[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1900 Introduced in Senate (IS)]
1st Session
S. 1900
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 SENATE OF THE UNITED STATES
November 20, 2003
Mr. Lugar introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
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 ``United States-Africa Partnership Act
of 2003''.
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 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;
(4) 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;
(5) the underdeveloped physical and financial
infrastructure in sub-Saharan Africa continues to discourage
investment in the region; and
(6) 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.
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 ``2015''.
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 (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 classification under the Harmonized Tariff
Schedule of the United States is determined by a component
which 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 and cut 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 is not commercially
available and 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 (5).
``(3) Special rule for lesser developed countries.--
``(A) In general.--Preferential treatment under
paragraphs (1)(D) and (1)(E) 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.
``(B) Lesser developed beneficiary sub-saharan
african country.--For purposes of this paragraph, 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.'';
(2) by striking paragraph (5) and inserting the following:
``(5) 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 2155 of this title
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).'';
(3) by striking paragraph (6) and inserting the following:
``(6) 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 wholly formed in the United
States, from yarns wholly formed in the United
States, or from fabric wholly 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.''; and
(4) by striking paragraph (7) and inserting the following:
``(7) Surge mechanism.--
``(A) 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.
``(B) Determination of damage or threat thereof.--
Whenever the Secretary of Commerce determines, based on
the data described in subparagraph (A), 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.
``(C) 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.
``(D) 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 subparagraph (B) 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.''.
(b) Findings and Trimmings.--Section 112 of the African Grown and
Opportunity Act is amended--
(1) by striking subsection (d) and redesignating
subsections (e) and (f) as subsections (d) and (e),
respectively; and
(2) in subsection (e), as redesignated, by striking
``2008'' and inserting ``2015''.
(c) Conforming Amendments.--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).
TITLE II--ENHANCING TRADE IN AGRICULTURE
SEC. 201. 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 reported in the annual United States Trade
Representative African Growth and Opportunity Act Report.''.
SEC. 202. 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. 203. TECHNICAL ASSISTANCE.
(a) Evaluation.--The President and the Secretary of Agriculture
shall direct the Animal and Plant Health Inspection Service (APHIS) to
evaluate methods for training African agricultural producers and for
implementing capacity building programs to help the producers meet
United States food safety standards.
(b) APHIS Personnel.--The President shall designate 20 full-time
personnel of APHIS for technical assistance.
(1) Countries of designation.--Such personnel shall be
designated to at least 10 African Growth and Opportunity Act
eligible countries identified by the President, after
consultation with the Secretary of Agriculture and the APHIS
Administrator, as having the greatest potential to increase
marketable exports of agricultural products to the United
States and the greatest need for technical assistance.
(2) Assistance to be provided.--Such Personnel shall
provide technical training and capacity building in meeting
phytosanitary standards in planting, cultivating, harvesting,
and processing agricultural products for export, with
particular attention to institutions serving smallholder
producers, small-scale rural businesses and cooperatives; and
strengthened agricultural research and extension capacity to
disseminate relevant information on pests and diseases to
African smallholder farmers, as well as cost-efficient and
environmentally sound solutions.
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 agribusiness, electronics, textiles, and
apparel.''.
(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. 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.
SEC. 305. TAX POLICY.
(a) Sense of the Congress.--It is the sense of the Congress that
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.
(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.
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--TRANSPORTATION AND INFRASTRUCTURE
SEC. 401. ACTIVITIES IN SUPPORT OF 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, railroad networks, river
networks, and ports, and the continued upgrading and
liberalization of the energy and telecommunications sectors.
(2) Increased coordination between various transportation
sectors in the United States and such countries to reduce
transit times and freight costs.
(3) 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.
(4) Increased coordination between chambers of commerce,
businesses, freight forwarders, customs brokers, and others
involved in consolidating and moving freight.
(5) Joint negotiations between shipping companies and
transportation officials to increase the frequency and capacity
of direct shipping and flights between Africa and America.
SEC. 402. 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; and
(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.
TITLE V--CONSULTATIONS
SEC. 501. TASK FORCE.
The President shall assemble an interagency taskforce 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.
SEC. 502. 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 2015, in equal
amounts 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.
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