[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1993 Placed on Calendar Senate (PCS)]

                                                       Calendar No. 317

106th CONGRESS

  1st Session

                               H. R. 1993

_______________________________________________________________________

                                 AN ACT

  To reauthorize the Overseas Private Investment Corporation and the 
         Trade and Development Agency, and for other purposes.

_______________________________________________________________________

                            October 14, 1999

            Received; read twice and placed on the calendar
                                                       Calendar No. 317
106th CONGRESS
  1st Session
                                H. R. 1993

                   IN THE SENATE OF THE UNITED STATES

                            October 14, 1999

            Received; read twice and placed on the calendar

_______________________________________________________________________

                                 AN ACT


 
  To reauthorize the Overseas Private Investment Corporation and the 
         Trade and Development Agency, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Export Enhancement Act of 1999''.

SEC. 2. FINDINGS.

    The Congress makes the following findings:
            (1) Since it began operations in 1971, the Overseas Private 
        Investment Corporation (in this Act referred to as ``OPIC'') 
        has sold investment services and mobilized private sector 
        resources to assist developing countries and emerging 
        democracies in the transition from nonmarket to market 
        economies.
            (2) In an era of declining Federal budgetary resources, 
        OPIC has consistently demonstrated an ability to operate on a 
        self-sustaining basis to support United States companies and 
        promote economic reform in emerging economies in Africa, the 
        newly independent states of the former Soviet Union, Latin 
        America, and the Caribbean.
            (3) OPIC has played an important role in reinforcing United 
        States foreign policy goals and in strengthening the United 
        States economy by creating jobs and promoting exports.
            (4) Over the past 28 years, projects supported by OPIC have 
        generated over $58,000,000,000 in United States exports, 
        mobilized $121,000,000,000 of United States private sector 
        investment, and created more than 237,000 United States jobs.
            (5) OPIC has been run on a sound financial basis with 
        reserves totaling approximately $3,300,000,000 and with an 
        estimated net budget contribution to the international affairs 
        account of some $204,000,000 in fiscal year 2000.
            (6) OPIC has maintained a claims recovery rate of 95 
        percent, settling 254 insurance claims for $541,000,000 and 
        recovering all but $29,000,000 since 1971.
            (7) OPIC programs have served to rectify market failures, 
        including limited market information in developing countries 
        and underdeveloped capital markets, by insuring United States 
        firms against economic and market uncertainties.
            (8) The Trade and Development Agency (in this Act referred 
        to as ``TDA'') promotes United States business involvement in 
        infrastructure projects in developing and middle income 
        countries.
            (9) TDA has generated $12,300,000,000 in exports since its 
        inception, with every $1 in spending for TDA projects leading 
        to the sale of $32 in United States goods and services 
        overseas.
            (10) The United States and Foreign Commercial Service (in 
        this Act referred to as the ``Commercial Service'') plays an 
        important role in helping United States businesses identify 
        export opportunities and develop reliable sources of 
        information on commercial prospects in foreign countries.
            (11) The Congress has, on several occasions, encouraged the 
        Commercial Service to focus its resources and efforts in 
        countries or regions in Europe and Asia to promote greater 
        United States export activity in those markets.
            (12) The Congress supports the expansion of the Rural 
        Export Initiative by the International Trade Administration (in 
        this Act referred to as the ``ITA'') of the Department of 
        Commerce, particularly those elements related to the use of 
        information technology and electronic commerce techniques.
            (13) The Congress is encouraged by the success of the 
        Market Access and Compliance Unit of the ITA and supports the 
        Unit's efforts to develop mobile teams to resolve market access 
        problems and ensure compliance by United States trading 
        partners with trade agreements and commitments.
            (14) The Congress acknowledges the demands upon the Market 
        Access and Compliance Unit of the ITA and recommends that 
        priority be given to funding for this unit to ensure that 
        adequate resources are available for it to fully implement its 
        mission.

SEC. 3. POLICY RECOMMENDATIONS.

    The Congress makes the following declarations:
            (1) OPIC should set its fees at levels sufficient to cover 
        all operating costs, repay any subsidy appropriations, and set 
        aside adequate reserves against future losses.
            (2) OPIC should maintain a conservative ratio of reserves 
        to contingent liabilities and limit its obligations in any one 
        country in its worldwide finance or insurance portfolio.
            (3) Projects supported by OPIC should not displace 
        commercial finance or insurance offerings and should encourage 
        private sector financing and insurance participation.
            (4) Independent auditors should report annually to the 
        Congress on the level of OPIC's reserves in relation to its 
liabilities and provide an analysis of the trends in the levels of 
reserves and liabilities and the composition of its insurance and 
finance portfolios, including OPIC's investment funds.
            (5) OPIC should double the dollar value of its support for 
        small businesses over the next 4 years.
            (6) In administering the programs and activities of the 
        ITA, the Secretary of Commerce should give particular emphasis 
        to obtaining market access for United States firms and to 
        securing full compliance with bilateral and multilateral trade 
        agreements.
            (7) The ITA should facilitate the entrance of United States 
        businesses into the countries of sub-Saharan Africa and Latin 
        America.
            (8) The Commercial Service, within the ITA, should consider 
        expanding its presence in urban areas and in urban enterprise 
        areas.
            (9) OPIC must address concerns that it does not promptly 
        dispose of legitimate claims brought with respect to projects 
        insured or guaranteed by OPIC. The Congress understands the 
        desire of OPIC to explore all possible arrangements with 
        foreign parties. However, OPIC must be aware that private 
        parties with legitimate claims face financial obligations that 
        cannot be deferred indefinitely.

SEC. 4. OPIC ISSUING AUTHORITY.

    Section 235(a)(2) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2195(a)(3)) is amended by striking ``1999'' and inserting ``2003''.

SEC. 5. ENVIRONMENTAL IMPACT OF OPIC PROGRAMS.

    (a) Additional Requirements.--Section 231A of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2191a) is amended--
            (1) by redesignating subsection (b) as subsection (c);
            (2) by inserting after subsection (a) the following new 
        subsection:
    ``(b) Environmental Impact.--
            ``(1) Environmental assessment or audit.--The Board of 
        Directors of the Corporation shall not vote in favor of any 
        action proposed to be taken by the Corporation that is likely 
        to have significant adverse environmental impacts that are 
        sensitive, diverse, or unprecedented, unless for at least 60 
        days before the date of the vote--
                    ``(A) an environmental impact assessment or initial 
                environmental audit, analyzing the environmental 
                impacts of the proposed action and of alternatives to 
                the proposed action has been completed by the project 
                applicant and made available to the Board of Directors; 
                and
                    ``(B) such assessment or audit has been made 
                available to the public of the United States, locally 
                affected groups in the host country, and host country 
                nongovernmental organizations.
            ``(2) Discussions with board members.--Prior to any 
        decision by the Corporation regarding insurance, reinsurance, 
        guarantees, or financing for any project, the President of the 
        Corporation or the President's designee shall meet with at 
        least one member of the public who is representative of 
        individuals who have concerns regarding any significant adverse 
        environmental impact of that project.
            ``(3) Consideration at board meetings.--In making its 
        decisions regarding insurance, reinsurance, guarantees, or 
        financing for any project, the Board of Directors shall fully 
        take into account any recommendations made by other interested 
        Federal agencies, interested members of the public, locally 
        affected groups in the host country, and host country 
        nongovernmental organizations with respect to the assessment or 
        audit described in paragraph (1) or any other matter related to 
        the environmental effects of the proposed support to be 
        provided by the Corporation for the project.''; and
            (3) in subsection (c), as so redesignated, by striking 
        ``each year'' and inserting ``every 6 months''.
    (b) Study on Process for OPIC Assistance.--The Inspector General of 
the Agency for International Development shall review OPIC's procedures 
for undertaking to conduct financing, insurance, and reinsurance 
operations in order to determine whether OPIC receives sufficient 
information from project applicants, agencies of the United States 
Government, and members of the public of the United States and other 
countries on the environmental impact of investments insured, 
reinsured, or financed by OPIC. Not later than 120 days after the date 
of the enactment of this Act, the Inspector General shall report to the 
Committee on International Relations of the House of Representatives 
and the Committee on Foreign Relations of the Senate on the results of 
its review. The report shall include--
            (1) recommendations for ways in which the views of the 
        public could be better reflected in OPIC's procedures;
            (2) recommendations for what additional information should 
        be required of project applicants; and
            (3) recommendations for environmental standards that should 
        be used by OPIC in conducting its financing, insurance, and 
        reinsurance operations.
    (c) Effective Date.--The amendments made by subsection (a) shall 
take effect 90 days after the date of the enactment of this Act.

SEC. 6. PROHIBITION ON OPIC FUNDING FOR FOREIGN MANUFACTURING 
              ENTERPRISES.

    Section 231 of the Foreign Assistance Act of 1961 (21 U.S.C. 2191) 
is amended by adding at the end the following flush sentence:
``In addition, the Corporation shall decline to issue any contract of 
insurance or reinsurance, or any guaranty, or to enter into any 
agreement to provide financing for an eligible investor's investment if 
the investment is to be made in a manufacturing enterprise in a foreign 
country, if such investment would cause a reduction in manufacturing in 
the United States.''.

SEC. 7. REVIEW OF CLAIMS PROCESSING FOR OPIC.

    The General Accounting Office is requested to provide a report not 
later than 6 months after the date of the enactment of this Act to the 
Committee on International Relations of the House of Representatives 
and the Committee on Foreign Relations of the Senate, which reviews the 
claims activity of the Overseas Private Investment Corporation. The 
report shall include--
            (1) an analysis of claims paid, settled and denied by OPIC;
            (2) the number of claims determinations made by OPIC which 
        are challenged in arbitration;
            (3) the number of OPIC's claims denials which are reversed 
        in arbitration;
            (4) the number of claims which are withdrawn; and
            (5) recommendations for ways in which the interests of OPIC 
        insureds and the public could be better served by OPIC's claims 
        procedures.

SEC. 8. RESTRICTION ON CONTACTS RELATING TO OPIC CLAIMS SETTLEMENTS.

    (a) Publication of Federal Agency Interventions.--Section 237(i) of 
the Foreign Assistance Act of 1961 (22 U.S.C. 2197(i)) is amended--
            (1) by inserting ``(1)'' after ``(i)''; and
            (2) by adding at the end the following:
    ``(2) No other department or agency of the United States, or 
officer or employee thereof, may intervene with the intent to impede or 
delay in any pending settlement determination on any claim arising as a 
result of insurance, reinsurance, or guaranty operations under this 
title or under predecessor guaranty authority unless such intervention 
is published in the Federal Register.
    ``(3) The Corporation shall report to the Congress on any 
intervention, with the intent to impede to delay a settlement 
determination by any other department or agency of the United States, 
or officer or employee thereof, regarding the timing or settlement of 
any claim arising as a result of insurance, reinsurance, or guaranty 
operations under this title or under predecessor guaranty authority. 
The report shall be submitted within 30 days after the intervention is 
made.''.

SEC. 9. TRADE AND DEVELOPMENT AGENCY.

    (a) Purpose.--Section 661(a) of the Foreign Assistance Act of 1961 
(22 U.S.C. 2421(a)) is amended by inserting before the period at the 
end of the second sentence the following: ``, with special emphasis on 
economic sectors with significant United States export potential, such 
as energy, transportation, telecommunications, and environment''.
    (b) Contributions of Costs.--Section 661(b) of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2421(b)) is amended by adding at the 
end the following:
            ``(5) Contributions to costs.--The Trade and Development 
        Agency shall, to the maximum extent practicable, require 
        corporations and other entities to--
                    ``(A) share the costs of feasibility studies and 
                other project planning services funded under this 
                section; and
                    ``(B) reimburse the Trade and Development Agency 
                those funds provided under this section, if the 
                corporation or entity concerned succeeds in project 
                implementation.''.
    (c) Funding.--Section 661(f) of the Foreign Assistance Act of 1961 
(22 U.S.C. 2421(f)) is amended--
            (1) in paragraph (1)(A) by striking ``$77,000,000'' and all 
        that follows through ``1996'' and inserting ``$48,000,000 for 
        fiscal year 2000 and such sums as may be necessary for each 
        fiscal year thereafter''; and
            (2) in paragraph (2)(A), by striking ``in fiscal years'' 
        and all that follows through ``provides'' and inserting ``in 
        carrying out its program, provide, as appropriate, funds''.

SEC. 10. PROGRAMS OF THE INTERNATIONAL TRADE ADMINISTRATION.

    (a) Funding.--There are authorized to be appropriated to the ITA--
            (1) for fiscal year 2000, $24,000,000 for its Market Access 
        and Compliance program, $68,000,000 for its Trade Development 
        program, and $202,000,000 for the Commercial Service program; 
        and
            (2) for each fiscal year thereafter, such sums as may be 
        necessary for the programs referred to in paragraph (1).
    (b) Appointments.--Subject to the availability of appropriations, 
the Secretary of Commerce, acting through the Assistant Secretary of 
Commerce and Director General of the United States and Foreign 
Commercial Service, shall take steps to ensure that Commercial Service 
employees are stationed in no fewer than 10 sub-Saharan African 
countries and one full-time Commercial Service employee is stationed in 
the Baltic states, and that the Commercial Service has full-time 
employees in each country in South and Central America and an adequate 
number of employees in the Caribbean to ensure that United States 
businesses are made aware of existing market opportunities for goods 
and services.
    (c) Initiative for Sub-Saharan Africa and Latin America.--The 
Secretary of Commerce, acting through the Undersecretary of Commerce 
for the International Trade Administration, shall make a special effort 
to--
            (1) identify those goods and services of United States 
        companies which are not being exported to Latin America and 
        sub-Saharan Africa but which are being exported to countries in 
        those regions by competitor nations;
            (2) identify trade barriers and noncompetitive actions, 
        including violations of intellectual property rights, that are 
        preventing or hindering the operation of United States 
        companies in sub-Saharan Africa and Latin America;
            (3) publish on an annual basis the information obtained 
        under paragraphs (1) and (2);
            (4) bring such information to the attention of authorities 
        in sub-Saharan Africa and Latin America with the goal of 
        securing greater market access for United States exporters of 
goods and services; and
            (5) report to the Speaker of the House of Representatives 
        and the President of the Senate the results of the efforts to 
        increase the sales of United States goods and services in sub-
        Saharan Africa and Latin America.
    (d) Reports on Market Access.--
            (1) Annual reports.--Not later than March 30 after the date 
        of the enactment of this Act, and annually thereafter, the TPCC 
        should submit to the Congress, and make available to the 
        public, a report with respect to those countries selected by 
        the TPCC in which goods or services produced or originating in 
        the United States, that would otherwise be competitive in those 
        countries, do not have market access. Each report should 
        contain the following with respect to each such country:
                    (A) Assessment of potential market access.--An 
                assessment of the opportunities that would, but for the 
                lack of market access, be available in the market in 
                that country, for goods and services produced or 
                originating in the United States in those sectors 
                selected by the TPCC. In making such assessment, the 
                TPCC should consider the competitive position of such 
                goods and services in similarly developed markets in 
                other countries. Such assessment should specify the 
                time periods within which such market access 
                opportunities should reasonably be expected to be 
                obtained.
                    (B) Criteria for measuring market access.--
                Objective criteria for measuring the extent to which 
                those market access opportunities described in 
                subparagraph (A) have been obtained. The development of 
                such objective criteria may include the use of interim 
                objective criteria to measure results on a periodic 
                basis, as appropriate.
                    (C) Compliance with trade agreements.--An 
                assessment of whether, and to what extent, the country 
                concerned has materially complied with existing trade 
                agreements between the United States and that country. 
                Such assessment should include specific information on 
                the extent to which United States suppliers have 
                achieved additional access to the market in the country 
                concerned and the extent to which that country has 
                complied with other commitments under such agreements 
                and understandings.
                    (D) Actions taken by ita.--An identification of 
                steps taken by the USTR and ITA on behalf of United 
                States companies affected by the lack of market access 
                in that country.
            (2) Selection of countries and sectors.--
                    (A) In general.--In selecting countries and sectors 
                that are to be the subject of a report under paragraph 
                (1), the USTR and ITA should give priority to--
                            (i) any country with which the United 
                        States has a trade deficit if access to the 
                        markets in that country is likely to have 
                        significant potential to increase exports of 
                        United States goods and services; and
                            (ii) any country, and sectors therein, in 
                        which access to the markets will result in 
                        significant employment benefits for producers 
                        of United States goods and services.
                The USTR and ITA should also give priority to sectors 
                which represent critical technologies, including those 
                identified by the National Critical Technologies Panel 
                under section 603 of the National Science and 
                Technology Policy, Organization, and Priorities Act of 
                1976 (42 U.S.C. 6683).
                    (B) First report.--The first report submitted under 
                paragraph (1) should include those countries with which 
                the United States has a substantial portion of its 
                trade deficit.
                    (C) Trade surplus countries.--The TPCC may include 
                in reports after the first report such countries as the 
                USTR and ITA considers appropriate with which the 
                United States has a trade surplus but which are 
                otherwise described in paragraph (1) and subparagraph 
                (A) of this paragraph.
    (e) Global Diversity and Urban Export Initiative for the ITA.--The 
ITA shall undertake an initiative entitled the ``Global Diversity and 
Urban Export Initiative'' to increase exports from businesses that, 
because of their minority ownership, may have been excluded from export 
trade, and from businesses in under-served areas, including inner-city 
urban areas and urban enterprise zones. The initiative should use 
electronic commerce technology and products as another means of helping 
such businesses export overseas.
    (f) Standards Attaches.--Subject to the availability of 
appropriations, the International Trade Administration shall take the 
necessary steps to increase the number of standards attaches in the 
European Union and in developing countries.
    (g) Expansion of Programs to Assist Small Businesses.--The 
International Trade Administration shall expand its efforts to assist 
small businesses in exporting their products and services abroad by 
using electronic commerce technology and other electronic means--
            (1) to communicate with significantly larger numbers of 
        small businesses about the assistance offered by the ITA to 
        small businesses in exporting their products and services 
        abroad; and
            (2) to provide such assistance.
    (h) Authorization for Advertising.--The ITA is authorized to 
advertise in newspapers, business journals, and other relevant 
publications and related media to inform businesses about the services 
offered by the ITA.

SEC. 11. BOARD OF DIRECTORS.

    Section 233(b) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2193(b)) is amended--
            (1) by striking the second and third sentences;
            (2) in the fourth sentence by striking ``(other than the 
        President of the Corporation, appointed pursuant to subsection 
        (c) who shall serve as a Director, ex officio)'';
            (3) in the second undesignated paragraph--
                    (A) by inserting ``the President of the 
                Corporation, the Administrator of the Agency for 
                International Development, the United States Trade 
                Representative, and'' after ``including''; and
                    (B) by adding at the end the following: ``The 
                United States Trade Representative may designate a 
                Deputy United States Trade Representative to serve on 
                the Board in place of the United States Trade 
                Representative.''; and
            (4) by inserting after the second undesignated paragraph 
        the following:
    ``There shall be a Chairman and a Vice Chairman of the Board, both 
of whom shall be designated by the President of the United States from 
among the Directors of the Board other than those appointed under the 
second sentence of the first paragraph of this subsection.''.

SEC. 12. STRATEGIC EXPORT PLAN.

    Section 2312(c) of the Export Enhancement Act of 1988 (15 U.S.C. 
4727(c)) is amended--
            (1) by striking ``and'' at the end of paragraph (5);
            (2) by striking the period at the end of paragraph (6) and 
        inserting a semicolon; and
            (3) by adding at the end the following:
            ``(7) ensure that all export promotion activities of the 
        Agency for International Development are fully coordinated and 
        consistent with those of other agencies;
            ``(8) identify means for providing more coordinated and 
        comprehensive export promotion services to, and on behalf of, 
        small and medium-sized businesses; and
            ``(9) establish a set of priorities to promote United 
        States exports to, and free market reforms in, the Middle East, 
        Africa, Latin America, and other emerging markets, that are 
        designed to stimulate job growth both in the United States and 
        those regions and emerging markets.''.

SEC. 13. IMPLEMENTATION OF PRIMARY OBJECTIVES.

    The Trade Promotion Coordinating Committee shall--
            (1) report on the actions taken or efforts currently 
        underway to eliminate the areas of overlap and duplication 
        identified among Federal export promotion activities;
            (2) coordinate efforts to sponsor or promote any trade show 
        or trade fair;
            (3) work with all relevant State and national 
        organizations, including the National Governors' Association, 
        that have established trade promotion offices;
            (4) report on actions taken or efforts currently underway 
        to promote better coordination between State, Federal, and 
        private sector export promotion activities, including co-
        location, cost sharing between Federal, State, and private 
        sector export promotion programs, and sharing of market 
        research data; and
            (5) by not later than March 30, 2000, and annually 
        thereafter, include the matters addressed in paragraphs (1), 
        (2), (3), and (4) in the annual report required to be submitted 
        under section 2312(f) of the Export Enhancement Act of 1988 (15 
        U.S.C. 4727(f)).

SEC. 14. TIMING OF TPCC REPORTS.

    Section 2312(f) of the Export Enhancement Act of 1988 (15 U.S.C. 
4727(f)) is amended by striking ``September 30, 1995, and annually 
thereafter,'' and inserting ``March 30 of each year,''.

            Passed the House of Representatives October 13, 1999.

            Attest:

                                                 JEFF TRANDAHL,

                                                                 Clerk.