Strengthening the AfCFTA Act of 2022
Bill: S.5154 | Sponsor: Sen. Van Hollen, Chris (D-MD)
Policy area: Foreign Trade and International Finance

Summary:
Strengthening the African Continental Free Trade Area Act of 2022 or the Strengthening the AfCFTA Act of 2022
This bill requires the President to direct the U.S. Trade Representative to develop a 10-year federal strategy to promote the African Continental Free Trade Area (AfCFTA). Additionally, the U.S. Agency for International Development must establish an AfCFTA Trade Capacity Building Program to support the implementation of the strategy.

To promote the African Continental Free Trade Area, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Strengthening the African 
Continental Free Trade Area Act of 2022'' or the ``Strengthening the 
AfCFTA Act of 2022''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) By 2035, the gross domestic product of African 
        countries is projected to increase by $450,000,000,000 with the 
        implementation of the AfCFTA and lift 30,000,000 Africans out 
        of extreme poverty while boosting the wages of African women 
        and unskilled workers in particular, according to World Bank 
        estimates.
            (2) According to the World Bank, the total intracontinental 
        exports from African countries would increase by 81 percent 
        under the AfCFTA. By economic sector, the AfCFTA is expected to 
        be especially important for expanding manufacturing, by 
        increasing intracontinental manufacturing exports by 110 
        percent, which will diversify African economies and decrease 
        the reliance of such economies upon extracting natural 
        resources.
            (3) The AfCFTA will also increase African manufacturing 
        exports to the rest of the world by 46 percent. As a result of 
        the AfCFTA creating new commercial opportunities and 
        diversifying global supply chains, the rest of the world's 
        gross domestic product is expected to increase by 
        $76,000,000,000.

SEC. 3. STATEMENT OF POLICY.

    It is the policy of the United States to--
            (1) support the African Union's Agenda 2063 efforts to 
        promote regional economic development, diversification, and 
        integration by stimulating greater trade and investment among 
        African countries and between Africa and the global trade 
        partners of Africa, notably including greater collaboration 
        with the United States;
            (2) partner with the African Union Commission, African 
        Union entities such as the African Continental Free Trade Area 
        Secretariat, regional economic communities, and other 
        intergovernmental African organizations to bolster trade and 
        investment at the regional, intracontinental, and international 
        levels;
            (3) increase opportunities for trade and investment between 
        African countries and United States businesses, including those 
        owned by members of the African diaspora, thereby contributing 
        to potential United States economic growth; and
            (4) promote the goals of the African Continental Free Trade 
        Area (AfCFTA), formed by the Agreement Establishing the African 
        Continental Free Trade Area, done at Kigali, Rwanda on March 
        21, 2018, to simplify and expedite trade and investment among 
        African countries and expand commercial opportunities for 
        underserved groups, women, and youth entrepreneurs.

SEC. 4. STRATEGY TO PROMOTE THE AFRICAN CONTINENTAL FREE TRADE AREA.

    (a) Development of Strategy.--
            (1) United states trade representative.--The President 
        shall, using existing interagency trade policy development and 
        coordination authority and mechanisms, direct the United States 
        Trade Representative to develop a 10-year Federal strategy to 
        promote the AfCFTA to achieve the following goals:
                    (A) Improving the efficacy, efficiency, and 
                coordination of development aid and technical 
                assistance from the United States focusing on trade 
                capacity building that is provided to African 
                countries, regional communities, and intergovernmental 
                or multinational entities, including to the AfCFTA 
                Secretariat.
                    (B) Implementing trade policy priorities of the 
                AfCFTA developed in coordination with continental, 
                regional, and country partners in Africa.
            (2) Elements.--The strategy developed pursuant to paragraph 
        (1) shall include policy or program plans to accomplish the 
        following:
                    (A) Increasing the volume and velocity of goods and 
                services trade between African countries by improving 
                customs operations, which may include--
                            (i) providing support for increased 
                        automation or online processing of customs and 
                        cross-border trade-related tasks; and
                            (ii) supporting efforts--
                                    (I) to ensure adequate access to 
                                reliable electrical power supplies and 
                                internet access to foster 
                                digitalization where necessary; and
                                    (II) to provide paper-based or 
                                other applicable technical alternatives 
                                at border crossings where electricity 
                                or internet access is unreliable or 
                                unavailable, including in coordination 
                                with the Power Africa initiative of the 
                                United States where applicable.
                    (B) Expanding trade capacities and supporting 
                trade-related infrastructure development, prioritizing 
                major intra-African trade corridors.
                    (C) Supporting the implementation and success of 
                the AfCFTA and its goals as identified in consultation 
                with African counterparts at the continental, regional, 
                and country level, including by--
                            (i) advancing African regional and 
                        intracontinental alignment of trade-related 
                        legal and administrative procedures;
                            (ii) strengthening the technical capacity 
                        of the AfCFTA Secretariat; and
                            (iii) promoting the development and 
                        expansion of African regional economic 
                        communities as they pertain to fostering trade, 
                        including through direct consultation and 
                        partnership with the AfCFTA Secretariat.
                    (D) Improving the efficacy of trade capacity 
                building by the United States to support the 
                implementation of the AfCFTA, as appropriate, by 
                preventing duplication of or incompatibility between 
                the assistance activities of other major donors (such 
                as nongovernmental organizations, other countries, and 
                intergovernmental organizations) and the policies and 
                projects included in the strategy.
                    (E) Enabling more effective and inclusive 
                participation of stakeholders, including those 
                representing workers, environmental sustainability, 
                women, youth, or marginalized or underrepresented 
                groups, in the negotiation and implementation of the 
                AfCFTA.
                    (F) Increasing trade and investment by the United 
                States to expand African regional value chains, 
                especially as it relates to increasing manufacturing 
                and production in Africa in industries expected to grow 
                with the implementation of the AfCFTA.
                    (G) Evaluating the industries in which the United 
                States has a comparative advantage in Africa relative 
                to other countries and promoting trade and investment 
                within those industries, especially in industries 
                expected to grow with the implementation of the AfCFTA.
            (3) Biennial updates.--The strategy required under 
        paragraph (1) shall be updated biennially.
            (4) Prior approval.--The strategy required under paragraph 
        (1) and any update to that strategy under paragraph (3) may 
        only be developed through prior consultation with, and 
        submitted with the approval of, the Trade Policy Staff 
        Committee.
            (5) Consultation.--In developing the strategy required 
        under paragraph (1) and any update to that strategy under 
        paragraph (3), the United States Trade Representative shall, as 
        appropriate and practicable, consult with--
                    (A) stakeholders in the United States and in Africa 
                from the private sector, civil society, and African 
                diaspora;
                    (B) relevant African Union entities such as the 
                AfCFTA Secretariat;
                    (C) State, local, and Tribal governments; and
                    (D) development agencies and entities of the United 
                States not represented on the Trade Policy Staff 
                Committee, such as the Prosper Africa Initiative, the 
                Millennium Challenge Corporation, and the United States 
                International Development Finance Corporation.
    (b) Initial Report.--Not later than 270 days after the date of the 
enactment of this Act, the President shall (subject to the prior 
approval required under subsection (a)(4)) submit to the relevant 
congressional committees an initial report that includes the strategy 
required under subsection (a) and an implementation plan for that 
strategy that includes each of the following:
            (1) The rationale, objectives, and anticipated manner of 
        implementation of the strategy.
            (2) The anticipated role of each agency represented in the 
        Trade Policy Staff Committee in the implementation of the 
        strategy.
            (3) A summary of the current trade capacity-building 
        programs, projects, and activities of the United States in 
        support of the AfCFTA as of the date of the submission of the 
        report, and the relationships between such programs, projects, 
        and activities and the objectives of the strategy.
            (4) Any gaps, inefficiencies, or unmet needs identified in 
        the course of preparing the summary described in paragraph (3).
            (5) Qualitative and quantitative goals and metrics for the 
        implementation of the strategy, including the criteria to be 
        used in monitoring and evaluating progress towards the 
        objectives of the strategy.
            (6) Recommendations, in consultation with the Director of 
        the Office of Management and Budget, relating to programmatic 
        or appropriations measures that could potentially enhance the 
        implementation of the strategy, including legislative or 
        executive policy changes for such enhanced implementation.
    (c) Biennial Report.--
            (1) In general.--Not later than each of 2, 4, 6, and 8 
        years after the date of the submission of the initial report 
        required by subsection (b), the President shall submit to the 
        relevant congressional committees a report containing revisions 
        and updates to the strategy required under subsection (a) and 
        an assessment of the progress made in implementing the strategy 
        as described in such initial report.
            (2) Elements.--Each report required by paragraph (1) shall 
        include each of the following:
                    (A) A description of the obligation and expenditure 
                of all amounts made available to carry out the strategy 
                required under subsection (a) during the preceding 2 
                fiscal years, disaggregated by fiscal year, account, 
                and activity.
                    (B) Notable successes and challenges relating to 
                the implementation of the strategy.
                    (C) An evaluation of the progress toward achieving 
                the qualitative and quantitative goals and metrics 
                included in the initial report required by subsection 
                (b) pursuant to paragraph (5) of that subsection.
                    (D) Any updates and revisions made to the criteria 
                described in subsection (b)(5) and included in the 
                initial report.
                    (E) Updated recommendations as described in 
                subsection (b)(6).
    (d) Final Report.--
            (1) In general.--Not later than 10 years after the date of 
        the submission of the initial report required by subsection 
        (b), the President shall submit to the relevant congressional 
        committees a report that assesses progress of the strategy 
        required by subsection (a) during the 10-year period preceding 
        the date of the report.
            (2) Elements.--The report required by paragraph (1) shall 
        include each of the following:
                    (A) An assessment of the progress made in the 
                implementation of the strategy required by subsection 
                (a) during the 10-year period preceding the date of the 
                report with respect to each of the goals described in 
                subsection (a)(1), including with respect to the 
                qualitative and quantitative goals and metrics included 
                in the initial report pursuant to subsection (b)(5) and 
                using the criteria described in such subsection (b)(5).
                    (B) An assessment of the successes, challenges, and 
                effectiveness of the strategy.
                    (C) Recommended legislative or administrative 
                policy changes relevant to addressing any gaps, policy 
                or program shortcomings, or other outstanding 
                challenges relating to the goals of the strategy, along 
                with descriptions of prospective follow-up activities 
                necessary to address those challenges.
                    (D) Recommendations relating to fostering further 
                synergies between implementation of activities, as 
                relevant and appropriate, relating to the African 
                Growth and Opportunity Act (19 U.S.C. 3701 et seq.), 
                the AfCFTA, and any other trade policy initiatives of 
                the United States towards Africa, including types of 
                activities and expected outcomes based on the 
                implementation of the strategy.
                    (E) A detailed description of the expenditure of 
                all amounts authorized to implement the strategy 
                throughout the 10-year period, including amounts 
                appropriated pursuant to the authorization under 
                section 5(c), disaggregated by fiscal year, account, 
                and activity.
    (e) Publication.--Each report required by this section shall be 
submitted in unclassified form and may include a classified annex. The 
unclassified portion of each such report shall be posted on publicly 
available websites of the Office of the United States Trade 
Representative.

SEC. 5. AFCFTA TRADE CAPACITY BUILDING PROGRAM.

    (a) Trade Capacity Building Implementation.--The Administrator of 
the United States Agency for International Development shall establish 
an AfCFTA Trade Capacity Building Program (in this section referred to 
as the ``Program'') to support the implementation of the strategy 
required by section 4(a) through existing authorities granted by the 
Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.), in 
collaboration with continental, regional, and country partners in 
Africa.
    (b) Matters To Be Included.--In carrying out the Program, the 
Administrator--
            (1) may designate the Prosper Africa Initiative to 
        administer the Program;
            (2) may support multi-year and renewable activities with 
        the Program;
            (3) shall consult with the United States Trade 
        Representative in making programmatic decisions; and
            (4) shall receive approval from the Trade Policy Staff 
        Committee for all activities for which funds are planned to be 
        made available (including any transfers to other Federal 
        departments, agencies, or entities) in a fiscal year from the 
        Program before the start of such fiscal year.
    (c) Authorization of Appropriations.--There is authorized to be 
appropriated $200,000,000 for each of fiscal years 2025 through 2034 
for the United States Agency for International Development to carry out 
the Program. Amounts so authorized--
            (1) shall be in addition to amounts otherwise authorized 
        for existing projects, programs, and activities that support 
        the goals of the Program;
            (2) may also be made available for consulting or technical 
        services, equipment, new personnel, or other project-related 
        administrative expenses associated with the development, 
        implementation, and reporting requirements of the strategy 
        required by section 4(a); and
            (3) are authorized to be transferred from the United States 
        Agency for International Development to other appropriate 
        Federal departments or agencies to the extent provided in 
        advance by appropriations Acts.

SEC. 6. RULE OF CONSTRUCTION.

    Nothing in this Act may be construed to--
            (1) limit any authority or responsibility of the United 
        States Trade Representative relating to the establishment or 
        implementation of the trade policies of the United States 
        (including under section 141 of the Trade Act of 1974 (19 
        U.S.C. 2171)); or
            (2) transfer any such authority or responsibility to the 
        Administrator of the United States Agency for International 
        Development.

SEC. 7. DEFINITIONS.

    In this Act:
            (1) AfCFTA.--The term ``AfCFTA'' means the African 
        Continental Free Trade Area authorized to be created under the 
        Agreement Establishing the African Continental Free Trade Area, 
        adopted by its African Union signatories in Kigali, Rwanda, on 
        March 21, 2018.
            (2) Relevant congressional committees.--The term ``relevant 
        congressional committees'' means the following:
                    (A) The Committee on Foreign Relations, the 
                Committee on Finance, and the Committee on 
                Appropriations of the Senate.
                    (B) The Committee on Foreign Affairs, the Committee 
                on Ways and Means, and the Committee on Appropriations 
                of the House of Representatives.
            (3) Trade policy staff committee.--The term ``Trade Policy 
        Staff Committee'' means the interagency organization 
        established under section 242(a) of the Trade Expansion Act of 
        1962 (19 U.S.C. 1872(a)).
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