HR 772 IH
106th CONGRESS
1st Session
H. R. 772
To authorize a new trade, investment, and development policy for
sub-Saharan Africa that is mutually beneficial to the majority of people in
sub-Saharan Africa and the United States.
IN THE HOUSE OF REPRESENTATIVES
February 23, 1999
Mr. JACKSON of Illinois (for himself, Mr. BONIOR, Mr. CLYBURN, Mr. GEORGE
MILLER of California, Ms. MCKINNEY, Ms. LEE, Mr. CONYERS, Mr. CUMMINGS, Mr.
KUCINICH, Mr. THOMPSON of Mississippi, Mr. BROWN of Ohio, Ms. SCHAKOWSKY, Mr.
CLAY, Ms. JACKSON-LEE of Texas, Ms. KILPATRICK, Mr. SANDERS, Mr. CAPUANO, Mr.
MCGOVERN, Mr. BRADY of Pennsylvania, Mr. OLVER, Mr. PALLONE, Mr. BROWN of
California, Mr. PASCRELL, Mr. BALDACCI, Mrs. JONES of Ohio, Mr. STARK, Mr.
DELAHUNT, Mr. EVANS, Mr. HASTINGS of Florida, Mr. STUPAK, and Mr. KLINK)
introduced the following bill; which was referred to the Committee on
International Relations, and in addition to the Committees on Banking and
Financial Services, and Ways and Means, 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 authorize a new trade, investment, and development policy for
sub-Saharan Africa that is mutually beneficial to the majority of people in
sub-Saharan Africa and the United States.
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 `Human Rights, Opportunity, Partnership, and
Empowerment for Africa Act' or the `HOPE for Africa Act'.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 2. Table of contents.
Sec. 4. Declarations of policy.
TITLE I--CANCELLATION OF DEBT OWED BY SUB-SAHARAN AFRICAN COUNTRIES
Sec. 101. Declarations of policy.
Sec. 102. Cancellation of debt owed to the United States Government by
sub-Saharan African countries.
Sec. 103. Advocacy of cancellation of debt owed to foreign governments
by sub-Saharan African countries.
Sec. 104. Advocacy of cancellation of debt owed to the International
Monetary Fund and the International Bank for Reconstruction and Development
by sub-Saharan African countries.
Sec. 105. Cancellation of debt owed to United States lenders by
sub-Saharan African countries.
Sec. 106. Study on repayment of debt in local currencies by sub-Saharan
African countries.
Sec. 107. Allocation of percentage of national budgets of sub-Saharan
African countries for basic services.
Sec. 108. Sense of the Congress relating to level of interim debt
payments prior to full debt cancellation by sub-Saharan African
countries.
TITLE II--TRADE PROVISIONS RELATING TO SUB-SAHARAN AFRICA
Sec. 201. Encouraging mutually beneficial trade and investment.
Sec. 202. Generalized system of preferences.
Sec. 203. Additional enforcement.
TITLE III--DEVELOPMENT ASSISTANCE FOR SUB-SAHARAN AFRICAN COUNTRIES
Sec. 302. Private and voluntary organizations.
Sec. 303. Types of assistance.
Sec. 304. Critical sectoral priorities.
Sec. 305. Minimum levels of assistance for certain critical
sectors.
Sec. 306. Reporting requirements.
Sec. 307. Authorization of appropriations for Development Fund for
Africa.
TITLE IV--SUB-SAHARAN AFRICA EQUITY AND INFRASTRUCTURE FUNDS
Sec. 401. Sub-Saharan Africa equity and infrastructure funds.
TITLE V--OVERSEAS PRIVATE INVESTMENT CORPORATION AND EXPORT-IMPORT BANK
INITIATIVES
Sec. 501. Overseas Private Investment Corporation initiatives.
Sec. 502. Export-Import Bank initiative.
TITLE VI--MISCELLANEOUS PROVISIONS
Sec. 601. Requirements relating to sub-Saharan Africa intellectual
property and competition law.
Sec. 602. Review and reporting requirements.
Sec. 603. Sub-Saharan Africa defined.
SEC. 3. FINDINGS.
The Congress finds the following:
(1) It is in the mutual interest of the United States and the countries
of sub-Saharan Africa to promote broad-based economic development and
equitable trade and investment policies in sub-Sahara Africa.
(2) The countries of sub-Saharan Africa form a region of tremendous
human creativity, vast natural and cultural wealth, enormous economic
potential, and enduring political significance.
(3) Many sub-Saharan African countries have made notable progress toward
democratization in recent years.
(4) Despite this enormous potential, Africa has the largest number of
the poorest countries in the world. Thirty-three of the 41 highly indebted
poor countries (HIPC) are located in sub-Saharan Africa. Indeed, 50 percent
of Africans live below the poverty line, and 40 percent live on less than $1
per day. In addition, 40 percent of Africans suffer from malnutrition and
hunger, while 1 in 5 children in Africa die before the age of 5.
(5)(A) Africa is the only continent where economic production per person
has declined throughout the last two decades.
(B) The per capita income for sub-Saharan Africa averages less than $500
annually and per capita income fell from $752 in 1980, when the neo-liberal
development model was initially imposed on numerous African countries, to
$613 in 1988 (in constant 1980 United States dollars).
(C) According to the International Bank for Reconstruction and
Development, in sub-Saharan Africa wages have not grown since 1970 and in
the last decade alone family incomes have fallen by a third and the number
of African families unable to meet their basic needs has doubled.
(D) In 1996, 20 sub-Saharan African countries were still below their per
capita incomes of 20 years ago.
(6) African women, the region's chief food producers, are often excluded
from the benefits of current trade and investment regimes.
(7) Africa's wealth in natural resources, oil, and minerals is immense.
However, current development and economic models have denied the majority of
African people any benefits from this vast wealth.
(8) A plan for sustainable, equitable development for, and trade with,
Africa must recognize the asymmetries of power and different levels of
development that exist between countries. Certain fundamental pre-existing
hindrances to African development and trade must be addressed.
(9) Sub-Saharan Africa, especially the poorest people of sub-Saharan
Africa, are inordinately burdened by a $230,000,000,000 debt whose service
requirements now take over 20 percent of the export earnings of the
sub-Saharan African region, excluding South Africa.
(10) The bilateral and multilateral debt burdens of sub-Saharan Africa
constitute a serious impediment to private-sector development, stable
democratic political structures, broad-based economic growth, poverty
eradication, the expansion of small and women-owned businesses, food
security, agricultural development aimed at feeding the continent's people,
environmental sustainability, and regional integration.
(11)(A) Any policy for development in Africa that is intended to benefit
Africa must be premised on unconditional debt cancellation.
(B) The history of United States cancellation of debt includes reversal
of the United States demand that Germany pay 10 percent of its post-World
War II export earnings to recover debts owed prior to the war.
(C) Germany successfully negotiated for a rate which resulted in annual
payments of less than 3.5 percent of export earnings.
(D) Currently Mozambique, one of the world's poorest countries, pays
over 20 percent of export earnings in debt service.
(11)(A) The International Monetary Fund, the International Bank for
Reconstruction and Development, and other international financial
institutions and aid agencies have required African nations to adhere to
`structural adjustment programs' which have imposed enormous preventable
suffering on African people.
(B) These programs orient economies toward export production, placing
downward pressure on wages, encouraging unsustainable resource exploitation,
and undermining food security.
(C) These programs lead to major reductions in government spending,
including in the crucial areas of education, healthcare, and environmental
protection, and they particularly harm women, who are most severely hurt by
the elimination of the social safety net and the policy's neglect of small
and domestically oriented farmers.
(D) The programs impose a deregulatory and trade liberalization agenda
that removes crucial government protections for society and leaves local
business vulnerable to foreign multinational corporations. They also
encourage wage cuts, including reductions in the minimum wage, weakening of
labor laws and labor rights, and government and private sector reductions in
employment.
(E) Structural adjustment programs force recessionary policies that most
seriously victimize the poor, and these programs tend to exacerbate income
and wealth inequalities and undermine basic well-being, as measured by
access to food, shelter, medical services, and a sustainable livelihood,
even when traditional economic indicators show economic growth.
(12) The recent turmoil in the global economy has demonstrated the
limitations of the International Monetary Fund model of trade and capital
liberalization.
(13) The United Nations Declaration of Human Rights guarantees the right
to food, shelter, health care, education, and a sustainable livelihood, as
well as rights to political freedoms. United States policy toward Africa
must further these goals for the majority of people in sub-Saharan African
and the United States.
(14)(A) Many economic and `development' policies imposed on sub-Saharan
Africa under International Monetary Fund programs and other international
loan programs are focused on generating hard currency through exports to
service foreign debt rather than on production for domestic African food and
other needs.
(B) Net transfer of resources from sub-Saharan Africa to developed
countries has increased substantially for almost every sub-Saharan African
nation.
(C) Two prominent examples are Zambia, whose debt service ratio was 25.3
in 1980 and 174.44 in 1995--a 600 percent increase--and Sierra Leone, whose
debt service nearly tripled from 1980 to 1995.
(15) Certain industrial agriculture practices imposed on sub-Saharan
Africa under International Monetary Fund programs and other international
loan programs, including substitution of export crops for staple food
production, use of chemical fertilizers, hybrid seeds and other products,
have resulted in damage to local farmers and agriculture and loss of food
security.
(16)(A) Current large scale `development' projects have not been
designed in a manner that produces benefits to most Africans.
(B) For instance, oil and mining projects such as Sierra Rutile and
Terebebe have not benefited most Africans economically and have caused
severe environmental damage and led to conflicts with local
communities.
(C) More projects of this sort are now under consideration, such as the
International Bank for Reconstruction and Development's pending May 1999
decision on a $3,000,000,000 request for a Chad-Cameroon oil pipeline that
has been harshly criticized on social and environmental grounds.
(17) Many sub-Saharan African countries are suffering from epidemics of
HIV/AIDS, tuberculosis, malaria and other diseases, many of which are
treatable or preventable with existing pharmaceutical and medical
treatments.
(18)(A) The key principles that must guide any United States economic
policy toward sub-Saharan Africa are those repeatedly identified by African
governments.
(B) Documents providing a concrete guide to these sub-Saharan African
priorities include the `Lagos Plan' developed by the finance ministers of
the sub-Saharan African countries in coordination with the Organization for
African Unity.
(C) The overriding priority expressed in such African policies is
freedom for each African country to self-determine what economic policies
suit the needs of their people and development.
(D) The priority goals these policies are aimed to meet are food
self-sufficiency and security, and broad access to potable water, shelter,
primary health care, education, and affordable transport.
(19) Fair trade and mutually beneficial investment can be important
tools for broad-based economic development.
(20)(A) Global production utilizing free trade among developed countries
that have a common economic and social system often carries significant
benefits--an expansion of demand, employment, productivity, and a general
increase in living standards.
(B) However, global production utilizing free trade between developed
and underdeveloped countries that have different economic and social systems
and standards appears to produce significantly different results--a general
reduction of wages and demand resulting in over-production and
under-consumption, a reduction in worker rights and safety, fewer
environmental protections and social welfare mandates, and a transfer of
income and wealth from underdeveloped countries to the wealthy in developed
countries--thus increasing income and wealth disparities both within
developed countries and between developed and underdeveloped countries and a
general lowering of living standards in developed countries.
(C) Therefore, mutually beneficial trade arrangements among countries
with significantly different levels of development will require a more
comprehensive approach that combines trade opportunities with other
necessary policies that raise living standards rather than lower them.
SEC. 4. DECLARATIONS OF POLICY.
The Congress makes the following declarations:
(1)(A) The worth of economic development of a country is measured only
by the well-being of the people of the country.
(B) A program of adjustment or development that causes a deterioration
in conditions for most people is a failure that must be remedied.
(2) Economic relations between sub-Saharan Africa and the United States
must be oriented toward benefiting the majority of the people of sub-Saharan
Africa and of the United States.
(3) The Congress endorses the goals stated in the Lagos Plan developed
by sub-Saharan African Finance Ministers in cooperation with the
Organization for African Unity.
(4) In accordance with the goals of the Lagos Plan, the primary goals of
the United States with respect to developing new economic relations with
sub-Saharan Africa include the following:
(A) Strengthening and diversifying the economic production capacity of
sub-Saharan Africa.
(B) Improving the level of people's incomes and the pattern of
distribution in sub-Saharan Africa.
(C) Adjusting the pattern of public expenditures to satisfy people's
essential needs in sub-Saharan Africa.
(D) Providing institutional support for transition to functioning
market economies in sub-Saharan Africa through debt relief.
(E) Supporting environmentally sustainable development in sub-Saharan
Africa.
(F) Promoting democracy, human rights, and the strength of civil
society in sub-Saharan Africa.
(5) To achieve these primary goals of the United States with respect to
developing new economic relations with sub-Saharan Africa, the Congress
calls for the following:
(A)(i) Full and unconditional cancellation of all debts owed by
sub-Saharan African countries to the United States, to other foreign
countries, to the International Monetary Fund and the International Bank
for Reconstruction and Development.
(ii) Prior to this full and unconditional cancellation of debt owed by
sub-Saharan African countries, each sub-Saharan African country shall not,
in making debt payments described in subclause (i), pay in any calendar
year an aggregate amount greater than an amount equal to 5 percent of the
export earnings of the country for the prior calendar year.
(B) Encouraging sub-Saharan African countries to adhere to their
United Nations 20/20 Initiative commitment to support investment in human
development by directing at least 20 percent of savings from debt
cancellation to basic social services, with appropriate input from civil
society in developing basic service plans as called for in the 20/20
Initiative.
(C) Targeting United States assistance and trade initiatives so as to
encourage local processing of raw materials, using environmentally
protective techniques rather than seeking export of raw commodities for
processing in other countries, will increase sub-Saharan African
employment, create an industrial base, and encourage sustainable rates of
resource extraction.
(D) Targeting United States assistance and trade opportunities to
sub-Saharan African nations that allocate the levels recommended in the
Lagos Plan--25 percent to food production and security and 30 percent to
health, education and other vital social services will increase the equity
and sustainability of development.
(E) United States representatives at all multilateral banks and other
international economic institutions should vote for and otherwise support
these policies and others aimed at solutions that do not contribute to
exacerbating social and environmental ills.
(F) United States corporations and foreign corporations operating in
sub-Saharan Africa and doing business with the United States must operate
under the same core environmental standards as those used in the
operations and facilities of those corporations in the United States or
other developed countries.
(G) United States policy toward sub-Saharan Africa provides an
opportunity to redress issues of racial inequities in the United States.
United States economic policy toward sub-Saharan Africa must provide
African Americans with the opportunities and potential benefits of new
economic relations between the United States and Africa.
(6) It is the policy of the United States Government to assist
sub-Saharan African countries in efforts to make safe and efficacious
pharmaceuticals and medical technologies as widely available as
possible.
TITLE I--CANCELLATION OF DEBT OWED BY SUB-SAHARAN AFRICAN
COUNTRIES
SEC. 101. DECLARATIONS OF POLICY.
The Congress makes the following declarations:
(1)(A) For the majority of people in sub-Saharan Africa to be able to
benefit from new trade, investment, and other economic opportunities
provided by this Act, and amendments made by this Act, the pre-existing
burden of external debt of sub-Saharan African countries must be
eliminated.
(B) This fresh start will allow operation of local credit markets and
eliminate distortions currently hindering development in sub-Saharan
Africa.
(2) The cancellation of debt provisions contained in this title, and
amendments made by this title, shall serve to help establish a more level
playing field on which sub-Saharan African countries may move forward under
the provisions of this Act.
SEC. 102. CANCELLATION OF DEBT OWED TO THE UNITED STATES GOVERNMENT BY
SUB-SAHARAN AFRICAN COUNTRIES.
The Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.) is amended by
adding at the end the following:
`PART VI--CANCELLATION OF DEBT OWED TO THE UNITED STATES BY SUB-SAHARAN
AFRICAN COUNTRIES.
`SEC. 901. CANCELLATION OF DEBT.
`(a) IN GENERAL- The President shall cancel all amounts owed to the United
States (or any agency of the United States) by sub-Saharan African countries
defined in section 603 of the Human Rights, Opportunity, Partnership, and
Empowerment for Africa Act as a result of--
`(1) concessional loans made or credits extended under any provision of
law, including the provisions of law described in subsection (b)(1);
and
`(2) nonconcessional loans made, guarantees issued, or credits extended
under any of provisions of law, including the provisions of law described in
subsection (b)(2).
`(1) CONCESSIONAL PROVISIONS OF LAW- The provisions of law described in
this paragraph are the following:
`(A) Part I of this Act, chapter 4 of part II of this Act, or
predecessor foreign economic assistance legislation.
`(B) Title I of the Agricultural Trade Development and Assistance Act
of 1954 (7 U.S.C. 1701 et seq.).
`(2) NONCONCESSIONAL PROVISIONS OF LAW- The provisions of law described
in this paragraph are the following:
`(A) Sections 221 and 222 of this Act.
`(B) The Arms Export Control Act (22 U.S.C. 2751 et seq.).
`(C) Section 5(f) of the Commodity Credit Corporation Charter
Act.
`(D)(i) Section 201 of the Agricultural Trade Act of 1978 (7 U.S.C.
5621).
`(ii) Section 202 of such Act (7 U.S.C. 5622).
`(E) The Export-Import Bank Act of 1945 (12 U.S.C. 635 et
seq.).
`(c) TERMINATION OF AUTHORITY- The authority to cancel debt under this
section shall terminate on September 30, 2002.
`SEC. 902. ADDITIONAL REQUIREMENTS.
`(a) REDUCTION OF DEBT NOT CONSIDERED TO BE ASSISTANCE- A reduction of
debt under section 901 shall not be considered to be assistance for purposes
of any provision of law limiting assistance to a country.
`(b) INAPPLICABILITY OF CERTAIN PROHIBITIONS RELATING TO REDUCTION OF
DEBT- The authority to provide for reduction of debt under section 901 may be
exercised notwithstanding section 620(r) of this Act.
`SEC. 903. REPORTS TO THE CONGRESS.
`(a) IN GENERAL- Not later than December 31, 1999, and December 31 of each
of the next 3 years, the President shall prepare and transmit to the
appropriate congressional committees an annual report concerning the
cancellation of debt under section 901 for the prior fiscal year.
`(b) DEFINITION- In this section, the term `appropriate congressional
committees' means--
`(1) the Committee on Banking and Financial Services and the Committee
on International Relations of the House of Representatives; and
`(2) the Committee on Foreign Relations of the Senate.
`SEC. 904. AUTHORIZATION OF APPROPRIATIONS.
`For the cost (as defined in section 502(5) of the Federal Credit Reform
Act of 1990) for the cancellation of debt under section 901, there are
authorized to be appropriated to the President such sums as may be necessary
for each of the fiscal years 2000 through 2002.'.
SEC. 103. ADVOCACY OF CANCELLATION OF DEBT OWED TO FOREIGN GOVERNMENTS BY
SUB-SAHARAN AFRICAN COUNTRIES.
(a) ADVOCACY OF CANCELLATION OF DEBT- The Secretary of State shall provide
written notification to each foreign government that has provided loans,
guarantees, or credits to the government of a sub-Saharan African country (and
such loans, guarantees, or credits are outstanding) that it is the policy of
the United States to fully and unconditionally cancel all debts owed by each
such sub-Saharan African country to the United States. In addition, the
Secretary shall urge in writing each such foreign government to follow the
example of the United States and fully and unconditionally cancel all debts
owed by sub-Saharan African countries to each such foreign government.
(b) REPORT- Not later than 9 months after the date of the enactment of
this Act, the Secretary of State shall prepare and submit to the Congress a
report containing--
(1) a description of each written notification provided to foreign
governments under the first sentence of subsection (a);
(2) a description of the response of each such foreign government to
such notification; and
(3) a description of the amount (if any) owed to the United States by
any foreign government opposing the United States policy advocated pursuant
to subsection (a).
SEC. 104. ADVOCACY OF CANCELLATION OF DEBT OWED TO THE INTERNATIONAL
MONETARY FUND AND THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT BY
SUB-SAHARAN AFRICAN COUNTRIES.
Title XVI of the International Financial Institutions Act (22 U.S.C.
262c-262p-5) is amended by redesignating section 1622 as section 1623 and by
inserting after section 1621 the following:
`SEC. 1622. ADVOCACY OF CANCELLATION OF DEBT OWED TO THE INTERNATIONAL
MONETARY FUND AND THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT BY
SUB-SAHARAN AFRICAN COUNTRIES.
`(a) IN GENERAL- The Secretary of Treasury shall instruct the United
States Executive Directors at the International Monetary Fund and the
International Bank for Reconstruction and Development to use the voice, vote,
and influence of the United States to advocate that their respective
institutions--
`(1) fully and unconditionally cancel all debts owed by any country in
sub-Saharan Africa (as defined in section 603 of the Human Rights,
Opportunity, Partnership, and Empowerment for Africa Act) to such
institution; and
`(2) encourage each country benefiting from such debt cancellation to
allocate 20 percent of the national budget of the country, including savings
from such debt cancellation, to basic services, as the country has committed
to do under the United Nations 20/20 Initiative, with appropriate input from
civil society in developing basic service plans.
`(b) ADVOCACY OF POLICY TO PREVENT SUB-SAHARAN AFRICAN COUNTRIES FROM
PAYING MORE THAN 5 PERCENT OF ANNUAL EXPORT EARNINGS FOR DEBT SERVICE ON IMF
OR WORLD BANK LOANS- The Secretary of Treasury shall instruct the United
States Executive Directors at the International Monetary Fund and the
International Bank for Reconstruction and Development, until their respective
institutions have fully and unconditionally canceled all debts owed to such
institutions by any country in sub-Saharan Africa (within the meaning of
subsection (a)(1)) to use the voice, vote, and influence of the United States
to advocate that their respective institutions not be party to, and that no
future loan from their respective institutions be used to finance in whole or
part the implementation of, any agreement which requires the government of any
such country, during any 12-month period beginning on the date of the
enactment of this section or any anniversary of such date, to pay an amount
exceeding 5 percent of the annual export earnings of the country during the
year toward the servicing of foreign loans.
`(c) ADVOCACY METHODS- The Secretary of Treasury shall instruct the United
States Executive Directors at the International Monetary Fund and the
International Bank for Reconstruction and Development to carry out such
instructions by all appropriate means, including by letter to the country
representative members governing bodies of their respective institutions, and
by requesting formal votes on these matters.
`(d) REPORT- Within 1 year after the date of the enactment of this
section, the Secretary of the Treasury shall submit to the Committees on
International Relations and on Banking and Financial Services of the House of
Representatives and the Committees on Foreign Relations of the Senate a report
that contains--
`(1) a description of the response by foreign governments to the
policies advocated pursuant to this section;
`(2) the result of any votes taken pursuant to requests made under
subsection (c);
`(3) the amount (if any) owed to the United States by any country
opposing any such policy; and
`(4) a copy of the letter referred to in subsection (c).'.
SEC. 105. CANCELLATION OF DEBT OWED TO UNITED STATES LENDERS BY SUB-SAHARAN
AFRICAN COUNTRIES.
(a) REPORT- Not later than January 1, 2000, the Secretary of the Treasury
shall submit to the Congress a report on the amount of debt owed to any United
States person by any country in sub-Saharan Africa. The report shall specify
the amount owed to each such person by each such country, the face value and
market value of the debt, and the amount of interest paid to date on the
debt.
(b) ACQUISITION OF THE DEBT BY THE UNITED STATES- Not later than September
1, 2000, the Secretary of the Treasury shall acquire each debt obligation owed
to any United States person by any country in sub-Saharan Africa. It is the
sense of the Congress that the price at which such an obligation is acquired
should be the market value of the debt obligation as of January 1, 1999.
(c) DEBT CANCELLATION- On the acquisition of a debt obligation pursuant to
this section, the debt obligation is hereby canceled.
SEC. 106. STUDY ON REPAYMENT OF DEBT IN LOCAL CURRENCIES BY SUB-SAHARAN
AFRICAN COUNTRIES.
Section 603 of the Foreign Operations, Export Financing, and Related
Programs Appropriations Act, 1999 (as contained in section 101(d) of division
A of the Omnibus Consolidated and Emergency Supplemental Appropriations Act,
1999) is amended--
(A) by striking `and' at the end of paragraph (3);
(B) by redesignating paragraph (4) as paragraph (5); and
(C) by inserting after paragraph (3) the following:
`(4) the viability and desirability of having each indebted country in
sub-Saharan Africa (as defined in section 603 of the Human Rights,
Opportunity, Partnership, and Empowerment for Africa Act) repay foreign
loans made to the country (whether made bilaterally, multilaterally, or
privately) in the currency of the indebted country; and'; and
(2) in subsection (g), by adding at the end the following:
`(6) The matters described in subsection (e)(4).'.
SEC. 107. ALLOCATION OF PERCENTAGE OF NATIONAL BUDGETS OF SUB-SAHARAN
AFRICAN COUNTRIES FOR BASIC SERVICES.
The Secretary of State shall encourage the government of each sub-Saharan
African country to allocate 20 percent of its national budget, including the
savings from the cancellation of debt owed by the country to the United States
(pursuant to part VI of the Foreign Assistance Act of 1961, as added by
section 102 of this Act), to other foreign countries (as called for in section
103 of this Act), to the International Monetary Fund and the International
Bank for Reconstruction and Development (as called for in section 1622 of the
International Financial Institutions Act, as added by section 104 of this
Act), and to United States persons (as called for in section 105 of this Act),
for the provision of basic services to individuals in each such country, as
provided for in the United Nations 20/20 Initiative. In providing such basic
services, each such government should seek input from appropriate
nongovernmental organizations.
SEC. 108. SENSE OF THE CONGRESS RELATING TO LEVEL OF INTERIM DEBT PAYMENTS
PRIOR TO FULL DEBT CANCELLATION BY SUB-SAHARAN AFRICAN COUNTRIES.
It is the sense of the Congress that, prior to the full and unconditional
cancellation of all debts owed by sub-Saharan African countries to the United
States (pursuant to part VI of the Foreign Assistance Act of 1961, as added by
section 102 of this Act), to other foreign countries (as called for in section
103 of this Act), and to United States persons (as called for in section 105
of this Act), each sub-Saharan African country should not, in making debt
payments described in the prior provisions of law, pay in any calendar year an
aggregate amount greater than an amount equal to 5 percent of the export
earnings of the country for the prior calendar year.
TITLE II--TRADE PROVISIONS RELATING TO SUB-SAHARAN AFRICA
SEC. 201. ENCOURAGING MUTUALLY BENEFICIAL TRADE AND INVESTMENT.
(a) FINDINGS- The Congress makes the following findings:
(1) A mutually beneficial United States-Sub-Saharan Africa trade policy
will grant new access to the United States market for a broad range of goods
produced in Africa, by Africans, and include safeguards to ensure that the
corporations manufacturing these goods respect the rights of their employees
and the local environment. Such trade opportunities will promote equitable
economic development and thus increase demand in African countries for
United States goods and service exports.
(2) Recognizing that the global system of textile and apparel quotas
under the MultiFiber Arrangement will be phased out under the Uruguay Round
Agreements over the next 5 years with the total termination of the quota
system in 2005, the grant of additional access to the United States market
in these sectors is a short-lived benefit. Indeed, exclusive focus on this
sector may create incentives for investment in Africa in a sector that will
become uncompetitive for Africa when the quota system terminates and Chinese
textile and apparel production predominates world markets.
(1) KENYA AND MAURITIUS- Pursuant to the Agreement on Textiles and
Clothing, the United States shall eliminate the existing quotas on textile
and apparel exports to the United States from Kenya and Mauritius,
respectively, not later than 30 days after each country demonstrates the
following:
(A) The country does not engage in significant violations of
internationally recognized human rights.
(B)(i) The country is providing for effective enforcement of
internationally recognized worker rights throughout the country (including
in export processing zones) as determined under paragraph (5), including
the core labor standards enumerated in the appropriate treaties of the
International Labor Organization, including--
(I) the right of association;
(II) the right to organize and bargain collectively;
(III) a prohibition on the use of any form of coerced or compulsory
labor;
(IV) the international minimum age for the employment of children
(age 15); and
(V) acceptable conditions of work with respect to minimum wages,
hours of work, and occupational safety and health.
(ii) The government of the country ensures that the Secretary of
Labor, the head of the national labor agency of the government of that
country, and the head of the International Confederation of Free Trade
Unions-Africa Region Office (ICFTU-AFRO) each has access to all
appropriate records and other information of all business enterprises in
the country.
(C) The country is taking adequate measures to prevent illegal
transshipment of goods that is carried out by rerouting, false declaration
concerning country of origin or place of origin, falsification of official
documents, evasion of United States rules of origin for textile and
apparel goods, or any other means, in accordance with the requirements of
subsection (d).
(D) The cost or value of the textile or apparel product produced in
the country, or any 2 or more sub-Saharan African countries, plus the
direct costs of processing operations performed in the country or such
countries, is not less than 60 percent of the appraised value of the
product at the time it is entered into the customs territory of the United
States.
(E) Not less than 90 percent of employees in business enterprises
producing the textile and apparel goods are citizens of that country, or
any 2 or more sub-Saharan African countries.
(F) The country is taking adequate measures to prevent being used as a
transit point for the shipment of goods in violation of the Agreement on
Textiles and Clothing or any other applicable textile agreement.
(2) OTHER SUB-SAHARAN COUNTRIES- The President shall continue the
existing no quota policy for each other country in sub-Saharan Africa if the
country is in compliance with the requirements applicable to Kenya and
Mauritius under subparagraphs (A) through (F) of paragraph (1).
(3) TECHNICAL ASSISTANCE- The Customs Service shall provide the
necessary technical assistance to sub-Saharan African countries in the
development and implementation of adequate measures against the illegal
transshipment of goods.
(4) OFFSETTING REDUCTION OF CHINESE QUOTA- When the quota for either
Kenya or Mauritius is first eliminated, the quota for textile and apparel
products from the People's Republic of China for each calendar year in each
product category shall be reduced by the amount equal to the volume of
imports of all textile and apparel products in that product category from
all sub-Saharan African countries into the United States in the preceding
calendar year, plus 5 percent of that amount.
(5) DETERMINATION OF COMPLIANCE WITH INTERNATIONALLY RECOGNIZED WORKER
RIGHTS-
(i) IN GENERAL- For purposes of carrying out paragraph (1)(B), the
Secretary of Labor, in consultation with the individuals described in
clause (ii), shall determine whether or not each sub-Saharan African
country is providing for effective enforcement of internationally
recognized worker rights throughout the country (including in export
processing zones) under such paragraph.
(ii) INDIVIDUALS DESCRIBED- The individuals described in this clause
are the head of the national labor agency of the government of the
sub-Saharan African country in question and the head of the
International Confederation of Free Trade Unions-Africa Region Office
(ICFTU-AFRO).
(B) CONTINUING COMPLIANCE- In the case of a country for which the
Secretary of Labor has made an initial determination under subparagraph
(A) that the country is in compliance with the requirements of paragraph
(1)(B), the Secretary, in consultation with the individuals described in
subparagraph (A), shall, not less than once every 3 years thereafter,
conduct a review and make a determination with respect to that country to
ensure continuing compliance with the requirements of paragraph
(1)(B).
(C) REPORT- Not later than 6 months after the date of the enactment of
this Act, and
on an annual basis thereafter, the Secretary of Labor shall prepare and
submit to the Congress a report containing--
(i) a description of each determination made under this paragraph
during the preceding year; and
(ii) a description of the position taken by each of the individuals
described in subparagraph (A)(ii) with respect to each such
determination.
(6) REPORT- The President shall publish in the Federal Register and
submit to the Congress, not later than March 31 of each year, a report on
the growth in textiles and apparel exports to the United States from
countries in sub-Saharan Africa in order to inform United States consumers,
workers, and textile manufacturers about the effects of the no quota
policy.
(c) TREATMENT OF TARIFFS- The President shall provide an additional
benefit of a 50 percent tariff reduction for any textile and apparel product
of a sub-Saharan African country that meets the requirements of subparagraphs
(A) through (F) of subsection (b)(1) and (d) and that is imported directly
into the United States from such sub-Saharan African country if the business
enterprise, or a subcontractor of the enterprise, producing the product is in
compliance with the following:
(1) Citizens of 1 or more sub-Saharan African countries own not less
than 51 percent of such business enterprise.
(2) If the business enterprise involves a joint-venture arrangement
with, or related to as a subsidiary, trust, or subcontractor, a business
enterprise organized under the laws of the United States, the European
Union, Japan, or any other developed country (or group of developed
countries), or operating in such countries, the business enterprise shall
comply with the environmental standards that would apply to a similar
operation in the United States, the European Union, Japan, or any other
developed country (or group of developed countries), as the case may
be.
(d) CUSTOMS PROCEDURES AND ENFORCEMENT-
(1) OBLIGATIONS OF IMPORTERS AND PARTIES ON WHOSE BEHALF APPAREL AND
TEXTILES ARE IMPORTED-
(A) IN GENERAL- Notwithstanding any other provision of law, all
imports to the United States of textile and apparel goods pursuant to this
Act shall be accompanied by--
(i)(I) the name and address of the manufacturer or producer of the
goods, and any other information with respect to the manufacturer or
producer that the Customs Service may require; and
(II) if there is more than one manufacturer or producer, or if there
is a contractor or subcontractor of the manufacturer or producer with
respect to the manufacture or production of the goods, the information
required under subclause (I) with respect to each such manufacturer,
producer, contractor, or subcontractor, including a description of the
process performed by each such entity;
(ii) a certification by the importer of record that the importer has
exercised reasonable care to ascertain the true country of origin of the
textile and apparel goods and the accuracy of all other information
provided on the documentation accompanying the imported goods, as well
as a certification of the specific action taken by the importer to
ensure reasonable care for purposes of this paragraph; and
(iii) a certification by the importer that the goods being entered
do not violate applicable trademark, copyright, and patent
laws.
(B) LIABILITY- The importer of record and the final retail seller of
the merchandise shall be jointly liable for any material false statement,
act, or omission made with the intention or effect of--
(i) circumventing any quota that applies to the merchandise;
or
(ii) avoiding any duty that would otherwise be applicable to the
merchandise.
(2) OBLIGATIONS OF COUNTRIES TO TAKE ACTION AGAINST TRANSSHIPMENT AND
CIRCUMVENTION- The President shall ensure that any country in sub-Saharan
Africa that intends to export textile and apparel goods to the United
States--
(A) has in place adequate measures to guard against unlawful
transshipment of textile and apparel goods and the use of counterfeit
documents; and
(B) will cooperate fully with the United States to address and take
action necessary to prevent circumvention of any provision of this section
or of any agreement regulating trade in apparel and textiles between that
country and the United States.
(A) FOR IMPORTERS AND RETAILERS-
(i) IN GENERAL- The Customs Service shall seek imposition of a
penalty against an importer or retailer for a violation of any provision
of this section if the Customs Service determines, after appropriate
investigation, that there is a substantial likelihood that the violation
occurred.
(ii) USE OF BEST AVAILABLE INFORMATION- If an importer or retailer
fails to cooperate with the Customs Service in an investigation to
determine if there has been a violation of any provision of this
section, the Customs Service shall base its determination on the best
available information.
(i) IN GENERAL- The President may determine that a country is not
taking adequate measures to prevent illegal transshipment of goods or to
prevent being used as a transit point for the shipment of goods in
violation of this section if the Customs Service determines, after
consultations with the country concerned, that there is a substantial
likelihood that such a violation of this section occurred.
(ii) USE OF BEST AVAILABLE INFORMATION-
(I) IN GENERAL- If a country fails to cooperate with the Customs
Service in an investigation to determine if an illegal transshipment
has occurred, the Customs Service shall base its determination on the
best available information.
(II) EXAMPLES- Actions indicating failure of a country to
cooperate under subclause (I) include--
(aa) denying or unreasonably delaying entry of officials of the
Customs Service to investigate violations of, or promote compliance with, this
section or any textile agreement;
(bb) providing appropriate United States officials with inaccurate or
incomplete information, including information required under the provisions of
this section; and
(cc) denying appropriate United States officials access to
information or documentation relating to production capacity of, and outward
processing done by, manufacturers, producers, contractors, or subcontractors
within the country.
(A) FOR IMPORTERS AND RETAILERS- The penalty for a violation of any
provision of this section by an importer or retailer of textile and
apparel goods--
(i) for a first offense (except as provided in clause (iii)), shall
be a civil penalty in an amount equal to 200 percent of the declared
value of the merchandise plus forfeiture of the merchandise;
(ii) for a second offense (except as provided in clause (iii)),
shall be a civil penalty in an amount equal to 400 percent of the
declared value of the merchandise plus forfeiture of the merchandise,
and, in addition shall be prosecuted as an offense punishable by a fine
of not more than $100,000, imprisonment for not more than 1 year, or
both; and
(iii) for a third or subsequent offense, or for a first or second
offense if the violation of the provision of this section is committed
knowingly and willingly, shall be prosecuted as an offense punishable by
a fine of not more than $1,000,000, imprisonment for not more than 5
years, or both, and, in addition, shall result in forfeiture of the
merchandise.
(B) FOR COUNTRIES- The failure of a country to undertake the measures
or the cooperation required by this section shall result in an automatic
imposition of a quota, based on the first 12 of the prior 24 months of
shipments of apparel or textile product category or categories involved,
or the imposition of duty on apparel or textile products, as necessary to
secure future cooperation.
(5) APPLICABILITY OF UNITED STATES LAWS AND PROCEDURES- All provisions
of the laws, regulations, and procedures of the United States relating to
the denial of entry of articles or penalties against individuals or entities
for engaging in illegal transshipment, fraud, or other violations of the
customs law, shall apply to imports of textiles and apparel from sub-Saharan
African countries, in addition to the specific provisions of this
section.
(6) MONITORING AND REPORTS TO CONGRESS- The Customs Service shall
monitor and the Commissioner of Customs shall submit to the Congress, not
later than March 31 of each year, a report on the measures taken by
countries in sub-Saharan Africa which export textiles or apparel goods to
the United States to prevent transshipment as provided in this section and
circumvention of this section or of any agreement regulating trade in
textiles and apparel between that country and the United States.
(d) DEFINITION- For purposes of this section, the term `Agreement on
Textiles and Clothing' means the
Agreement on Textiles and Clothing referred to in section 101(d)(4) of the
Uruguay Round Agreements Act (19 U.S.C. 3511(d)(4)).
SEC. 202. GENERALIZED SYSTEM OF PREFERENCES.
(a) PREFERENTIAL TARIFF TREATMENT FOR CERTAIN ARTICLES- Section 503(a)(1)
of the Trade Act of 1974 (19 U.S.C. 2463(a)(1)) is amended--
(1) by redesignating subparagraph (C) as subparagraph (D); and
(2) by inserting after subparagraph (B) the following:
`(C) ELIGIBLE COUNTRIES IN SUB-SAHARAN AFRICA-
`(i) IN GENERAL- (I) Subject to clause (ii), the President may
provide duty-free treatment for any article described in subclause (II)
that is imported directly into the United States from a sub-Saharan
African country.
`(II)(aa) An article described in this subclause is an article set
forth in paragraph (1) of subsection (b), or an article set forth in the
product list of the Lome Treaty, that is the growth, product, or
manufacture of a sub-Saharan African country that is a beneficiary
developing country and that is in compliance with the requirements of
subsections (b) and (d) of section 201 of the Human Rights, Opportunity,
Partnership, and Empowerment for Africa Act, with respect to such
article, if, after receiving the advice of the International Trade
Commission in accordance with subsection (e), the President determines
that such article is not import-sensitive in the context of imports from
sub-Saharan African countries. This subparagraph shall not affect the
designation of eligible articles under subparagraph (B).
`(bb) In addition to meeting the requirements of division (aa), in
the case of an article that is the product or manufacture of the oil or
mineral extraction industry, and the business enterprise that produces
or manufacures the article is involved in a joint-venture arrangement
with, or related to as a subsidiary, trust, or subcontractor, a business
enterprise organized under the laws of the United States, the European
Union, Japan, or any other developed country (or group of developed
countries), or operating in such countries, then the business enterprise
complies with the environmental standards that would apply to a similar
operation in the United States, the European Union, Japan, or any other
developed country (or group of developed countries), as the case may
be.
`(ii) RULE OF CONSTRUCTION- For purposes of clause (i), in applying
subparagraphs (A) through (F) of section 201(b)(1) and section 201(d) of
the Human Rights, Opportunity, Partnership, and Empowerment for Africa
Act, any reference to textile and apparel goods or products shall be
deemed to refer to the article provided duty-free treatment under clause
(i).'.
(b) RULES OF ORIGIN- Section 503(a)(2) of the Trade Act of 1974 (19 U.S.C.
2463(a)(2)) is amended by adding at the end the following:
`(C) ELIGIBLE COUNTRIES IN SUB-SAHARAN AFRICA- For purposes of
determining the percentage referred to in subparagraph (A) in the case of
an article of a sub-Saharan African country that is a beneficiary
developing country--
`(i) if the cost or value of materials produced in the customs
territory of the United States is included with respect to that article,
an amount not to exceed 15 percent of the appraised value of the article
at the time it is entered that is attributed to such United States cost
or value may be applied toward determining the percentage referred to in
subparagraph (A); and
`(ii) the cost or value of the materials included with respect to
that article that are produced in any beneficiary developing country
that is a sub-Saharan African country shall be applied in determining
such percentage.'.
(c) EXTENSION OF PROGRAM- Section 505 of the Trade Act of 1974 (19 U.S.C.
2465) is amended to read as follows:
`SEC. 505. DATE OF TERMINATION.
`(a) SUB-SAHARAN AFRICAN COUNTRIES- No duty-free treatment provided under
this title shall remain in
effect after June 30, 2005, with respect to beneficiary developing countries
that are sub-Saharan African countries.
`(b) OTHER COUNTRIES- No duty-free treatment provided under this title
shall remain in effect after June 30, 1999, with respect to beneficiary
developing countries other than those provided for in subsection (a).'.
(e) DEFINITION- Section 507 of the Trade Act of 1974 (19 U.S.C. 2467) is
amended by adding at the end the following:
`(6) SUB-SAHARAN AFRICAN COUNTRY- The term `sub-Saharan African country'
and `sub-Saharan African countries' mean a country or countries in
sub-Saharan Africa, as defined in section 603 of the Human Rights,
Opportunity, Partnership, and Empowerment for Africa Act.'.
(f) EFFECTIVE DATE- The amendments made by this section take effect on
July 1, 1999.
SEC. 203. ADDITIONAL ENFORCEMENT.
A citizen of the United States shall have a cause of action in the United
States district court in the district in which he or she lives or in any other
appropriate district to seek compliance with the standards set forth under
subparagraphs (A) through (F) of section 201(b)(1), section 201(c), and
section 201(d) of this Act with respect to any sub-Saharan African country,
including a cause of action in an appropriate United States district court for
other appropriate equitable relief. In addition to any other relief sought in
such an action, a citizen may seek three times the value of any damages caused
by the failure of a country or company to comply. The amount of damages
described in the preceding sentence shall be paid by the business enterprise
(or business enterprises) the operations or conduct of which is responsible
for the failure to meet the standards set forth under subparagraphs (A)
through (F) of section 201(b)(1), section 201(c), and section 201(d) of this
Act.
TITLE III--DEVELOPMENT ASSISTANCE FOR SUB-SAHARAN AFRICAN
COUNTRIES
SEC. 301. FINDINGS.
Section 496(a)(1) of the Foreign Assistance Act of 1961 (22 U.S.C.
2293(a)(1)) is amended by striking `drought and famine' and inserting
`drought, famine, and the HIV/AIDS epidemic'.
SEC. 302. PRIVATE AND VOLUNTARY ORGANIZATIONS.
Section 496(e) of the Foreign Assistance Act of 1961 (22 U.S.C. 2293(e))
is amended--
(1) by redesignating paragraph (2) as paragraph (3); and
(2) by inserting after paragraph (1) the following:
`(2) CAPACITY BUILDING- In addition to assistance provided under
subsection (h), the United States Agency for International Development shall
provide capacity building assistance through participatory planning to
private and voluntary organizations that are involved in providing
assistance for sub-Saharan Africa under this chapter.'.
SEC. 303. TYPES OF ASSISTANCE.
Section 496(h) of the Foreign Assistance Act of 1961 (22 U.S.C. 2293(h))
is amended by adding at the end the following:
`(4) PROHIBITION ON MILITARY ASSISTANCE- Assistance under this
section--
`(A) may not include military training or weapons; and
`(B) may not be obligated or expended for military training or the
procurement of weapons.'.
SEC. 304. CRITICAL SECTORAL PRIORITIES.
(a) AGRICULTURE, FOOD SECURITY AND NATURAL RESOURCES- Section 496(i)(1) of
the Foreign Assistance Act of 1961 (22 U.S.C. 2293(i)(1)) is amended--
(1) in the heading, to read as follows:
`(1) AGRICULTURE, FOOD SECURITY AND NATURAL RESOURCES- ';
(2) in subparagraph (A)--
(A) in the heading, to read as follows:
`(A) AGRICULTURE AND FOOD SECURITY- ';
(B) in the first sentence--
(i) by striking `agricultural production in ways' and inserting
`food security by promoting agriculture policies'; and
(ii) by striking `, especially food production,'; and
(3) in subparagraph (B), in the matter preceding clause (i), by striking
`agricultural production' and inserting `food security and sustainable
resource use'.
(b) HEALTH- Section 496(i)(2) of the Foreign Assistance Act of 1961 (22
U.S.C. 2293(i)(2)) is amended by striking `(including displaced children)' and
inserting `(including displaced children and improving HIV/AIDS prevention and
treatment programs)'.
(c) VOLUNTARY FAMILY PLANNING SERVICES- Section 496(i)(3) of the Foreign
Assistance Act of 1961 (22 U.S.C. 2293(i)(3)) is amended by adding at the end
before the period the following: `and access to prenatal healthcare'.
(d) EDUCATION- Section 496(i)(4) of the Foreign Assistance Act of 1961 (22
U.S.C. 2293(i)(4)) is amended by adding at the end before the period the
following: `and vocational education, with particular emphasis on primary
education and vocational education for women'.
(e) INCOME-GENERATING OPPORTUNITIES- Section 496(i)(5) of the Foreign
Assistance Act of 1961 (22 U.S.C. 2293(i)(5)) is amended--
(1) by striking `labor-intensive'; and
(2) by adding at the end before the period the following: `, including
development of manufacturing and processing industries and microcredit
projects'.
SEC. 305. MINIMUM LEVELS OF ASSISTANCE FOR CERTAIN CRITICAL SECTORS.
Section 496(j) of the Foreign Assistance Act of 1961 (22 U.S.C. 2293(j))
is amended--
(1) in the matter preceding paragraph (1), by striking `10 percent' and
inserting `15 percent';
(2) by redesignating paragraphs (1) through (3) as paragraphs (2)
through (4), respectively;
(3) by inserting before paragraph (2) (as so redesignated) the
following:
`(1) The activities described in subsection (i)(1)(A).';
(4) in paragraph (2) (as redesignated), by striking `, including
identifiable components of agricultural production projects'; and
(5) by adding at the end the following:
`(5) The activities described in subsection (i)(4).'.
SEC. 306. REPORTING REQUIREMENTS.
Section 496 of the Foreign Assistance Act of 1961 (22 U.S.C. 2293) is
amended by adding at the end the following:
`(p) REPORTING REQUIREMENTS- The Administrator of the United States Agency
for International Development shall, on a semiannual basis, prepare and submit
to the Congress a report containing--
`(1) a description of how, and the extent to which, the Agency has
consulted with nongovernmental organizations in sub-Saharan Africa regarding
the use of amounts made available for sub-Saharan African countries under
this chapter;
`(2) the extent to which the provision of such amounts has been
successful in increasing food security and access to health and education
services among the people of sub-Saharan Africa;
`(3) the extent to which the provision of such amounts has been
successful in capacity building among local nongovernmental organizations;
and
`(4) a description of how, and the extent to which, the provision of
such amounts has furthered the goals of sustainable economic and
agricultural development, gender equity, environmental protection, and
respect for workers' rights in sub-Saharan Africa.'.
SEC. 307. AUTHORIZATION OF APPROPRIATIONS FOR DEVELOPMENT FUND FOR
AFRICA.
(a) IN GENERAL- Section 497 of the Foreign Assistance Act of 1961 (22
U.S.C. 2294) is amended by inserting before the first sentence the following:
`There is authorized to be appropriated to carry out this chapter for fiscal
year 2000 and each subsequent year an amount not less than the amount
appropriated to carry out this chapter for fiscal year 1994.'.
(b) ADDITIONAL REQUIREMENT- Amounts appropriated under the Foreign
Operations, Export Financing, and Related Programs Appropriations Act pursuant
to the authorization of appropriations established under the first sentence of
section 497 of the Foreign Assistance Act of 1961 (22 U.S.C. 2294), as added
by subsection (a), shall be appropriated to a separate account under the
heading `Development Fund for Africa' and not to the account under the heading
`Development Assistance'.
TITLE IV--SUB-SAHARAN AFRICA EQUITY AND INFRASTRUCTURE
FUNDS
SEC. 401. SUB-SAHARAN AFRICA EQUITY AND INFRASTRUCTURE FUNDS.
(a) INITIATION OF FUNDS- The Overseas Private Investment Corporation
shall, not later than 12 months after the date of the enactment of this Act,
exercise the authorities it has to initiate 1 or more equity funds in support
of projects in the countries in sub-Saharan Africa, in addition to any
existing equity fund for sub-Saharan Africa established by the Corporation
before the date of the enactment of this Act.
(b) STRUCTURE AND TYPES OF FUNDS-
(1) STRUCTURE- Each fund initiated under subsection (a) shall be
structured as a partnership managed by professional private sector fund
managers and monitored on a continuing basis by the Corporation.
(2) CAPITALIZATION- Each fund shall be capitalized with a combination of
private equity capital, which is not guaranteed by the Corporation, and debt
for which the Corporation provides guaranties.
(3) TYPES OF FUNDS- One or more of the funds, with combined assets of up
to $500,000,000, shall be used in support of infrastructure projects in
countries of sub-Saharan Africa, including basic health services (including
AIDS prevention and treatment), including hospitals, potable water,
sanitation, schools, electrification of rural areas, and publicly-accessible
transportation in sub-Saharan African countries.
(c) ADDITIONAL REQUIREMENTS- The Corporation shall ensure that--
(1) not less than 70 percent of trade financing and investment insurance
provided through the equity funds established under subsection (a), and
through any existing equity fund for sub-Saharan Africa established by the
Corporation before the date of the enactment of this Act, are allocated to
small, women- and minority-owned businesses--
(A) of which not less than 60 percent of the ownership is comprised of
citizens of sub-Saharan African countries and 40 percent of the ownership
is comprised of citizens of the United States; and
(B) that have assets of not more than $1,000,000; and
(2) not less than 50 percent of the funds allocated to energy projects
are used for renewal or alternative energy projects.
TITLE V--OVERSEAS PRIVATE INVESTMENT CORPORATION AND EXPORT-IMPORT BANK
INITIATIVES
SEC. 501. OVERSEAS PRIVATE INVESTMENT CORPORATION INITIATIVES.
Section 233 of the Foreign Assistance Act of 1961 is amended by adding at
the end the following:
`(1) ESTABLISHMENT- The Board shall establish and work with an advisory
committee to assist the Board in developing and implementing policies,
programs, and financial instruments with respect to sub-Saharan Africa,
including with respect to equity and infrastructure funds established under
title IV of the Human Rights, Opportunity, Partnership, and Empowerment for
Africa Act.
`(A) IN GENERAL- The advisory committee established under paragraph
(1) shall consist of 15 members, of which 7 members shall be employees of
the United States Government and 8 members shall be representatives of the
private sector.
`(B) APPOINTMENT- The members of the advisory committee shall be
appointed as follows:
`(i) The Speaker and Minority Leader of the House of Representatives
and the Majority and Minority Leaders of the Senate shall each appoint 2
members who are representatives of the private sector and 1 member who
is an employee of the United States Government.
`(ii) The Speaker and Minority Leader of the House of
Representatives and the Majority and Minority Leaders of the Senate
shall jointly appoint the remaining 3 members who are employees of the
United States Government.
`(C) ADDITIONAL REQUIREMENTS- Of the 8 members of advisory committee
who are representatives of the private sector--
`(i) at least 4 members shall be representatives of not-for-profit
public interest organizations;
`(ii) at least 1 member shall be a representative of an organization
with expertise in development issues;
`(iii) at least 1 member shall be a representative of an
organization with expertise in human rights issues;
`(iv) at least 1 member shall be a representative of an organization
with expertise in environmental issues; and
`(v) at least 1 member shall be a representative of an organization
with expertise in international labor rights.
`(D) TERMS- Each member of the advisory committee shall be appointed
for a term of 2 years.
`(A) OPEN TO PUBLIC- Meetings of the advisory committee shall be open
to the public.
`(B) ADVANCE NOTICE- The advisory committee shall provide advance
notice in the Federal Register of any meeting of the committee, shall
provide notice of all proposals or projects to be considered by the
committee at the meeting, and shall solicit written comments from the
public relating to such proposals or projects.
`(C) DECISIONS- Any decision of the advisory committee relating to a
proposal or project shall be published in the Federal Register with an
explanation of the extent to which the committee considered public
comments received with respect to the proposal or project, if
any.
`(4) ENVIRONMENTAL IMPACT ASSESSMENTS- The Corporation shall carry out
environmental impact assessments with respect to any proposal or project not
later than 120 days before the advisory committee, or the Board, considers
such proposal or project, whichever occurs earlier.'.
SEC. 502. EXPORT-IMPORT BANK INITIATIVE.
Section 2(b)(9) of the Export-Import Bank Act of 1945 (12 U.S.C.
635(b)(9)) is amended to read as follows:
`(9) For purposes of the funds allocated by the Bank for projects in
countries in sub-Saharan Africa (as defined in section 603 of the Human
Rights, Opportunity, Partnership, and Empowerment for Africa Act):
`(A) The Bank shall establish an advisory committee to work with and
assist the Board in developing and implementing policies, programs, and
financial instruments with respect to such countries.
`(B) The members of the advisory committee shall be appointed as
follows:
`(i) The Speaker and Minority Leader of the House of Representatives
and the Majority and Minority Leaders of the Senate shall each appoint 2
members who are representatives of the private sector and 1 member who
is an officer or employee of the Federal Government.
`(ii) The Speaker and Minority Leader of the House of
Representatives and the Majority and Minority Leaders of the Senate
shall jointly appoint the remaining 3 members who are officers or
employees of the Federal Government.
`(C)(i) At least half of the members of the advisory committee who are
representatives of the private sector shall be representatives of
not-for-profit public interest organizations.
`(ii) At least 1 of such private sector representatives shall be a
representative of an organization with expertise in development
issues.
`(iii) At least 1 of such private sector representatives shall be a
representative of an organization with expertise in human rights.
`(iv) At least 1 of such private sector representatives shall be a
representative of an organization with expertise in environmental
issues.
`(v) At least 1 of such private sector representatives shall have
expertise in international labor rights.
`(D) Each member of the advisory committee shall serve for a term of 2
years.
`(E)(i) Members of the advisory committee who are representatives of
the private sector shall not receive compensation by reason of their
service on the advisory committee.
`(ii) Members of the advisory committee who are officers or employees
of the Federal Government may not receive additional pay, allowances, or
benefits by reason of their service on the advisory committee.
`(F) Meetings of the advisory committee shall be open to the
public.
`(G) The advisory committee shall give timely advance notice of each
meeting of the advisory committee, including a description of any matters
to be considered at the meeting, shall establish a public docket, shall
solicit written comments in advance on each proposal, and shall make each
decision in writing with an explanation of disposition of the public
comments.
`(H) The Bank shall complete and release to the public an
environmental impact assessment with respect to a proposal or project with
potential environmental effects, not later than 120 days before the
advisory committee, or the Board, considers the proposal or project,
whichever occurs earlier.
`(I) Section 14(a)(2) of the Federal Advisory Committee Act shall not
apply to the advisory committee.'.
TITLE VI--MISCELLANEOUS PROVISIONS
SEC. 601. REQUIREMENTS RELATING TO SUB-SAHARAN AFRICA INTELLECTUAL PROPERTY
AND COMPETITION LAW.
Funds appropriated or otherwise made available to any department or agency
of the United States may not be used to seek, through negotiation or
otherwise, the revocation or revisions of any sub-Saharan African intellectual
property or competition law or policy that is designed to promote access to
pharmaceuticals or other medical technologies and such law or policy, as the
case may be, complies with the Agreement on Trade-Related Aspects of
Intellectual Property Rights referred to in section 101(d)(15) of the Uruguay
Round Agreements Act.
SEC. 602. REVIEW AND REPORTING REQUIREMENTS.
(1) IN GENERAL- Not later than 3 years after the date of the enactment
of this Act, the President shall, through publication in the Federal
Register, provide notice and opportunity to the public for comments on the
success or failure of the implementation of this Act, or any amendments made
by this Act.
(2) PUBLIC AVAILABILITY- Any comments received under paragraph (1) shall
be published in the Federal Register.
(b) REPORTS- Not later than 4 years after the date of the enactment of
this Act, the President shall prepare and transmit to the Congress a report
containing the public comments received under section 701.
SEC. 603. SUB-SAHARAN AFRICA DEFINED.
In this Act, the terms `sub-Saharan Africa', `sub-Saharan African
country', `country in sub-Saharan Africa', `sub-Saharan African countries',
and `countries in sub-Saharan Africa' refer to the following:
Republic of Angola (Angola)
Republic of Botswana (Botswana)
Republic of Burundi (Burundi)
Republic of Cape Verde (Cape Verde)
Democratic Republic of Congo
Republic of the Congo (Congo)
Republic of Djibouti (Djibouti)
State of Eritrea (Eritrea)
Gabonese Republic (Gabon)
Republic of Ghana (Ghana)
Republic of Guinea-Bissau (Guinea-Bissau)
Kingdom of Lesotho (Lesotho)
Republic of Madagascar (Madagascar)
Republic of Mauritius (Mauritius)
Republic of Namibia (Namibia)
Federal Republic of Nigeria (Nigeria)
Democratic Republic of Sao Tome and Principe (Sao Tome and
Principe)
Republic of Sierra Leone (Sierra Leone)
Kingdom of Swaziland (Swaziland)
Republic of Zimbabwe (Zimbabwe)
Republic of Benin (Benin)
Republic of Cameroon (Cameroon)
Federal Islamic Republic of the Comorors (Comoros)
Republic of Co.AE3te d'Ivoire (CoAE3te d'Ivoire)
Republic of Equatorial Guinea (Equatorial Guinea)
Republic of the Gambia (Gambia)
Republic of Guinea (Guinea)
Republic of Kenya (Kenya)
Republic of Liberia (Liberia)
Republic of Malawi (Malawi)
Islamic Republic of Mauritania (Mauritania)
Republic of Mozambique (Mozambique)
Republic of Niger (Niger)
Republic of Rwanda (Rwanda)
Republic of Senegal (Senegal)
Repulbic of Seychelles (Seychelles)
Republic of South Africa (South Africa)
Republic of Sudan (Sudan)
United Republic of Tanzania (Tanzania)
Republic of Uganda (Uganda)
Republic of Zambia (Zambia)
END