I
105TH CONGRESS
2D SESSION
H. R. 4773
To provide for assistance by the United States to promote economic growth
and stabilization of Northern Ireland and the border counties of the
Irish Republic.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 9, 1998
Mr. MCDERMOTT (for himself, Mr. MORAN of Virginia, Mr. BLUMENAUER,
Mr. JEFFERSON, and Mr. MATSUI) introduced the following bill; which
was referred to the Committee on International Relations, and in addition
to the Committee on Ways and Means, for a period to be subsequently
determined by the Speaker, in each case for consideration of such provi-
sions as fall within the jurisdiction of the committee concerned
A BILL
To provide for assistance by the United States to promote
economic growth and stabilization of Northern Ireland
and the border counties of the Irish Republic.
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 ‘‘Good Friday Trade
and Investment Act’’.
SEC. 2. FINDINGS AND REPORT.
(a) FINDINGS.—The Congress makes the following
findings:
(1) Economic growth and stabilization of
Northern Ireland and the border counties of the
Irish Republic are key to full implementation of the
Good Friday Peace Agreement, entered into on April
19, 1998.
(2) The bombing in Omagh on August 15,
1998, is a clear example of a small town that des-
perately needs immediate relief and assistance for
reconstruction. The pace and scale of aid and invest-
ment in Omagh and other towns recently bombed—
Banbridge, Markethill, and Newtownhamilton—
could determine whether the Good Friday Peace
Agreement holds.
(3) The international community, including the
European Union and the World Trade Organization
(WTO), has a strong record of responding to his-
toric political and economic circumstances. It has
fought for and approved WTO waivers, such as tran-
sitional measures to take account of German unifica-
tion and the Treaty of Lome, that allow necessary
international flexibility and cooperation to enhance
trade and investment and stabilize economically de-
prived and politically revitalized regions.
(4) The United States can continue its crucial
role in the peace process by creating and promoting
economic growth through trade and investment in
the region’s severely economically deprived areas. In
addition to promoting trade and investment in
Northern Ireland and the Republic of Ireland, the
United States should consider grant assistance to
aid communities in the area suffering terrorist at-
tacks.
(5) Fair employment practices in Northern Ire-
land are an essential element for an expanding full
employment economy. The Congress notes with ap-
proval the constant efforts undertaken by the North-
ern Ireland Fair Employment Commission and Em-
ployment Tribunal to achieve this end. The Good
Friday Peace Agreement established an Anti-dis-
crimination Committee to augment the work done by
the Committee and Tribunal. The Congress believes
their continuing efforts constitute persuasive evi-
dence that fair employment principles are being ef-
fectively safeguarded, secured, and promoted for all
communities.
(6) The strengthening of a police force accept-
able to both communities in Northern Ireland is es-
sential for the formation and success of a peaceful
and prosperous civil society. The Congress notes
that the Independent Commission on Policing estab-
lished in the Good Friday Peace Agreement is to re-
port on the policing problems in Northern Ireland.
(b) REPORT TO CONGRESS.—The President, taking
into consideration the recommendations of the Independ-
ent Commission on Policing referred to in subsection
(a)(6), shall report to the Congress on a biannual basis
on how the United States can assist in the establishment
of an acceptable policing force in Northern Ireland that
has the highest level of professionalism.
SEC. 3. OVERSEAS PRIVATE INVESTMENT CORPORATION.
(a) EQUITY FUNDS.—The Overseas Private Invest-
ment Corporation shall establish equity funds, with total
assets of at least $300,000,000, for the purpose of provid-
ing insurance, financing, and other assistance under title
IV of chapter 2 of part I of the Foreign Assistance Act
of 1961 for business development and infrastructure
projects in Northern Ireland and the border counties of
the Irish Republic.
(b) ASSISTANCE CONSISTENT WITH PRINCIPLES OF
FAIR EMPLOYMENT.—The Overseas Private Investment
Corporation shall provide insurance, financing, and other
assistance under subsection (a) only to individuals or enti-
ties in Northern Ireland and the Republic of Ireland which
employ practices consistent with the principles of fair em-
ployment.
(c) PRIORITY TO PROJECTS INVOLVING WOMEN EN-
TREPRENEURS
AND WOMEN
IN MANAGEMENT POSI-
TIONS.—Not less than 20 percent of the equity funds es-
tablished under subsection (a) shall be dedicated for fi-
nancing, insurance, and other assistance to—
(1) businesses in Northern Ireland and the Re-
public of Ireland that are owned and managed by
women;
(2) new businesses to be owned and managed
by women; and
(3) women who provide training and vocational
education for women.
(d) PRIORITY TO PROJECTS INVOLVING NEW TECH-
NOLOGIES.—Not less than $10,000,000 of the equity
funds established under subsection (a) shall be dedicated
for financing, insurance, and other assistance to projects
involving the development of new technologies, including
biomedical and bioengineering projects.
SEC. 4. INTERNATIONAL FUND FOR IRELAND.
(a) INCREASED FUNDING.—In addition to amounts
otherwise available for such purposes, there are authorized
to be appropriated for United States contributions to the
International Fund for Ireland $30,000,000 for fiscal year
1999 and not less than $40,000,000 for each of the fiscal
years 2000 through 2003.
(b) USE OF FUNDS.—
(1) IN GENERAL.—The President shall take the
necessary steps to ensure that—
(A) at least 50 percent of the annual con-
tributions of the United States to the Inter-
national Fund for Ireland are used for projects,
in the areas of greatest need based upon levels
of unemployment, that—
(i) are most likely to produce jobs and
economic expansion; and
(ii) are selected by the Directors of
the International Fund for Ireland in con-
sultation with members of the Economic
Development Committee of the Northern
Ireland Assembly and members of the
Cross Border Economic Committee from
the Republic of Ireland; and
(B) projects targeted at or located in
Northern Ireland and the border counties of the
Irish Republic receive priority consideration by
the Directors of the International Fund for Ire-
land in using the funds described in subpara-
graph (A).
(2) FUNDING FOR PROJECTS USING PRINCIPLES
OF FAIR EMPLOYMENT.—The President shall take
the necessary steps to ensure that funding for
projects be provided by the International Fund for
Ireland only to individuals or entities in Northern
Ireland and the Republic of Ireland which employ
practices consistent with the principles of fair em-
ployment.
(3) REPORT TO CONGRESS.—The President, by
no later than December 1 of each year, shall trans-
mit to the Congress a list of those projects the
President believes should be funded under paragraph
(1).
(4) PRIORITY
PROJECTS
IN
FISCAL
YEAR
1999.—The President shall take the necessary steps
to ensure that the following projects are given first
consideration for use of funds contributed by the
United States in fiscal year 1999 to the Inter-
national Fund for Ireland:
(A) $8,000,000 in financing for Omagh
Memorial Science Park and other science parks
located near existing scientific research centers
and university campuses, to supplement support
of the United Kingdom for the business devel-
opment of scientific research discoveries.
(B) $5,000,000 in cofinancing of the Inno-
vation Fund established by the United King-
dom, which has contributed $8,000,000 to that
fund, to provide support for technology projects
with commercial potential.
(C) $250,000 over 2 fiscal years toward
the strengthening of existing ties between hand-
made in America and the Northern Ireland
craft sector.
(D) $250,000 for programs to develop
middle management skills in the public and pri-
vate sector.
(E) 
$13,000,000 
for 
the 
Springvale
Project, a university campus in an economically
depressed area of West Belfast, supported in
conjunction with the Government of the United
Kingdom, the University of Ulster, and the Bel-
fast Institute of Further and Higher Education.
SEC. 5. DEPARTMENT OF COMMERCE INITIATIVES.
The Secretary of Commerce shall consolidate its cur-
rent activities with respect to promotion of business oppor-
tunities in Northern Ireland and the border counties of
the Irish Republic to focus on promoting awareness of
business opportunities in those counties, encouraging joint
ventures with businesses in those counties, and promoting
the development of businesses owned by women.
SEC. 6. GENERALIZED SYSTEM OF PREFERENCES.
(a) DESIGNATION
AS BENEFICIARY DEVELOPING
COUNTRY.—Title V of the Trade Act of 1974 is amended
by inserting after section 506 the following new section:
‘‘SEC. 506A. DESIGNATION OF NORTHERN IRELAND AND
THE BORDER COUNTIES OF THE IRISH RE-
PUBLIC.
‘‘(a) DESIGNATION.—The President may designate
Northern Ireland and the border counties of the Irish Re-
public as a beneficiary developing country for purposes of
this title for the period beginning on a date specified by
the President that occurs on or after the date on which
the United States is granted the waivers of obligations
under the WTO Agreement or the GATT 1994, or both,
that are necessary on account of such designation, and
ending no later than 10 years after the effective date or
dates of the waivers.
‘‘(b) OBLIGATIONS
OF
UNITED
STATES.—The
United States Trade Representative shall seek the waiver
described in subsection (a) within 1 year after the date
of the enactment of this section, and shall seek the co-
operation of the European Community, the United King-
dom, and Ireland in acquiring the waiver.
‘‘(c) REQUIREMENTS
FOR ELIGIBILITY
OF ARTI-
CLES.—
‘‘(1) REQUIREMENTS.—An article is eligible for
duty free treatment under this section only if—
‘‘(A) the article is wholly the growth, prod-
uct, or manufacture of the qualifying counties
or is a new or different article of commerce that
has been grown, produced, or manufactured in
the qualifying counties; and
‘‘(B) the article is imported directly from
qualifying counties; and
‘‘(C) the sum of—
‘‘(i) the cost or value of the materials
produced in qualifying counties, plus
‘‘(ii) the direct costs of processing op-
erations performed in the qualifying coun-
ties,
is not less than 35 percent of the appraised
value of the product at the time it is entered
into the United States.
For purposes of determining the 35 percent content
requirement contained in subparagraph (C), the cost
or value of materials which are used in the produc-
tion of an article in the qualifying counties, and are
the products of the United States, may be counted
in an amount up to 15 percent of the appraised
value of the article.
‘‘(2) NONQUALIFYING OPERATIONS.—No article
shall be considered a new or different article of com-
merce under this subsection, and no material shall
be included for purposes of determining the 35 per-
cent requirement of paragraph (1)(C), by virtue of
having merely undergone—
‘‘(A) simple combining or packaging oper-
ations; or
‘‘(B) mere dilution with water or with an-
other substance that does not materially alter
the characteristics of the article or material.
‘‘(3) REQUIREMENTS FOR NEW OR DIFFERENT
ARTICLE
OF
COMMERCE.—For purposes of para-
graph (1)(A), an article is a new or different article
of commerce if it is substantially transformed into
an article having a new name, character, or use.
‘‘(4) COST OR VALUE OF MATERIALS.—(A) For
purposes of paragraph (1), the cost or value of ma-
terials produced in the qualifying counties in-
cludes—
‘‘(i) the manufacturer’s actual cost for the
materials;
‘‘(ii) when not included in the manufactur-
er’s actual cost for the materials, the freight,
insurance, packing, and all other costs incurred
in transporting the materials to the manufac-
turer’s plant;
‘‘(iii) the actual cost of waste or spoilage,
less the value of recoverable scrap; and
‘‘(iv) taxes or duties imposed on the mate-
rials by the Republic of Ireland, the United
Kingdom, or the European Union if such taxes
or duties are not remitted on exportation.
‘‘(B) If a material is provided to the manufac-
turer without charge, or at less than fair market
value, its cost or value shall be determined by com-
puting the sum of—
‘‘(i) all expenses incurred in the growth,
production, or manufacture of the material, in-
cluding general expenses;
‘‘(ii) an amount for profit; and
‘‘(iii) freight, insurance, packing, and all
other costs incurred in transporting the mate-
rial to the manufacturers plant.
If the information necessary to compute the cost or
value of a material is not available, the Customs
Service may ascertain or estimate the value thereof
using all reasonable methods.
‘‘(5) DIRECT
COSTS
OF
PROCESSING
OPER-
ATIONS.—(A) For purposes of this subsection, the
direct costs of processing operations performed in
the qualifying counties with respect to an article are
those costs either directly incurred in, or which can
be reasonably allocated to, the growth, production,
manufacture, or assembly, of that article. Such costs
include, but are not limited to, the following to the
extent that they are includible in the appraised value
of articles imported into the United States:
‘‘(i) All actual labor costs involved in the
growth, production, manufacture, or assembly
of the article, including fringe benefits, on-the-
job training, and costs of engineering, super-
visory, quality control, and similar personnel.
‘‘(ii) Dies, molds, tooling, and depreciation
on machinery and equipment which are alloca-
ble to the article.
‘‘(iii) Research, development, design, engi-
neering, and blueprint costs insofar as they are
allocable to the article.
‘‘(iv) Costs of inspecting and testing the
article.
ping documents specify the United States
as the final destination; or
‘‘(B) if articles are shipped through an in-
termediate country and the invoices and other
documents do not specify the United States as
the final destination, then the articles in the
shipment, upon arrival in the United States, are
imported directly only if they—
‘‘(i) remain under the control of the
customs authority in an intermediate coun-
try;
‘‘(ii) do not enter into the commerce
of an intermediate country except for the
purpose of a sale other than at retail, but
only if the articles are imported as a result
of the original commercial transactions be-
tween the importer and the producer or
the producer’s sales agent; and
‘‘(iii) have not been subjected to oper-
ations other than loading, unloading, or
other activities necessary to preserve the
article in good condition.
‘‘(7) DOCUMENTATION REQUIRED.—An article
is eligible for the duty exemption under this sub-
section only if—
‘‘(A) the importer certifies that the article
meets the conditions for the duty exemption;
and
‘‘(B) when requested by the Customs Serv-
ice, the importer, manufacturer, or exporter
submits a declaration setting forth all pertinent
information with respect to the article, includ-
ing the following:
‘‘(i) A description of the article, quan-
tity, numbers and marks of packages, in-
voice numbers, and bills of lading.
‘‘(ii) A description of the operation
performed in the production of the article
in the qualifying counties and identifica-
tion of the direct costs of processing oper-
ations.
‘‘(iii) A description of any materials
used in production of the article which are
wholly the growth, product, or manufac-
ture of the qualifying counties or the
United States, and a statement as to the
cost or value of such materials.
‘‘(iv) A description of the operations
performed on, and a statement as to the
origin and cost or value of, any foreign
materials used in the article which are
claimed to have been sufficiently processed
in the qualifying counties so as to be mate-
rials produced in the qualifying counties.
‘‘(v) A description of the origin and
cost or value of any foreign materials used
in the article which have not been substan-
tially transformed in the qualifying coun-
ties.
‘‘(d) REPORTS TO CONGRESS.—The United States
Trade Representative shall report annually to the Con-
gress on the status of efforts to acquire the waiver de-
scribed in subsection (a). The Trade Representative shall
also include in the report the status of trade relations be-
tween the United States and Northern Ireland and the
border counties of the Irish Republic, and recommenda-
tions on how to effectively expand trade between the
United States and Northern Ireland and the border coun-
ties of the Irish Republic.’’.
(b) CONFORMING AMENDMENT.—Section 502(a)(1)
of the Trade Act of 1974 (19 U.S.C. 2462(a)(1)) is
amended by striking ‘‘The’’ and inserting ‘‘Except as pro-
vided in section 506A, the’’.
(c) DEFINITIONS.—Section 507 of the Trade Act of
1974 (19 U.S.C. 2467) is amended by adding at the end
the following:
‘‘(6) NORTHERN IRELAND AND THE BORDER
COUNTIES
OF
THE
IRISH
REPUBLIC; QUALIFYING
COUNTIES.—The terms ‘Northern Ireland and the
border counties of the Irish Republic’ and ‘qualifying
counties’ mean any county, district, city, or county
council or geographic area that—
‘‘(A) is in Northern Ireland, or is in the
Republic of Ireland and contiguous to Northern
Ireland; and
‘‘(B)(i) suffers from the severest form of
economic deprivation, which may take into ac-
count the United Kingdom’s report, Relative
Deprivation in Northern Ireland, Occasional
Paper Number 28, Policy Planning and Re-
search Unit, September, or the European
Union’s report, Special Support Programme for
Peace and Reconciliation 1995–1999, includ-
ing—
‘‘(I) in Northern Ireland, the counties
of Derry, Armagh, Antrim, Tyrone, Fer-
managh, and Down; and
‘‘(II) in the Republic of Ireland, the
border counties of Donegal, Sligo, Leitrim,
Cavan, Monaghan, and Louth; or
‘‘(ii) has a rate of unemployment higher
than the local or urban average of unemploy-
ment in Northern Ireland.
‘‘(7) GATT 1994.—The term ‘GATT 1994’ has
the meaning given that term in section 2(1)(B) of
the Uruguay Round Agreements Act (19 U.S.C.
3501(1)(B)).
‘‘(8) WTO 
AGREEMENT.—The term ‘WTO
Agreement’ has the meaning given that term in sec-
tion 2(9) of the Uruguay Round Agreements Act (19
U.S.C. 3501(9)).’’.
SEC. 7. DEFINITIONS.
As used in this Act:
(1) NORTHERN
IRELAND
AND
THE
BORDER
COUNTIES
OF
THE
IRISH
REPUBLIC.—The term
‘‘Northern Ireland and the border counties of the
Irish Republic’’ means a county, district, city, or
county council or geographic area that—
(A) is in Northern Ireland, or is in the Re-
public of Ireland and contiguous to Northern
Ireland; and
(B)(i) suffers from the severest form of
economic deprivation, which may take into ac-
count the United Kingdom’s report, Relative
Deprivation in Northern Ireland, Occasional
Paper Number 28, Policy Planning and Re-
search Unit, September, or the European
Union’s report, Special Support Programme for
Peace and Reconciliation 1995–1999, includ-
ing—
(I) in Northern Ireland, the counties
of Derry, Armagh, Antrim, Tyrone, Fer-
managh, and Down; and
(II) in the Republic of Ireland, the
border counties of Donegal, Sligo, Leitrim,
Cavan, Monaghan, and Louth; or
(ii) has a rate of unemployment higher
than the local or urban average of unemploy-
ment in Northern Ireland.
(2) INTERNATIONAL FUND FOR IRELAND.—The
term ‘‘International Fund for Ireland’’ has the
meaning given the term ‘‘International Fund’’ in
section 8 of the Anglo-Irish Agreement Support Act
of 1986 (Public Law 99–415).
(3) PRINCIPLES OF FAIR EMPLOYMENT.—The
term ‘‘principles of fair employment’’ means the fol-
lowing principles:
(A) Increasing the representation of indi-
viduals from underrepresented religious groups
in the workforce, including managerial, super-
visory, administrative, clerical, and technical
jobs.
(B) Providing adequate security for the
protection of minority employees at the work-
place.
(C) Banning provocative sectarian or polit-
ical emblems from the workplace.
(D) Providing that all job openings be ad-
vertised publicly and providing that special re-
cruitment efforts be made to attract applicants
from underrepresented religious groups.
(E) Providing that layoff, recall, and ter-
mination procedures do not favor a particular
religious group.
(F) Abolishing job reservations, appren-
ticeship restrictions, and differential employ-
ment criteria which discriminate on the basis of
religion.
(G) Providing for the development of train-
ing programs that will prepare substantial num-
bers of minority employees for skilled jobs, in-
cluding the expansion of existing programs and
the creation of new programs to train, upgrade,
and improve the skills of minority employees.
(H) Establishing procedures to assess,
identify, and actively recruit minority employees
with the potential for further advancement.
(I) Providing for the appointment of a sen-
ior management staff member to be responsible
for the employment efforts of the entity and,
within a reasonable period of time, the imple-
mentation of the principles described in sub-
paragraphs (A) through (H).
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