1.This Act may be cited as
the AGOA Extension Act of
2006
.
2.Congress finds that—
(1)the African
Growth and Opportunity Act (19 U.S.C. 3701 et seq.) has helped to spur economic
growth and bolster economic reforms in the countries in sub-Saharan Africa and
fostered stronger economic ties between the countries in sub-Saharan Africa and
the United States;
(2)the African
Growth and Opportunity Act has helped to promote investment in sub-Saharan
Africa, especially in the textile and apparel sectors;
(3)the major
challenges facing the often nascent textile and apparel sector in sub-Saharan
Africa are—
(A)unrestrained
competition from well-established, and in some cases, subsidized, producers,
particularly following the January 1, 2005, elimination of quotas previously
maintained by members of the World Trade Organization (WTO); and
(B)inadequate
infrastructure and access to capital and other supply-side constraints;
(4)during the first
year since the elimination of quotas, United States imports of apparel from
sub-Saharan Africa declined by 16 percent, contributing to the closing of
dozens of factories and the loss of an estimated 100,000 jobs in the
region;
(5)the rules of
origin under the African Growth and Opportunity Act do not reflect the current
market reality, which is that African textile mills cannot in general produce
yarns or fabric in sufficient variety and quantity to meet the needs of African
apparel producers or market demand in the United States and other
countries;
(6)to increase the
ability of African apparel manufacturers to meet market demands, the rules of
origin under the African Growth and Opportunity Act should be replaced by a
simple value-added rule of origin, as advocated by the Commission for Africa
and recognized by the World Bank;
(7)sustainable
development and economic growth in sub-Saharan Africa require the
diversification of the economies of countries in sub-Saharan Africa, utilizing
the countries' vast agricultural, natural, and human resources in a just and
sustainable manner; and
(8)to assist
countries in sub-Saharan Africa in developing and diversifying their economies,
the United States should continue to pursue trade liberalization bilaterally
and multilaterally, and in addition, the United States should provide the
technical assistance needed and identified in the AGOA Competitiveness Report,
published by the United States Trade Representative in 2005, and establish
programs to provide sustainable technical assistance to small- and medium-sized
African enterprises.
<enum>I</enum><header>Designations and
consultations</header>
<section id="id9F21A28321EA477CB9A921302FCC07E6"><enum>101.</enum><header>Designation of
eligible countries</header><text display-inline="no-display-inline">Section 104
of the African Growth and Opportunity Act (19 U.S.C. 3703) is amended by
striking subsection (b) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id95994277C32A4D699EC036EF55212E84" style="OLC">
<subsection id="ID66c0812c15e04946ab1e1d0fa832eb2d"><enum>(b)</enum><header>Continuing
compliance</header><text>If the President determines that an eligible
sub-Saharan African country no longer meets the criteria set forth in
subsection (a), including by failing to maintain the institutions described in
subparagraphs (A) through (F) of subsection (a)(1), the President may terminate
the designation of the country made pursuant to subsection (a) if—</text>
<paragraph id="IDa89addb009df4606b7df131aaecd2fa6"><enum>(1)</enum><text>the President
transmits to Congress notice of the proposed termination; and</text>
</paragraph><paragraph id="IDdb65fcb893e44e8e8b952ac593692e09"><enum>(2)</enum><text>the Congress,
within 90 days after receiving such notice, does not enact a law prohibiting
such
termination.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="ID19d06516c6864dd9a312a9d741934d15"><enum>102.</enum><header>United
States-sub-Saharan Africa trade and economic cooperation forum</header>
<subsection id="IDb96679b3d6e74965b87fae910770343a"><enum>(a)</enum><header>Grants</header><text>In
order to ensure that nongovernmental organizations and the private sector
continue to host the annual meetings described in section 105(c)(2) of the
African Growth and Opportunity Act (19 U.S.C. 3704(c)(2)), the United States
Trade Representative, in coordination with the heads of other appropriate
Federal departments and agencies, is authorized to provide grants to United
States nongovernmental organizations referred to in section 105(c)(2) of that
Act and to United States representatives of the private sector referred to in
section 105(c)(2)(B) of that Act, for the purpose of hosting such
meetings.</text>
</subsection><subsection id="IDaa0ff371dc6c45d994816471fcbcafb6"><enum>(b)</enum><header>Authorization
of appropriations</header><text>There is authorized to be appropriated to the
United States Trade Representative such sums as may be necessary to carry out
this section.</text>
</subsection></section><section id="ID7583638049d34836a2cc7f0ed3eb870a"><enum>103.</enum><header>Sense of
Congress regarding Liberia</header><text display-inline="no-display-inline">It
is the sense of Congress that—</text>
<paragraph id="IDbd776c54b1ff46fdad0ef8f82a64d134"><enum>(1)</enum><text>the October 2005
presidential elections in Liberia represented a key step in building peace in
Liberia, following nearly two decades of civil war;</text>
</paragraph><paragraph id="ID34ef856bcb1c4b229c5e6b4e9191e86a"><enum>(2)</enum><text>the election of
Ms. Ellen Johnson Sirleaf as President of Liberia marks an important milestone
for Africa, as President Johnson Sirleaf is the first elected female president
in African history;</text>
</paragraph><paragraph id="ID6efb2b7ca70442e38f24d6e110178031"><enum>(3)</enum><text>in her inaugural
address, President Johnson Sirleaf laid out a detailed, multifaceted governance
agenda emphasizing security, public- and private-sector led economic
revitalization, good governance and anticorruption efforts, regional and
international cooperation, and political reconciliation and inclusiveness;
and</text>
</paragraph><paragraph id="IDbe4199a7dc414af0a91a43382760419a"><enum>(4)</enum><text>in light of the
recent progress in Liberia, the President should make a determination as soon
as possible, pursuant to section 104(a) of the African Growth and Opportunity
Act (19 U.S.C. 3703(a)), regarding whether to designate Liberia as eligible for
trade benefits under the African Growth and Opportunity Act.</text>
</paragraph></section><enum>II</enum><header>Treatment of
certain textiles and apparel</header>
<section id="id9C88725152984CC8A9B923E754464C77"><enum>201.</enum><header>Treatment of
certain textiles</header>
<subsection id="IDa146d53f097d497bb54ee47dca8fee90"><enum>(a)</enum><header>Certain other
apparel articles that are both cut (or knit-to-shape) and sewn or otherwise
assembled in one or more beneficiary sub-Saharan African countries</header>
<paragraph id="IDbd40fd11ff484cadb72b8fd3adf92f37"><enum>(1)</enum><header>Amendments</header><text>Section
112(b)(3) of the African Growth and Opportunity Act (19 U.S.C. 3721(b)(3)) is
amended—</text>
<subparagraph id="ID4ffd9f9785d54c06a46d34d4a6b27e68"><enum>(A)</enum><text>by amending the
heading to read as follows: <quote><header-in-text level="paragraph" style="OLC">Certain other apparel articles that are both cut (or knit-to-shape)
and sewn or otherwise assembled in one or more beneficiary sub-Saharan African
countries.—</header-in-text></quote>;</text>
</subparagraph><subparagraph id="IDd985504479674ee7ba8864219f2c7545"><enum>(B)</enum><text>by redesignating
subparagraphs (A) through (C) as subparagraphs (B) through (D), respectively;
and</text>
</subparagraph><subparagraph id="ID7d174c9e52ab4ad1a3e141f4df439993"><enum>(C)</enum><text>by striking the
matter preceding subparagraph (B) (as redesignated) and inserting the following
new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="idEFD181B578B44926A41102030F53F87E" style="OLC">
<subparagraph id="ID48069b5a6cd041a3a08fdd5d834be1c2"><enum>(A)</enum><header>Certain other
apparel articles</header>
<clause id="ID8a0a740208294b7abf98a36f766bde0b"><enum>(i)</enum><header>In
general</header><text>Apparel articles that are both cut (or knit-to-shape) and
sewn or otherwise assembled in one or more beneficiary sub-Saharan African
countries if—</text>
<subclause id="ID6673857542d24d95ad4e3f72d2c6717d"><enum>(I)</enum><text>the articles are
imported directly from a beneficiary sub-Saharan African country into the
customs territory of the United States; and</text>
</subclause><subclause id="ID09ac988102b94fa6a59d2fe8efa2ce31"><enum>(II)</enum><text>the sum
of—</text>
<item id="ID4c41b5820ece417a989f3894a9d17145"><enum>(aa)</enum><text>the cost or
value of the materials of the articles produced in the beneficiary sub-Saharan
African country or any two or more of such beneficiary sub-Saharan African
countries or the United States; plus</text>
</item><item id="IDfb55f48d84c64918841b4455611dc840"><enum>(bb)</enum><text>the direct costs
of processing operations performed in such beneficiary country or such
beneficiary countries or the United States, is not less than the applicable
percentage of the appraised value of the articles at the time the articles are
imported into the customs territory of the United States.</text>
</item></subclause></clause><clause id="IDbec26cbf75774651b12dca1c02a2b94a"><enum>(ii)</enum><header>Applicable
percentage</header><text>For purposes of clause (i), the term <term>applicable
percentage</term> means—</text>
<subclause id="ID2b122e97e323494e9844abebebf6d559"><enum>(I)</enum><text>20 percent for
the 10-year period beginning October 1, 2006, or the date of the enactment of
the <short-title>AGOA Extension Act of 2006</short-title>,
whichever occurs later; and</text>
</subclause><subclause id="IDd9ef9a7c0d5e428e9231dbe68ad2b263"><enum>(II)</enum><text>35 percent
thereafter.</text>
</subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="IDbbb824a4031847d8b659221a041baa21"><enum>(2)</enum><header>Effective date;
applicability</header><text>The amendments made by paragraph (1) shall take
effect on October 1, 2006, or the date of the enactment of this Act, whichever
occurs later. The preferential treatment described in subsection (a) of section
112 of the African Growth and Opportunity Act shall apply to apparel articles
described in subparagraph (A) of section 112(b)(3) of such Act (as added by
paragraph (1)) that are imported directly into the customs territory of the
United States on or after such date.</text>
</paragraph><paragraph id="IDb3b5c1064ed347278516fbce8db06a4b"><enum>(3)</enum><header>Transition
rule</header><text>The preferential treatment described in subsection (a) of
section 112 of the African Growth and Opportunity Act shall continue to apply
to apparel articles described in the matter preceding subparagraph (A) of
section 112(b)(3) of such Act (as such section is in effect on the day before
the date of the enactment of this Act) that are imported directly into the
customs territory of the United States for—</text>
<subparagraph id="ID51d4385296844ebcbee3630a65c48dc6"><enum>(A)</enum><text>the period
beginning on the date of the enactment of this Act and ending on March 31,
2007; or</text>
</subparagraph><subparagraph id="ID0ac27cc65fa743abb1a5314a12de1b8b"><enum>(B)</enum><text>the 180-day
period beginning on the date of the enactment of this Act, whichever occurs
later.</text>
</subparagraph></paragraph></subsection><subsection id="ID9369c4daf2094087824f799f292a1e37"><enum>(b)</enum><header>Special rule
for lesser developed countries</header>
<paragraph id="IDba83819520f1406db916de7df9321440"><enum>(1)</enum><header>Applicable
percentage</header><text>Clause (ii) of section 112(b)(3)(C) of the African
Growth and Opportunity Act (as redesignated by subsection (a)(1)(B) of this
section) is amended—</text>
<subparagraph id="IDb0f54e96f856422ab3fc80a68030774d"><enum>(A)</enum><text>in subclause
(II), by adding <quote>and</quote> at the end;</text>
</subparagraph><subparagraph id="IDa530a896091943b580899bc74c6ca2b9"><enum>(B)</enum><text>in subclause
(III)—</text>
<clause id="ID0258192f615445d99f5c7f619d271668"><enum>(i)</enum><text>by
striking <quote>1-year period</quote> and inserting <quote>2-year
period</quote>; and</text>
</clause><clause id="ID9096d0f4dc5a48059c84a4d268bd94df"><enum>(ii)</enum><text>by
striking <quote>; and</quote> and inserting a period; and</text>
</clause></subparagraph><subparagraph id="IDad935ee3968a4cc9a625615b5afcd365"><enum>(C)</enum><text>by striking
subclause (IV).</text>
</subparagraph></paragraph><paragraph id="ID326b7b0a3ceb40ddabaea0981cd5f3ac"><enum>(2)</enum><header>Separate
limitation for Mauritius</header>
<subparagraph id="IDaa1db2037aaa42409f61ce237603995b"><enum>(A)</enum><header>Amendment</header><text>Clause
(iv) of section 112(b)(3)(C) of the African Growth and Opportunity Act (as
redesignated by subsection (a)(1)(B) of this section) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="id0BA6174738D24468AE611BBCB5124AA3" style="OLC">
<clause id="ID067bed87cb3f43afa54cdf9ae22add87"><enum>(iv)</enum><header>Separate
limitation for Mauritius</header><text>For the 1-year period beginning October
1, 2005, and the 1-year period beginning October 1, 2006, the term <term>lesser
developed beneficiary sub-Saharan African country</term> includes
Mauritius.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="ID16d6510a685e403a8ad73c259b1af99f"><enum>(B)</enum><header>Retroactive
application for certain liquidations and reliquidations</header>
<clause id="ID2252e5c30cd6474babdf6d3190bf6c78"><enum>(i)</enum><header>In
general</header><text>Notwithstanding section 514 of the Tariff Act of 1930 (19
U.S.C. 1514) or any other provision of law, and subject to clause (ii), the
entry of any article—</text>
<subclause id="ID26dc94624d634b5d9bf1c3c1986bf2b8"><enum>(I)</enum><text>that was made on
or after October 1, 2005, and before the date of the enactment of this Act;
and</text>
</subclause><subclause id="IDb6119357dae04c2d8fe21272cd51257a"><enum>(II)</enum><text>with respect to
which preferential treatment under section 112(b)(3) of the African Growth and
Opportunity Act would have applied if the amendment made by subparagraph (A)
applied with respect to the entry of such article, shall be liquidated or
reliquidated as if such amendment applied to the entry of such article.</text>
</subclause></clause><clause id="IDf813a949c4e14d81a3cd3926d7e61fa0"><enum>(ii)</enum><header>Requests</header><text>Liquidation
or reliquidation may be made under clause (i) with respect to the entry of an
article only if proper request therefor is filed with the Bureau of Customs and
Border Protection of the Department of Homeland Security within 90 days after
the date of the enactment of this Act.</text>
</clause><clause id="ID3ad0e6e0c4334f9db5318b1aea092a5b"><enum>(iii)</enum><header>Payment of
amounts owed</header><text>Any amounts owed by the United States pursuant to
the liquidation or reliquidation made under clause (i) with respect to the
entry of an article shall be paid not later than 180 days after the date of
such liquidation or reliquidation.</text>
</clause><clause id="ID2368ce4c21df44218de713861917f155"><enum>(iv)</enum><header>Definition</header><text>As
used in this subparagraph, the term <term>entry</term> includes a withdrawal
from warehouse for consumption.</text>
</clause></subparagraph></paragraph></subsection><subsection id="ID1ad3d2b315d9427581e8a56bbdde9ab1"><enum>(c)</enum><header>Certain textile
fabrics and other made-Up textile articles</header>
<paragraph id="ID74f6e762c70247fe94abd775459327cf"><enum>(1)</enum><header>Amendment</header><text>Section
112(b) of the African Growth and Opportunity Act (19 U.S.C. 3721(b)) is amended
by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id26A2B2FA242249C1ABFE64B223A2EF16" style="OLC">
<paragraph id="ID1ec69f35dcf24412b16d2c9c26c81462"><enum>(8)</enum><header>Certain textile
fabrics and other made-up textile articles</header>
<subparagraph id="ID5e809a85000149b29567fa34bf709eb9"><enum>(A)</enum><header>In
general</header><text>Notwithstanding section 503 of the Trade Act of 1974 (19
U.S.C. 2463) or any other provision of law, textile fabrics and other made-up
textile articles classifiable under any heading of chapters 50 through 60 and
chapter 63 of the Harmonized Tariff Schedule of the United States (other than
headings 5101 through 5105 and headings 5201 through 5203 of such Schedule)
that are wholly the product of one or more beneficiary sub-Saharan African
countries.</text>
</subparagraph><subparagraph id="IDbb1ec2613627424e89eb33b1d185272d"><enum>(B)</enum><header>Surge
mechanism</header><text>The requirements of subparagraph (D) of paragraph (3)
shall apply with respect to imports of textile fabrics and other made-up
textile articles described in this paragraph to the same extent and in the same
manner as such requirements apply with respect to imports of articles described
in paragraph
(3).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="IDbca6731b991a4578897e3e21cdc9e846"><enum>(2)</enum><header>Effective date;
applicability</header><text>The amendment made by paragraph (1) shall take
effect on October 1, 2006, or the date of the enactment of this Act, whichever
occurs later. The preferential treatment described in subsection (a) of section
112 of the African Growth and Opportunity Act shall apply to textile fabrics
and other made-up textile articles described in paragraph (8) of section 112(b)
of such Act (as added by paragraph (1)) that are imported directly into the
customs territory of the United States on or after such date.</text>
</paragraph></subsection></section><enum>III</enum><header>Initiatives on
agriculture</header>
<section id="idD55BC4AB247A459B8ABC225DE19D4058"><enum>301.</enum><header>Increased
access</header><text display-inline="no-display-inline">Section 122(b)(3) of
the African Growth and Opportunity Act (19 U.S.C. 3732(b)(3)) is amended to
read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id140CE51B7C8447C186039573EF44F238" style="OLC">
<paragraph id="ID671146769ca94897996bf808ce5781a5"><enum>(3)</enum><text>addressing
critical agricultural policy issues, in part, by developing a comprehensive
plan, which shall be submitted to Congress, and shall take into consideration
the October 2005 report of the International Trade Commission on Export
Opportunities and Barriers in African Growth and Opportunity Act Eligible
Countries and the July 2005 African Growth and Opportunity Act Competitiveness
Report prepared by the Office of the United States Trade Representative,
to—</text>
<subparagraph id="ID369bfb6620bb49dbac8a7478c9b83353"><enum>(A)</enum><text>increase market
liberalization;</text>
</subparagraph><subparagraph id="IDcb968ecbebb34b66821db151cd2e1671"><enum>(B)</enum><text>develop
agricultural exports;</text>
</subparagraph><subparagraph id="ID410c41ae839b477b9a05507e5f0ad3f6"><enum>(C)</enum><text>remove barriers
and constraints to United States-Africa agricultural trade;</text>
</subparagraph><subparagraph id="IDfc2cf14d0c0c45378d9349c8d4784cd4"><enum>(D)</enum><text>increase
investment in processing and transporting commodities;</text>
</subparagraph><subparagraph id="ID7df9224dc2fa4549bd0bc3640ebdf2c2"><enum>(E)</enum><text>develop and
increase capacity by working with farmers and farmer groups, especially small
farmers, in order to improve productivity and ability to access local and
international markets, as well as address other supply-side constraints;</text>
</subparagraph><subparagraph id="ID06ca9a1fb37f4acb8278abbeab528b02"><enum>(F)</enum><text>increase access
to vital market information, including prices, product quality and demand,
inputs quality and costs, and customs rules and regulations, for farmers and
farmer groups and cooperatives and for relevant government ministries;
and</text>
</subparagraph><subparagraph id="ID3ae3da85879f45dbabdd4b5712b7276c"><enum>(G)</enum><text>enable
public-private partnerships in eligible sub-Saharan African countries to
promote trade in agricultural products between the United States and eligible
sub-Saharan African
countries;</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="IDdd14cfec2f974088b8fe805b2d513cc8"><enum>302.</enum><header>Enhanced
trade</header>
<subsection id="IDa2da39a334144f40ba05cbadc01fe502"><enum>(a)</enum><header>Enhanced trade
in agriculture</header>
<paragraph id="IDe847389d6fb54301bf86c482b359bc5d"><enum>(1)</enum><header>Duty-free
access</header><text>In order to enhance the opportunities for increased
agricultural trade, the President shall establish additional duty-free access
for countries designated as beneficiary sub-Saharan African countries under
section 506A(a)(1) of the Trade Act of 1974 (19 U.S.C. 2466a(a)(1)) for
agricultural products governed by tariff-rate quotas as of the date of the
enactment of this Act. The expanded access for countries described in the
preceding sentence shall be subject to a safeguard mechanism to prevent market
disruption or the threat of market disruption.</text>
</paragraph><paragraph id="IDf51d6a641ca64fee8c4c8d423559a583"><enum>(2)</enum><header>Amount</header><text>The
amount of additional duty-free access for agricultural products restrained by
tariff rate quotas that is established pursuant to paragraph (1) shall be set
at a level equal to actual imports of such products from beneficiary
sub-Saharan African countries during the 12-month period ending September 30,
2005. If an agricultural product that is restrained by tariff rate quotas was
not imported from any beneficiary sub-Saharan African country during the
12-month period ending September 30, 2005, the amount of additional duty-free
access shall be set at a level equal to that portion of the applicable tariff
rate quota that was reserved for <quote>all other countries</quote> for the
quota period ending September 30, 2005.</text>
</paragraph><paragraph id="ID29c377f04a2e46c095471002aa1c35dc"><enum>(3)</enum><header>Additional
duty-free access</header><text>The President shall annually allocate such
additional duty-free access among beneficiary sub-Saharan African
countries—</text>
<subparagraph id="IDb381e27774de4c9ab3e9cfe95c2eb66b"><enum>(A)</enum><text>that were net
surplus producers of the agricultural product in question during the preceding
year; and</text>
</subparagraph><subparagraph id="ID98a0f74ad53d4cb3aeeea2552cb16924"><enum>(B)</enum><text>on the basis of
traditional market shares and such other criteria as the President shall
consider appropriate, such as the level of economic development of the
beneficiary countries, and that are consistent with United States obligations
under Article XIII of GATT 1994, provided that reasonable access is allocated
to new entrants.</text>
</subparagraph></paragraph><paragraph id="IDf45664ab1af3401eb471556ad8c87397"><enum>(4)</enum><header>Definition</header><text>As
used in paragraph (3), the term <term>GATT 1994</term> means the General
Agreement on Tariffs and Trade annexed to the Agreement Establishing the World
Trade Organization entered into on April 15, 1994.</text>
</paragraph></subsection><subsection id="IDdabbaf143a4d474684d379ebaa002819"><enum>(b)</enum><header>Assistance to
agribusiness</header><text>The Administrator of the United States Agency for
International Development is authorized to provide grants in each of the fiscal
years 2007 through 2020 to governmental and nongovernmental entities that are
located in countries designated as beneficiary sub-Saharan African countries
under section 506A(a)(1) of the Trade Act of 1974 (19 U.S.C. 2466a(a)(1)) and
can provide assistance, consultation, and equipment to agribusinesses,
particularly small- and medium-sized, locally-owned enterprises, located in
those countries in order to enable agricultural products of those businesses to
meet the requirements under United States law when imported into the United
States. Such funds may be used for grants to national plant protection
organizations for the purpose of obtaining equipment to achieve the purposes of
this subsection.</text>
</subsection><subsection id="ID0177431953694a8aab53009b71a2f52e"><enum>(c)</enum><header>Foreign
agriculture service</header><text>The Secretary of Agriculture shall direct the
Foreign Agriculture Service (FAS) to work with national African agricultural
organizations to identify agricultural equipment and supply needs and implement
programs that strengthen the ability of members of African agricultural
organizations to fulfill these needs in conjunction with export credit
guarantee programs.</text>
</subsection></section><enum>IV</enum><header>Increased
investment</header>
<section id="id5E33C79EDBA64B98ADE2B49E2395921A"><enum>401.</enum><header>Incentives
through Export-Import Bank</header>
<subsection id="ID9a380cd0d2a44cedbb9ba625a91441ad"><enum>(a)</enum><header>Export-Import
Bank of the United States</header><text>Section 2(b)(1)(B) of the Export-Import
Bank Act of 1945 (12 U.S.C. 635(b)(1)(B) is amended—</text>
<paragraph id="IDcde5497fcfa646b18b8e583d9aa5b747"><enum>(1)</enum><text>by inserting
<quote>(i)</quote> after <quote>(B)</quote>; and</text>
</paragraph><paragraph id="ID77f8766462a943f39da3a80887375fca"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="idC564302492C44322B42C4CDE637CAA32" style="OLC">
<clause id="ID72c8bbc40c2f43e4b5df44cb88fe31eb" indent="up3"><enum>(ii)</enum><text>The Bank shall implement such
regulations and procedures as may be appropriate to ensure that full
consideration is given to the extent to which any loan, guarantee, insurance,
extension of credit, or participation in an extension of credit is likely to
have a positive effect on industries, including the textile and apparel
industry and agricultural production, in countries designated as beneficiary
sub-Saharan African countries under section 506A(a)(1) of the Trade Act of 1974
(19 U.S.C. 2466a(a)(1)). To carry out the purposes of this clause, the Bank
shall work with the Administrator of the United States Agency for International
Development, the United States Trade Representative, and the Secretary of
Commerce in identifying opportunities to use the resources of the Bank to
encourage industrial and agricultural development in such beneficiary
sub-Saharan African
countries.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><enum>V</enum><header>Tax
and investment policy</header>
<section id="idBE0AA186285841B68300FB2B1FE66BD8"><enum>501.</enum><header>Tax
revenues</header>
<subsection id="IDa75a76ab2441460b9f6aec38e12306d5"><enum>(a)</enum><header>Development of
domestic tax policies To replace lost trade tax revenues</header>
<paragraph id="IDad405c3f7f124386a7cd8ff734709335"><enum>(1)</enum><header>Findings</header><text>Congress
finds that—</text>
<subparagraph id="IDa6a2a1019493466c8e8a6981a5c5f7ee"><enum>(A)</enum><text>trade tax
revenues remain important in many countries designated as beneficiary
sub-Saharan African countries under section 506A(a)(1) of the Trade Act of 1974
(19 U.S.C. 2466a(a)(1));</text>
</subparagraph><subparagraph id="ID29a957c5892e4af3acbc812fc21911c8"><enum>(B)</enum><text>studies conducted
by the International Monetary Fund show that the revenue losses a developing
country experiences due to trade liberalization can be recovered by improving
the domestic tax system in the affected country; and</text>
</subparagraph><subparagraph id="IDb45a44d0201f49368805e184f8333ed4"><enum>(C)</enum><text>technical
assistance provided by the United States to such beneficiary countries in
fiscal or economic policy programs has focused on tax system enhancement or
development that has been helpful in moving tax regimes away from trade-related
tax revenue toward other tax revenue sources.</text>
</subparagraph></paragraph></subsection></section><section id="IDdfb4137c2d374f3a86baa28389d7b442"><enum>502.</enum><header>Technical
assistance</header><text display-inline="no-display-inline">It is the sense of
Congress that—</text>
<paragraph id="ID29bc5f4e63214bcab53469cd021aa2b5"><enum>(1)</enum><text>the United States
Agency for International Development, in cooperation with the Department of the
Treasury, the International Monetary Fund, the International Bank for
Reconstruction and Development, and the African Development Bank, should
exercise the authorities it has to continue to provide technical assistance to
countries designated as beneficiary sub-Saharan African countries under section
506A(a)(1) of the Trade Act of 1974 (19 U.S.C. 2466a(a)(1)) in tax policy,
revenue administration, and anti-corruption efforts; and</text>
</paragraph><paragraph id="IDb56683b540cd4e4a9a668ab661097c5a"><enum>(2)</enum><text>particular focus
should be given to projects that assist such beneficiary countries in
developing domestic policies and measures to replace lost trade tax revenues
resulting from trade liberalization.</text>
</paragraph></section><section id="ID39289b5ae84f42c7a5e279fbb684b7f7"><enum>503.</enum><header>Taxation
treaties</header><text display-inline="no-display-inline">In order to encourage
investment in and certainty in the movement of capital, the Secretary of the
Treasury shall seek negotiations with those countries designated as beneficiary
sub-Saharan African countries under section 506A(a)(1) of the Trade Act of 1974
(19 U.S.C. 2466a(a)(1)) which the Secretary determines will benefit most from
an income tax treaty with the United States.</text>
</section><section id="ID568a102a57534c73af3a54bf9e076c37"><enum>504.</enum><header>Bilateral
investment treaties</header><text display-inline="no-display-inline">In order
to encourage investment in countries designated as beneficiary sub-Saharan
African countries under section 506A(a)(1) of the Trade Act of 1974 (19 U.S.C.
2466a(a)(1)) and reduce the uncertainties that arise from investing in
developing countries, the Secretary of State shall seek to negotiate, with
interested eligible sub-Saharan African countries, bilateral investment
treaties. Any such agreement shall comply with section 2102(b)(3) of the Trade
Act of 2002 (19 U.S.C. 3802(b)(3)).</text>
</section><enum>VI</enum><header>Development and
trade capacity building</header>
<section id="id9945E3B63496499FA041DA979E828615"><enum>601.</enum><header>Sub-Saharan
African economic growth</header><text display-inline="no-display-inline">It is
the sense of Congress that—</text>
<paragraph id="ID2ab7f1b414ea4632822250d93422747b"><enum>(1)</enum><text>sub-Saharan
Africa faces critical challenges to economic growth and progress toward the
United Nations Millennium Development Goals (as contained in United Nations
General Assembly Resolution 55/2 (September 2000));</text>
</paragraph><paragraph id="ID13f231a3d8274ea485f0a69d22477276"><enum>(2)</enum><text>the January 1,
2005, elimination of textile and apparel quotas previously maintained by
members of the World Trade Organization (WTO) and competition from subsidized
producers in countries such as the People's Republic of China continue to
reverse the economic gains in sub-Saharan Africa that resulted from
implementation of the African Growth and Opportunity Act (19 U.S.C. 3701 et
seq.); and</text>
</paragraph><paragraph id="IDaf11350718ff43d7b0bc6e0a70c8277a"><enum>(3)</enum><text>the United States
should play a leadership role in expanding trade benefits to sub-Saharan Africa
and providing a substantial increase in development and trade capacity
assistance for sub-Saharan Africa.</text>
</paragraph></section><section id="IDd9d723e792184f299a5f10ed454a082c"><enum>602.</enum><header>Assistance</header>
<subsection id="ID08e4767767d248de901a0f1602f90035"><enum>(a)</enum><header>Assistance</header><text>In
order to give sub-Saharan Africa the necessary infrastructure and
industry-building assistance needed for sustainable economic development, the
President shall—</text>
<paragraph id="ID799a94973a1b46768df8477db6fbc3fd"><enum>(1)</enum><text>provide targeted
capacity building assistance through bilateral assistance and seek to establish
a multilateral capacity-building fund or facility for Africa, potentially
within the World Bank, in a gender-sensitive manner, aimed at—</text>
<subparagraph id="ID1996bc5c3acd4eeebc7fb032e11f447a"><enum>(A)</enum><text>diversifying the
economies of sub-Saharan Africa, in part by promoting the growth of sub-Saharan
Africa's agricultural sector;</text>
</subparagraph><subparagraph id="IDd1e19b9c7c254ed0bc6d61c4a506e14d"><enum>(B)</enum><text>increasing the
production of value-added agriculture and food products;</text>
</subparagraph><subparagraph id="ID424daa64893c4847b534e16a9a0bc74f"><enum>(C)</enum><text>lowering costs
and increasing efficiencies relating to the transport of food and
agriculture;</text>
</subparagraph><subparagraph id="ID6952ff751c594a1386a3cd64415c0e0a"><enum>(D)</enum><text>increasing food
storage capacity;</text>
</subparagraph><subparagraph id="ID1f6d5de51c8045b69076e1f859118cbf"><enum>(E)</enum><text>improving
dissemination of market information for farmers and farmer groups;</text>
</subparagraph><subparagraph id="ID9e963d3db4344838a86301dfc9f79212"><enum>(F)</enum><text>providing
technical assistance to small- and medium-sized enterprises;</text>
</subparagraph><subparagraph id="IDd48434acdd4e452d9ee94d11925df0bc"><enum>(G)</enum><text>providing
technical assistance to local retail banks to provide loans to small- and
medium-sized enterprises;</text>
</subparagraph><subparagraph id="IDf8c251b959e54cc5aad366da0ab14c8a"><enum>(H)</enum><text>facilitating the
transfer of manufacturing and food production technology;</text>
</subparagraph><subparagraph id="ID706f652073334a5cafbff10125fecb13"><enum>(I)</enum><text>raising labor
standards and productivity; and</text>
</subparagraph><subparagraph id="ID92ae80fc49a14f55860c382a23a9ae59"><enum>(J)</enum><text>promoting the
rule of law, contract enforcement, and government transparency in the
administration of trade and economic policy;</text>
</subparagraph></paragraph><paragraph id="IDdbb79ee7272b4d1b92bc368e482d785d"><enum>(2)</enum><text>provide targeted
assistance to sub-Saharan Africa to ensure the formal recognition of land and
property rights in urban and rural settings to increase access to capital and
thereby promote economic growth and investment, including training and capacity
building programs, as well as multilateral aid, aimed at local legal officials,
policymakers, and nongovernmental organizations regarding property law,
surveying, land registration, and land use planning;</text>
</paragraph><paragraph id="IDb44355a64a34492f84d5504cc0b44b67"><enum>(3)</enum><text>coordinate
efforts under paragraph (2) with multinational organizations such as the World
Bank, the African Development Bank, and the High Level Commission on Legal
Empowerment of the Poor; and</text>
</paragraph><paragraph id="IDb89d400249094feab10769f39a2c14ea"><enum>(4)</enum><text>establish a Legal
Aid Corps, comprised of legally-trained volunteers from the United States, to
provide technical advice to countries of sub-Saharan Africa regarding property
law, surveying, land registration, and land use planning.</text>
</paragraph></subsection><subsection id="ID3155cbae8ed746e4b255ba9bf9e2b973"><enum>(b)</enum><header>Authorization
of appropriations</header><text>There is authorized to be appropriated to the
President to carry out this section such sums as may be necessary.</text>
</subsection></section>