[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 778 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                 S. 778

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 21, 1997

   Mr. Lugar introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 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 the social and economic 
development of the countries of sub-Saharan Africa in a manner which 
strengthens and expands market-led economic growth consistent with 
equitable and efficient development and which reduces poverty and 
increases employment among the poor. In particular, the United States 
seeks to assist sub-Saharan African 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 for a fiscal year only if the 
President determines that the country 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 and 
        factors of production between the United States and 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 
        United States companies;
            (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) tax issues, 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 
        attract foreign investors;
            (7) supporting the growth of regional markets within a free 
        trade area framework;
            (8) regulatory issues, such as eliminating government 
        corruption, minimizing government intervention in the market, 
        monitoring the fiscal and monetary policies of the government, 
        and supporting the growth of the private sector, in particular 
        by promoting the emergence of a new generation of African 
        entrepreneurs;
            (9) encouraging the private ownership of government-
        controlled economic enterprises through divestiture programs;
            (10) removing restrictions on investment; and
            (11) the reduction of poverty, such as the provision of 
        basic health and education for poor citizens, 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.
    (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) The extent to which such country is in material 
        compliance with its programs with and its obligation to the 
        International Monetary Fund and other international financial 
        institutions.
    (c) Continuing Compliance.--
            (1) Monitoring and review of certain countries.--The 
        President shall monitor and review the progress of those sub-
        Saharan African countries that have been determined to be 
        eligible under subsection (a) but are in need of making 
        continual progress in meeting one or more of the requirements 
        of such subsection.
            (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.

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)''.
    (d) Waiver Authority.--Section 496 of the Foreign Assistance Act of 
1961 (22 U.S.C. 2293) is amended by adding at the end the following:
    ``(p) Waiver Authority.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        President may waive any provision of law that earmarks, for a 
        specified country, organization, or purpose, funds made 
        available to carry out this chapter if the President determines 
        that the waiver of such provision of law would provide 
        increased flexibility in carrying out this chapter.
            ``(2) Exceptions.--
                    ``(A) Child survival activities.--The authority 
                contained in paragraph (1) may not be used to waive a 
                provision of law that earmarks funds made available to 
                carry out this chapter for the following purposes:
                            ``(i) Immunization programs.
                            ``(ii) Oral rehydration programs.
                            ``(iii) Health and nutrition programs, and 
                        related education programs, which address the 
                        needs of mothers and children.
                            ``(iv) Water and sanitation programs.
                            ``(v) Assistance for displaced and orphaned 
                        children.
                            ``(vi) Programs for the prevention, 
                        treatment, and control of, and research on, 
                        tuberculosis, HIV/AIDS, polio, malaria, and 
                        other diseases.
                            ``(vii) Basic education programs for 
                        children.
                            ``(viii) Contribution on a grant basis to 
                        the United Nations Children's Fund (UNICEF) 
                        pursuant to section 301 of this Act.
                    ``(B) Requirement to supersede waiver authority.--
                The provisions of this subsection shall not be 
                superseded except by a provision of law enacted after 
                the date of the enactment of the African Growth and 
                Opportunity Act which specifically repeals, modifies, 
or supersedes such provisions.''.

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.
            (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) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out this section.

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 a cost-effective and efficient visa system to 
                guard against unlawful transshipment of textile and 
                apparel goods; and
                    (B) from Mauritius within 30 days after that 
                country adopts such a visa system.
        The Customs Service shall provide the necessary assistance to 
        Kenya and Mauritius in the development and implementation of 
        those visa systems. 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 
        those visa systems during the preceding calendar year.
            (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. The 
President should ensure that any country in sub-Saharan Africa that 
intends to export substantial textile and apparel goods to the United 
States has in place a functioning and efficient visa system to guard 
against unlawful transshipment of textile and apparel goods.
    (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. 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)) 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.''.
    (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) Countries in Sub-Saharan Africa.--No duty-free treatment 
provided under this title shall remain in effect after May 31, 2007, 
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 May 31, 1997, with respect to 
beneficiary developing countries other than those provided for in 
subsection (a).''.
    (d) 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' means a country or countries 
        that the President has determined to be eligible under section 
        4 of the African Growth and Opportunity Act.''.

SEC. 10. INTERNATIONAL FINANCIAL INSTITUTIONS AND DEBT REDUCTION.

    (a) International Financial Institutions.--(1) It is the sense of 
the Congress that international financial institutions and improved 
application of programs such as those of the International Development 
Association, the African Development Bank, the African Development 
Fund, and the Enhanced Structural Adjustment Facility of the 
International Monetary Fund are vital to achieving the purposes of this 
Act.
    (2) The Congress supports the efforts of the executive branch to 
encourage international financial institutions to develop enhanced 
mechanisms for providing financing for countries eligible under section 
4, consistent with the purposes of this Act.
    (b) Debt Reduction.--(1) It is the sense of the Congress that the 
executive branch should extinguish concessional debt owed to the United 
States by the poorest countries in sub-Saharan Africa that are heavily 
indebted and pursuing bold growth-oriented policies, and that the 
executive branch should seek comparable action by other creditors of 
such countries.
    (2) The Congress supports the efforts of the executive branch to 
secure agreement from international financial institutions on maximum 
debt reduction for sub-Saharan Africa as part of the multilateral 
initiative referred to as the Heavily Indebted Poor Countries (HIPC) 
initiative.
    (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) Board of directors to include member with private 
        sector experience in sub-saharan africa.--Section 233(b) of the 
        Foreign Assistance Act of 1961 (22 U.S.C. 2193(b)) is amended 
        in the first paragraph by inserting after the fifth sentence 
        the following: ``At least one of the eight Directors appointed 
        under the fourth sentence shall have extensive private sector 
        experience in sub-Saharan Africa.''.
            (2) Advisory board.--
                    (A) In general.--Section 233 of the Foreign 
                Assistance Act of 1961 is amended by adding at the end 
                the following:
    ``(e) Advisory Board.--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 designed to support the expansion of, and 
increase in, the provision of loans, guarantees, and insurance with 
respect to sub-Saharan Africa. In addition, the advisory board 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.''.
                    (B) 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 and any recommendations 
                of the advisory board established pursuant to such 
                section.
    (b) Export-Import Bank.--
            (1) Board of directors to include member with private 
        sector experience in sub-saharan africa.--Section 3(c)(8)(B) of 
        the Export-Import Bank Act of 1945 (12 U.S.C. 635a(c)(8)(B)) is 
        amended by inserting ``, and one such member shall be selected 
        from among persons who have extensive private sector experience 
        in sub-Saharan Africa'' before the period.
            (2) Advisory board.--
                    (A) In general.--Section 3 of such Act (12 U.S.C. 
                635a) is amended by adding at the end the following:
    ``(f) The Board of Directors shall take prompt measures to increase 
the loan, guarantee, and insurance programs, and financial commitments, 
of the Bank in sub-Saharan Africa, including through the establishment 
and use of an advisory committee to assist the Board of Directors in 
developing and implementing policies, programs, and financial 
instruments designed to support the expansion of, and increase in, the 
provision of loans, guarantees, and insurance with respect to sub-
Saharan Africa. In addition, the advisory board shall make 
recommendations to the Board of Directors on how the Bank can 
facilitate greater support by United States commercial banks for trade 
and investment with and in sub-Saharan Africa.''.
                    (B) 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 shall submit to the Congress 
                a report on the steps that the Board has taken to 
                implement section 3(f) of the Export-Import Bank Act of 
                1945 and any recommendations of the advisory board 
                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 
paragraph (1) has adequate funding and staff to carry out the duties 
described in paragraph (1).

SEC. 14. 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. 15. 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)
            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 Zaire (Zaire)
            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)
                                 <all>