Union Calendar No. 192
106TH CONGRESS
1ST SESSION
H. R. 1993
[Report No. 106–325]
A BILL
To reauthorize the Overseas Private Investment
Corporation and the Trade and Development
Agency, and for other purposes.
SEPTEMBER 17, 1999
Reported with amendments, committed to the Committee
of the Whole House on the State of the Union, and or-
dered to be printed
IB
Union Calendar No. 192
106TH CONGRESS
1ST SESSION
H. R. 1993
[Report No. 106–325]
To reauthorize the Overseas Private Investment Corporation and the Trade
and Development Agency, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MAY 27, 1999
Mr. MANZULLO (for himself, Mr. MENENDEZ, Mr. GILMAN, Mr. GEJDENSON,
Mr. ACKERMAN, Mr. BENTSEN, Mr. BEREUTER, Mr. BERMAN, Mrs.
BIGGERT, Mr. BLUNT, Mr. BRADY of Texas, Mr. CALLAHAN, Mrs. CLAY-
TON, Mr. COOKSEY, Mr. COSTELLO, Mr. DAVIS
of Illinois, Mr.
DELAHUNT, Mr. DELAY, Mr. DIAZ-BALART, Mr. ENGLISH, Mr. EWING,
Mr. FATTAH, Mr. FROST, Mr. GALLEGLY, Mr. GUTIERREZ, Mr.
HASTINGS of Florida, Mr. HOEFFEL, Mr. HOUGHTON, Ms. JACKSON-LEE
of Texas, Ms. KILPATRICK, Mr. KNOLLENBERG, Mr. KOLBE, Mr.
LAHOOD, Mr. LANTOS, Mr. LEACH, Mrs. MCCARTHY of New York, Mr.
MATSUI, Mrs. MEEK of Florida, Mrs. NAPOLITANO, Mr. ORTIZ, Mr.
PACKARD, Mr. PORTER, Mr. RANGEL, Mr. ROTHMAN, Mr. RUSH, Mr.
SAWYER, Mr. SHERMAN, and Mr. BERRY) introduced the following bill;
which was referred to the Committee on International Relations
SEPTEMBER 17, 1999
Additional sponsors: Mr. CLEMENT, Mr. CLYBURN, Ms. HOOLEY of Oregon,
Mr. CROWLEY, Mr. DAVIS of Florida, Mr. DREIER, Ms. LOFGREN, Mrs.
LOWEY, Mr. PHELPS, Mr. SNYDER, Mr. LAFALCE, Mr. JEFFERSON, Mr.
BOEHLERT, Mr. RADANOVICH, Mr. RODRIGUEZ, Mr. HILLIARD, and Mr.
KLINK
SEPTEMBER 17, 1999
Reported with amendments, committed to the Committee of the Whole House
on the State of the Union, and ordered to be printed
[Omit the part struck through and insert the part printed in italic]
A BILL
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.
(10) The United States and Foreign Commer-
cial Service (in this Act referred to as the ‘‘Commer-
cial Service’’) plays an important role in helping
United States businesses identify export opportuni-
ties and develop reliable sources of information on
commercial prospects in foreign countries.
(11) The Congress has, on several occasions,
encouraged the Commercial Service to focus its re-
sources and efforts in countries or regions in Europe
and Asia to promote greater United States export
activity in those markets.
(12) The Congress supports the expansion of
the Rural Export Initiative by the International
Trade Administration (in this Act referred to as the
‘‘ITA’’) of the Department of Commerce, particu-
larly those elements related to the use of information
technology and electronic commerce techniques.
(13) The Congress is encouraged by the success of
the Market Access and Compliance Unit of the ITA
and supports the Unit’s efforts to develop mobile
teams to resolve market access problems and ensure
compliance by United States trading partners with
trade agreements and commitments.
(14) The Congress acknowledges the demands
upon the Market Access and Compliance Unit of the
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 four
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.
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. 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 implementing the project for which
the funds were provided.’’. 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. 6. PROGRAMS OF THE INTERNATIONAL TRADE ADMIN-
ISTRATION.
(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 1 full-time Commercial Service
employee is stationed in the Baltic states, and that the
Commercial Service has full-time employees in each coun-
try in South and Central America and an adequate num-
ber of employees in the Caribbean to ensure that United
States businesses are made aware of existing market op-
portunities for goods and services.
(c) INITIATIVE
FOR SUB-SAHARAN AFRICA
AND
LATIN AMERICA.—The Assistant Secretary of Commerce
and Director General of the United States and Foreign
Commercial Service Secretary of Commerce, acting through
the Under Secretary of Commerce for the International
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) REPORTING ON VIOLATIONS OF TRADE AGREE-
MENTS.—The ITA should—
(1) identify countries and entities, as prac-
ticable, that violate commitments under trade agree-
ments with the United States and the impact of these
violations on specific sectors of the United States
economy;
(2) identify steps taken by the ITA on behalf of
United States companies affected by these violations;
and
(3) publicize, on an annual basis, the informa-
tion gathered under paragraphs (1) and (2).
ø(d)¿ (e) GLOBAL DIVERSITY AND URBAN EXPORT
INITIATIVE FOR THE ITA.—The ITA shall undertake an
initiative entitled the ‘‘Global Diversity and Urban Export
Initiative’’ to increase exports from minority-owned busi-
nesses, focusing on businesses in under-served areas, in-
cluding inner-city urban areas and urban enterprise zones.
The initiative should use electronic commerce technology
and products as another means of helping urban-based
and minority-owned 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 num-
ber 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 export-
ing their products and services abroad by using electronic
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.
ø(e)¿ (h) AUTHORIZATION FOR ADVERTISING.—The
ITA is authorized to advertise in newspapers, business
journals, and other relevant publications and related
media to inform businesses about the services offered by
the ITA.
SEC. 7. 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