[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1164 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 1164

  To provide for assistance by the United States to promote economic 
growth and stabilization of Northern Ireland and the border counties of 
                          the Irish Republic.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 17, 1999

Mr. McDermott (for himself, Mr. English, Mr. Jefferson, and Mr. Matsui) 
 introduced the following bill; which was referred to the Committee on 
 International Relations, and in addition to the Committee on Ways and 
 Means, for a period to be subsequently determined by the Speaker, in 
   each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
  To provide for assistance by the United States to promote economic 
growth and stabilization of Northern Ireland and the border counties of 
                          the Irish Republic.

    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 ``Good Friday Trade and Investment 
Act''.

SEC. 2. FINDINGS.

    The Congress makes the following findings:
            (1) Economic growth and stabilization of Northern Ireland 
        and the border counties of the Irish Republic are key to full 
        implementation of the Good Friday Peace Agreement, entered into 
        on April 19, 1998.
            (2) The bombing in Omagh on August 15, 1998, is a clear 
        example of a small town that desperately needs immediate relief 
        and assistance for reconstruction. The pace and scale of aid 
        and investment in Omagh and other towns recently bombed--
        Banbridge, Markethill, and Newtownhamilton--could determine 
        whether the Good Friday Peace Agreement holds.
            (3) The international community, including the European 
        Union and the World Trade Organization (WTO), has a strong 
        record of responding to historic political and economic 
        circumstances. It has fought for and approved WTO waivers, such 
        as transitional measures to take account of German unification 
        and the Treaty of Lome, that allow necessary international 
        flexibility and cooperation to enhance trade and investment and 
        stabilize economically deprived and politically revitalized 
        regions.
            (4) The United States can continue its crucial role in the 
        peace process by creating and promoting economic growth through 
        trade and investment in the region's severely economically 
        deprived areas. In addition to promoting trade and investment 
        in Northern Ireland and the Republic of Ireland, the United 
        States should consider grant assistance to aid communities in 
        the area suffering terrorist attacks.
            (5) Fair employment practices in Northern Ireland are an 
        essential element for an expanding full employment economy. The 
        Congress notes with approval the constant efforts undertaken by 
        the Northern Ireland Fair Employment Commission and Employment 
        Tribunal to achieve this end. The Good Friday Peace Agreement 
        established an Anti-discrimination Committee to augment the 
        work done by the Committee and Tribunal. The Congress believes 
        their continuing efforts constitute persuasive evidence that 
        fair employment principles are being effectively safeguarded, 
        secured, and promoted for all communities.

SEC. 3. OVERSEAS PRIVATE INVESTMENT CORPORATION.

    (a) Equity Funds.--The Overseas Private Investment Corporation 
shall establish equity funds, with total assets of at least 
$300,000,000, for the purpose of providing insurance, financing, and 
other assistance under title IV of chapter 2 of part I of the Foreign 
Assistance Act of 1961 for business development and infrastructure 
projects in Northern Ireland and the border counties of the Irish 
Republic.
    (b) Assistance Consistent With Principles of Fair Employment.--The 
Overseas Private Investment Corporation shall provide insurance, 
financing, and other assistance under subsection (a) only to 
individuals or entities in Northern Ireland and the Republic of Ireland 
which employ practices consistent with the principles of fair 
employment.
    (c) Priority to Projects Involving Women Entrepreneurs and Women in 
Management Positions.--Not less than 20 percent of the equity funds 
established under subsection (a) shall be dedicated for financing, 
insurance, and other assistance to--
            (1) businesses in Northern Ireland and the Republic of 
        Ireland that are owned and managed by women;
            (2) new businesses to be owned and managed by women; and
            (3) women who provide training and vocational education for 
        women.
    (d) Priority to Projects Involving New Technologies.--Not less than 
$10,000,000 of the equity funds established under subsection (a) shall 
be dedicated for financing, insurance, and other assistance to projects 
involving the development of new technologies, including biomedical and 
bioengineering projects.

SEC. 4. INTERNATIONAL FUND FOR IRELAND.

    (a) Increased Funding.--In addition to amounts otherwise available 
for such purposes, there are authorized to be appropriated for United 
States contributions to the International Fund for Ireland $30,000,000 
for fiscal year 2000 and not less than $40,000,000 for each of the 
fiscal years 2001 through 2004.
    (b) Use of Funds.--
            (1) In general.--The President shall take the necessary 
        steps to ensure that--
                    (A) at least 50 percent of the annual contributions 
                of the United States to the International Fund for 
                Ireland are used for projects, in the areas of greatest 
                need based upon levels of unemployment, that--
                            (i) are most likely to produce jobs and 
                        economic expansion; and
                            (ii) are selected by the Directors of the 
                        International Fund for Ireland in consultation 
                        with members of the Economic Development 
                        Committee of the Northern Ireland Assembly and 
                        members of the Cross Border Economic Committee 
                        from the Republic of Ireland; and
                    (B) projects targeted at or located in Northern 
                Ireland and the border counties of the Irish Republic 
                receive priority consideration by the Directors of the 
                International Fund for Ireland in using the funds 
                described in subparagraph (A).
            (2) Funding for projects using principles of fair 
        employment.--The President shall take the necessary steps to 
        ensure that funding for projects be provided by the 
        International Fund for Ireland only to individuals or entities 
        in Northern Ireland and the Republic of Ireland which employ 
        practices consistent with the principles of fair employment.
            (3) Report to congress.--The President, by no later than 
        December 1 of each year, shall transmit to the Congress a list 
        of those projects the President believes should be funded under 
        paragraph (1).
            (4) Priority projects in fiscal year 1999.--The President 
        shall take the necessary steps to ensure that the following 
        projects are given first consideration for use of funds 
        contributed by the United States in fiscal year 2000 to the 
        International Fund for Ireland:
                    (A) $8,000,000 in financing for Omagh Memorial 
                Science Park and other science parks located near 
                existing scientific research centers and university 
                campuses, to supplement support of the United Kingdom 
                for the business development of scientific research 
                discoveries.
                    (B) $5,000,000 in cofinancing of the Innovation 
                Fund established by the United Kingdom, which has 
                contributed $8,000,000 to that fund, to provide support 
                for technology projects with commercial potential.
                    (C) $250,000 over 2 fiscal years toward the 
                strengthening of existing ties between handmade in 
                America and the Northern Ireland craft sector.
                    (D) $250,000 for programs to develop middle 
                management skills in the public and private sector.
                    (E) $13,000,000 for the Springvale Project, a 
                university campus in an economically depressed area of 
                West Belfast, supported in conjunction with the 
                Government of the United Kingdom, the University of 
                Ulster, and the Belfast Institute of Further and Higher 
                Education.
                    (F) $1,000,000 for setting up an entrepreneurial 
                learning center in Northern Ireland and the border 
                counties of the Irish Republic by the Centre for 
                Innovation and Entrepreneurship in partnership with 
                Enterprise Ireland, the Training and Employment Agency, 
                and private sector companies.

SEC. 5. DEPARTMENT OF COMMERCE INITIATIVES.

    The Secretary of Commerce shall consolidate its current activities 
with respect to promotion of business opportunities in Northern Ireland 
and the border counties of the Irish Republic to focus on promoting 
awareness of business opportunities in those counties, encouraging 
joint ventures with businesses in those counties, and promoting the 
development of businesses owned by women.

SEC. 6. GENERALIZED SYSTEM OF PREFERENCES.

    (a) Designation as Beneficiary Developing Country.--Title V of the 
Trade Act of 1974 is amended by inserting after section 506 the 
following new section:

``SEC. 506A. DESIGNATION OF NORTHERN IRELAND AND THE BORDER COUNTIES OF 
              THE IRISH REPUBLIC.

    ``(a) Designation.--The President may designate Northern Ireland 
and the border counties of the Irish Republic as a beneficiary 
developing country for purposes of this title for the period beginning 
on a date specified by the President that occurs on or after the date 
on which the United States is granted the waivers of obligations under 
the WTO Agreement or the GATT 1994, or both, that are necessary on 
account of such designation, and ending no later than 10 years after 
the effective date or dates of the waivers.
    ``(b) Obligations of United States.--The United States Trade 
Representative shall seek the waiver described in subsection (a) within 
1 year after the date of the enactment of this section, and shall seek 
the cooperation of the European Community, the United Kingdom, and 
Ireland in acquiring the waiver.
    ``(c) Requirements for Eligibility of Articles.--
            ``(1) Requirements.--An article is eligible for duty free 
        treatment under this section only if--
                    ``(A) the article is wholly the growth, product, or 
                manufacture of the qualifying counties or is a new or 
                different article of commerce that has been grown, 
                produced, or manufactured in the qualifying counties; 
                and
                    ``(B) the article is imported directly from 
                qualifying counties; and
                    ``(C) the sum of--
                            ``(i) the cost or value of the materials 
                        produced in qualifying counties, plus
                            ``(ii) the direct costs of processing 
                        operations performed in the qualifying 
                        counties,
                is not less than 35 percent of the appraised value of 
                the product at the time it is entered into the United 
                States.
        For purposes of determining the 35 percent content requirement 
        contained in subparagraph (C), the cost or value of materials 
        which are used in the production of an article in the 
        qualifying counties, and are the products of the United States, 
        may be counted in an amount up to 15 percent of the appraised 
        value of the article.
            ``(2) Nonqualifying operations.--No article shall be 
        considered a new or different article of commerce under this 
        subsection, and no material shall be included for purposes of 
        determining the 35 percent requirement of paragraph (1)(C), by 
        virtue of having merely undergone--
                    ``(A) simple combining or packaging operations; or
                    ``(B) mere dilution with water or with another 
                substance that does not materially alter the 
                characteristics of the article or material.
            ``(3) Requirements for new or different article of 
        commerce.--For purposes of paragraph (1)(A), an article is a 
        new or different article of commerce if it is substantially 
        transformed into an article having a new name, character, or 
        use.
            ``(4) Cost or value of materials.--(A) For purposes of 
        paragraph (1), the cost or value of materials produced in the 
        qualifying counties includes--
                    ``(i) the manufacturer's actual cost for the 
                materials;
                    ``(ii) when not included in the manufacturer's 
                actual cost for the materials, the freight, insurance, 
                packing, and all other costs incurred in transporting 
                the materials to the manufacturer's plant;
                    ``(iii) the actual cost of waste or spoilage, less 
                the value of recoverable scrap; and
                    ``(iv) taxes or duties imposed on the materials by 
                the Republic of Ireland, the United Kingdom, or the 
                European Union if such taxes or duties are not remitted 
                on exportation.
            ``(B) If a material is provided to the manufacturer without 
        charge, or at less than fair market value, its cost or value 
        shall be determined by computing the sum of--
                    ``(i) all expenses incurred in the growth, 
                production, or manufacture of the material, including 
                general expenses;
                    ``(ii) an amount for profit; and
                    ``(iii) freight, insurance, packing, and all other 
                costs incurred in transporting the material to the 
                manufacturers plant.
        If the information necessary to compute the cost or value of a 
        material is not available, the Customs Service may ascertain or 
        estimate the value thereof using all reasonable methods.
            ``(5) Direct costs of processing operations.--(A) For 
        purposes of this subsection, the direct costs of processing 
        operations performed in the qualifying counties with respect to 
        an article are those costs either directly incurred in, or 
        which can be reasonably allocated to, the growth, 
production, manufacture, or assembly, of that article. Such costs 
include, but are not limited to, the following to the extent that they 
are includible in the appraised value of articles imported into the 
United States:
                    ``(i) All actual labor costs involved in the 
                growth, production, manufacture, or assembly of the 
                article, including fringe benefits, on-the-job 
                training, and costs of engineering, supervisory, 
                quality control, and similar personnel.
                    ``(ii) Dies, molds, tooling, and depreciation on 
                machinery and equipment which are alloca-
                ble to the article.
                    ``(iii) Research, development, design, engineering, 
                and blueprint costs insofar as they are allocable to 
                the article.
                    ``(iv) Costs of inspecting and testing the article.
            ``(B) Those items that are not included as direct costs of 
        processing operations with respect to an article are those 
        which are not directly attributable to the article or are not 
        costs of manufacturing the article. Such items include, but are 
        not limited to--
                    ``(i) profit; and
                    ``(ii) general expenses of doing business which are 
                either not allocable to the article or are not related 
                to the growth, production, manufacture, or assembly of 
                the article, such as administrative salaries, casualty 
                and liability insurance, advertising and salesmen's 
                salaries, commissions, or expenses.
            ``(6) Imported directly.--For purposes of this subsection--
                    ``(A) articles are imported directly if--
                            ``(i) the articles are shipped directly 
                        from the qualifying counties into the United 
                        States without passing through the territory of 
                        any intermediate country; or
                            ``(ii) if shipment is through the territory 
                        of an intermediate country, the articles in the 
                        shipment do not enter into the commerce of any 
                        intermediate country and the invoices, bills of 
                        lading, and other shipping documents specify 
                        the United States as the final destination; or
                    ``(B) if articles are shipped through an 
                intermediate country and the invoices and other 
                documents do not specify the United States as the final 
                destination, then the articles in the shipment, upon 
                arrival in the United States, are imported directly 
                only if they--
                            ``(i) remain under the control of the 
                        customs authority in an intermediate country;
                            ``(ii) do not enter into the commerce of an 
                        intermediate country except for the purpose of 
                        a sale other than at retail, but only if the 
                        articles are imported as a result of the 
                        original commercial transactions between the 
                        importer and the producer or the producer's 
                        sales agent; and
                            ``(iii) have not been subjected to 
                        operations other than loading, unloading, or 
                        other activities necessary to preserve the 
                        article in good condition.
            ``(7) Documentation required.--An article is eligible for 
        the duty exemption under this subsection only if--
                    ``(A) the importer certifies that the article meets 
                the conditions for the duty exemption; and
                    ``(B) when requested by the Customs Service, the 
                importer, manufacturer, or exporter submits a 
                declaration setting forth all pertinent information 
                with respect to the article, including the following:
                            ``(i) A description of the article, 
                        quantity, numbers and marks of packages, 
                        invoice numbers, and bills of lading.
                            ``(ii) A description of the operation 
                        performed in the production of the article in 
                        the qualifying counties and identification of 
                        the direct costs of processing operations.
                            ``(iii) A description of any materials used 
                        in production of the article which are wholly 
                        the growth, product, or manufacture of the 
                        qualifying counties or the United States, and a 
                        statement as to the cost or value of such 
                        materials.
                            ``(iv) A description of the operations 
                        performed on, and a statement as to the origin 
                        and cost or value of, any foreign materials 
                        used in the article which are claimed to have 
                        been sufficiently processed in the qualifying 
                        counties so as to be materials produced in the 
                        qualifying counties.
                            ``(v) A description of the origin and cost 
                        or value of any foreign materials used in the 
                        article which have not been substan- tially 
transformed in the qualifying counties.
    ``(d) Reports to Congress.--The United States Trade Representative 
shall report annually to the Congress on the status of efforts to 
acquire the waiver described in subsection (a). The Trade 
Representative shall also include in the report the status of trade 
relations between the United States and Northern Ireland and the border 
counties of the Irish Republic, and recommendations on how to 
effectively expand trade between the United States and Northern Ireland 
and the border counties of the Irish Republic.''.
    (b) Conforming Amendment.--Section 502(a)(1) of the Trade Act of 
1974 (19 U.S.C. 2462(a)(1)) is amended by striking ``The'' and 
inserting ``Except as provided in section 506A, the''.
    (c) Definitions.--Section 507 of the Trade Act of 1974 (19 U.S.C. 
2467) is amended by adding at the end the following:
            ``(6) Northern ireland and the border counties of the irish 
        republic; qualifying counties.--The terms `Northern Ireland and 
        the border counties of the Irish Republic' and `qualifying 
        counties' mean any county, district, city, or county council or 
        geographic area that--
                    ``(A) is in Northern Ireland, or is in the Republic 
                of Ireland and contiguous to Northern Ireland; and
                    ``(B)(i) suffers from the severest form of economic 
                deprivation, which may take into account the United 
                Kingdom's report, Relative Deprivation in Northern 
                Ireland, Occasional Paper Number 28, Policy Planning 
                and Research Unit, September, or the European Union's 
                report, Special Support Programme for Peace and 
                Reconciliation 1995-1999, including--
                            ``(I) in Northern Ireland, the counties of 
                        Derry, Armagh, Antrim, Tyrone, Fermanagh, and 
                        Down; and
                            ``(II) in the Republic of Ireland, the 
                        border counties of Donegal, Sligo, Leitrim, 
                        Cavan, Monaghan, and Louth; or
                    ``(ii) has a rate of unemployment higher than the 
                local or urban average of unemployment in Northern 
                Ireland.
            ``(7) GATT 1994.--The term `GATT 1994' has the meaning 
        given that term in section 2(1)(B) of the Uruguay Round 
        Agreements Act (19 U.S.C. 3501(1)(B)).
            ``(8) WTO agreement.--The term `WTO Agreement' has the 
        meaning given that term in section 2(9) of the Uruguay Round 
        Agreements Act (19 U.S.C. 3501(9)).''.

SEC. 7. DEFINITIONS.

    As used in this Act:
            (1) Northern ireland and the border counties of the irish 
        republic.--The term ``Northern Ireland and the border counties 
        of the Irish Republic'' means a county, district, city, or 
        county council or geographic area that--
                    (A) is in Northern Ireland, or is in the Republic 
                of Ireland and contiguous to Northern Ireland; and
                    (B)(i) suffers from the severest form of economic 
                deprivation, which may take into account the United 
                Kingdom's report, Relative Deprivation in Northern 
                Ireland, Occasional Paper Number 28, Policy Planning 
                and Research Unit, September, or the European Union's 
                report, Special Support Programme for Peace and 
                Reconciliation 1995-1999, including--
                            (I) in Northern Ireland, the counties of 
                        Derry, Armagh, Antrim, Tyrone, Fermanagh, and 
                        Down; and
                            (II) in the Republic of Ireland, the border 
                        counties of Donegal, Sligo, Leitrim, Cavan, 
                        Monaghan, and Louth; or
                    (ii) has a rate of unemployment higher than the 
                local or urban average of unemployment in Northern 
                Ireland.
            (2) International fund for ireland.--The term 
        ``International Fund for Ireland'' has the meaning given the 
        term ``International Fund'' in section 8 of the Anglo-Irish 
        Agreement Support Act of 1986 (Public Law 99-415).
            (3) Principles of fair employment.--The term ``principles 
        of fair employment'' means the following principles:
                    (A) Increasing the representation of individuals 
                from underrepresented religious groups in the 
                workforce, including managerial, supervisory, 
                administrative, clerical, and technical jobs.
                    (B) Providing adequate security for the protection 
                of minority employees at the workplace.
                    (C) Banning provocative sectarian or political 
                emblems from the workplace.
                    (D) Providing that all job openings be advertised 
                publicly and providing that special recruitment efforts 
                be made to attract applicants from underrepresented 
                religious groups.
                    (E) Providing that layoff, recall, and termination 
                procedures do not favor a particular religious group.
                    (F) Abolishing job reservations, apprenticeship 
                restrictions, and differential employment criteria 
                which discriminate on the basis of religion.
                    (G) Providing for the development of training 
                programs that will prepare substantial numbers of 
                minority employees for skilled jobs, including the 
                expansion of existing programs and the creation of new 
                programs to train, upgrade, and improve the skills of 
                minority employees.
                    (H) Establishing procedures to assess, identify, 
                and actively recruit minority employees with the 
                potential for further advancement.
                    (I) Providing for the appointment of a senior 
                management staff member to be responsible for the 
                employment efforts of the entity and, within a 
                reasonable period of time, the implementation of the 
                principles described in subparagraphs (A) through (H).
                                 <all>