[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1432 Engrossed in House (EH)]


  2d Session

                               H. R. 1432

_______________________________________________________________________

                                 AN ACT

 To authorize a new trade and investment policy for sub-Saharan Africa.
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
105th CONGRESS
  2d Session
                                H. R. 1432

_______________________________________________________________________

                                 AN ACT


 
 To authorize a new trade and investment policy for sub-Saharan Africa.

    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 ``African Growth and Opportunity 
Act''.

SEC. 2. FINDINGS.

    The Congress finds that it is in the mutual economic interest of 
the United States and sub-Saharan Africa to promote stable and 
sustainable economic growth and development in sub-Saharan Africa. To 
that end, the United States seeks to facilitate market-led economic 
growth in, and thereby the social and economic development of, the 
countries of sub-Saharan Africa. In particular, the United States seeks 
to assist sub-Saharan African countries, and the private sector in 
those countries, to achieve economic self-reliance by--
            (1) strengthening and expanding the private sector in sub-
        Saharan Africa, especially women-owned businesses;
            (2) encouraging increased trade and investment between the 
        United States and sub-Saharan Africa;
            (3) reducing tariff and nontariff barriers and other trade 
        obstacles;
            (4) expanding United States assistance to sub-Saharan 
        Africa's regional integration efforts;
            (5) negotiating free trade areas;
            (6) establishing a United States-Sub-Saharan Africa Trade 
        and Investment Partnership;
            (7) focusing on countries committed to accountable 
        government, economic reform, and the eradication of poverty;
            (8) establishing a United States-Sub-Saharan Africa 
        Economic Cooperation Forum; and
            (9) continuing to support development assistance for those 
        countries in sub-Saharan Africa attempting to build civil 
        societies.

SEC. 3. STATEMENT OF POLICY.

    The Congress supports economic self-reliance for sub-Saharan 
African countries, particularly those committed to--
            (1) economic and political reform;
            (2) market incentives and private sector growth;
            (3) the eradication of poverty; and
            (4) the importance of women to economic growth and 
        development.

SEC. 4. ELIGIBILITY REQUIREMENTS.

    (a) In General.--A sub-Saharan African country shall be eligible to 
participate in programs, projects, or activities, or receive assistance 
or other benefits under this Act if the President determines that the 
country does not engage in gross violations of internationally 
recognized human rights and has established, or is making continual 
progress toward establishing, a market-based economy, such as the 
establishment and enforcement of appropriate policies relating to--
            (1) promoting free movement of goods and services between 
        the United States and sub-Saharan Africa and among countries in 
        sub-Saharan Africa;
            (2) promoting the expansion of the production base and the 
        transformation of commodities and nontraditional products for 
        exports through joint venture projects between African and 
        foreign investors;
            (3) trade issues, such as protection of intellectual 
        property rights, improvements in standards, testing, labeling 
        and certification, and government procurement;
            (4) the protection of property rights, such as protection 
        against expropriation and a functioning and fair judicial 
        system;
            (5) appropriate fiscal systems, such as reducing high 
        import and corporate taxes, controlling government consumption, 
        participation in bilateral investment treaties, and the 
        harmonization of such treaties to avoid double taxation;
            (6) foreign investment issues, such as the provision of 
        national treatment for foreign investors and other measures to 
        create an environment conducive to domestic and foreign 
        investment;
            (7) supporting the growth of regional markets within a free 
        trade area framework;
            (8) governance issues, such as eliminating government 
        corruption, minimizing government intervention in the market 
        such as price controls and subsidies, and streamlining the 
        business license process;
            (9) supporting the growth of the private sector, in 
        particular by promoting the emergence of a new generation of 
        African entrepreneurs;
            (10) encouraging the private ownership of government-
        controlled economic enterprises through divestiture programs;
            (11) removing restrictions on investment; and
            (12) observing the rule of law, including equal protection 
        under the law and the right to due process and a fair trial.
    (b) Additional Factors.--In determining whether a sub-Saharan 
African country is eligible under subsection (a), the President shall 
take into account the following factors:
            (1) An expression by such country of its desire to be an 
        eligible country under subsection (a).
            (2) The extent to which such country has made substantial 
        progress toward--
                    (A) reducing tariff levels;
                    (B) binding its tariffs in the World Trade 
                Organization and assuming meaningful binding 
                obligations in other sectors of trade; and
                    (C) eliminating nontariff barriers to trade.
            (3) Whether such country, if not already a member of the 
        World Trade Organization, is actively pursuing membership in 
        that Organization.
            (4) Where applicable, the extent to which such country is 
        in material compliance with its obligations to the 
        International Monetary Fund and other international financial 
        institutions.
            (5) The extent to which such country has a recognizable 
        commitment to reducing poverty, increasing the availability of 
        health care and educational opportunities, the expansion of 
        physical infrastructure in a manner designed to maximize 
        accessibility, increased access to market and credit facilities 
        for small farmers and producers, and improved economic 
        opportunities for women as entrepreneurs and employees, and 
        promoting and enabling the formation of capital to support the 
        establishment and operation of micro-enterprises.
            (6) Whether or not such country is cooperating with the 
        United States in efforts to eliminate slavery in Africa.
            (7) Whether or not such country engages in activities that 
        undermine United States national security or foreign policy 
        interests.
    (c) Continuing Compliance.--
            (1) Monitoring and review of certain countries.--The 
        President shall monitor and review the progress of sub-Saharan 
        African countries in order to determine their current or 
        potential eligibility under subsection (a). Such determinations 
        shall be based on quantitative factors to the fullest extent 
        possible and shall be included in the annual report required by 
        section 15.
            (2) Ineligibility of certain countries.--A sub-Saharan 
        African country described in paragraph (1) that has not made 
        continual progress in meeting the requirements with which it is 
        not in compliance shall be ineligible to participate in 
        programs, projects, or activities, or receive assistance or 
        other benefits, under this Act.
    (d) Violations of Human Rights and Ineligible Countries.--It is the 
sense of the Congress that a sub-Saharan African country should not be 
eligible to participate in programs, projects, or activities, or 
receive assistance or other benefits under this Act if the government 
of that country is determined by the President to engage in a 
consistent pattern of gross violations of internationally recognized 
human rights.

SEC. 5. ADDITIONAL AUTHORITIES AND INCREASED FLEXIBILITY TO PROVIDE 
              ASSISTANCE UNDER THE DEVELOPMENT FUND FOR AFRICA.

    (a) Use of Sustainable Development Assistance To Support Further 
Economic Growth.--It is the sense of the Congress that sustained 
economic growth in sub-Saharan Africa depends in large measure upon the 
development of a receptive environment for trade and investment, and 
that to achieve this objective the United States Agency for 
International Development should continue to support programs which 
help to create this environment. Investments in human resources, 
development, and implementation of free market policies, including 
policies to liberalize agricultural markets and improve food security, 
and the support for the rule of law and democratic governance should 
continue to be encouraged and enhanced on a bilateral and regional 
basis.
    (b) Declarations of Policy.--The Congress makes the following 
declarations:
            (1) The Development Fund for Africa established under 
        chapter 10 of part I of the Foreign Assistance Act of 1961 (22 
        U.S.C. 2293 et seq.) has been an effective tool in providing 
        development assistance to sub-Saharan Africa since 1988.
            (2) The Development Fund for Africa will complement the 
        other provisions of this Act and lay a foundation for increased 
        trade and investment opportunities between the United States 
        and sub-Saharan Africa.
            (3) Assistance provided through the Development Fund for 
        Africa will continue to support programs and activities that 
        promote the long term economic development of sub-Saharan 
        Africa, such as programs and activities relating to the 
        following:
                    (A) Strengthening primary and vocational education 
                systems, especially the acquisition of middle-level 
                technical skills for operating modern private 
                businesses and the introduction of college level 
                business education, including the study of 
                international business, finance, and stock exchanges.
                    (B) Strengthening health care systems.
                    (C) Strengthening family planning service delivery 
                systems.
                    (D) Supporting democratization, good governance and 
                civil society and conflict resolution efforts.
                    (E) Increasing food security by promoting the 
                expansion of agricultural and agriculture-based 
                industrial production and productivity and increasing 
                real incomes for poor individuals.
                    (F) Promoting an enabling environment for private 
                sector-led growth through sustained economic reform, 
                privatization programs, and market-led economic 
                activities.
                    (G) Promoting decentralization and local 
                participation in the development process, especially 
                linking the rural production sectors and the industrial 
                and market centers throughout Africa.
                    (H) Increasing the technical and managerial 
                capacity of sub-Saharan African individuals to manage 
                the economy of sub-Saharan Africa.
                    (I) Ensuring sustainable economic growth through 
                environmental protection.
            (4) The African Development Foundation has a unique 
        congressional mandate to empower the poor to participate fully 
        in development and to increase opportunities for gainful 
        employment, poverty alleviation, and more equitable income 
        distribution in sub-Saharan Africa. The African Development 
        Foundation has worked successfully to enhance the role of women 
        as agents of change, strengthen the informal sector with an 
        emphasis on supporting micro and small sized enterprises, 
        indigenous technologies, and mobilizing local financing. The 
        African Development Foundation should develop and implement 
        strategies for promoting participation in the socioeconomic 
        development process of grassroots and informal sector groups 
        such as nongovernmental organizations, cooperatives, artisans, 
        and traders into the programs and initiatives established under 
        this Act.
    (c) Additional Authorities.--
            (1) In general.--Section 496(h) of the Foreign Assistance 
        Act of 1961 (22 U.S.C. 2293(h)) is amended--
                    (A) by redesignating paragraph (3) as paragraph 
                (4); and
                    (B) by inserting after paragraph (2) the following:
            ``(3) Democratization and conflict resolution 
        capabilities.--Assistance under this section may also include 
        program assistance--
                    ``(A) to promote democratization, good governance, 
                and strong civil societies in sub-Saharan Africa; and
                    ``(B) to strengthen conflict resolution 
                capabilities of governmental, intergovernmental, and 
                nongovernmental entities in sub-Saharan Africa.''.
            (2) Conforming amendment.--Section 496(h)(4) of such Act, 
        as amended by paragraph (1), is further amended by striking 
        ``paragraphs (1) and (2)'' in the first sentence and inserting 
        ``paragraphs (1), (2), and (3)''.

SEC. 6. UNITED STATES-SUB-SAHARAN AFRICA TRADE AND ECONOMIC COOPERATION 
              FORUM.

    (a) Declaration of Policy.--The President shall convene annual 
high-level meetings between appropriate officials of the United States 
Government and officials of the governments of sub-Saharan African 
countries in order to foster close economic ties between the United 
States and sub-Saharan Africa.
    (b) Establishment.--Not later than 12 months after the date of the 
enactment of this Act, the President, after consulting with the 
governments concerned, shall establish a United States-Sub-Saharan 
Africa Trade and Economic Cooperation Forum (hereafter in this section 
referred to as the ``Forum'').
    (c) Requirements.--In creating the Forum, the President shall meet 
the following requirements:
            (1) The President shall direct the Secretary of Commerce, 
        the Secretary of the Treasury, the Secretary of State, and the 
        United States Trade Representative to host the first annual 
        meeting with the counterparts of such Secretaries from the 
        governments of sub-Saharan African countries eligible under 
        section 4, the Secretary General of the Organization of African 
        Unity, and government officials from other appropriate 
        countries in Africa, to discuss expanding trade and investment 
        relations between the United States and sub-Saharan Africa and 
        the implementation of this Act including encouraging joint 
        ventures between small and large businesses.
            (2)(A) The President, in consultation with the Congress, 
        shall encourage United States nongovernmental organizations to 
        host annual meetings with nongovernmental organizations from 
        sub-Saharan Africa in conjunction with the annual meetings of 
        the Forum for the purpose of discussing the issues described in 
        paragraph (1).
            (B) The President, in consultation with the Congress, shall 
        encourage United States representatives of the private sector 
        to host annual meetings with representatives of the private 
        sector from sub-Saharan Africa in conjunction with the annual 
        meetings of the Forum for the purpose of discussing the issues 
        described in paragraph (1).
            (3) The President shall, to the extent practicable, meet 
        with the heads of governments of sub-Saharan African countries 
        eligible under section 4 not less than once every two years for 
        the purpose of discussing the issues described in paragraph 
        (1). The first such meeting should take place not later than 
        twelve months after the date of the enactment of this Act.
    (d) Dissemination of Information by USIA.--In order to assist in 
carrying out the purposes of the Forum, the United States Information 
Agency shall disseminate regularly, through multiple media, economic 
information in support of the free market economic reforms described in 
this Act.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out this section.
    (f) Limitation on Use of Funds.--None of the funds authorized under 
this section may be used to create or support any nongovernmental 
organization for the purpose of expanding or facilitating trade between 
the United States and sub-Saharan Africa.

SEC. 7. UNITED STATES-SUB-SAHARAN AFRICA FREE TRADE AREA.

    (a) Declaration of Policy.--The Congress declares that a United 
States-Sub-Saharan Africa Free Trade Area should be established, or 
free trade agreements should be entered into, in order to serve as the 
catalyst for increasing trade between the United States and sub-Saharan 
Africa and increasing private sector development in sub-Saharan Africa.
    (b) Plan Requirement.--
            (1) In general.--The President, taking into account the 
        provisions of the treaty establishing the African Economic 
        Community and the willingness of the governments of sub-Saharan 
        African countries to engage in negotiations to enter into free 
        trade agreements, shall develop a plan for the purpose of 
        entering into one or more trade agreements with sub-Saharan 
        African countries eligible under section 4 in order to 
        establish a United States-Sub-Saharan Africa Free Trade Area 
        (hereafter in this section referred to as the ``Free Trade 
        Area'').
            (2) Elements of plan.--The plan shall include the 
        following:
                    (A) The specific objectives of the United States 
                with respect to the establishment of the Free Trade 
                Area and a suggested timetable for achieving those 
                objectives.
                    (B) The benefits to both the United States and sub-
                Saharan Africa with respect to the Free Trade Area.
                    (C) A mutually agreed-upon timetable for 
                establishing the Free Trade Area.
                    (D) The implications for and the role of regional 
                and sub-regional organizations in sub-Saharan Africa 
                with respect to the Free Trade Area.
                    (E) Subject matter anticipated to be covered by the 
                agreement for establishing the Free Trade Area and 
                United States laws, programs, and policies, as well as 
                the laws of participating eligible African countries 
                and existing bilateral and multilateral and economic 
                cooperation and trade agreements, that may be affected 
                by the agreement or agreements.
                    (F) Procedures to ensure the following:
                            (i) Adequate consultation with the Congress 
                        and the private sector during the negotiation 
                        of the agreement or agreements for establishing 
                        the Free Trade Area.
                            (ii) Consultation with the Congress 
                        regarding all matters relating to 
                        implementation of the agreement or agreements.
                            (iii) Approval by the Congress of the 
                        agreement or agreements.
                            (iv) Adequate consultations with the 
                        relevant African governments and African 
                        regional and subregional intergovernmental 
                        organizations during the negotiations of the 
                        agreement or agreements.
    (c) Reporting Requirement.--Not later than 12 months after the date 
of the enactment of this Act, the President shall prepare and transmit 
to the Congress a report containing the plan developed pursuant to 
subsection (b).

SEC. 8. ELIMINATING TRADE BARRIERS AND ENCOURAGING EXPORTS.

    (a) Findings.--The Congress makes the following findings:
            (1) The lack of competitiveness of sub-Saharan Africa in 
        the global market, especially in the manufacturing sector, make 
        it a limited threat to market disruption and no threat to 
        United States jobs.
            (2) Annual textile and apparel exports to the United States 
        from sub-Saharan Africa represent less than 1 percent of all 
        textile and apparel exports to the United States, which totaled 
        $45,932,000,000 in 1996.
            (3) Sub-Saharan Africa has limited textile manufacturing 
        capacity. During 1998 and the succeeding 4 years, this limited 
        capacity to manufacture textiles and apparel is projected to 
        grow at a modest rate. Given this limited capacity to export 
        textiles and apparel, it will be very difficult for these 
        exports from sub-Saharan Africa, during 1998 and the succeeding 
        9 years, to exceed 3 percent annually of total imports of 
        textile and apparel to the United States. If these exports from 
        sub-Saharan Africa remain around 3 percent of total imports, 
        they will not represent a threat to United States workers, 
        consumers, or manufacturers.
    (b) Sense of the Congress.--It is the sense of the Congress that--
            (1) it would be to the mutual benefit of the countries in 
        sub-Saharan Africa and the United States to ensure that the 
        commitments of the World Trade Organization and associated 
        agreements are faithfully implemented in each of the member 
        countries, so as to lay the groundwork for sustained growth in 
        textile and apparel exports and trade under agreed rules and 
        disciplines;
            (2) reform of trade policies in sub-Saharan Africa with the 
        objective of removing structural impediments to trade, 
        consistent with obligations under the World Trade Organization, 
        can assist the countries of the region in achieving greater and 
        greater diversification of textile and apparel export 
        commodities and products and export markets; and
            (3) the President should support textile and apparel trade 
        reform in sub-Saharan Africa by, among other measures, 
        providing technical assistance, sharing of information to 
        expand basic knowledge of how to trade with the United States, 
        and encouraging business-to-business contacts with the region.
    (c) Treatment of Quotas.--
            (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--
                    (A) from Kenya within 30 days after that country 
                adopts an efficient visa system to guard against 
                unlawful transshipment of textile and apparel goods and 
                the use of counterfeit documents; and
                    (B) from Mauritius within 30 days after that 
                country adopts such a visa system.
        The Customs Service shall provide the necessary technical 
        assistance to Kenya and Mauritius in the development and 
        implementation of those visa systems.
            (2) Other sub-saharan countries.--The President shall 
        continue the existing no quota policy for countries in sub-
        Saharan Africa. The President shall 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 protect United 
        States consumers, workers, and textile manufacturers from 
        economic injury on account of the no quota policy.
    (d) Customs Procedures and Enforcement.--
            (1) Actions by countries against transshipment and 
        circumvention.--The President should ensure that any country in 
        sub-Saharan Africa that intends to export textile and apparel 
        goods to the United States--
                    (A) has in place a functioning and effective visa 
                system and domestic laws and enforcement procedures 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, as provided in Article 5 of the 
                Agreement on Textiles and Clothing.
            (2) Penalties against exporters.--If the President 
        determines, based on sufficient evidence, that an exporter has 
        willfully falsified information regarding the country of 
        origin, manufacture, processing, or assembly of a textile or 
        apparel article for which duty-free treatment under section 
        503(a)(1)(C) of the Trade Act of 1974 is claimed, then the 
        President shall deny to such exporter, and any successors of 
        such exporter, for a period of 2 years, duty-free treatment 
        under such section for textile and apparel articles.
            (3) 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 laws shall apply to imports from Sub-Saharan countries.
            (4) 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 effectiveness of the visa systems described in 
        subsection (c)(1) and paragraph (1) of this subsection and on 
        measures taken by countries in Sub-Saharan Africa which export 
        textiles or apparel to the United States to prevent 
        circumvention as described in Article 5 of the Agreement on 
        Textiles and Clothing.
    (e) 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. 9. 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.--
                The President may provide duty-free treatment for any 
                article set forth in paragraph (1) of subsection (b) 
                that is the growth, product, or manufacture of an 
                eligible country in sub-Saharan Africa that is a 
                beneficiary developing country, 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 eligible countries in sub-
                Saharan Africa. This subparagraph shall not affect the 
                designation of eligible articles under subparagraph 
                (B).''.
    (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 an 
                eligible country in sub-Saharan Africa 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 an eligible country in sub-Saharan 
                        Africa shall be applied in determining such 
                        percentage.''.
    (c) Waiver of Competitive Need Limitation.--Section 503(c)(2)(D) of 
the Trade Act of 1974 (19 U.S.C. 2463(c)(2)(D)) is amended to read as 
follows:
                    ``(D) Least-developed beneficiary developing 
                countries and eligible countries in sub-saharan 
                africa.--Subparagraph (A) shall not apply to any least-
                developed beneficiary developing country or any 
                eligible country in sub-Saharan Africa.''.
    (d) 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) Countries in Sub-Saharan Africa.--No duty-free treatment 
provided under this title shall remain in effect after June 30, 2008, 
with respect to beneficiary developing countries that are eligible 
countries in sub-Saharan Africa.
    ``(b) Other Countries.--No duty-free treatment provided under this 
title shall remain in effect after June 30, 1998, 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) Eligible country in sub-saharan africa.--The terms 
        `eligible country in sub-Saharan Africa' and `eligible 
        countries in sub-Saharan Africa' mean a country or countries 
        that the President has determined to be eligible under section 
        4 of the African Growth and Opportunity Act.''.
    (f) Effective Date.--The amendments made by this section take 
effect on July 1, 1998.

SEC. 10. INTERNATIONAL FINANCIAL INSTITUTIONS AND DEBT REDUCTION.

    (a) Better Mechanisms To Further Goals for Sub-Saharan Africa.--It 
is the sense of the Congress that the Secretary of the Treasury should 
instruct the United States Executive Directors of the International 
Bank for Reconstruction and Development, the International Monetary 
Fund, and the African Development Bank to use the voice and votes of 
the Executive Directors to encourage vigorously their respective 
institutions to develop enhanced mechanisms which further the following 
goals in eligible countries in sub-Saharan Africa:
            (1) Strengthening and expanding the private sector, 
        especially among women-owned businesses.
            (2) Reducing tariffs, nontariff barriers, and other trade 
        obstacles, and increasing economic integration.
            (3) Supporting countries committed to accountable 
        government, economic reform, the eradication of poverty, and 
        the building of civil societies.
            (4) Supporting deep debt reduction at the earliest possible 
        date with the greatest amount of relief for eligible poorest 
        countries under the ``Heavily Indebted Poor Countries'' (HIPC) 
        debt initiative.
    (b) Sense of Congress.--It is the sense of the Congress that relief 
provided to countries in sub-Saharan Africa which qualify for the 
Heavily Indebted Poor Countries debt initiative should primarily be 
made through grants rather than through extended-term debt, and that 
interim relief or interim financing should be provided for eligible 
countries that establish a strong record of macroeconomic reform.
    (c) Executive Branch Initiatives.--The Congress supports and 
encourages the implementation of the following initiatives of the 
executive branch:
            (1) American-african business partnership.--The Agency for 
        International Development devoting up to $1,000,000 annually to 
        help catalyze relationships between United States firms and 
        firms in sub-Saharan Africa through a variety of business 
        associations and networks.
            (2) Technical assistance to promote reforms.--The Agency 
        for International Development providing up to $5,000,000 
        annually in short-term technical assistance programs to help 
        the governments of sub-Saharan African countries to--
                    (A) liberalize trade and promote exports;
                    (B) bring their legal regimes into compliance with 
                the standards of the World Trade Organization in 
                conjunction with membership in that Organization; and
                    (C) make financial and fiscal reforms, as well as 
                the United States Department of Agriculture providing 
                support to promote greater agribusiness linkages.
            (3) Agricultural market liberalization.--The Agency for 
        International Development devoting up to $15,000,000 annually 
        as part of the multi-year Africa Food Security Initiative to 
        help address such critical agricultural policy issues as market 
        liberalization, agricultural export development, and 
        agribusiness investment in processing and transporting 
        agricultural commodities.
            (4) Trade promotion.--The Trade Development Agency 
        increasing the number of reverse trade missions to growth-
        oriented countries in sub-Saharan Africa.
            (5) Trade in services.--Efforts by United States embassies 
        in the countries in sub-Saharan Africa to encourage their host 
        governments--
                    (A) to participate in the ongoing negotiations on 
                financial services in the World Trade Organization;
                    (B) to revise their existing schedules to the 
                General Agreement on Trade in Services of the World 
                Trade Organization in light of the successful 
                conclusion of negotiations on basic telecommunications 
                services; and
                    (C) to make further commitments in their schedules 
                to the General Agreement on Trade in Services in order 
                to encourage the removal of tariff and nontariff 
                barriers and to foster competition in the services 
                sector in those countries.

SEC. 11. SUB-SAHARAN AFRICA EQUITY AND INFRASTRUCTURE FUNDS.

    (a) Initiation of Funds.--It is the sense of the Congress that the 
Overseas Private Investment Corporation should, within 12 months after 
the date of the enactment of this Act, exercise the authorities it has 
to initiate 2 or more equity funds in support of projects in the 
countries in sub-Saharan Africa.
    (b) Structure and Types of Funds.--
            (1) Structure.--Each fund initiated under subsection (a) 
        should 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 should 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.--
                    (A) Equity fund for sub-saharan africa.--One of the 
                funds should be an equity fund, with assets of up to 
                $150,000,000, the primary purpose of which is to 
                achieve long-term capital appreciation through equity 
                investments in support of projects in countries in sub-
                Saharan Africa.
                    (B) Infrastructure fund.--One or more of the funds, 
                with combined assets of up to $500,000,000, should be 
                used in support of infrastructure projects in countries 
                of sub-Saharan Africa. The primary purpose of any such 
                fund would be to achieve long-term capital appreciation 
                through investing in financing for infrastructure 
                projects in sub-Saharan Africa, including for the 
                expansion of businesses in sub-Saharan Africa, 
                restructurings, management buyouts and buyins, 
                businesses with local ownership, and privatizations.
            (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.

SEC. 12. OVERSEAS PRIVATE INVESTMENT CORPORATION AND EXPORT-IMPORT BANK 
              INITIATIVES.

    (a) Overseas Private Investment Corporation.--
            (1) Advisory committee.--Section 233 of the Foreign 
        Assistance Act of 1961 is amended by adding at the end the 
        following:
    ``(e) Advisory Committee.--The Board shall take prompt measures to 
increase the loan, guarantee, and insurance programs, and financial 
commitments, of the Corporation in sub-Saharan Africa, including 
through the establishment and use of an advisory committee to assist 
the Board in developing and implementing policies, programs, and 
financial instruments with respect to sub-Saharan Africa. In addition, 
the advisory committee shall make recommendations to the Board on how 
the Corporation can facilitate greater support by the United States for 
trade and investment with and in sub-Saharan Africa. The advisory 
committee shall terminate 4 years after the date of the enactment of 
this subsection.''.
            (2) Reports to the congress.--Within 6 months after the 
        date of the enactment of this Act, and annually for each of the 
        4 years thereafter, the Board of Directors of the Overseas 
        Private Investment Corporation shall submit to the Congress a 
        report on the steps that the Board has taken to implement 
        section 233(e) of the Foreign Assistance Act of 1961 (as added 
        by paragraph (1)) and any recommendations of the advisory board 
        established pursuant to such section.
    (b) Export-Import Bank.--
            (1) Advisory committee for sub-saharan africa.--Section 
        2(b) of the Export-Import Bank Act of 1945 (12 U.S.C. 635(b)) 
        is amended by inserting after paragraph (12) the following:
    ``(13)(A) The Board of Directors of the Bank shall take prompt 
measures, consistent with the credit standards otherwise required by 
law, to promote the expansion of the Bank's financial commitments in 
sub-Saharan Africa under the loan, guarantee, and insurance programs of 
the Bank.
    ``(B)(i) The Board of Directors shall establish and use an advisory 
committee to advise the Board of Directors on the development and 
implementation of policies and programs designed to support the 
expansion described in subparagraph (A).
    ``(ii) The advisory committee shall make recommendations to the 
Board of Directors on how the Bank can facilitate greater support by 
United States commercial banks for trade with sub-Saharan Africa.
    ``(iii) The advisory committee shall terminate 4 years after the 
date of the enactment of this subparagraph.''.
            (2) Reports to the congress.--Within 6 months after the 
        date of the enactment of this Act, and annually for each of the 
        4 years thereafter, the Board of Directors of the Export-Import 
        Bank of the United States shall submit to the Congress a report 
        on the steps that the Board has taken to implement section 
        2(b)(13)(B) of the Export-Import Bank Act of 1945 (as added by 
        paragraph (1)) and any recommendations of the advisory 
        committee established pursuant to such section.

SEC. 13. ESTABLISHMENT OF ASSISTANT UNITED STATES TRADE REPRESENTATIVE 
              FOR SUB-SAHARAN AFRICA.

    (a) Establishment.--The President shall establish a position of 
Assistant United States Trade Representative within the Office of the 
United States Trade Representative to focus on trade issues relating to 
sub-Saharan Africa.
    (b) Funding and Staff.--The President shall ensure that the 
Assistant United States Trade Representative appointed pursuant to 
subsection (a) has adequate funding and staff to carry out the duties 
described in subsection (a), subject to the availability of 
appropriations.

SEC. 14. EXPANSION OF THE UNITED STATES AND FOREIGN COMMERCIAL SERVICE 
              IN SUB-SAHARAN AFRICA.

    (a) Sense of the Congress.--It is the sense of the Congress that 
the United States and Foreign Commercial Service should expand its 
presence in sub-Saharan Africa by increasing the number of posts and 
the number of personnel it allocates to sub-Saharan Africa.
    (b) Reporting Requirement.--Not later than 120 days after the date 
of the enactment of this Act, the Secretary of Commerce, in 
consultation with the Secretary of State, should report to the Congress 
on the feasibility of expanding the presence in sub-Saharan Africa of 
the United States and Foreign Commercial Service.

SEC. 15. REPORTING REQUIREMENT.

    The President shall submit to the Congress, not later than 1 year 
after the date of the enactment of this Act, and not later than the end 
of each of the next 4 1-year periods thereafter, a report on the 
implementation of this Act.

SEC. 16. SUB-SAHARAN AFRICA DEFINED.

    For purposes of this Act, the terms ``sub-Saharan Africa'', ``sub-
Saharan African country'', ``country in sub-Saharan Africa'', 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)
            Republic of Chad (Chad)
            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 Mali (Mali)
            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)
            Somalia
            Kingdom of Swaziland (Swaziland)
            Republic of Togo (Togo)
            Republic of Zimbabwe (Zimbabwe)
            Republic of Benin (Benin)
            Burkina Faso (Burkina)
            Republic of Cameroon (Cameroon)
            Central African Republic
            Federal Islamic Republic of the Comoros (Comoros)
            Republic of Cote d'Ivoire (Cote d'Ivoire)
            Republic of Equatorial Guinea (Equatorial Guinea)
            Ethiopia
            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)
            Republic 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)

SEC. 17. CLARIFICATION OF DEDUCTION FOR SEVERANCE PAY.

    (a) In General.--Section 404(a) of the Internal Revenue Code of 
1986 (relating to deduction for contributions of an employer to an 
employee's trust or annuity plan and compensation under a deferred-
payment plan) is amended by adding at the end the following new 
paragraph:
            ``(11) Determinations relating to severance pay.--For 
        purposes of determining under this section--
                    ``(A) whether severance pay is deferred 
                compensation; and
                    ``(B) when severance pay is paid,
        no amount shall be treated as received by the employee, or 
        paid, until it is actually received by the employee.''.
    (b) Effective Date.--
            (1) In general.--The amendment made by subsection (a) shall 
        apply to taxable years ending after October 8, 1997.
            (2) Change in method of accounting.--In the case of any 
        taxpayer required by the amendment made by subsection (a) to 
        change its method of accounting for its first taxable year 
        ending after October 8, 1997--
                    (A) such change shall be treated as initiated by 
                the taxpayer;
                    (B) such change shall be treated as made with the 
                consent of the Secretary of the Treasury; and
                    (C) the net amount of the adjustments required to 
                be taken into account by the taxpayer under section 481 
                of the Internal Revenue Code of 1986 shall be taken 
                into account in such first taxable year.

SEC. 18. DONATION OF OBSOLETE AIR TRAFFIC CONTROL EQUIPMENT TO ELIGIBLE 
              SUB-SAHARAN AFRICAN COUNTRIES.

    It is the sense of the Congress that, to the extent appropriate, 
the United States Government should make every effort to donate to 
governments of sub-Saharan African countries (determined to be eligible 
under section 4 of this Act) obsolete air traffic control equipment, 
including appropriate related reimbursable technical assistance for 
such equipment.

            Passed the House of Representatives March 11, 1998.

            Attest:

                                                                 Clerk.