means for providing more coordi-
nated and comprehensive export promotion services
to, and on behalf of, small and medium-sized busi-
nesses; and
‘‘(9) establish a set of priorities to promote
United States exports to, and free market reforms
in, the Middle East, Africa, Latin America, and
other emerging markets, that are designed to stimu-
late job growth both in the United States and those
regions and emerging markets.’’.
SEC. 13. IMPLEMENTATION OF PRIMARY OBJECTIVES.
The Trade Promotion Coordinating Committee
shall—
(1) report on the actions taken or efforts cur-
rently underway to eliminate the areas of overlap
and duplication identified among Federal export pro-
motion activities;
(2) coordinate efforts to sponsor or promote
any trade show or trade fair;
(3) work with all relevant State and national
organizations, including the National Governors’ As-
sociation, that have established trade promotion of-
fices;
(4) report on actions taken or efforts currently
underway to promote better coordination between
State, Federal, and private sector export promotion
activities, including co-location, cost sharing between
Federal, State, and private sector export promotion
programs, and sharing of market research data; and
(5) by not later than March 30, 2000, and an-
nually thereafter, include the matters addressed in
paragraphs (1), (2), (3), and (4) in the annual re-
port required to be submitted under section 2312(f)