[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3572 Introduced in House (IH)]
108th CONGRESS
1st Session
H. R. 3572
To amend the African Growth and Opportunity Act to expand certain trade
benefits to eligible sub-Saharan African countries, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 21, 2003
Mr. McDermott (for himself, Mr. Royce, Mr. Rangel, Mr. Jefferson, Mr.
Neal of Massachusetts, Mr. Payne, and Mr. Houghton) introduced the
following bill; which was referred to the Committee on Ways and Means,
and in addition to the Committees on International Relations, Financial
Services, and Agriculture, for a period to be subsequently determined
by the Speaker, in each case for consideration of such provisions as
fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To amend the African Growth and Opportunity Act to expand certain trade
benefits to eligible sub-Saharan African countries, 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 ``AGOA III Act''.
SEC. 2. FINDINGS.
The Congress finds that--
(1) the African Growth and Opportunity Act (in this section
referred to as ``the Act'') has helped to spur economic growth
and bolster economic reforms in the countries of sub-Saharan
Africa and has fostered stronger economic ties between the
countries of sub-Saharan Africa and the United States; as a
result, exports from the United States to sub-Saharan Africa
reached record levels after the enactment of the Act, while
exports from sub-Saharan Africa to the United States have
increased considerably;
(2) the Act's eligibility requirements have reinforced
democratic values and the rule of law, and have strengthened
adherence to core labor standards in eligible sub-Saharan
African countries;
(3) the Act's eligibility criterion on elimination of the
worst forms of child labor has supported efforts to implement
Convention 182 of the International Labor Organization,
including efforts to strengthen laws to prohibit child
trafficking;
(4) the Act has helped to bring about substantial increases
in foreign investment in sub-Saharan Africa, especially in the
textile and apparel sectors, where tens of thousands of new
jobs have been created;
(5) despite gains in fiber and fabric production, countries
in sub-Saharan Africa cannot produce enough fiber or fabric to
meet the needs of African apparel producers;
(6) as a result of the Agreement on Textiles and Apparel of
the World Trade Organization, under which quotas maintained by
WTO member countries on textile and apparel products end on
January 1, 2005, sub-Saharan Africa's textile and apparel
industry will be severely challenged by countries whose
industries are more developed and have greater capacity,
economies of scale, and better infrastructure;
(7) sustainable development and economic growth in sub-
Saharan Africa will require a healthy workforce and a diverse
economy that utilizes sub-Saharan Africa's vast agriculture and
other natural resources in a sustainable manner;
(8) trade ministers from sub-Saharan Africa have identified
two key impediments to the development of sub-Saharan Africa's
agricultural sector: an inability to compete with subsidized
agricultural products from developed countries, and
difficulties in complying with sanitary and phytosanitary
restrictions of developed countries;
(9) the underdeveloped physical and financial
infrastructure in sub-Saharan Africa continues to discourage
investment in the region;
(10) the United States-Sub-Saharan Africa Trade and
Economic Cooperation Forum, established under section 105 of
the Act, has proven to be useful in building trade and
investment ties between United States and African government
agencies, businesses, and nongovernmental organizations; and
(11) regional integration establishes a foundation on which
sub-Saharan African countries can coordinate and pursue
policies grounded in African interests and history to achieve
sustainable development.
SEC. 3. STATEMENT OF POLICY.
The Congress supports--
(1) a continued commitment to increase trade between the
United States and sub-Saharan Africa and increase investment in
sub-Saharan Africa to the benefit of workers, businesses, and
farmers in the United States and in sub-Saharan Africa,
including by developing innovative approaches to encourage
development and investment in sub-Saharan Africa;
(2) a reduction of tariff and nontariff barriers and other
obstacles to trade between the countries of sub-Saharan African
and the United States, with particular emphasis on reducing
barriers to trade in emerging sectors of the economy that have
the greatest potential for development;
(3) development of sub-Saharan Africa's physical and
financial infrastructure;
(4) international efforts to fight HIV/AIDS, malaria,
tuberculosis, other infectious diseases, and serious public
health problems;
(5) the aims of the New Partnership for African Development
(NEPAD), which include--
(A) reducing poverty and increasing economic
growth;
(B) promoting peace, democracy, security, and human
rights;
(C) promoting African integration by deepening
linkages between African countries and by accelerating
Africa's economic and political integration into the
rest of the world;
(D) attracting investment, debt relief, and
development assistance;
(E) promoting trade and economic diversification;
(F) broadening global market access for United
States and African exports;
(G) improving transparency, good governance, and
political accountability;
(H) expanding access to social services, education,
and health services with a high priority given to
addressing HIV/AIDS, malaria, tuberculosis, other
infectious diseases, and other public health problems;
(I) promoting the role of women in social and
economic development by reinforcing education and
training and by assuring their participation in
political and economic arenas; and
(J) building the capacity of governments in sub-
Saharan Africa to set and enforce a legal framework, as
well as enforcing the rule of law; and
(6) negotiation of reciprocal trade agreements between the
United States and sub-Saharan African countries, with the
overall goal of expanding trade across all of sub-Saharan
Africa.
SEC. 4. SENSE OF CONGRESS ON RECIPROCITY AND REGIONAL ECONOMIC
INTEGRATION.
It is the sense of the Congress that--
(1) the preferential market access opportunities for
eligible sub-Saharan African countries will be complemented and
enhanced if those countries are implementing actively and
fully, consistent with any remaining applicable phase-in
periods, their obligations under the World Trade Organization,
including obligations under the Agreement on Trade-Related
Aspects of Intellectual Property, the Agreement on the
Application of Sanitary and Phytosanitary Measures, and the
Agreement on Trade-Related Investment Measures, as well as the
other agreements described in section 101(d) of the Uruguay
Round Agreements Act (19 U.S.C. 3511(d));
(2) eligible sub-Saharan African countries should
participate in ongoing negotiations under the auspices of the
World Trade Organization, including by making reciprocal
commitments with respect to improving market access for
industrial and agricultural goods, and for services,
recognizing that such commitments may need to be asymmetrical
to reflect differences in development; and
(3) some of the most pernicious trade barriers against
exports by developing countries are the trade barriers
maintained by other developing countries, and, therefore,
eligible sub-Saharan African countries will benefit from the
increased regional economic integration that results from
intra-regional free trade agreements, particularly where such
agreements eliminate barriers to regional trade.
SEC. 5. DEFINITION.
In this Act, the term ``eligible sub-Saharan African country''
means an eligible sub-Saharan African country under the African Growth
and Opportunity Act.
TITLE I--TRADE BENEFITS
SEC. 101. ENHANCED BENEFITS UNDER GENERALIZED SYSTEM OF PREFERENCES.
(a) Removal of Import Sensitivity Requirement.--Section 506A(b)(1)
of the Trade Act of 1974 (19 U.S.C. 2466a(b)(1)) is amended to read as
follows:
``(1) In general.--The President shall provide duty-free
treatment for any article described in section 503(b)(1)(B)
through (G) that is the growth, product, or manufacture of a
beneficiary sub-Saharan African country described in subsection
(a).''.
(b) Termination Date.--Section 506B of the Trade Act of 1974 (19
U.S.C. 2466b) is amended by striking ``2008'' and inserting ``2020''.
SEC. 102. APPAREL TRADE BENEFITS.
(a) Products Covered.--Section 112(b) of the African Growth and
Opportunity Act (19 U.S.C. 3721(b)) is amended--
(1) by striking paragraphs (5) and (7);
(2) by redesignating paragraph (4) as paragraph (5);
(3) by redesignating paragraph (6) as paragraph (8);
(4) by striking paragraphs (1) through (3) and inserting
the following:
``(1) Apparel articles assembled in beneficiary sub-saharan
african countries.--Apparel articles sewn or otherwise
assembled in one or more beneficiary sub-Saharan African
countries for which the component that determines the
classification under the Harmonized Tariff Schedule of the
United States is--
``(A) formed from fabrics formed and cut in the
United States, from yarns formed in the United States
(including fabrics not formed from yarns, if such
fabrics are classifiable under heading 5602 or 5603 of
the Harmonized Tariff Schedule of the United States and
are formed and cut in the United States);
``(B) knit-to-shape in the United States from yarns
formed in the United States;
``(C) formed from fabrics formed in the United
States, from yarns formed in the United States
(including fabrics not formed from yarns, if such
fabrics are classifiable under heading 5602 or 5603 of
the Harmonized Tariff Schedule of the United States and
are formed in the United States) and cut in one or more
beneficiary sub-Saharan African countries;
``(D) formed from fabrics formed in one or more
beneficiary sub-Saharan African countries from yarns
originating either in the United States or in one or
more beneficiary sub-Saharan African countries
(including fabrics not formed from yarns, if such
fabrics are classifiable under heading 5602 or 5603 of
the Harmonized Tariff Schedule of the United States and
are formed in one or more beneficiary sub-Saharan
African countries), without regard to where the fabric
is cut;
``(E) knit-to-shape in one or more beneficiary sub-
Saharan African countries from yarns originating either
in the United States or one or more beneficiary sub-
Saharan African countries; or
``(F)(i) cut in the United States and one or more
beneficiary sub-Saharan African countries from fabric
formed in the United States from yarns formed in the
United States;
``(ii) knit-to-shape in the United States and one
or more beneficiary sub-Saharan African countries from
yarns formed in the United States; or
``(iii) both cut as described in clause (i) and
knit-to-shape as described in clause (ii) (including
from fabrics not formed from yarns, if such fabrics are
classifiable under heading 5602 or 5603 of the
Harmonized Tariff Schedule of the United States).
``(2) Apparel articles from nonoriginating fabric or
yarn.--Apparel articles that are both cut (or knit-to-shape)
and sewn or otherwise assembled in one or more beneficiary sub-
Saharan African countries--
``(A) from fabric or yarn which need not be
originating under General Note 12(t) of the Harmonized
Tariff Schedule of the United States for the apparel
article to qualify as originating under that Note; or
``(B) from fabric or yarn which--
``(i) is the component that determines the
classification of the articles under the
Harmonized Tariff Schedule of the United
States;
``(ii) is not commercially available; and
``(iii) which the President proclaims as
eligible for use under this paragraph without
regard to where the fabric or yarn is formed
pursuant to the procedures set forth in
paragraph (6).
``(3) Apparel articles formed on seamless knitting
machines.--Apparel articles formed on seamless knitting
machines in a beneficiary sub-Saharan African country from
yarns originating either in the United States or one or more
beneficiary sub-Saharan African countries.
``(4) Special rule for lesser developed countries.--
``(A) In general.--Subject to paragraph (7),
preferential treatment under paragraphs (1)(D), (1)(E),
and (3) shall be extended through September 30, 2008,
for apparel articles assembled in one or more lesser
developed beneficiary sub-Saharan African countries
regardless of the country of origin of the yarn or
fabric used to make such apparel articles, and
regardless of the country of origin of components (cut
or knit-to-shape) which do not determine the
classification of the apparel articles.
``(B) Lesser developed beneficiary sub-saharan
african country.--For purposes of this subparagraph,
the term `lesser developed beneficiary sub-Saharan
African country' means--
``(i) a beneficiary sub-Saharan African
country that had a per capita gross national
product of less than $1,500 a year in 1998, as
measured by the International Bank for
Reconstruction and Development;
``(ii) Botswana; and
``(iii) Namibia.'';
(5) by inserting after paragraph (5), as redesignated by
paragraph (2) of this subsection, the following:
``(6) Procedures for designating fabrics or yarns eligible
under paragraph (2)(b).--At the request of any interested party
and subject to the following requirements, the President is
authorized to proclaim fabrics or yarns as not commercially
available and thus eligible for use in the production of cut
components or knit-to-shape components described in paragraph
(2)(B) if--
``(A) the President determines that such yarns or
fabrics cannot be supplied by the domestic industry in
commercial quantities in a timely manner;
``(B) the President has obtained advice regarding
the proposed action from the appropriate advisory
committee established under section 135 of the Trade
Act of 1974 and the United States International Trade
Commission;
``(C) within 60 calendar days after the request,
the President has submitted a report to the Committee
on Ways and Means of the House of Representatives and
the Committee on Finance of the Senate that sets
forth--
``(i) the action proposed to be proclaimed
and the reasons for such action; and
``(ii) the advice obtained under
subparagraph (B);
``(D) a period of 60 calendar days, beginning with
the first day on which the President has met the
requirements of clauses (i) and (ii) of subparagraph
(C), has expired; and
``(E) the President has consulted with such
committees regarding the proposed action during the
period referred to in subparagraph (C).
``(7) Limitations on benefits on apparel articles described
in paragraphs (1)(d), (1)(e), (3), and (4).--
``(A) Paragraphs (1)(d), (1)(e), and (3).--
``(i) In general.--Preferential treatment
under paragraphs (1)(D), (1)(E), and (3) shall
be extended in the 1-year period beginning on
October 1, 2000, and in each of the 14
succeeding 1-year periods, to imports of
apparel articles in an amount not to exceed the
applicable percentage of the aggregate square
meter equivalents of all apparel articles
imported into the United States in the
preceding 12-month period for which data are
available.
``(ii) Applicable percentage.--For purposes
of this subparagraph, the term `applicable
percentage' means 3.67 percent for the 1-year
period beginning on October 1, 2002, increased
by equal increments in each succeeding 1-year
period so that for the 1-year period beginning
on October 1, 2014, the applicable percentage
does not exceed 10 percent.
``(B) Paragraph (4).--
``(i) In general.--Preferential treatment
under paragraph (4) shall be extended in the 1-
year period beginning on October 1, 2000, and
in each of the 7 succeeding 1-year periods, to
imports of apparel articles in an amount not to
exceed the applicable percentage of the
aggregate square meter equivalents of all
apparel articles imported into the United
States in the preceding 12-month period for
which data are available.
``(ii) Applicable percentage.--For purposes
of this subparagraph, the term `applicable
percentage' means 1.5 percent for the 1-year
period beginning October 1, 2000, increased in
each of the seven succeeding 1-year periods by
equal increments, so that for the 1-year period
beginning October 1, 2007, the applicable
percentage does not exceed 3.5 percent.
``(iii) Continued application of
preferential treatment.--If the President
determines, not later than September 1, 2008,
that a lesser developed beneficiary sub-Saharan
African country under paragraph (4) lacks
sufficient domestic fabric-making capacity,
taking into account the extent to which the
country has taken steps to increase such
capacity by attracting investment or otherwise,
then preferential treatment under paragraph (4)
shall be extended to imports of eligible
apparel articles under paragraph (4) that are
assembled in that country--
``(I) in the 1-year period
beginning October 1, 2008, in an amount
equal to two-thirds of the amount
permitted in the 1-year period
beginning October 1, 2007; and
``(II) in the 1-year period
beginning October 1, 2009, in an amount
equal to one-third of the amount
permitted under this paragraph in the
1-year period beginning October 1,
2007.
``(C) Surge mechanism.--
``(i) Import monitoring.--The Secretary of
Commerce shall monitor imports of articles to
which this paragraph applies on a monthly basis
to determine if there has been a surge in
imports of such articles. In order to permit
public access to preliminary international
trade data and to facilitate the early
identification of potentially disruptive import
surges, the Director of the Office of
Management and Budget may grant an exception to
the publication dates established for the
release of data on United States international
trade in covered articles, if the Director
notifies Congress of the early release of the
data.
``(ii) Determination of damage or threat
thereof.--Whenever the Secretary of Commerce
determines, based on the data described in
clause (i), or pursuant to a written request
made by an interested party, that there has
been a surge in imports of an article to which
this paragraph applies from a beneficiary sub-
Saharan African country, the Secretary shall
determine whether such article from such
country is being imported in such increased
quantities as to cause serious damage, or
threat thereof, to the domestic industry
producing a like or directly competitive
article. If the Secretary's determination is
affirmative, the President shall suspend the
duty-free treatment provided for such article
under this paragraph. If the inquiry is
initiated at the request of an interested
party, the Secretary shall make the
determination within 60 days after the date of
the request.
``(iii) Factors to consider.--In
determining whether a domestic industry has
been seriously damaged, or is threatened with
serious damage, the Secretary shall examine the
effect of the imports on relevant economic
indicators such as domestic production, sales,
market share, capacity utilization,
inventories, employment, profits, exports,
prices, and investment.
``(iv) Procedure.--
``(I) Initiation.--The Secretary of
Commerce shall initiate an inquiry
within 10 days after receiving a
written request and supporting
information for an inquiry from an
interested party. Notice of initiation
of an inquiry shall be published in the
Federal Register.
``(II) Participation by interested
parties.--The Secretary of Commerce
shall establish procedures to ensure
participation in the inquiry by
interested parties.
``(III) Notice of determination.--
The Secretary shall publish the
determination described in clause (ii)
in the Federal Register.
``(IV) Information available.--If
relevant information is not available
on the record or any party withholds
information that has been requested by
the Secretary, the Secretary shall make
the determination on the basis of the
facts available. When the Secretary
relies on information submitted in the
inquiry as facts available, the
Secretary shall, to the extent
practicable, corroborate the
information from independent sources
that are reasonably available to the
Secretary.
``(v) Interested party.--For purposes of
this subparagraph, the term `interested party'
means any producer of a like or directly
competitive article, a certified union or
recognized union or group of workers which is
representative of an industry engaged in the
manufacture, production, or sale in the United
States of a like or directly competitive
article, a trade or business association
representing producers or sellers of like or
directly competitive articles, producers
engaged in the production of essential inputs
for like or directly competitive articles, a
certified union or group of workers which is
representative of an industry engaged in the
manufacture, production, or sale of essential
inputs for the like or directly competitive
article, or a trade or business association
representing companies engaged in the
manufacture, production, or sale of such
essential inputs.''; and
(6) by striking paragraph (8), as redesignated by paragraph
(2) of this section, and inserting the following:
``(8) Handloomed, handmade, folklore articles and ethnic
printed fabrics.--
``(A) In general.--A handloomed, handmade, folklore
article or an ethnic printed fabric of a beneficiary
sub-Saharan African country or countries that is
certified as such by the competent authority of such
beneficiary country or countries. For purposes of this
section, the President, after consultation with the
beneficiary country or countries concerned, shall
determine which, if any particular textile and apparel
goods of the country (or countries) shall be treated as
being handloomed, handmade, or folklore articles or an
ethic printed fabric--
``(B) Requirements for ethnic printed fabric.--
Ethnic printed fabrics qualified under this paragraph
are--
``(i) fabrics containing a selvedge on both
edges, having a width of less than 50 inches,
classifiable under the heading 5208.52.30 or
5208.52.40 of the Harmonized Tariff Schedule of
the United States;
``(ii) of the type that contains designs,
symbols, and other characteristics of African
prints--
``(I) normally produced for and
sold on the indigenous African market;
and
``(II) normally sold in Africa by
the piece as opposed to being tailored
into garments before being sold in
indigenous African markets;
``(iii) printed, including waxed, in one or
more eligible beneficiary sub-Saharan
countries; and
``(iv) fabrics formed in the United States,
from yarns formed in the United States, or from
fabric formed in one or more beneficiary sub-
Saharan African country from yarn originating
in either the United States or one or more
beneficiary sub-Saharan African country.''.
(b) Findings and Trimmings.--Section 112(d) of the African Grown
and Opportunity Act is amended by striking
``(d) Special Rules.--'' and all that follows through
``(2) De minimis rule.--An article'' and inserting
``(d) Special Rule.--An article''.
(c) Conforming Amendment.--Section 3108 of the Trade Act of 2002
(Public Law 107-210; 116 Stat. 1038) is amended--
(1) by striking ``(a) In General.--''; and
(2) by striking subsection (b).
(d) Sense of Congress on Rules of Origin.--It is the sense of the
Congress that in negotiating free trade agreements with other
countries, the President should negotiate rules of origin for textile
and apparel products that allow the use of inputs from countries
designated under section 506A(a)(1) of the Trade Act of 1974.
TITLE II--ENHANCING TRADE IN AGRICULTURE
SEC. 201. REMOVAL OF AGRICULTURE TARIFF-RATE QUOTA LIMITATION;
AGRICULTURAL SAFEGUARD.
Section 503(b) of the Trade Act of 1974 (19 U.S.C. 2463(b)) is
amended by striking paragraph (3) and inserting the following:
``(3) Agricultural products.--
``(A) In general.--No quantity of an agricultural
product subject to a tariff-rate quota that exceeds the
in-quota amount shall be eligible for duty-free
treatment under this title, except as provided in
subparagraph (B).
``(B) Imports from countries designated under
section 506a.--Subparagraph (A) shall not apply to
over-quota imports of agricultural products subject to
a tariff-rate quota that are the growth, product, or
manufacture of a country designated as a beneficiary
sub-Saharan African country under section 506A(a)(1).
``(4) Safeguard for agricultural products.--
``(A) In general.--The President shall assess a
duty, in the amount prescribed under subparagraph (B),
on over-quota imports of any agricultural product
described in paragraph (3)(B) for which preferential
treatment is claimed, if the President determines that
the unit import price of the product when it enters the
United States, determined on an F.O.B. basis, is less
than the annual trigger price determined in accordance
with subparagraph (D).
``(B) Calculation of additional duties.--The amount
of the additional duty assessed under this subsection
shall be determined as follows:
``(i) If the difference between the unit
import price and the trigger price is less
than, or equal to, 10 percent of the trigger
price, no additional duty shall be imposed.
``(ii) If the difference between the unit
import price and the trigger price is greater
than 10 percent, but less than or equal to 40
percent, of the trigger price, the additional
duty shall be equal to 30 percent of the
difference between the preferential tariff rate
and the column 1 general rate of duty imposed
under the HTS on like articles at the time the
additional duty is imposed.
``(iii) If the difference between the unit
import price and the trigger price is greater
than 40 percent, but less than or equal to 60
percent, of the trigger price, the additional
duty shall be equal to 50 percent of the
difference between the preferential tariff rate
and the column 1 general rate of duty imposed
under the HTS on like articles at the time the
additional duty is imposed.
``(iv) If the difference between the unit
import price and the trigger price is greater
than 60 percent, but less than or equal to 75
percent, of the trigger price, the additional
duty shall be equal to 70 percent of the
difference between the preferential tariff rate
and the column 1 general rate of duty imposed
under the HTS on like articles at the time the
additional duty is imposed.
``(v) If the difference between the unit
import price and the trigger price is greater
than 75 percent of the trigger price, the
additional duty shall be equal to 100 percent
of the difference between the preferential
tariff rate and the column 1 general rate of
duty imposed under the HTS on like articles at
the time the additional duty is imposed.
``(C) Exceptions.--No additional duty under this
paragraph shall be assessed on an agricultural product
if, at the time of entry into the customs territory of
the United States, the product is subject to import
relief under chapter 1 of title II of the Trade Act of
1974 (19 U.S.C. 2251 et seq.).
``(D) Calculation of trigger price.--(i) Not later
than 60 days after the date of the enactment of the
AGOA III Act, and annually thereafter, the President
shall, in consultation with the Secretary of
Agriculture, establish the annual trigger price for
each over-quota agricultural product described in
paragraph (3)(B), and shall publish such prices in the
Federal Register. The President shall establish the
trigger price for a product at a level not below the 3-
year average import price for that product.
``(ii) Not later than 30 days before publishing the
trigger prices in the Federal Register under clause
(i), the President shall notify and consult with the
Committees on Ways and Means and Agriculture of the
House of Representatives and the Committees on Finance
and Agriculture of the Senate on the proposed trigger
prices.
``(E) Notice to country concerned.--Not later than
60 days after the President first assesses additional
duties under this paragraph on over-quota imports of
agricultural products described in paragraph (3)(B),
the President shall notify the beneficiary sub-Saharan
African country where the product was grown,
manufactured, or produced, in writing of such action
and shall provide to the country data supporting the
assessment of the additional duties.
``(F) Definitions.--In this paragraph:
``(i) F.O.B.--The term `F.O.B.' means free
on board, regardless of the mode of
transportation, at the point of direct shipment
by the seller to the buyer.
``(ii) HTS.--The term `HTS' means the
Harmonized Tariff Schedule of the United
States.
``(iii) Unit import price.--The term `unit
import price' means the price expressed in
dollars per kilogram.''.
SEC. 202. AGRICULTURAL TRADE ASSISTANCE.
Section 130 of the African Growth and Opportunity Act (19 U.S.C.
3740) is amended by adding at the end the following:
``(c) Comprehensive Plan.--The Secretary of Agriculture, based on
results of the study described in subsection (a), shall develop a
comprehensive plan to implement public sector policies and incentives
for the private sector to--
``(1) identify current United States agricultural imports
with the potential for competitive production for export in
sub-Saharan Africa;
``(2) identify current agricultural exports from sub-
Saharan Africa;
``(3) identify the primary agricultural export products
under this Act;
``(4) analyze critical constraints to United States-Africa
agricultural trade;
``(5) identify potential value-added and processed
agricultural products that can be exported from sub-Saharan
Africa to the United States under this Act;
``(6) analyze critical constraints to producing and
exporting to the United States such value-added and processed
agricultural products;
``(7) develop a strategy, with African national public and
private sectors, and regional organizations, for removing or
ameliorating the critical constraints identified;
``(8) develop a strategy for increasing investments to
diversify and add value to agricultural exports under this Act;
and
``(9) develop a strategy for increasing the tradable volume
of agricultural exports from eligible sub-Saharan African
countries.
``(d) Report.--The results of the study and details of the
comprehensive plan shall be included in the annual report to Congress
submitted under section 106.''.
SEC. 203. EXECUTIVE BRANCH INITIATIVES.
Section 122(b)(3) of the African Growth and Opportunity Act (19
U.S.C. 3732(b)(3)) is amended to read as follows:
``(3) addressing critical agricultural policy issues, in
part, by developing a comprehensive plan, which shall be
submitted to the Congress, to--
``(A) increase market liberalization;
``(B) develop agricultural exports;
``(C) increase investment in processing and
transporting commodities;
``(D) develop and increase capacity by working with
farmers and farmer groups;
``(E) increase access to vital market information,
including prices, product quality and demand, inputs
quality and costs, and customs rules and regulations,
for farmers and farmer groups and cooperatives and for
relevant government ministries; and
``(F) enable public-private partnerships in
eligible sub-Saharan African countries to promote trade
in agricultural products between the United States and
eligible sub-Saharan African countries.''.
SEC. 204. TECHNICAL ASSISTANCE.
(a) Technical Assistance by APHIS Personnel.--
(1) Assignment of personnel.--The President shall assign at
least 20 full-time personnel of the Animal and Plant Health
Inspection Service, to not less than 10 eligible sub-Saharan
African countries identified by the President as having the
greatest potential to increase marketable exports of
agricultural products to the United States and the greatest
need for technical assistance, particularly in conducting pest
risk assessments, for the purpose of providing technical
assistance to such countries to ensure that exports of any
products will meet the requirements under United States law
when imported into the United States.
(2) Authorization of appropriations.--There is authorized
to be appropriated to the United States Agency for
International Development to carry out paragraph (1)
$85,000,000 for fiscal years 2005 through 2020.
(b) Assistance to Agribusiness.--The United States Agency for
International Development is authorized to provide grants in each of
fiscal years 2005 through 2020 to governmental and nongovernmental
entities that are located in eligible sub-Saharan African countries and
can provide assistance, consultation, and equipment to agribusinesses
located in those countries in order to enable agricultural products of
those businesses to meet the requirements under United States law when
imported into the United States. Such funds may be used for grants to
national plant protection organizations for the purpose of obtaining
equipment to achieve the purposes of this subsection.
SEC. 205. THE FOREIGN AGRICULTURE SERVICE.
The Secretary of Agriculture shall direct the Foreign Agriculture
Service (FAS) to work with national African agricultural organizations
to identify agricultural equipment and supply needs and implement
programs that strengthen the ability of members of African agricultural
organizations to fulfill these needs in conjunction with export credit
guarantee programs.
TITLE III--INCREASING CERTAINTIES IN INVESTMENT
SEC. 301. DESIGNATION OF ELIGIBLE COUNTRIES.
Section 104 of the African Growth and Opportunity Act is amended by
striking subsection (b) and inserting the following:
``(b) Continuing Compliance.--If the President determines that an
eligible sub-Saharan African country no longer meets the criteria set
forth in subsection (a), including by failing to maintain the
institutions described in subparagraphs (A) through (F) of subsection
(a)(1), the President may terminate the designation of the country made
pursuant to subsection (a) if--
``(1) the President transmits to the Congress notice of the
proposed designation; and
``(2) the Congress, within 90 days after receiving such
notice, does not enact a law prohibiting such termination.''.
SEC. 302. OVERSEAS PRIVATE INVESTMENT CORPORATION.
(a) OPIC Initiatives.--Section 123(b)(4) of the African Growth and
Opportunity Act (19 U.S.C. 3733(b)(4)) is amended to read as follows:
``(4) Emphasis.--The Corporation shall ensure that the
funds are used to provide support in particular to women
entrepreneurs and to innovative investments that expand
opportunities for women and maximize employment opportunities
for poor individuals, in part by including a focus on
investments in agriculture, tourism, and nature tourism.''.
(b) Exception to Restrictions on OPIC Activities.--Section 231 of
the Foreign Assistance Act of 1961 (22 U.S.C. 2191) is amended by
adding at the end the following flush sentence: ``The prohibitions set
forth in subsections (k)(1) and (l), and the requirement set forth in
subsection (k)(2), shall not apply to any contract of insurance or
reinsurance, guaranty, or agreement to provide financing for an
eligible investor's proposed investment if the investment is in country
designated as a beneficiary sub-Saharan African country under section
506A(a)(1) of the Trade Act of 1974 (19 U.S.C. 2466a(a)(1)).''.
(c) Sense of Congress.--It is the sense of the Congress that--
(1) the Overseas Private Investment Corporation should be
commended for creating the African Millennium Fund, which will
encourage vital investments in the infrastructure of eligible
sub-Saharan African countries; and
(2) it is critically important that the Fund be fully
subscribed and disbursing funds as soon as possible.
SEC. 303. EXPORT-IMPORT BANK.
Section 2(b)(1)(B) of the Export-Import Bank Act of 1945 (12 U.S.C.
635(b)(1)(B) is amended--
(1) by inserting ``(i)'' after ``(B)''; and
(2) by adding at the end the following:
``(ii) The Bank shall implement such regulations and procedures as
may be appropriate to ensure that full consideration is given to the
extent to which any loan, guarantee, insurance, extension of credit, or
participation in an extension of credit is likely to have a positive
effect on industries, including the textile and apparel industry and
agricultural production, in countries designated as beneficiary sub-
Saharan African countries under section 506A(a)(1) of the Trade Act of
1974 (19 U.S.C. 2466a(a)(1)). To carry out the purposes of this clause,
the Bank shall work with the Administrator of the United States Agency
for International Development, the United States Trade Representative,
and the Secretary of Commerce in identifying opportunities to use the
resources of the Bank to encourage industrial and agricultural
development in such beneficiary sub-Saharan African countries.''.
SEC. 304. TAX POLICY.
(a) Development of Domestic Tax Policies To Replace Lost Trade Tax
Revenues.--
(1) Findings.--The Congress finds that--
(A) trade tax revenues remain important in many
eligible sub-Saharan African countries;
(B) studies conducted by the International Monetary
Fund show that the revenue losses a developing country
experiences due to trade liberalization can be
recovered by improving the domestic tax system in the
affected country; and
(C) technical assistance provided by the United
States to eligible sub-Saharan African countries in
fiscal or economic policy programs has focused on tax
system enhancement or development that has been helpful
in moving tax regimes away from trade-related tax
revenue toward other tax revenue sources.
(2) Sense of the congress.--It is the sense of the Congress
that--
(A) the United States Agency for International
Development, in cooperation with the United States
Department of the Treasury, the International Monetary
Fund, the International Bank for Reconstruction and
Development, and the African Development Bank, should
exercise the authorities it has to continue to provide
technical assistance to eligible sub-Saharan African
countries in the tax policy and revenue administration;
and
(B) particular focus should be given to projects
that assist such countries in developing domestic
policies and measures to replace lost trade tax
revenues resulting from trade liberalization.
(b) Double Taxation Treaties With Eligible Sub-Saharan African
Countries.--In order to encourage investment in and certainty in the
movement of capital, the Secretary of the Treasury shall seek
negotiations with those eligible sub-Saharan African countries which
the Secretary determines will benefit most from an income tax treaty
with the United States.
(c) Deduction for Cash Contributions to Global Fund To Fight HIV/
AIDS, Tuberculosis, and Malaria.--
(1) In general.--Part VI of subchapter B of chapter 1 of
the Internal Revenue Code of 1986 (relating to itemized
deductions for individuals and corporations) is amended by
adding at the end the following new section:
``SEC. 199. CASH CONTRIBUTIONS TO GLOBAL FUND TO FIGHT HIV/AIDS,
TUBERCULOSIS AND MALARIA.
``(a) Allowance of Deduction.--There shall be allowed as a
deduction an amount equal to the cash contributions made by the
taxpayer during the taxable year to the Global Fund to Fight HIV/AIDS,
Tuberculosis and Malaria.
``(b) Limitation.--The amount allowed as a deduction under
subsection (a) shall not exceed the portion of taxable income
(determined without regard to this section) directly or indirectly
attributable to active conduct of all trades and businesses of the
taxpayer during the taxable year.
``(c) Definition.--For purposes of this section, the term `eligible
sub-Saharan African country' means an eligible sub-Saharan African
country under the African Growth and Opportunity Act.
``(d) Aggregation Rule.--For purposes of this section, all persons
treated as a single employer under subsection (a) or (b) of section 52
or subsection (n) or (o) of section 414 shall be treated as one
person.''.
(2) Clerical amendment.--The table of sections for part VI
of subchapter B of chapter 1 of such Code is amended by adding
at the end the following new item:
``Sec. 199. Cash contributions to Global
Fund to fight HIV/AIDS,
Tuberculosis and Malaria.''.
(3) Effective date.--The amendments made by this subsection
shall apply to taxable years beginning after December 31, 2003.
SEC. 305. BILATERAL INVESTMENT TREATIES.
In order to encourage investment in eligible sub-Saharan African
countries and reduce the uncertainties that arise from investing in
developing countries, the United States Trade Representative shall seek
to negotiate, with interested eligible sub-Saharan African countries,
bilateral investment agreements. Any such agreement shall comply with
section 2102(b)(3) of the Trade Act of 2002 (19 U.S.C. 3802(b)(3)).
SEC. 306. DEVELOPMENT STUDY AND CAPACITY BUILDING.
(a) Reports.--The Administrator of the United States Agency for
International Development shall, by not later than 1 year after the
date of the enactment of this Act, conduct a study on each eligible
sub-Saharan African country, that--
(1) identifies sectors of the economy of that country with
the greatest potential for growth, including through export
sales;
(2) identifies barriers, both domestically and
internationally, that are impeding growth in such sectors; and
(3) makes recommendations on how the United States
Government and the private sector can provide technical
assistance to that country to assist in dismantling such
barriers and in promoting investment in such sectors.
(b) Dissemination of Information.--The President shall disseminate
information in each study conducted under subsection (a) to the
appropriate United States agencies for the purpose of implementing
recommendations on the provision of technical assistance and in
identifying opportunities for United States investors, businesses, and
farmers.
TITLE IV--BOOSTING TRADE FLOWS
SEC. 401. ACTIVITIES IN SUPPORT OF INFRASTRUCTURE TO SUPPORT INCREASING
TRADE CAPACITY AND ECOTOURISM.
(a) Findings.--The Congress finds the following:
(1) Ecotourism, which consists of--
(A) responsible and sustainable travel and
visitation to relatively undisturbed natural areas in
order to enjoy and appreciate nature (and any
accompanying cultural features, both past and present)
and animals, including species that are rare or
endangered,
(B) promotion of conservation and provision for
beneficial involvement of local populations, and
(C) visitation designed to have low negative impact
upon the environment,
is expected to expand 30 percent globally over the next decade.
(2) Ecotourism will increase trade capacity by sustaining
otherwise unsustainable infrastructure, such as road, port,
water, energy, and telecommunication development.
(3) According to the United States Department of State and
the United Nations Environment Programme, sustainable tourism,
such as ecotourism, can be an important part of the economic
development of a region, especially a region with natural and
cultural protected areas.
(4) Sub-Saharan Africa enjoys an international comparative
advantage in ecotourism because it features extensive protected
areas that host a variety of ecosystems and traditional
cultures that are major attractions for nature-oriented
tourism.
(5) National parks and reserves in sub-Saharan Africa
should be considered a basis for regional development,
involving communities living within and adjacent to them and,
given their strong international recognition, provide an
advantage in ecotourism marketing and promotion.
(6) Desert areas in sub-Saharan Africa represent complex
ecotourism attractions, showcasing natural, geological, and
archaeological features, and nomad and other cultures and
traditions.
(7) Many natural zones in sub-Saharan Africa cross the
political borders of several countries; therefore,
transboundary cooperation is fundamental for all types of
ecotourism development.
(8) The commercial viability of ecotourism is enhanced when
small and medium enterprises, particularly microenterprises,
successfully engage with the tourism industry in sub-Saharan
Africa.
(9) Adequate capacity building is an essential component of
ecotourism development if local communities are to be real
stakeholders that can sustain an equitable approach to
ecotourism management.
(10) Ecotourism needs to generate local community benefits
by utilizing sub-Saharan Africa's natural heritage, parks,
wildlife reserves, and other protected areas that can play a
significant role in encouraging local economic development by
sourcing food and other locally produced resources.
(b) Action by the President.--The President shall develop and
implement policies to--
(1) assist and encourage the development of infrastructure
projects that will help to increase trade capacity and a
sustainable ecotourism industry in eligible sub-Saharan African
countries;
(2) encourage and facilitate transboundary cooperation in
sub-Saharan African countries to establish and protect cross-
border parks and natural zones;
(3) provide technical assistance to eligible sub-Saharan
African countries to establish and sustain adequate capacity
development; and
(4) provide assistance to micro-, small-, and medium-sized
enterprises in eligible sub-Saharan African countries to
participate in the ecotourism industry.
SEC. 402. ACTIVITIES IN SUPPORT OF TRANSPORTATION, ENERGY, AGRICULTURE,
AND TELECOMMUNICATIONS INFRASTRUCTURE.
(a) Findings.--The Congress finds the following:
(1) In order to increase exports from, and trade among,
eligible sub-Saharan African countries, transportation systems
in those countries must be improved to increase transport
efficiencies and lower transport costs.
(2) Vibrant economic growth requires a developed
telecommunication and energy infrastructure.
(3) Sub-Saharan Africa is rich in exportable agricultural
goods, but development of this industry remains stymied because
of an underdeveloped infrastructure.
(b) Action by the President.--The President shall develop and
implement policies to encourage, and assist with, investment in
eligible sub-Saharan African countries in the following:
(1) Infrastructure projects that support, in particular,
development of land transport road and railroad networks and
ports, and the continued upgrading and liberalization of the
energy and telecommunications sectors.
(2) The establishment and expansion of modern information
and communication technologies and practices to improve the
ability of citizens to research and disseminate information
relating to, among other things, the economy, education, trade,
health, agriculture, the environment, and the media.
(3) Agriculture, particularly in processing and capacity
enhancement.
SEC. 403. TRANSPORTATION.
In order to increase trade flows and the efficiency of
transportation links between eligible sub-Saharan African countries and
the United States, the Administrator of the United States Agency for
International Development shall foster port-to-port and airport-to-
airport relationships. These relationships should facilitate--
(1) increased coordination between ports and airports in
the United States and such countries in order to reduce time in
transit;
(2) interaction between technical staff from ports and
airports in the United States and such countries in order to
increase efficiency and safety procedures and protocols;
(3) coordination between chambers of commerce, freight
forwarders, customs brokers, and others involved in
consolidating and moving freight; and
(4) flights between ports and airports in the United States
and such countries in order to increase frequency and capacity.
SEC. 404. AGOA FORUMS.
In order to ensure that nongovernmental organizations and the
private sector continue to host the annual meetings described in
section 105(c)(2) of the African Growth and Opportunity Act (19 U.S.C.
3704(c)(2)), the United States Trade Representative is authorized to
provide grants in each of the fiscal years 2004 through 2020, to United
States nongovernmental organizations referred to in section 105(c)(2)
of that Act and to United States representatives of the private sector
referred to in section 105(c)(2)(B) of that Act, for the purpose of
hosting such meetings.
SEC. 405. TASK FORCE.
The President shall assemble an interagency task force composed of
representatives from the Office of the United States Trade
Representative, the Department of Commerce, the Department of State,
the United States Agency for International Development, the Department
of Treasury, and the Department of Agriculture to facilitate the goals
and objectives of this Act and maintain ongoing discussions with
African trade and agriculture ministries and private sector
organizations on issues of mutual concern, including regional and
international trade concerns and World Trade Organization issues.
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