I
105TH CONGRESS
1ST SESSION
H. R. 1432
To authorize a new trade and investment policy for sub-Saharan Africa.
IN THE HOUSE OF REPRESENTATIVES
APRIL 24, 1997
Mr. CRANE (for himself, Mr. RANGEL, Mr. MCDERMOTT, Mr. HOUGHTON,
Mr. JEFFERSON, Mr. MANZULLO, Mr. EHLERS, Mr. KOLBE, Mr.
DREIER, Ms. CHRISTIAN-GREEN, Mr. TOWNS, Mr. MCNULTY, Mrs.
MEEK of Florida, Ms. CARSON, Mr. PAYNE, Ms. FURSE, Ms. MCKINNEY,
Ms. JACKSON-LEE of Texas, Mr. FALEOMAVAEGA, Ms. NORTON, Mr.
RUSH, Mr. HASTINGS of Florida, Mr. HALL of Ohio, Mr. DELLUMS, Mr.
FORD, Mr. FOGLIETTA, Mr. FATTAH, Mr. BISHOP, Mr. HILLIARD, Mrs.
CLAYTON, Mr. OWENS, Mr. SCOTT, Mr. HINCHEY, and Mr. BEREUTER)
introduced the following bill; which was referred to the Committee on
International Relations, and in addition to the Committee on Ways and
Means, and Banking and Financial Services, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
A BILL
To authorize a new trade and investment policy for sub-
Saharan Africa.
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 ‘‘African Growth and
Opportunity Act’’.
SEC. 2. FINDINGS.
The Congress finds that it is in the mutual economic
interest of the United States and sub-Saharan Africa to
promote stable and sustainable economic growth and de-
velopment in sub-Saharan Africa. To that end, the United
States seeks to facilitate the social and economic develop-
ment of the countries of sub-Saharan Africa in a manner
which strengthens and expands market-led economic
growth consistent with equitable and efficient development
and which reduces poverty and increases employment
among the poor. In particular, the United States seeks
to assist sub-Saharan African countries to achieve eco-
nomic self-reliance by—
(1) strengthening and expanding the private
sector in sub-Saharan Africa, especially women-
owned businesses;
(2) encouraging increased trade and investment
between the United States and sub-Saharan Africa;
(3) reducing tariff and nontariff barriers and
other trade obstacles;
(4) expanding United States assistance to sub-
Saharan Africa’s regional integration efforts;
(5) negotiating free trade areas;
(6) establishing a United States-Sub-Saharan
Africa Trade and Investment Partnership;
(7) focusing on countries committed to account-
able government, economic reform, and the eradi-
cation of poverty;
(8) establishing a United States-Sub-Saharan
Africa Economic Cooperation Forum; and
(9) continuing to support development assist-
ance for those countries in sub-Saharan Africa at-
tempting to build civil societies.
SEC. 3. STATEMENT OF POLICY.
The Congress supports economic self-reliance for sub-
Saharan African countries, particularly those committed
to—
(1) economic and political reform;
(2) market incentives and private sector growth;
(3) the eradication of poverty; and
(4) the importance of women to economic
growth and development.
SEC. 4. ELIGIBILITY REQUIREMENTS.
(a) IN GENERAL.—A sub-Saharan African country
shall be eligible to participate in programs, projects, or
activities, or receive assistance or other benefits under this
Act for a fiscal year only if the President determines that
the country has established, or is making continual
progress toward establishing, a market-based economy,
such as the establishment and enforcement of appropriate
policies relating to—
(1) promoting free movement of goods and serv-
ices and factors of production between the United
States and sub-Saharan Africa;
(2) promoting the expansion of the production
base and the transformation of commodities and
nontraditional products for exports through joint
venture projects between African and United States
companies;
(3) trade issues, such as protection of intellec-
tual property rights, improvements in standards,
testing, labeling and certification, and government
procurement;
(4) the protection of property rights, such as
protection against expropriation and a functioning
and fair judicial system;
(5) tax issues, such as reducing high import
and corporate taxes, controlling government con-
sumption, participation in bilateral investment trea-
ties, and the harmonization of such treaties to avoid
double taxation;
(6) foreign investment issues, such as the provi-
sion of national treatment for foreign investors and
other measures to attract foreign investors;
(7) supporting the growth of regional markets
within a free trade area framework;
(8) regulatory issues, such as eliminating gov-
ernment corruption, minimizing government inter-
vention in the market, monitoring the fiscal and
monetary policies of the government, and supporting
the growth of the private sector, in particular by
promoting the emergence of a new generation of Af-
rican entrepreneurs;
(9) encouraging the private ownership of gov-
ernment-controlled economic enterprises through di-
vestiture programs;
(10) removing restrictions on investment; and
(11) the reduction of poverty, such as the provi-
sion of basic health and education for poor citizens,
the expansion of physical infrastructure in a manner
designed to maximize accessibility, increased access
to market and credit facilities for small farmers and
producers, and improved economic opportunities for
women as entrepreneurs and employees.
(b) ADDITIONAL FACTORS.—In determining whether
a sub-Saharan African country is eligible under subsection
(a), the President shall take into account the following fac-
tors:
(1) An expression by such country of its desire
to be an eligible country under subsection (a).
(2) The extent to which such country has made
substantial progress toward—
(A) reducing tariff levels;
(B) binding its tariffs in the World Trade
Organization and assuming meaningful binding
obligations in other sectors of trade; and
(C) eliminating nontariff barriers to trade.
(3) Whether such country, if not already a
member of the World Trade Organization, is actively
pursuing membership in that Organization.
(4) The extent to which such country is in ma-
terial compliance with its programs with and its obli-
gation to the International Monetary Fund and
other international financial institutions.
(c) CONTINUING COMPLIANCE.—
(1) MONITORING
AND
REVIEW
OF
CERTAIN
COUNTRIES.—The President shall monitor and re-
view the progress of those sub-Saharan African
countries that have been determined to be eligible
under subsection (a) but are in need of making con-
tinual progress in meeting one or more of the re-
quirements of such subsection.
(2) INELIGIBILITY OF CERTAIN COUNTRIES.—A
sub-Saharan African country described in paragraph
(1) that has not made continual progress in meeting
the requirements with which it is not in compliance
shall be ineligible to participate in programs,
projects, or activities, or receive assistance or other
benefits, under this Act.
SEC. 5. ADDITIONAL AUTHORITIES AND INCREASED FLEXI-
BILITY TO PROVIDE ASSISTANCE UNDER THE
DEVELOPMENT FUND FOR AFRICA.
(a) USE OF SUSTAINABLE DEVELOPMENT ASSIST-
ANCE TO SUPPORT FURTHER ECONOMIC GROWTH.—It is
the sense of the Congress that sustained economic growth
in sub-Saharan Africa depends in large measure upon the
development of a receptive environment for trade and in-
vestment, and that to achieve this objective the United
States Agency for International Development should con-
tinue to support programs which help to create this envi-
ronment. Investments in human resources, development,
and implementation of free market policies, including poli-
cies to liberalize agricultural markets and improve food se-
curity, and the support for the rule of law and democratic
governance should continue to be encouraged and en-
hanced on a bilateral and regional basis.
(b) DECLARATIONS
OF
POLICY.—The Congress
makes the following declarations:
(1) The Development Fund for Africa estab-
lished under chapter 10 of part I of the Foreign As-
sistance Act of 1961 (22 U.S.C. 2293 et seq.) has
been an effective tool in providing development as-
sistance to sub-Saharan Africa since 1988.
(2) The Development Fund for Africa will com-
plement the other provisions of this Act and lay a
foundation for increased trade and investment op-
portunities between the United States and sub-Saha-
ran Africa.
(3) Assistance provided through the Develop-
ment Fund for Africa will continue to support pro-
grams and activities that promote the long term eco-
nomic development of sub-Saharan Africa, such as
programs and activities relating to the following:
(A) Strengthening primary and vocational
education systems, especially the acquisition of
middle-level technical skills for operating mod-
ern private businesses and the introduction of
college level business education, including the
study of international business, finance, and
stock exchanges.
(B) Strengthening health care systems.
(C) Strengthening family planning service
delivery systems.
(D) Supporting democratization, good gov-
ernance and civil society and conflict resolution
efforts.
(E) Increasing food security by promoting
the expansion of agricultural and agriculture-
based industrial production and productivity
and increasing real incomes for poor individ-
uals.
(F) Promoting an enabling environment
for private sector-led growth through sustained
economic reform, privatization programs, and
market-led economic activities.
(G) Promoting decentralization and local
participation in the development process, espe-
cially linking the rural production sectors and
the industrial and market centers throughout
Africa.
(H) Increasing the technical and manage-
rial capacity of sub-Saharan African individuals
to manage the economy of sub-Saharan Africa.
(I) Ensuring sustainable economic growth
through environmental protection.