[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 984 Reported in House (RH)]






                                                 Union Calendar No. 363
106th CONGRESS
  2d Session
                                H. R. 984

                      [Report No. 106-519, Part I]

 To provide additional trade benefits to certain beneficiary countries 
  in the Caribbean, to provide assistance to the countries in Central 
  America and the Caribbean affected by Hurricane Mitch and Hurricane 
                    Georges, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 4, 1999

    Mr. Crane (for himself, Mr. Kolbe, Mr. Rangel, and Mr. Matsui) 
 introduced the following bill; which was referred to the Committee on 
  Ways and Means, and in addition to the Committees on International 
  Relations, Banking and Financial Services, the Judiciary, and Armed 
Services, 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

                             March 13, 2000

    Reported from the Committee on Ways and Means with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

                             March 13, 2000

  Referral to the Committees on International Relations, Banking and 
 Financial Services, the Judiciary, and Armed Services extended for a 
               period ending not later than May 26, 2000

                              May 26, 2000

  Referral to the Committees on International Relations, Banking and 
 Financial Services, the Judiciary, and Armed Services extended for a 
               period ending not later than June 7, 2000

                              June 7, 2000

   Additional sponsors: Mr. Jefferson, Mr. Houghton, Mr. Dreier, Mr. 
      Hinojosa, Mr. English, Mrs. Meek of Florida, Mr. Rush, Mrs. 
 Christensen, Mr. McDermott, Mr. Foley, Mr. Dooley of California, Mr. 
 Moran of Virginia, Mr. Ramstad, Mr. Payne, Mr. Miller of Florida, Mr. 
Towns, Mr. Owens, Mr. Armey, Ms. Dunn, Mr. Shaw, Mr. McInnis, Mr. Davis 
 of Virginia, Mr. Meeks of New York, Mr. Blumenauer, Ms. Eddie Bernice 
Johnson of Texas, Mr. Hastings of Florida, Ms. Kilpatrick, Mr. Bliley, 
 Mr. Portman, Ms. Pryce of Ohio, Mr. McIntosh, Mr. Bentsen, Ms. Eshoo, 
   Mr. LaTourette, Mr. Lewis of California, Mr. Cannon, Mr. Brady of 
Texas, Mr. Ehlers, Mr. Nussle, Mr. Frelinghuysen, Mr. Davis of Florida, 
   Ms. Jackson-Lee of Texas, Mr. Radanovich, Mr. Fattah, Mr. Farr of 
   California, Mrs. Roukema, Mr. Shimkus, Mr. Weiner, Mr. Camp, Mr. 
Barrett of Nebraska, Mr. Cummings, Mr. Royce, Mr. Ford, Mr. Oxley, Mrs. 
Morella, Mr. Mascara, Ms. Berkley, Mr. Wynn, Mr. Talent, Mr. Hilliard, 
  Mr. Vitter, Mr. Bereuter, Mr. Davis of Illinois, Mr. Goss, and Mr. 
                                 Shays
  Deleted sponsor: Mr. Boehner (added April 27, 1999; deleted May 6, 
                                 1999)

                              June 7, 2000

Committees on International Relations, Banking and Financial Services, 
    the Judiciary, and Armed Services discharged; committed to the 
 Committee of the Whole House on the State of the Union and ordered to 
                               be printed
 [For text of introduced bill, see copy of bill as introduced on March 
                                4, 1999]

_______________________________________________________________________

                                 A BILL


 
 To provide additional trade benefits to certain beneficiary countries 
  in the Caribbean, to provide assistance to the countries in Central 
  America and the Caribbean affected by Hurricane Mitch and Hurricane 
                    Georges, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Caribbean and 
Central America Relief and Economic Stabilization Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Definitions.

           TITLE I--UNITED STATES-CARIBBEAN TRADE PARTNERSHIP

                      Subtitle A--Trade Provisions

Sec. 101. Short title.
Sec. 102. Policy.
Sec. 103. Definitions.
Sec. 104. Temporary provisions to provide NAFTA parity to partnership 
                            countries.
Sec. 105. Effect of NAFTA on sugar imports from beneficiary countries.
Sec. 106. Duty-free treatment for certain beverages made with Caribbean 
                            rum.
Sec. 107. Meetings of trade ministers and USTR.
Sec. 108. Report on economic development and market oriented reforms in 
                            the Caribbean.

                       Subtitle B--Revenue Offset

Sec. 111. Limitations on welfare benefit funds of 10 or more employer 
                            plans.

Subtitle C--Suspension of Limitation on Cover Over of Tax on Distilled 
                                Spirits

Sec. 121. Suspension of limitation on cover over of tax on distilled 
                            spirits.

   TITLE II--FOREIGN ASSISTANCE FOR CENTRAL AMERICA AND THE CARIBBEAN

          Subtitle A--Microcredit and Agricultural Assistance

Sec. 201. Declaration of policy.
Sec. 202. Microenterprise assistance.
Sec. 203. Support for producer-owned cooperative marketing 
                            associations.
Sec. 204. Agricultural research and extension activities.
Sec. 205. Nonemergency food assistance programs.

          Subtitle B--Overseas Private Investment Corporation

Sec. 211. Private sector development activities of OPIC.

              Subtitle C--Economic Support Fund Assistance

Sec. 221. Economic support fund assistance.
Sec. 222. Reimbursement of international disaster account.
Sec. 223. Rule of construction; availability of amounts.

                    TITLE III--DEPARTMENT OF DEFENSE

Sec. 301. Replacement of funds used for disaster relief and 
                            reconstruction.

            TITLE IV--IMMIGRATION AND NATURALIZATION SERVICE

Sec. 401. Detention facilities.

 TITLE V--DEBT RESCHEDULING AND REDUCTION FOR HONDURAS AND NICARAGUA; 
     FUNDING FOR THE CENTRAL AMERICAN EMERGENCY TRUST FUND OF THE 
         INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

 Subtitle A--Debt Rescheduling and Reduction for Honduras and Nicaragua

Sec. 501. Rescheduling of interest payments owed by Honduras and 
                            Nicaragua.
Sec. 502. Reduction of debt owed by Honduras.

Subtitle B--Authorization of Funding for the Central American Emergency 
Trust Fund of the International Bank for Reconstruction and Development

Sec. 511. Authorization of funding.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) In October of 1998, Hurricane Mitch devastated areas of 
        the Caribbean and Central America. The National Hurricane 
        Center has called this storm ``the most deadly hurricane in the 
        Atlantic in over 200 years''. Hurricane Mitch killed 9,860 
        people and left approximately 3,000,000 people homeless in the 
        region.
            (2) Hurricane Georges hit the Florida Keys, the islands of 
        the Caribbean, and the Gulf coast of the United States in 
        September of 1998, causing more than $1,000,000,000 in damage. 
The storm killed 250 people.
            (3) The total direct economic impact of Hurricane Mitch and 
        Hurricane Georges on Honduras, Nicaragua, the Dominican 
        Republic, El Salvador and Guatemala amounts to $4,200,000,000. 
        Honduras' losses represent more than 50 percent of its gross 
        domestic product and Nicaragua lost a quarter of its gross 
        domestic product.
            (4) The United States must continue to play a leading role 
        in responding to the disaster and encourage others to 
        contribute to the recovery effort. For example, Taiwan has 
        contributed $50,800,000 in assistance for the construction of 
        roads and housing, the rehabilitation of agricultural 
        production, and the distribution of supplies. Sweden, Spain, 
        and France have sent engineering teams to the region to assess 
        damage to roads, and Japan and the European Union have pledged 
        millions of dollars in assistance. The United States praises 
        the efforts of these and other nations in assisting with the 
        rehabilitation of the region.
            (5) Approximately 356 bridges were destroyed in the region, 
        and 57 percent of the region's roads were impacted. The United 
        States equivalent of this would be the destruction of 3,900,000 
        miles of highway. These roads must be reconstructed quickly so 
        that farmers can transport their goods to market and much-
        needed medical supplies can reach rural areas.
            (6) Hurricane Mitch devastated the agricultural sector in 
        the affected areas of Central America and the Caribbean, 
particularly the countries of Honduras and Guatemala. An estimated 70 
percent of Honduras' crops were destroyed by Hurricane Mitch, including 
90 percent of the country's banana and grain crops. In Guatemala, an 
estimated 95 percent of the nation's banana crop was damaged, 25-60 
percent of the corn, bean, coffee, and sugar crops were destroyed, and 
30 percent of the cattle was lost.
            (7) Approximately 50 percent of Central America and the 
        Caribbean's workforce is employed in agriculture. The 
        devastation to the agriculture sector by Hurricane Mitch has 
        resulted in a widespread shortage of food which is likely to 
        continue in the long term unless the region's agricultural 
        sector is rehabilitated.
            (8) Significant numbers of displaced Central Americans are 
        moving north to the United States in the wake of Hurricane 
        Mitch's devastation. Border Patrol agents in Brownsville, 
        Texas, report that apprehensions of Hondurans alone increased 
        by 61 percent in the last three months of 1998. The massive 
        influx of immigrants places severe pressures upon the ability 
        of the Immigration and Naturalization Service (INS) to detain 
        and remove non-criminal illegal immigrants. At current funding 
        levels, the INS does not have the resources to detain illegal 
        non-criminal border crossers from Central America. If this 
        situation continues, the INS is concerned that many more people 
        will attempt to illegally cross the border.
            (9) Partially in an effort to alleviate these pressures, 
        the Attorney General provided temporary protected status to 
        aliens from Honduras and Nicaragua on December 30, 1998 for a 
        period of 18 months. No such status was provided to immigrants 
        from El Salvador and Guatemala.
            (10) Agricultural assistance and training and microcredit 
        assistance will provide much needed aid to the affected areas 
        of Central America and the Caribbean as the areas rebuild their 
        agriculture sectors. The immediate distribution of food aid is 
        important in the short term, but it is essential that the 
        region be able to return to self-sufficiency in food production 
        so the citizens of Central America and the Caribbean will be 
        able to feed themselves once again.
            (11) The goal of United States assistance to the region 
        should focus on, in addition to the short-term disaster 
        assistance, long-term solutions for a successful economic 
        recovery of Central America and the Caribbean. Successful 
        economic recovery lies in the region's ability to expand its 
        international trade with important trading partners such as the 
        United States.
            (12) Since 1983, the Caribbean Basin Economic Recovery Act 
        has represented a permanent and successful commitment by the 
        United States to encourage the development of strong democratic 
        governments and revitalized economies in neighboring countries 
        in the Caribbean Basin.
            (13) Thirty-four democratically elected leaders agreed at 
        the 1994 Summit of the Americas to conclude negotiation of a 
        Free Trade Area of the Americas (referred to in this Act as 
        ``FTAA'') by the year 2005.
            (14) The economic security of the countries in the 
        Caribbean Basin will be enhanced by the completion of the FTAA.
            (15) Offering temporary benefits to Caribbean Basin 
        countries on the 30 percent of imports from the region that are 
        not currently duty-free under the Caribbean Basin Economic 
        Recovery Act and other trade programs, will promote the growth 
        of free enterprise and economic opportunity in these 
        neighboring countries and thereby enhance the national security 
        interests of the United States.
            (16) Given the greater propensity of countries located in 
        the Western Hemisphere to use United States components and to 
        purchase United States products compared to other countries, 
        increased trade and economic activity between the United States 
        and countries in the Western Hemisphere will create new jobs in 
        the United States as a result of expanding export 
        opportunities.

 SEC. 3. DEFINITIONS.

    In this Act:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the United States Agency for International 
        Development.
            (2) Affected areas of central america and the caribbean.--
        The term ``affected areas of Central America and the 
        Caribbean'' means areas in the Central American countries and 
        the Caribbean countries that incurred damage from Hurricane 
        Georges in September of 1998 and Hurricane Mitch in October of 
        1998.
            (3) Caribbean countries.--The term ``Caribbean countries'' 
        means any country listed in section 212(b) of the Caribbean 
        Basin Economic Recovery Act (19 U.S.C. 2702(b)) (other than 
        Central American countries).
            (4) Central american countries.--The term ``Central 
        American countries'' means Belize, Costa Rica, El Salvador, 
        Guatemala, Honduras, Nicaragua, and Panama.
            (5) OPIC.--The term ``OPIC'' means the Overseas Private 
        Investment Corporation.

           TITLE I--UNITED STATES-CARIBBEAN TRADE PARTNERSHIP

                      Subtitle A--Trade Provisions

SEC. 101. SHORT TITLE.

    This title may be cited as the ``United States-Caribbean Trade 
Partnership Act''.

SEC. 102. POLICY.

    It is the policy of the United States to offer to the products of 
Caribbean Basin partnership countries tariffs and quota treatment 
equivalent to that accorded to certain products of countries that are 
parties to the NAFTA, and to seek the accession of these partnership 
countries to the NAFTA or a free trade agreement comparable to the 
NAFTA at the earliest possible date, with the goal of achieving full 
participation in the NAFTA or in a free trade agreement comparable to 
the NAFTA by all partnership countries by not later than January 1, 
2005.

SEC. 103. DEFINITIONS.

    As used in this title:
            (1) Partnership country.--The term ``partnership country'' 
        means a beneficiary country as defined in section 212(a)(1)(A) 
        of the Caribbean Basin Economic Recovery Act (19 U.S.C. 
        2702(a)(1)(A)).
            (2) NAFTA.--The term ``NAFTA'' means the North American 
        Free Trade Agreement entered into between the United States, 
        Mexico, and Canada on December 17, 1992.
            (3) Trade representative.--The term ``Trade 
        Representative'' means the United States Trade Representative.
            (4) WTO and wto member.--The terms ``WTO'' and ``WTO 
        member'' have the meanings given those terms in section 2 of 
        the Uruguay Round Agreements Act (19 U.S.C. 3501).

SEC. 104. TEMPORARY PROVISIONS TO PROVIDE NAFTA PARITY TO PARTNERSHIP 
              COUNTRIES.

    (a) Temporary Provisions.--Section 213(b) of the Caribbean Basin 
Economic Recovery Act (19 U.S.C. 2703(b)) is amended to read as 
follows:
    ``(b) Import-Sensitive Articles.--
            ``(1) In general.--Subject to paragraphs (2) through (5), 
        the duty-free treatment provided under this title does not 
        apply to--
                    ``(A) textile and apparel articles which were not 
                eligible articles for purposes of this title on January 
                1, 1994, as this title was in effect on that date;
                    ``(B) footwear not designated at the time of the 
                effective date of this title as eligible articles for 
                the purpose of the generalized system of preferences 
                under title V of the Trade Act of 1974;
                    ``(C) tuna, prepared or preserved in any manner, in 
                airtight containers;
                    ``(D) petroleum, or any product derived from 
                petroleum, provided for in headings 2709 and 2710 of 
                the HTS;
                    ``(E) watches and watch parts (including cases, 
                bracelets and straps), of whatever type including, but 
                not limited to, mechanical, quartz digital, or quartz 
                analog, if such watches or watch parts contain any 
                material which is the product of any country with 
                respect to which HTS column 2 rates of duty apply; or
                    ``(F) articles to which reduced rates of duty apply 
                under subsection (h).
            ``(2) Transition period treatment of certain textile and 
        apparel articles.--
                    ``(A) Equivalent tariff and quota treatment.--
                During the transition period--
                            ``(i) the tariff treatment accorded at any 
                        time to any textile or apparel article that 
                        originates in the territory of a partnership 
                        country shall be identical to the tariff 
                        treatment that is accorded at such time under 
                        section 2 of the Annex to an article described 
                        in the same 8-digit subheading of the HTS that 
                        is a good of Mexico and is imported into the 
                        United States;
                            ``(ii) duty-free treatment under this title 
                        shall apply to any textile or apparel article 
                        that is imported into the United States from a 
                        partnership country and that--
                                    ``(I) is assembled in a partnership 
                                country, from fabrics wholly formed and 
                                cut in the United States from yarns 
                                formed in the United States, and is 
                                entered--
                                            ``(aa) under subheading 
                                        9802.00.80 of the HTS; or
                                            ``(bb) under chapter 61, 
                                        62, or 63 of the HTS if, after 
                                        such assembly, the article 
                                        would have qualified for 
                                        treatment under subheading 
                                        9802.00.80 of the HTS, but for 
                                        the fact the article was 
                                        subjected to bleaching, 
                                        garments dyeing, stone-washing, 
                                        enzyme-washing, acid-washing, 
                                        perma-pressing, oven-baking, or 
                                        embroidery;
                                    ``(II) is knit-to-shape in a 
                                partnership country from yarns wholly 
                                formed in the United States;
                                    ``(III) is made in a partnership 
                                country from fabric knit in a 
                                partnership country from yarns wholly 
                                formed in the United States;
                                    ``(IV) is cut and assembled in a 
                                partnership country from fabrics wholly 
                                formed in the United States from yarns 
                                wholly formed in the United States; or
                                    ``(V) is identified under 
                                subparagraph (C) as a handloomed, 
                                handmade, or folklore article of a 
                                partnership country and is certified as 
                                such by the competent authority of such 
                                country; and
                            ``(iii) no quantitative restriction or 
                        consultation level may be applied to the 
                        importation into the United States of any 
                        textile or apparel article that--
                                    ``(I) originates in the territory 
                                of a partnership country, or
                                    ``(II) qualifies for duty-free 
                                treatment under subclause (I), (II), 
                                (III), (IV), or (V) of clause (ii).
                    ``(B) Transition period treatment of other 
                nonoriginating textile and apparel articles.--
                            ``(i) Preferential tariff treatment.--
                        Subject to clause (ii), the President may place 
                        in effect at any time during the transition 
                        period with respect to any textile or apparel 
                        article that--
                                    ``(I) is a product of a partnership 
                                country, but
                                    ``(II) does not qualify as a good 
                                that originates in the territory of a 
                                partnership country or is eligible for 
                                benefits under subparagraph (A)(ii),
                        tariff treatment that is identical to the in-
                        preference-level tariff treatment accorded at 
                        such time under Appendix 6.B of the Annex to an 
                        article described in the same 8-digit 
                        subheading of the HTS that is a product of 
                        Mexico and is imported into the United States. 
                        For purposes of this clause, the `in-
                        preference-level tariff treatment' accorded to 
                        an article that is a product of Mexico is the 
                        rate of duty applied to that article when 
                        imported in quantities less than or equal to 
                        the quantities specified in Schedule 6.B.1, 
                        6.B.2., or 6.B.3. of the Annex for imports of 
                        that article from Mexico into the United 
                        States.
                            ``(ii) Limitations on all articles.--(I) 
                        Tariff treatment under clause (i) may be 
                        extended, during any calendar year, to not more 
                        than 45,000,000 square meter equivalents of 
                        cotton or man-made fiber apparel, to not more 
                        than 1,500,000 square meter equivalents of wool 
                        apparel, and to not more than 25,000,000 square 
                        meter equivalents of goods entered under 
                        subheading 9802.00.80 of the HTS.
                            ``(II) Except as provided in subclause 
                        (III), the amounts set forth in subclause (I) 
                        shall be allocated among the 7 partnership 
                        countries with the largest volume of exports to 
                        the United States of textile and apparel goods 
                        in calendar year 1997, based upon a pro rata 
                        share of the volume of textile and apparel 
                        goods of each of those 7 countries that entered 
                        the United States under subheading 9802.00.80 
                        of the HTS during the first 12 months of the 
                        14-month period ending on the date of the 
                        enactment of the United States-Caribbean Trade 
                        Partnership Act.
                            ``(III) Five percent of the amounts set 
                        forth in subclause (I) shall be allocated among 
                        the partnership countries, other than those to 
                        which subclause (II) applies, based upon a pro 
                        rata share of the exports to the United States 
                        of textile and apparel goods of each of those 
                        countries during the first 12 months of the 14-
                        month period ending on the date of the 
                        enactment of the United States-Caribbean Trade 
                        Partnership Act.
                            ``(iii) Prior consultation.--The President 
                        may implement the preferential tariff treatment 
                        described in clause (i) only after consultation 
                        with representatives of the United States 
                        textile and apparel industry and other 
                        interested parties regarding--
                                    ``(I) the specific articles to 
                                which such treatment will be extended,
                                    ``(II) the annual quantities of 
                                such articles that may be imported at 
                                the preferential duty rates described 
                                in clause (i), and
                                    ``(III) the allocation of such 
                                annual quantities among partnership 
                                countries.
                    ``(C) Handloomed, handmade, and folklore 
                articles.--For purposes of subparagraph (A)(ii)(V), the 
                Trade Representative shall consult with representatives 
                of a partnership country for the purpose of identifying 
                particular textile and apparel goods that are mutually 
                agreed upon as being handloomed, handmade, or folklore 
                goods of a kind described in section 2.3 (a), (b), or 
(c) or Appendix 3.1.B.11 of the Annex.
                    ``(D) Bilateral emergency actions.--(i) The 
                President may take--
                            ``(I) bilateral emergency tariff actions of 
                        a kind described in section 4 of the Annex with 
                        respect to any textile or apparel article 
                        imported from a partnership country if the 
                        application of tariff treatment under 
                        subparagraph (A) to such article results in 
                        conditions that would be cause for the taking 
                        of such actions under such section 4 with 
                        respect to an article described in the same 8-
                        digit subheading of the HTS that is imported 
                        from Mexico; or
                            ``(II) bilateral emergency quantitative 
                        restriction actions of a kind described in 
                        section 5 of the Annex with respect to imports 
                        of any textile or apparel article described in 
                        subparagraphs (B)(i) (I) and (II) if the 
                        importation of such article into the United 
                        States results in conditions that would be 
                        cause for the taking of such actions under such 
                        section 5 with respect to a like article that 
                        is a product of Mexico.
                    ``(ii) The requirement in paragraph (5) of section 
                4 of the Annex (relating to providing compensation) 
                shall not be deemed to apply to a bilateral emergency 
                action taken under this subparagraph.
                    ``(iii) For purposes of applying bilateral 
                emergency action under this subparagraph--
                            ``(I) the term `transition period' in 
                        sections 4 and 5 of the Annex shall be deemed 
                        to be the period defined in paragraph (5)(E); 
                        and
                            ``(II) any requirements to consult 
                        specified in section 4 or 5 of the Annex are 
                        deemed to be satisfied if the President 
                        requests consultations with the partnership 
                        country in question and the country does not 
                        agree to consult within the time period 
                        specified under such section 4 or 5, whichever 
                        is applicable.
            ``(3) NAFTA transition period treatment of certain other 
        articles originating in beneficiary countries.--
                    ``(A) Equivalent tariff treatment.--
                            ``(i) In general.--Subject to clause (ii), 
                        the tariff treatment accorded at any time 
                        during the transition period to any article 
                        referred to in any of subparagraphs (B) through 
                        (F) of paragraph (1) that originates in the 
                        territory of a partnership country shall be 
                        identical to the tariff treatment that is 
                        accorded at such time under Annex 302.2 of the 
                        NAFTA to an article described in the same 8-
                        digit subheading of the HTS that is a good of 
                        Mexico and is imported into the United States.
                            ``(ii) Exception.--Clause (i) does not 
                        apply to any article accorded duty-free 
                        treatment under U.S. Note 2(b) to subchapter II 
                        of chapter 98 of the HTS.
                    ``(B) Relationship to subsection (h) duty 
                reductions.--If at any time during the transition 
                period the rate of duty that would (but for action 
                taken under subparagraph (A)(i) in regard to such 
                period) apply with respect to any article under 
                subsection (h) is a rate of duty that is lower than the 
                rate of duty resulting from such action, then such 
                lower rate of duty shall be applied for the purposes of 
                implementing such action.
            ``(4) Customs procedures.--
                    ``(A) In general.--
                            ``(i) Regulations.--Any importer that 
                        claims preferential tariff treatment under 
                        paragraph (2) or (3) shall comply with customs 
                        procedures similar in all material respects to 
                        the requirements of Article 502(1) of the NAFTA 
                        as implemented pursuant to United States law, 
                        in accordance with regulations promulgated by 
                        the Secretary of the Treasury.
                            ``(ii) Determination.--In order to qualify 
                        for such preferential tariff treatment and for 
                        a Certificate of Origin to be valid with 
                        respect to any article for which such treatment 
                        is claimed, there shall be in effect a 
                        determination by the President that--
                                    ``(I) the partnership country from 
                                which the article is exported, and
                                    ``(II) each partnership country in 
                                which materials used in the production 
                                of the article originate or undergo 
                                production that contributes to a claim 
                                that the article qualifies for such 
                                preferential tariff treatment,
                        has implemented and follows, or is making 
                        substantial progress toward implementing and 
                        following, procedures and requirements similar 
                        in all material respects to the relevant 
                        procedures and requirements under chapter 5 of 
                        the NAFTA.
                    ``(B) Certificate of origin.--The Certificate of 
                Origin that otherwise would be required pursuant to the 
                provisions of subparagraph (A) shall not be required in 
                the case of an article imported under paragraph (2) or 
                (3) if such Certificate of Origin would not be required 
                under Article 503 of the NAFTA (as implemented pursuant 
                to United States law), if the article were imported 
                from Mexico.
                    ``(C) Penalties for transshipments.--If the 
                President determines, based on sufficient evidence, 
                that an exporter has engaged in willful illegal 
                transshipment or willful customs fraud with respect to 
                textile or apparel articles for which preferential 
                tariff treatment under subparagraph (A) or (B) of 
paragraph (2) is claimed, then the President shall deny all benefits 
under this title to such exporter, and any successors of such exporter, 
for a period of 2 years.
                    ``(D) Report by ustr on cooperation of other 
                countries concerning circumvention.--The United States 
                Commissioner of Customs shall conduct a study analyzing 
                the extent to which each partnership country--
                            ``(i) has cooperated fully with the United 
                        States, consistent with its domestic laws and 
                        procedures, in instances of circumvention or 
                        alleged circumvention of existing quotas on 
                        imports of textile and apparel goods, to 
                        establish necessary relevant facts in the 
                        places of import, export, and, where 
                        applicable, transshipment, including 
                        investigation of circumvention practices, 
                        exchanges of documents, correspondence, 
                        reports, and other relevant information, to the 
                        extent such information is available;
                            ``(ii) has taken appropriate measures, 
                        consistent with its domestic laws and 
                        procedures, against exporters and importers 
                        involved in instances of false declaration 
                        concerning fiber content, quantities, 
                        description, classification, or origin of 
                        textile and apparel goods; and
                            ``(iii) has penalized the individuals and 
                        entities involved in any such circumvention, 
                        consistent with its domestic laws and 
                        procedures, and has worked closely to seek the 
                        cooperation of any third country to prevent 
                        such circumvention from taking place in that 
                        third country.
                The Trade Representative shall submit to the Congress, 
                not later than October 1, 1999, a report on the study 
                conducted under this subparagraph.
            ``(5) Definitions.--For purposes of this subsection--
                    ``(A) The term `the Annex' means Annex 300-B of the 
                NAFTA.
                    ``(B) The term `NAFTA' means the North American 
                Free Trade Agreement entered into between the United 
                States, Mexico, and Canada on December 17, 1992.
                    ``(C) The term `partnership country' means a 
                beneficiary country.
                    ``(D) The term `textile or apparel article' means 
                any article referred to in paragraph (1)(A) that is a 
                good listed in Appendix 1.1 of the Annex.
                    ``(E) The term `transition period' means, with 
                respect to a partnership country, the period that 
                begins on July 1, 2000, and ends on the earlier of--
                            ``(i) August 1, 2002; or
                            ``(ii) the date on which--
                                    ``(I) the United States first 
                                applies the NAFTA to the partnership 
                                country upon its accession to the 
                                NAFTA, or
                                    ``(II) there enters into force with 
                                respect to the United States and the 
                                partnership country a free trade 
                                agreement comparable to the NAFTA that 
                                makes substantial progress in achieving 
                                the negotiating objectives set forth in 
                                section 108(b)(5) of the North American 
                                Free Trade Agreement Implementation Act 
                                (19 U.S.C. 3317(b)(5)).
                    ``(F) An article shall be deemed as originating in 
                the territory of a partnership country if the article 
                meets the rules of origin for a good set forth in 
                chapter 4 of the NAFTA, and, in the case of an article 
                described in Appendix 6.A of the Annex, the 
                requirements stated in such Appendix 6.A for such 
                article to be treated as if it were an originating 
                good. In applying such chapter 4 or Appendix 6.A with 
                respect to a partnership country for purposes of this 
                subsection--
                            ``(i) no countries other than the United 
                        States and partnership countries may be treated 
                        as being Parties to the NAFTA,
                            ``(ii) references to trade between the 
                        United States and Mexico shall be deemed to 
                        refer to trade between the United States and 
                        partnership countries, and
                            ``(iii) references to a Party shall be 
                        deemed to refer to the United States or a 
                        partnership country, and references to the 
                        Parties shall be deemed to refer to any 
                        combination of partnership countries and the 
                        United States.''.
    (b) Determination Regarding Retention of Designation.--Section 
212(e)(1) of the Caribbean Basin Economic Recovery Act (19 U.S.C. 
2702(e)) is amended--
            (1) by inserting ``(A)'' after ``(1)'';
            (2) by redesignating subparagraphs (A) and (B) as clauses 
        (i) and (ii), respectively;
            (3) by adding at the end the following:
            ``(B)(i) Based on the President's review and analysis 
        described in subsection (f), the President may determine if the 
        preferential treatment under section 213(b)(2) and (3) should 
        be withdrawn, suspended, or limited with respect to any article 
        of a partnership country. Such determination shall be included 
        in the report required by subsection (f).
            ``(ii) Withdrawal, suspension, or limitation of the 
        preferential treatment under section 213(b)(2) and (3) with 
        respect to a partnership country shall be taken only after the 
        requirements of subsection (a)(2) and paragraph (2) of this 
        subsection have been met.''.
    (c) Reporting Requirements.--Section 212(f) of the Caribbean Basin 
Economic Recovery Act (19 U.S.C. 2702(f)) is amended to read as 
follows:
    ``(f) Reporting Requirements.--Not later than 1 year after the date 
of the enactment of the United States-Caribbean Trade Partnership Act 
and at the close of each 3-year period thereafter, the President shall 
submit to the Congress a complete report regarding the operation of 
this title, including--
            ``(1) with respect to subsections (b) and (c) of this 
        section, the results of a general review of beneficiary 
        countries based on the considerations described in such 
        subsections;
            ``(2) with respect to subsection (c)(4), the degree to 
        which a country follows accepted rules of international trade 
        provided for under the WTO Agreement and the multilateral trade 
        agreements (as such terms are defined in paragraphs (9) and 
        (4), respectively, of section 2 of the Uruguay Round Agreements 
        Act);
            ``(3) with respect to subsection (c)(9), the extent to 
        which beneficiary countries are providing or taking steps to 
        provide protection of intellectual property rights comparable 
        to the protection provided to the United States in bilateral 
        intellectual property rights agreements;
            ``(4) with respect to subsection (b)(2) and subsection 
        (c)(5), the extent that beneficiary countries are providing or 
        taking steps to provide protection of investment and investors 
        comparable to the protection provided to the United States in 
        bilateral investment treaties;
            ``(5) with respect to subsection (c)(3), the extent that 
        beneficiary countries are providing the United States and other 
        WTO members (as such term is defined in section 2(10) of the 
        Uruguay Round Agreements Act (19 U.S.C. 3501(10)) with 
        equitable and reasonable market access in the product sectors 
        for which benefits are provided under this title;
            ``(6) with respect to subsection (c)(11), the extent that 
        beneficiary countries are cooperating with the United States in 
        administering the provisions of section 213(b); and
            ``(7) with respect to subsection (c)(8), the extent that 
        beneficiary countries are meeting the internationally 
        recognized worker rights criteria under such subsection.
In the first report under this subsection, the President shall include 
a review of the implementation of section 213(b), and his analysis of 
whether the benefits under paragraphs (2) and (3) of such section 
further the objectives of this title.''.
    (d) Conforming Amendment.--Section 213(a)(1) of the Caribbean Basin 
Economic Recovery Act is amended by inserting ``and except as provided 
in section 213(b)(2) and (3),'' after ``Tax Reform Act of 1986,''.

SEC. 105. EFFECT OF NAFTA ON SUGAR IMPORTS FROM BENEFICIARY COUNTRIES.

    The President shall monitor the effects, if any, that the 
implementation of the NAFTA has on the access of beneficiary countries 
under the Caribbean Basin Economic Recovery Act to the United States 
market for sugars, syrups, and molasses. If the President considers 
that the implementation of the NAFTA is affecting, or will likely 
affect, in an adverse manner the access of such countries to the United 
States market, the President shall promptly--
            (1) take such actions, after consulting with interested 
        parties and with the appropriate committees of the House of 
        Representatives and the Senate, or
            (2) propose to the Congress such legislative actions,
as may be necessary or appropriate to ameliorate such adverse effect.

SEC. 106. DUTY-FREE TREATMENT FOR CERTAIN BEVERAGES MADE WITH CARIBBEAN 
              RUM.

    Section 213(a) of the Caribbean Basin Economic Recovery Act (19 
U.S.C. 2703(a)) is amended--
            (1) in paragraph (5), by striking ``chapter'' and inserting 
        ``title''; and
            (2) by adding at the end the following new paragraph:
    ``(6) Notwithstanding paragraph (1), the duty-free treatment 
provided under this title shall apply to liqueurs and spirituous 
beverages produced in the territory of Canada from rum if--
            ``(A) such rum is the growth, product, or manufacture of a 
        beneficiary country or of the Virgin Islands of the United 
        States;
            ``(B) such rum is imported directly from a beneficiary 
        country or the Virgin Islands of the United States into the 
        territory of Canada, and such liqueurs and spirituous beverages 
        are imported directly from the territory of Canada into the 
        customs territory of the United States;
            ``(C) when imported into the customs territory of the 
        United States, such liqueurs and spirituous beverages are 
        classified in subheading 2208.90 or 2208.40 of the HTS; and
            ``(D) such rum accounts for at least 90 percent by volume 
        of the alcoholic content of such liqueurs and spiritous 
        beverages.''.

SEC. 107. MEETINGS OF TRADE MINISTERS AND USTR.

    (a) Schedule of Meetings.--The President shall take the necessary 
steps to convene a meeting with the trade ministers of the partnership 
countries in order to establish a schedule of regular meetings, to 
commence as soon as is practicable, of the trade ministers and the 
Trade Representative, for the purpose set forth in subsection (b).
    (b) Purpose.--The purpose of the meetings scheduled under 
subsection (a) is to reach agreement between the United States and 
partnership countries on the likely timing and procedures for 
initiating negotiations for partnership countries to accede to the 
NAFTA, or to enter into mutually advantageous free trade agreements 
with the United States that contain provisions comparable to those in 
the NAFTA and would make substantial progress in achieving the 
negotiating objectives set forth in section 108(b)(5) of the North 
American Free Trade Agreement Implementation Act (19 U.S.C. 
3317(b)(5)).

SEC. 108. REPORT ON ECONOMIC DEVELOPMENT AND MARKET ORIENTED REFORMS IN 
              THE CARIBBEAN.

    (a) In General.--The Trade Representative shall make an assessment 
of the economic development efforts and market oriented reforms in each 
partnership country and the ability of each such country, on the basis 
of such efforts and reforms, to undertake the obligations of the NAFTA. 
The Trade Representative shall, not later than 2 years after the date 
of the enactment of this Act, submit to the President and to the 
Committee on Finance of the Senate and the Committee on Ways and Means 
of the House of Representatives a report on that assessment.
    (b) Accession to NAFTA.--
            (1) Ability of countries to implement nafta.--The Trade 
        Representative shall include in the report under subsection (a) 
        a discussion of possible timetables and procedures pursuant to 
        which partnership countries can complete the economic reforms 
        necessary to enable them to negotiate accession to the NAFTA. 
        The Trade Representative shall also include an assessment of 
        the potential phase-in periods that may be necessary for those 
        partnership countries with less developed economies to 
        implement the obligations of the NAFTA.
            (2) Factors in assessing ability to implement nafta.--In 
        assessing the ability of each partnership country to undertake 
        the obligations of the NAFTA, the Trade Representative should 
        consider, among other factors--
                    (A) whether the country has joined the WTO;
                    (B) the extent to which the country provides 
                equitable access to the markets of that country;
                    (C) the degree to which the country uses export 
                subsidies or imposes export performance requirements or 
                local content requirements;
                    (D) macroeconomic reforms in the country such as 
                the abolition of price controls on traded goods and 
                fiscal discipline;
                    (E) progress the country has made in the protection 
                of intellectual property rights;
                    (F) progress the country has made in the 
                elimination of barriers to trade in services;
                    (G) whether the country provides national treatment 
                to foreign direct investment;
                    (H) the level of tariffs bound by the country under 
                the WTO (if the country is a WTO member);
                    (I) the extent to which the country has taken other 
                trade liberalization measures; and
                    (J) the extent which the country works to 
                accommodate market access objectives of the United 
                States.
    (c) Parity Review in the Event a New Country Accedes to NAFTA.--
If--
            (1) a country or group of countries accedes to the NAFTA, 
        or
            (2) the United States negotiates a comparable free trade 
        agreement with another country or group of countries,
the Trade Representative shall provide to the committees referred to in 
subsection (a) a separate report on the economic impact of the new 
trade relationship on partnership countries. The report shall include 
any measures the Trade Representative proposes to minimize the 
potential for the diversion of investment from partnership countries to 
the new NAFTA member or free trade agreement partner.

                       Subtitle B--Revenue Offset

SEC. 111. LIMITATIONS ON WELFARE BENEFIT FUNDS OF 10 OR MORE EMPLOYER 
              PLANS.

    (a) Benefits to Which Exception Applies.--Section 419A(f)(6)(A) of 
the Internal Revenue Code of 1986 (relating to exception for 10 or more 
employer plans) is amended to read as follows:
                    ``(A) In general.--This subpart shall not apply to 
                a welfare benefit fund which is part of a 10 or more 
                employer plan if the only benefits provided through the 
                fund are 1 or more of the following:
                            ``(i) Medical benefits.
                            ``(ii) Disability benefits.
                            ``(iii) Group term life insurance benefits 
                        which do not provide for any cash surrender 
                        value or other money that can be paid, 
                        assigned, borrowed, or pledged for collateral 
                        for a loan.
                The preceding sentence shall not apply to any plan 
                which maintains experience-rating arrangements with 
                respect to individual employers.''
    (b) Limitation on Use of Amounts for Other Purposes.--Section 
4976(b) of such Code (defining disqualified benefit) is amended by 
adding at the end the following new paragraph:
            ``(5) Special rule for 10 or more employer plans exempted 
        from prefunding limits.--For purposes of paragraph (1)(C), if--
                    ``(A) subpart D of part I of subchapter D of 
                chapter 1 does not apply by reason of section 
                419A(f)(6) to contributions to provide 1 or more 
                welfare benefits through a welfare benefit fund under a 
                10 or more employer plan, and
                    ``(B) any portion of the welfare benefit fund 
                attributable to such contributions is used for a 
                purpose other than that for which the contributions 
                were made,
        then such portion shall be treated as reverting to the benefit 
        of the employers maintaining the fund.''
    (c) Effective Date.--The amendments made by this section shall 
apply to contributions paid or accrued after June 8, 1999, in taxable 
years ending after such date.

Subtitle C--Suspension of Limitation on Cover Over of Tax on Distilled 
                                Spirits

SEC. 121. SUSPENSION OF LIMITATION ON COVER OVER OF TAX ON DISTILLED 
              SPIRITS.

    (a) In General.--Section 7652(f) of the Internal Revenue Code of 
1986 (relating to limitation on cover over of tax on distilled spirits) 
is amended by adding at the end the following new sentence:
``The preceding sentence shall not apply to articles that are tax-
determined after June 30, 1999, and before October 1, 1999.''
    (b) Effective Date.--
            (1) In general.--The amendment made by this section shall 
        apply to articles that are tax-determined after June 30, 1999.
            (2) Special rule.--
                    (A) In general.--The treasury of Puerto Rico shall 
                make a Conservation Trust Fund transfer within 30 days 
                after the date of each cover over payment (made to such 
                treasury under section 7652(e) of the Internal Revenue 
                Code of 1986) to which section 7652(f) of such Code 
                does not apply by reason of the last sentence thereof.
                    (B) Conservation trust fund transfer.--
                            (i) In general.--For purposes of this 
                        paragraph, the term ``Conservation Trust Fund 
                        transfer'' means a transfer to the Puerto Rico 
                        Conservation Trust Fund of an amount equal to 
                        50 cents per proof gallon of the taxes imposed 
                        under section 5001 or section 7652 of such Code 
                        on distilled spirits that are covered over to 
                        the treasury of Puerto Rico under section 
                        7652(e) of such Code.
                            (ii) Treatment of transfer.--Each 
                        Conservation Trust Fund transfer shall be 
                        treated as principal for an endowment, the 
                        income from which to be available for use by 
                        the Puerto Rico Conservation Trust Fund for the 
                        purposes for which the Trust Fund was 
                        established.
                            (iii) Result of nontransfer.--
                                    (I) In general.--Upon notification 
                                by the Secretary of the Interior that a 
                                Conservation Trust Fund transfer has 
                                not been made by the treasury of Puerto 
                                Rico as required by subparagraph (A), 
                                the Secretary of the Treasury shall, 
                                except as provided in subclause (II), 
                                deduct and withhold from the next cover 
                                over payment to be made to the treasury 
                                of Puerto Rico under section 7652(e) of 
                                such Code an amount equal to the 
                                appropriate Conservation Trust Fund 
                                transfer and interest thereon at the 
                                underpayment rate established under 
                                section 6621 of such Code as of the due 
                                date of such transfer. The Secretary of 
                                the Treasury shall transfer such amount 
                                deducted and withheld, and the interest 
                                thereon, directly to the Puerto Rico 
                                Conservation Trust Fund.
                                    (II) Good cause exception.--If the 
                                Secretary of the Interior finds, after 
                                consultation with the Governor of 
                                Puerto Rico, that the failure by the 
                                treasury of Puerto Rico to make a 
                                required transfer was for good cause, 
                                and notifies the Secretary of the 
                                Treasury of the finding of such good 
                                cause before the due date of the next 
                                cover over payment following the 
                                notification of nontransfer, then the 
                                Secretary of the Treasury shall not 
                                deduct the amount of such nontransfer 
                                from any cover over payment.
                    (C) Puerto rico conservation trust fund.--For 
                purposes of this paragraph, the term ``Puerto Rico 
                Conservation Trust Fund'' means the fund established 
                pursuant to a Memorandum of Understanding between the 
                United States Department of the Interior and the 
                Commonwealth of Puerto Rico, dated December 24, 1968.

   TITLE II--FOREIGN ASSISTANCE FOR CENTRAL AMERICA AND THE CARIBBEAN

          Subtitle A--Microcredit and Agricultural Assistance

SEC. 201. DECLARATION OF POLICY.

    It is the policy of the United States, consistent with title XII of 
chapter 2 of part I of the Foreign Assistance Act of 1961 (22 U.S.C. 
2220a), to support the governments of Central American countries and 
Caribbean countries, United States and nongovernmental organizations, 
universities, businesses, and international organizations, to help 
ensure the availability of basic nutrition and economic opportunities 
for individuals in the affected areas of Central America and the 
Caribbean, through sustainable agriculture and rural development.

SEC. 202. MICROENTERPRISE ASSISTANCE.

    (a) Bilateral Assistance.--In providing disaster assistance in the 
aftermath of Hurricane Georges and Hurricane Mitch, the Administrator 
of the United States Agency for International Development shall, to the 
extent practicable, use credit and microcredit assistance to 
rehabilitate agriculture production in the affected areas of Central 
America and the Caribbean. In providing such assistance, the 
Administrator should use the applied research and technical assistance 
capabilities of United States land-grant universities.
    (b) Multilateral Assistance.--The Administrator shall continue to 
work with other countries, international organizations (including 
multilateral development institutions), and entities assisting 
microenterprises and shall develop a comprehensive and coordinated 
strategy for providing microenterprise assistance for Central America 
and the Caribbean.

SEC. 203. SUPPORT FOR PRODUCER-OWNED COOPERATIVE MARKETING 
              ASSOCIATIONS.

    (a) Purposes.--The purposes of this section are--
            (1) to support producer-owned cooperative purchasing and 
        marketing associations in Central America and the Caribbean;
            (2) to strengthen the capacity of farmers in Central 
        America and the Caribbean to participate in national and 
        international private markets and to promote rural development 
        in the region;
            (3) to encourage the efforts of farmers in Central America 
        and the Caribbean to increase their productivity and income 
        through improved access to farm supplies, seasonal credit, 
        technical expertise; and
            (4) to support small businesses in Central America and the 
        Caribbean as such businesses grow beyond microenterprises.
    (b) Support for Producer-Owned Cooperative Marketing 
Associations.--
            (1) Activities.--The Administrator of the United States 
        Agency for International Development is authorized to utilize 
        relevant foreign assistance programs and initiatives for the 
        Central America and the Caribbean region to support private 
        producer-owned cooperative marketing associations in the 
        region, including rural business associations that are owned 
        and controlled by farmer shareholders.
            (2) Other activities.--In addition to carrying out 
        paragraph (1), the Administrator is encouraged--
                    (A) to cooperate with governments of foreign 
                countries, including governments of political 
                subdivisions of such countries, their agricultural 
                research universities, and particularly with United 
                States nongovernmental organizations and United States 
                land-grant universities, that have demonstrated 
                expertise in the development and promotion of 
                successful private producer-owned cooperative marketing 
                associations; and
                    (B) to facilitate partnerships between United 
                States and Central America and the Caribbean 
                cooperatives and private businesses to enhance the 
                capacity and technical and marketing expertise of 
                business associations in the Central America and the 
                Caribbean region.

SEC. 204. AGRICULTURAL RESEARCH AND EXTENSION ACTIVITIES.

    (a) Development of Plan.--The Administrator of the United States 
Agency for International Development, in consultation with the 
Secretary of Agriculture and appropriate other officials in the 
Department of Agriculture, especially the head of the Cooperative 
State, Research, Education and Extension Service (CSREES), shall 
develop a comprehensive plan to coordinate and build on the research 
and extension activities of United States land-grant universities, 
international agricultural research centers, and national agricultural 
research and extension centers in Central America and the Caribbean.
    (b) Additional Requirements.--The plan described in subsection (a) 
shall seek to ensure that--
            (1) research and extension activities respond to the needs 
        of the agriculture sectors devastated by Hurricane Georges and 
        Hurricane Mitch while developing the potential and skills of 
        researchers, extension agents, farmers, and agribusiness 
        persons in the region; and
            (2) sustainable agricultural methods of farming will be 
        considered together with new technologies in rehabilitating 
        agricultural production in the region.

SEC. 205. NONEMERGENCY FOOD ASSISTANCE PROGRAMS.

    (a) In General.--In providing nonemergency assistance under title 
II of the Agricultural Trade Development and Assistance Act of 1954 (7 
U.S.C. 1721 et seq.), the Administrator of the United States Agency for 
International Development shall ensure that--
            (1) in planning, decisionmaking, and providing assistance, 
        the Administrator takes into consideration local input and 
        participation directly and through United States and indigenous 
        private and voluntary organizations;
            (2) each of the nonemergency activities described in 
        paragraphs (2) through (6) of section 201 of such Act (7 U.S.C. 
        1721), including programs that provide assistance to people of 
        any age group who are otherwise unable to meet their basic food 
        needs (including feeding programs for the disabled, orphaned, 
        elderly, sick and dying), are carried out; and
            (3) greater flexibility is provided for program and 
        evaluation plans so that such assistance may be developed to 
        meet local needs, as provided for in section 202(f) of such Act 
        (7 U.S.C. 1722(f)).
    (b) Other Requirements.--In providing assistance under the 
Agriculture Trade Development and Assistance Act of 1954, the Secretary 
of Agriculture and the Administrator shall ensure that commodities are 
provided in a manner that is consistent with subsections (a) and (b) of 
section 403 of such Act (7 U.S.C. 1733(a) and (b)).

          Subtitle B--Overseas Private Investment Corporation

SEC. 211. PRIVATE SECTOR DEVELOPMENT ACTIVITIES OF OPIC.

    (a) Purpose.--The purpose of this section is to commend OPIC for 
its recent initiative to provide financing and insurance to an 
investment facility in partnership with Citibank and to encourage OPIC 
to continue to work with United States businesses and other United 
States entities to invest in the affected areas of Central America and 
the Caribbean, particularly in ways that will help promote sustainable 
development.
    (b) Sense of Congress.--It is the sense of the Congress that OPIC 
should, in accordance with its mandate to foster private investment and 
enhance the ability of private enterprise to make its full contribution 
to the development process, exercise the authorities it has to further 
increase efforts to promote and support United States sponsored private 
investment in the affected areas of Central America and the Caribbean, 
including--
            (1) issuing loans, guaranties, and insurance, to support 
        infrastructure, agriculture, small business, tourism, and other 
        projects as appropriate; and
            (2) undertaking a special initiative that includes--
                    (A) sending a needs assessment team to the affected 
                areas of Central America and the Caribbean to determine 
                ways in which OPIC can best support the essential 
                investment required to restore infrastructure and other 
                critical services in those affected areas;
                    (B) engaging in an exhaustive outreach program to 
                involve United States companies in the recovery process 
                and exploring potential new projects which will assist 
                those affected areas;
                    (C) consulting and coordinating with host country 
                governments to promote private investment in priority 
                sectors; and
                    (D) utilizing existing equity funds to support 
                developmental private sector projects.
    (c) Technical Amendments.--Section 234 of the Foreign Assistance 
Act of 1961 (22 U.S.C. 2194) is amended--
            (1) by redesignating subsection (c) (the second place it 
        appears) as paragraph (5);
            (2) by amending the heading of paragraph (5), as 
        redesignated by paragraph (1) of this subsection, to read as 
        follows:
            ``(5) Creation of fund for acquisition of equity.--''; and
            (3) by indenting paragraph (5), as redesignated by 
        paragraph (1) of this subsection, one full measure.

              Subtitle C--Economic Support Fund Assistance

SEC. 221. ECONOMIC SUPPORT FUND ASSISTANCE.

    (a) Authorization of Appropriations.--There is authorized to be 
appropriated to the President for fiscal year 1999 $611,000,000 to 
carry out chapter 4 of part II of the Foreign Assistance Act of 1961 
(22 U.S.C. 2346 et seq.) for reconstruction and disaster mitigation 
assistance for affected areas of Central America and the Caribbean.
    (b) Use of Amounts.--Of the amount appropriated under subsection 
(a), the President shall reserve the following amounts for the 
following purposes:
            (1) Agriculture and rural reconstruction.--$283,000,000 for 
        the construction and repair of rural roads, the provision of 
        micro-enterprise loans, the provision of tools, seed, and 
        fertilizer, and for assistance for rural farmers to adopt 
        sustainable production techniques.
            (2) Disease control, surveillance, and prevention.--
        $136,000,000 for the reconstruction and rehabilitation of 
        health posts and clinics, the provision of water and sanitation 
        services, and disease control, surveillance, and prevention.
            (3) Education and housing.--$55,000,000 for construction, 
        repair, and re-equipment of educational facilities, including 
        the provision of school supplies, and the re-equipment of new 
        housing units.
            (4) Environmental management and disaster mitigation.--
        $64,000,000 for environmental management and disaster 
        mitigation, including land use planning and resources 
        management.
            (5) Anti-corruption activities.--$22,000,000 for the 
        efficient management of local reconstruction assistance, 
        including anti-corruption training for municipal governments, 
        nongovernmental organizations, and law enforcement.
            (6) Assistance for the dominican republic and other 
        caribbean countries affected by hurricane georges.--$42,000,000 
        for reconstruction assistance related to health, economic 
        revitalization, and housing for the Dominican Republic and 
        other Caribbean countries affected by Hurricane Georges.
    (c) Administrative Expenses.--Of the amount authorized to be 
appropriated under subsection (a), the President shall reserve 
$6,000,000 for the operating expenses of the United States Agency for 
International Development incurred in connection with assistance 
provided under this Act.

SEC. 222. REIMBURSEMENT OF INTERNATIONAL DISASTER ACCOUNT.

    There is authorized to be appropriated to the President for fiscal 
year 1999 $25,000,000 to reimburse the international disaster 
assistance account for expenses incurred with respect to international 
disaster assistance provided for affected areas of Central America and 
the Caribbean under chapter 9 of part I of the Foreign Assistance Act 
of 1961 (22 U.S.C. 2292 et seq.) for recovery from Hurricane Georges 
and Hurricane Mitch.

SEC. 223. RULE OF CONSTRUCTION; AVAILABILITY OF AMOUNTS.

    (a) Rule of Construction.--Amounts authorized to be appropriated 
under this subtitle are in addition to amounts otherwise available for 
the purposes described in the section of this subtitle involved.
    (b) Availability of Amounts.--Amounts authorized to be appropriated 
under this subtitle are authorized to remain available until expended.

                    TITLE III--DEPARTMENT OF DEFENSE

SEC. 301. REPLACEMENT OF FUNDS USED FOR DISASTER RELIEF AND 
              RECONSTRUCTION.

    In addition to amounts authorized to be appropriated under any 
other law for the Department of Defense for fiscal year 1999, funds are 
hereby authorized to be appropriated for the use of the Armed Forces 
and other activities and agencies of the Department of Defense for 
expenses, not otherwise provided for, for operation and maintenance, in 
amounts as follows:
            (1) For replenishment of Department of Defense accounts 
        used in providing disaster relief and reconstruction to 
        affected areas of Central America and the Caribbean, 
        $135,200,000, of which--
                    (A) $75,000,000 may be used for replenishment of 
                operation and maintenance and military personal 
                accounts;
                    (B) $37,500,000 may be used for replenishment of 
                the Overseas Humanitarian Disaster and Civic Aid 
                account (including demining initiatives); and
                    (C) $20,000,000 may be used for replenishment of 
                the Commanders in Chief (CINC) Initiative Fund.
            (2) For the New Horizons Program, $56,000,000 for expanded 
        National Guard and Reserve exercises in Central American 
        countries and the Dominican Republic.

            TITLE IV--IMMIGRATION AND NATURALIZATION SERVICE

SEC. 401. DETENTION FACILITIES.

    There is authorized to be appropriated to the President $80,000,000 
to be used for Enforcement and Border Affairs within the Immigration 
and Naturalization Service (INS) to support increased detention 
requirements for Central American criminal aliens held in detention by 
the Immigration and Naturalization Service and to address an expected 
influx of illegal immigrants from Central America.

 TITLE V--DEBT RESCHEDULING AND REDUCTION FOR HONDURAS AND NICARAGUA; 
     FUNDING FOR THE CENTRAL AMERICAN EMERGENCY TRUST FUND OF THE 
         INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

 Subtitle A--Debt Rescheduling and Reduction for Honduras and Nicaragua

SEC. 501. RESCHEDULING OF INTEREST PAYMENTS OWED BY HONDURAS AND 
              NICARAGUA.

    The President is authorized to reschedule the repayment of interest 
owed to the United States (or any agency of the United States) in 
fiscal years 1999 and 2000 by the Governments of Honduras and Nicaragua 
on debt owed by such Governments to the United States that is 
outstanding as of October 1, 1998.

SEC. 502. REDUCTION OF DEBT OWED BY HONDURAS.

    (a) Authority.--
            (1) In general.--The President shall reduce the amount owed 
        to the United States (or any agency of the United States) by 
        the Government of Honduras that is outstanding as of October 1, 
        1998, as a result of concessional loans made to Honduras by the 
        United States under part I or chapter 4 of part II of the 
        Foreign Assistance Act of 1961, or predecessor foreign economic 
        assistance legislation.
            (2) Appropriations requirement.--The authority provided by 
        this section may be exercised only in such amounts or to such 
        extent as is provided in advance by appropriations Acts.
            (3) Certain prohibitions inapplicable.--(A) A reduction of 
        debt pursuant to this section shall not be considered 
        assistance for purposes of any provision of law limiting 
        assistance to a country.
            (B) The authority of this section may be exercised 
        notwithstanding section 620(r) of the Foreign Assistance Act of 
        1961 or section 321 of the International Development and Food 
        Assistance Act of 1975.
    (b) Implementation of Debt Reduction.--
            (1) In general.--The debt reduction pursuant to subsection 
        (a) shall be accomplished by the exchange of a new obligation 
        for obligations outstanding as of the date specified in 
        subsection (a)(1).
            (2) Exchange of obligations.--The President shall notify 
        the agency primarily responsible for administering part I of 
        the Foreign Assistance Act of 1961 of the agreement with 
        Honduras to exchange a new obligation for outstanding 
        obligations pursuant to this subsection. At the direction of 
        the President, the old obligations shall be canceled and a new 
        debt obligation for the country shall be established, and such 
        agency shall make an adjustment in its accounts to reflect the 
        debt reduction.
    (c) Currency of Payment.--The principal amount of each new 
obligation issued pursuant to subsection (b) shall be repaid in United 
States dollars.
    (d) Deposit of Payments.--Principal repayments of new obligations 
shall be deposited in the United States Government account established 
for principal repayments of the obligations for which those obligations 
were exchanged.
    (e) Rate of Interest.--New obligations issued by a beneficiary 
country pursuant to subsection (b) shall bear interest at concessional 
rates.
    (f) Authorization of Appropriations.--
            (1) In general.--There is authorized to be appropriated for 
        fiscal year 2000 $16,000,000 to carry out this section.
            (2) Availability.--Amounts authorized to be appropriated 
        under paragraph (1) are authorized to remain available until 
        expended.

Subtitle B--Authorization of Funding for the Central American Emergency 
Trust Fund of the International Bank for Reconstruction and Development

SEC. 511. AUTHORIZATION OF FUNDING.

    The Bretton Woods Agreements Act (22 U.S.C. 286-286nn) is amended 
by adding at the end the following:

``SEC. 62. SUPPLEMENTAL FUNDING FOR THE CENTRAL AMERICAN EMERGENCY 
              TRUST FUND OF THE INTERNATIONAL BANK FOR RECONSTRUCTION 
              AND DEVELOPMENT.

    ``(a) Contribution Authority.--
            ``(1) In general.--The United States Governor of the Bank 
        may, on behalf of the United States, contribute $25,000,000 to 
        the Central American Emergency Trust Fund of the Bank.
            ``(2) Subject to appropriations.--The authority provided by 
        paragraph (1) shall be effective only to such extent or in such 
        amounts as are provided in advance in appropriations Acts.
    ``(b) Limitations on Authorization of Appropriations.--
            ``(1) In general.--For the contribution provided for in 
        subsection (a), there are authorized to be appropriated not 
        more than $25,000,000 for fiscal year 1999, for payment by the 
        President of the United States.
            ``(2) Rule of construction.--The authority provided by 
        paragraph (1) is in addition to any appropriations authority 
        otherwise provided by law.
    ``(c) Availability.--Amounts appropriated under subsection (b) are 
authorized to remain available until expended.''.
                                                 Union Calendar No. 363

106th CONGRESS

  2d Session

                               H. R. 984

                      [Report No. 106-519, Part I]

_______________________________________________________________________

                                 A BILL

 To provide additional trade benefits to certain beneficiary countries 
  in the Caribbean, to provide assistance to the countries in Central 
  America and the Caribbean affected by Hurricane Mitch and Hurricane 
                    Georges, and for other purposes.

_______________________________________________________________________

                              June 7, 2000

Committees on International Relations, Banking and Financial Services, 
    the Judiciary, and Armed Services discharged; committed to the 
 Committee of the Whole House on the State of the Union and ordered to 
                               be printed