[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4103 Enrolled Bill (ENR)]
H.R.4103
One Hundred Eighth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Tuesday,
the twentieth day of January, two thousand and four
An Act
To extend and modify the trade benefits under the African Growth and
Opportunity Act.
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 ``AGOA Acceleration Act of 2004''.
SEC. 2. FINDINGS.
The Congress finds the following:
(1) The African Growth and Opportunity Act (in this section and
section 3 referred to as ``the Act'') has helped to spur economic
growth and bolster economic reforms in the countries of sub-Saharan
Africa and has fostered stronger economic ties between the
countries of sub-Saharan Africa and the United States; as a result,
exports from the United States to sub-Saharan Africa reached record
levels after the enactment of the Act, while exports from sub-
Saharan Africa to the United States have increased considerably.
(2) The Act's eligibility requirements have reinforced
democratic values and the rule of law, and have strengthened
adherence to internationally recognized worker rights in eligible
sub-Saharan African countries.
(3) The Act has helped to bring about substantial increases in
foreign investment in sub-Saharan Africa, especially in the textile
and apparel sectors, where tens of thousands of new jobs have been
created.
(4) As a result of the Agreement on Textiles and Apparel of the
World Trade Organization, under which quotas maintained by WTO
member countries on textile and apparel products end on January 1,
2005, sub-Saharan Africa's textile and apparel industry will be
severely challenged by countries whose industries are more
developed and have greater capacity, economies of scale, and better
infrastructure.
(5) The underdeveloped physical and financial infrastructure in
sub-Saharan Africa continues to discourage investment in the
region.
(6) Regional integration establishes a foundation on which sub-
Saharan African countries can coordinate and pursue policies
grounded in African interests and history to achieve sustainable
development.
(7) Expanded trade because of the Act has improved fundamental
economic conditions within sub-Saharan Africa. The Act has helped
to create jobs in the poorest region of the world, and most sub-
Saharan African countries have sought to take advantage of the
opportunities provided by the Act.
(8) Agricultural biotechnology holds promise for helping solve
global food security and human health crises in Africa and,
according to recent studies, has made contributions to the
protection of the environment by reducing the application of
pesticides, reducing soil erosion, and creating an environment more
hospitable to wildlife.
(9) (A) One of the greatest challenges facing African countries
continues to be the HIV/AIDS epidemic, which has infected as many
as one out of every four people in some countries, creating
tremendous social, political, and economic costs. African countries
need continued United States financial and technical assistance to
combat this epidemic.
(B) More awareness and involvement by governments are
necessary. Countries like Uganda, recognizing the threat of HIV/
AIDS, have boldly attacked it through a combination of education,
public awareness, enhanced medical infrastructure and resources,
and greater access to medical treatment. An effective HIV/AIDS
prevention and treatment strategy involves all of these steps.
(10) African countries continue to need trade capacity
assistance to establish viable economic capacity, a well-grounded
rule of law, and efficient government practices.
SEC. 3. STATEMENT OF POLICY.
The Congress supports--
(1) a continued commitment to increase trade between the United
States and sub-Saharan Africa and increase investment in sub-
Saharan Africa to the benefit of workers, businesses, and farmers
in the United States and in sub-Saharan Africa, including by
developing innovative approaches to encourage development and
investment in sub-Saharan Africa;
(2) a reduction of tariff and nontariff barriers and other
obstacles to trade between the countries of sub-Saharan Africa and
the United States, with particular emphasis on reducing barriers to
trade in emerging sectors of the economy that have the greatest
potential for development;
(3) development of sub-Saharan Africa's physical and financial
infrastructure;
(4) international efforts to fight HIV/AIDS, malaria,
tuberculosis, other infectious diseases, and serious public health
problems;
(5) many of the aims of the New Partnership for African
Development (NEPAD), which include--
(A) reducing poverty and increasing economic growth;
(B) promoting peace, democracy, security, and human rights;
(C) promoting African integration by deepening linkages
between African countries and by accelerating Africa's economic
and political integration into the rest of the world;
(D) attracting investment, debt relief, and development
assistance;
(E) promoting trade and economic diversification;
(F) broadening global market access for United States and
African exports;
(G) improving transparency, good governance, and political
accountability;
(H) expanding access to social services, education, and
health services with a high priority given to addressing HIV/
AIDS, malaria, tuberculosis, other infectious diseases, and
other public health problems;
(I) promoting the role of women in social and economic
development by reinforcing education and training and by
assuring their participation in political and economic arenas;
and
(J) building the capacity of governments in sub-Saharan
Africa to set and enforce a legal framework, as well as to
enforce the rule of law;
(6) negotiation of reciprocal trade agreements between the
United States and sub-Saharan African countries, with the overall
goal of expanding trade across all of sub-Saharan Africa;
(7) the President seeking to negotiate, with interested
eligible sub-Saharan African countries, bilateral trade agreements
that provide investment opportunities, in accordance with section
2102(b)(3) of the Trade Act of 2002 (19 U.S.C. 3802(b)(3));
(8) efforts by the President to negotiate with the member
countries of the Southern African Customs Union in order to provide
the opportunity to deepen and make permanent the benefits of the
Act while giving the United States access to the markets of these
African countries for United States goods and services, by reducing
tariffs and non-tariff barriers, strengthening intellectual
property protection, improving transparency, establishing general
dispute settlement mechanisms, and investor-state and state-to-
state dispute settlement mechanisms in investment;
(9) a comprehensive and ambitious trade agreement with the
Southern African Customs Union, covering all products and sectors,
in order to mature the economic relationship between sub-Saharan
African countries and the United States and because such an
agreement would deepen United States economic and political ties to
the region, lend momentum to United States development efforts,
encourage greater United States investment, and promote regional
integration and economic growth;
(10) regional integration among sub-Saharan African countries
and business partnerships between United States and African firms;
and
(11) economic diversification in sub-Saharan African countries
and expansion of trade beyond textiles and apparel.
SEC. 4. SENSE OF CONGRESS ON RECIPROCITY AND REGIONAL ECONOMIC
INTEGRATION.
It is the sense of the Congress that--
(1) the preferential market access opportunities for eligible
sub-Saharan African countries will be complemented and enhanced if
those countries are implementing actively and fully, consistent
with any remaining applicable phase-in periods, their obligations
under the World Trade Organization, including obligations under the
Agreement on Trade-Related Aspects of Intellectual Property, the
Agreement on the Application of Sanitary and Phytosanitary
Measures, and the Agreement on Trade-Related Investment Measures,
as well as the other agreements described in section 101(d) of the
Uruguay Round Agreements Act (19 U.S.C. 3511(d));
(2) eligible sub-Saharan African countries should participate
in and support mutual trade liberalization in ongoing negotiations
under the auspices of the World Trade Organization, including by
making reciprocal commitments with respect to improving market
access for industrial and agricultural goods, and for services,
recognizing that such commitments may need to reflect special and
differential treatment for developing countries;
(3) some of the most pernicious trade barriers against exports
by developing countries are the trade barriers maintained by other
developing countries; therefore, eligible sub-Saharan African
countries will benefit from the reduction of trade barriers in
other developing countries, especially in developing countries that
represent some of the greatest potential markets for African goods
and services; and
(4) all countries should make sanitary and phytosanitary
decisions on the basis of sound science.
SEC. 5. SENSE OF CONGRESS ON INTERPRETATION OF TEXTILE AND APPAREL
PROVISIONS OF AGOA.
It is the sense of the Congress that the executive branch,
particularly the Committee for the Implementation of Textile Agreements
(CITA), the Bureau of Customs and Border Protection of the Department
of Homeland Security, and the Department of Commerce, should interpret,
implement, and enforce the provisions of section 112 of the African
Growth and Opportunity Act, relating to preferential treatment of
textile and apparel articles, broadly in order to expand trade by
maximizing opportunities for imports of such articles from eligible
sub-Saharan African countries.
SEC. 6. DEFINITION.
In this Act, the term ``eligible sub-Saharan African country''
means an eligible sub-Saharan African country under the African Growth
and Opportunity Act.
SEC. 7. EXTENSION OF AFRICAN GROWTH AND OPPORTUNITY ACT.
(a) Generalized System of Preferences.--
(1) Extension of program.--Section 506B of the Trade Act of
1974 (19 U.S.C. 2466b) is amended by striking ``2008'' and
inserting ``2015''.
(2) Inputs from former beneficiary countries.--Section 506A of
the Trade Act of 1974 (19 U.S.C. 2466a) is amended--
(A) in subsection (b)(2)(B), by inserting ``or former
beneficiary sub-Saharan African countries'' after
``countries''; and
(B) in subsection (c)--
(i) by striking ``title, the terms'' and inserting
``title--
``(1) the terms''; and
(ii) by adding at the end the following:
``(2) the term `former beneficiary sub-Saharan African country'
means a country that, after being designated as a beneficiary sub-
Saharan African country under the African Growth and Opportunity
Act, ceased to be designated as such a country by reason of its
entering into a free trade agreement with the United States.''.
(b) Apparel Articles.--(1) Section 112(b)(1) of the African Growth
and Opportunity Act (19 U.S.C. 3721(b)(1)) is amended by striking
``(including'' and inserting ``or both (including''.
(2) Section 112(b)(3) of the African Growth and Opportunity Act (19
U.S.C. 3721 (b)(3)) is amended--
(A) in the matter preceding subparagraph (A)--
(i) by striking ``either in the United States or one or
more beneficiary sub-Saharan African countries'' each place it
appears and inserting ``in the United States or one or more
beneficiary sub-Saharan African countries or former beneficiary
sub-Saharan African countries, or both''; and
(ii) by striking ``subject to the following:'' and
inserting ``whether or not the apparel articles are also made
from any of the fabrics, fabric components formed, or
components knit-to-shape described in paragraph (1) or (2)
(unless the apparel articles are made exclusively from any of
the fabrics, fabric components formed, or components knit-to-
shape described in paragraph (1) or (2)), subject to the
following:''; and
(B) by striking subparagraphs (A) and (B) and inserting the
following:
``(A) Limitations on benefits.--
``(i) In general.--Preferential treatment under this
paragraph shall be extended in the 1-year period beginning
October 1, 2003, and in each of the 11 succeeding 1-year
periods, to imports of apparel articles in an amount not to
exceed the applicable percentage of the aggregate square
meter equivalents of all apparel articles imported into the
United States in the preceding 12-month period for which
data are available.
``(ii) Applicable percentage.--For purposes of this
subparagraph, the term `applicable percentage' means--
``(I) 4.747 percent for the 1-year period beginning
October 1, 2003, increased in each of the 5 succeeding
1-year periods by equal increments, so that for the 1-
year period beginning October 1, 2007, the applicable
percentage does not exceed 7 percent; and
``(II) for each succeeding 1-year period until
September 30, 2015, not to exceed 7 percent.
``(B) Special rule for lesser developed countries.--
``(i) In general.--Preferential treatment under this
paragraph shall be extended though September 30, 2007, for
apparel articles wholly assembled, or knit-to-shape and
wholly assembled, or both, in one or more lesser developed
beneficiary sub-Saharan African countries, regardless of
the country of origin of the fabric or the yarn used to
make such articles, in an amount not to exceed the
applicable percentage of the aggregate square meter
equivalents of all apparel articles imported into the
United States in the preceding 12-month period for which
data are available.
``(ii) Applicable percentage.--For purposes of the
subparagraph, the term `applicable percentage' means--
``(I) 2.3571 percent for the 1-year period
beginning October 1, 2003;
``(II) 2.6428 percent for the 1-year period
beginning October 1, 2004;
``(III) 2.9285 percent for the 1-year period
beginning October 1, 2005; and
``(IV) 1.6071 percent for the 1-year period
beginning October 1, 2006.
``(iii) Lesser developed beneficiary sub-saharan
african country.--For purposes of this subparagraph, the
term `lesser developed beneficiary sub-Saharan African
country' means--
``(I) a beneficiary sub-Saharan African country
that had a per capita gross national product of less
than $1,500 in 1998, as measured by the International
Bank for Reconstruction and Development;
``(II) Botswana; and
``(III) Namibia.''.
(3) Section 112(b)(5)(A) of the African Growth and Opportunity Act
(19 U.S.C. 3721(b)(5)(A)) is amended to read as follows:
``(A) In general.--Apparel articles that are both cut (or
knit-to-shape) and sewn or otherwise assembled in one or more
beneficiary sub-Saharan African countries, to the extent that
apparel articles of such fabrics or yarns would be eligible for
preferential treatment, without regard to the source of the
fabrics or yarns, under Annex 401 to the NAFTA.''.
(c) Handloomed, Handmade, Folklore Articles and Ethnic Printed
Fabrics.--Section 112(b)(6) of the African Growth and Opportunity Act
(19 U.S.C. 3721(b)(6)) is amended to read as follows:
``(6) Handloomed, handmade, folklore articles and ethnic
printed fabrics.--
``(A) In general.--A handloomed, handmade, folklore article
or an ethnic printed fabric of a beneficiary sub-Saharan
African country or countries that is certified as such by the
competent authority of such beneficiary country or countries.
For purposes of this section, the President, after consultation
with the beneficiary sub-Saharan African country or countries
concerned, shall determine which, if any, particular textile
and apparel goods of the country (or countries) shall be
treated as being handloomed, handmade, or folklore articles or
an ethic printed fabric.
``(B) Requirements for ethnic printed fabric.--Ethnic
printed fabrics qualified under this paragraph are--
``(i) fabrics containing a selvedge on both edges,
having a width of less than 50 inches, classifiable under
subheading 5208.52.30 or 5208.52.40 of the Harmonized
Tariff Schedule of the United States;
``(ii) of the type that contains designs, symbols, and
other characteristics of African prints--
``(I) normally produced for and sold on the
indigenous African market; and
``(II) normally sold in Africa by the piece as
opposed to being tailoredinto garments before being
sold in indigenous African markets;
``(iii) printed, including waxed, in one or more
eligible beneficiary sub-Saharan countries; and
``(iv) fabrics formed in the United States, from yarns
formed in the United States, or from fabric formed in one
or more beneficiary sub-Saharan African country from yarn
originating in either the United States or one or more
beneficiary sub-Saharan African countries.''.
(d) Regional and U.S. Sources.--Section 112(b)(7) of the African
Growth and Opportunity Act (19 U.S.C. 3721(b)(7)) is amended by
inserting ``or former beneficiary sub-Saharan African countries'' after
``and one or more beneficiary sub-Saharan African countries'' each
place it appears.
(e) Special Rules.--
(1) Certain components.--Section 112(d) of the African Growth
and Opportunity Act (19 U.S.C. 3721(d)) is amended by adding at the
end the following:
``(3) Certain components.--An article otherwise eligible for
preferential treatment under this section will not be ineligible
for such treatment because the article contains--
``(A) any collars or cuffs (cut or knit-to-shape),
``(B) drawstrings,
``(C) shoulder pads or other padding,
``(D) waistbands,
``(E) belt attached to the article,
``(F) straps containing elastic, or
``(G) elbow patches,
that do not meet the requirements set forth in subsection (b),
regardless of the country of origin of the item referred to in the
applicable subparagraph of this paragraph.''.
(2) De minimis rule.--Section 112(d)(2) of the African Growth
and Opportunity Act (19 U.S.C. 3721(d)(2)) is amended--
(A) by inserting ``or former beneficiary sub-Saharan
African countries'' after ``countries''; and
(B) by striking ``7 percent'' and inserting ``10 percent''.
(f) Definitions.--Section 112(e) of the African Growth and
Opportunity Act (19 U.S.C. 3721(e)) is amended by adding at the end the
following:
``(4) Former sub-saharan african country.--The term `former
sub-Saharan African country' means a country that, after being
designated as a beneficiary sub-Saharan African country under this
Act, ceased to be designated as such a beneficiary sub-Saharan
country by reason of its entering into a free trade agreement with
the United States.''.
SEC. 8. ENTRIES OF CERTAIN APPAREL ARTICLES PURSUANT TO THE AFRICAN
GROWTH AND OPPORTUNITY ACT.
(a) In General.--Notwithstanding section 514 of the Tariff Act of
1930 (19 U.S.C. 1514) or any other provision of law, the Secretary of
the Treasury shall liquidate or reliquidate as free of duty and free of
any quantitative restrictions, limitations, or consultation levels
entries of articles described in subsection (d) made on or after
October 1, 2000, and before the date of the enactment of this Act.
(b) Requests.--Liquidation or reliquidation may be made under
subsection (a) with respect to an entry described in subsection (d)
only if a request therefor is filed with the Secretary of the Treasury
within 90 days after the date of the enactment of this Act and the
request contains sufficient information to enable the Secretary to
locate the entry or reconstruct the entry if it cannot be located.
(c) Payment of Amounts Owed.--Any amounts owed by the United States
pursuant to the liquidation or reliquidation of any entry under
subsection (a) shall be paid not later than 180 days after the date of
such liquidation or reliquidation.
(d) Entries.--The entries referred to in subsection (a) are entries
of apparel articles that meet the requirements of section 112(b) of the
African Growth and Opportunity Act, as amended by section 3108 of the
Trade Act of 2002 and this Act.
SEC. 9. DEVELOPMENT STUDY AND CAPACITY BUILDING.
(a) Reports.--The President shall, by not later than 1 year after
the date of the enactment of this Act, conduct a study on each eligible
sub-Saharan African country, that--
(1) identifies sectors of the economy of that country with the
greatest potential for growth, including through export sales;
(2) identifies barriers, both domestically and internationally,
that are impeding growth in such sectors; and
(3) makes recommendations on how the United States Government
and the private sector can provide technical assistance to that
country to assist in dismantling such barriers and in promoting
investment in such sectors.
(b) Dissemination of Information.--The President shall disseminate
information in each study conducted under subsection (a) to the
appropriate United States agencies for the purpose of implementing
recommendations on the provision of technical assistance and in
identifying opportunities for United States investors, businesses, and
farmers.
SEC. 10. ACTIVITIES IN SUPPORT OF INFRASTRUCTURE TO SUPPORT INCREASING
TRADE CAPACITY AND ECOTOURISM.
(a) Findings.--The Congress finds the following:
(1) Ecotourism, which consists of--
(A) responsible and sustainable travel and visitation to
relatively undisturbed natural areas in order to enjoy and
appreciate nature (and any accompanying cultural features, both
past and present) and animals, including species that are rare
or endangered,
(B) promotion of conservation and provision for beneficial
involvement of local populations, and
(C) visitation designed to have low negative impact upon
the environment,
is expected to expand 30 percent globally over the next decade.
(2) Ecotourism will increase trade capacity by sustaining
otherwise unsustainable infrastructure, such as road, port, water,
energy, and telecommunication development.
(3) According to the United States Department of State and the
United Nations Environment Programme, sustainable tourism, such as
ecotourism, can be an important part of the economic development of
a region, especially a region with natural and cultural protected
areas.
(4) Sub-Saharan Africa enjoys an international comparative
advantage in ecotourism because it features extensive protected
areas that host a variety of ecosystems and traditional cultures
that are major attractions for nature-oriented tourism.
(5) National parks and reserves in sub-Saharan Africa should be
considered a basis for regional development, involving communities
living within and adjacent to them and, given their strong
international recognition, provide an advantage in ecotourism
marketing and promotion.
(6) Desert areas in sub-Saharan Africa represent complex
ecotourism attractions, showcasing natural, geological, and
archaeological features, and nomad and other cultures and
traditions.
(7) Many natural zones in sub-Saharan Africa cross the
political borders of several countries; therefore, transboundary
cooperation is fundamental for all types of ecotourism development.
(8) The commercial viability of ecotourism is enhanced when
small and medium enterprises, particularly microenterprises,
successfully engage with the tourism industry in sub-Saharan
Africa.
(9) Adequate capacity building is an essential component of
ecotourism development if local communities are to be real
stakeholders that can sustain an equitable approach to ecotourism
management.
(10) Ecotourism needs to generate local community benefits by
utilizing sub-Saharan Africa's natural heritage, parks, wildlife
reserves, and other protected areas that can play a significant
role in encouraging local economic development by sourcing food and
other locally produced resources.
(b) Action by the President.--The President shall develop and
implement policies to--
(1) encourage the development of infrastructure projects that
will help to increase trade capacity and a sustainable ecotourism
industry in eligible sub-Saharan African countries;
(2) encourage and facilitate transboundary cooperation among
sub-Saharan African countries in order to facilitate trade;
(3) encourage the provision of technical assistance to eligible
sub-Saharan African countries to establish and sustain adequate
trade capacity development; and
(4) encourage micro-, small-, and medium-sized enterprises in
eligible sub-Saharan African countries to participate in the
ecotourism industry.
SEC. 11. ACTIVITIES IN SUPPORT OF TRANSPORTATION, ENERGY, AGRICULTURE,
AND TELECOMMUNICATIONS INFRASTRUCTURE.
(a) Findings.--The Congress finds the following:
(1) In order to increase exports from, and trade among,
eligible sub-Saharan African countries, transportation systems in
those countries must be improved to increase transport efficiencies
and lower transport costs.
(2) Vibrant economic growth requires a developed
telecommunication and energy infrastructure.
(3) Sub-Saharan Africa is rich in exportable agricultural
goods, but development of this industry remains stymied because of
an underdeveloped infrastructure.
(b) Action by the President.--In order to enhance trade with Africa
and to bring the benefits of trade to African countries, the President
shall develop and implement policies to encourage investment in
eligible sub-Saharan African countries, particularly with respect to
the following:
(1) Infrastructure projects that support, in particular,
development of land transport road and railroad networks and ports,
and the continued upgrading and liberalization of the energy and
telecommunications sectors.
(2) The establishment and expansion of modern information and
communication technologies and practices to improve the ability of
citizens to research and disseminate information relating to, among
other things, the economy, education, trade, health, agriculture,
the environment, and the media.
(3) Agriculture, particularly in processing and capacity
enhancement.
SEC. 12. FACILITATION OF TRANSPORTATION.
In order to facilitate and increase trade flows between eligible
sub-Saharan African countries and the United States, the President
shall foster improved port-to-port and airport-to-airport
relationships. These relationships should facilitate--
(1) increased coordination between customs services at ports
and airports in the United States and such countries in order to
reduce time in transit;
(2) interaction between customs and technical staff from ports
and airports in the United States and such countries in order to
increase efficiency and safety procedures and protocols relating to
trade;
(3) coordination between chambers of commerce, freight
forwarders, customs brokers, and others involved in consolidating
and moving freight; and
(4) trade through air service between airports in the United
States and such countries by increasing frequency and capacity.
SEC. 13. AGRICULTURAL TECHNICAL ASSISTANCE.
(a) Identification of Countries.--The President shall identify not
fewer than 10 eligible sub-Saharan African countries as having the
greatest potential to increase marketable exports of agricultural
products to the United States and the greatest need for technical
assistance, particularly with respect to pest risk assessments and
complying with sanitary and phytosanitary rules of the United States.
(b) Personnel.--The President shall assign at least 20 full-time
personnel for the purpose of providing assistance to the countries
identified under subsection (a) to ensure that exports of agricultural
products from those countries meet the requirements of United States
law.
SEC. 14. TRADE ADVISORY COMMITTEE ON AFRICA.
The President shall convene the trade advisory committee on Africa
established by Executive Order 11846 of March 27, 1975, under section
135(c) of the Trade Act of 1974, in order to facilitate the goals and
objectives of the African Growth and Opportunity Act and this Act, and
to maintain ongoing discussions with African trade and agriculture
ministries and private sector organizations on issues of mutual
concern, including regional and international trade concerns and World
Trade Organization issues.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.