    [House Hearing, 113 Congress]
    [From the U.S. Government Publishing Office]

     INCREASING AMERICAN JOBS THROUGH GREATER EXPORTS TO AFRICA ACT OF 2013

    =======================================================================

                                     MARKUP

                                   BEFORE THE

                     SUBCOMMITTEE ON AFRICA, GLOBAL HEALTH,
                            GLOBAL HUMAN RIGHTS, AND
                          INTERNATIONAL ORGANIZATIONS

                                     OF THE

                          COMMITTEE ON FOREIGN AFFAIRS
                            HOUSE OF REPRESENTATIVES

                        ONE HUNDRED THIRTEENTH CONGRESS

                                 FIRST SESSION

                                       ON

                                   H.R. 1777

                                   __________

                               NOVEMBER 21, 2013

                                   __________

                               Serial No. 113-122

                                   __________

            Printed for the use of the Committee on Foreign Affairs

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                          COMMITTEE ON FOREIGN AFFAIRS

                     EDWARD R. ROYCE, California, Chairman
    CHRISTOPHER H. SMITH, New Jersey     ELIOT L. ENGEL, New York
    ILEANA ROS-LEHTINEN, Florida         ENI F.H. FALEOMAVAEGA, American
    DANA ROHRABACHER, California             Samoa
    STEVE CHABOT, Ohio                   BRAD SHERMAN, California
    JOE WILSON, South Carolina           GREGORY W. MEEKS, New York
    MICHAEL T. McCAUL, Texas             ALBIO SIRES, New Jersey
    TED POE, Texas                       GERALD E. CONNOLLY, Virginia
    MATT SALMON, Arizona                 THEODORE E. DEUTCH, Florida
    TOM MARINO, Pennsylvania             BRIAN HIGGINS, New York
    JEFF DUNCAN, South Carolina          KAREN BASS, California
    ADAM KINZINGER, Illinois             WILLIAM KEATING, Massachusetts
    MO BROOKS, Alabama                   DAVID CICILLINE, Rhode Island
    TOM COTTON, Arkansas                 ALAN GRAYSON, Florida
    PAUL COOK, California                JUAN VARGAS, California
    GEORGE HOLDING, North Carolina       BRADLEY S. SCHNEIDER, Illinois
    RANDY K. WEBER SR., Texas            JOSEPH P. KENNEDY III,
    SCOTT PERRY, Pennsylvania                Massachusetts
    STEVE STOCKMAN, Texas                AMI BERA, California
    RON DeSANTIS, Florida                ALAN S. LOWENTHAL, California
    TREY RADEL, Florida                  GRACE MENG, New York
    DOUG COLLINS, Georgia                LOIS FRANKEL, Florida
    MARK MEADOWS, North Carolina         TULSI GABBARD, Hawaii
    TED S. YOHO, Florida                 JOAQUIN CASTRO, Texas
    LUKE MESSER, Indiana

         Amy Porter, Chief of Staff      Thomas Sheehy, Staff Director

                   Jason Steinbaum, Democratic Staff Director
                                     ------

        Subcommittee on Africa, Global Health, Global Human Rights, and
                          International Organizations

                   CHRISTOPHER H. SMITH, New Jersey, Chairman
    TOM MARINO, Pennsylvania             KAREN BASS, California
    RANDY K. WEBER SR., Texas            DAVID CICILLINE, Rhode Island
    STEVE STOCKMAN, Texas                AMI BERA, California
    MARK MEADOWS, North Carolina

                                C O N T E N T S

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                                                                       Page

                                   MARKUP OF

    H.R. 1777, To create jobs in the United States by increasing
      United States exports to Africa by at least 200 percent in real
      dollar value within 10 years, and for other purposes...........     2
      Amendment in the Nature of a Substitute to H.R. 1777 offered by
        the Honorable Christopher H. Smith, a Representative in
        Congress from the State of New Jersey, and chairman,
        Subcommittee on Africa, Global Health, Global Human Rights,
        and International Organizations..............................    24

              LETTERS, STATEMENTS, ETC., SUBMITTED FOR THE RECORD
                                    APPENDIX

    Markup notice....................................................    44
    Markup minutes...................................................    45
    Markup summary...................................................    46

     INCREASING AMERICAN JOBS THROUGH GREATER EXPORTS TO AFRICA ACT OF 2013

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                          THURSDAY, NOVEMBER 21, 2013

                           House of Representatives,

                     Subcommittee on Africa, Global Health,

             Global Human Rights, and International Organizations,

                         Committee on Foreign Affairs,

                                Washington, DC.

        The subcommittee met, pursuant to notice, at 10 o'clock
    a.m., in room 2172 Rayburn House Office Building, Hon.
    Christopher H. Smith (chairman of the subcommittee) presiding.
        Mr. Smith. The subcommittee will come to order. Pursuant to
    notice, the subcommittee will meet this morning to markup H.R.
    1777, the Increasing American Jobs Through Greater Exports to
    Africa Act of 2013. As our members are aware, this measure
    enjoys strong bipartisan support. There are competing hearings
    and other events taking place this morning so we will move
    quickly to its consideration.
        It is the intent of the Chair to consider this measure en
    bloc, along with a substitute amendment sent to you on Tuesday.
        All members have copies of these documents before them, and
    then after we have concluded our expedited consideration I will
    recognize myself, Mr. Cicilline, who is sitting in for Ranking
    Member Bass, and any other members who would like to make a
    statement. All members are given leave to insert written
    remarks in the record should they choose to do so.
        Seeing that a reporting quorum is present and without
    objection, the following are considered as read and will be
    considered en bloc--H.R. 1777, the Increasing American Jobs
    Through Greater Exports to Africa Act of 2013 and the Smith
    Amendment 36 to H.R. 1777 sent to your offices on Tuesday.
        [The information referred to follows:]H.R.
    1777 deg.

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        Mr. Smith. The Chair moves that the en bloc items be
    adopted. All those in favor say aye.
        [Chorus of ayes.]
        Mr. Smith. Those opposed? In the opinion of the Chair, the
    ayes have it and the items considered en bloc are adopted.
    Without objection, the measures as amended are reported
    favorably to the full committee and the staff is directed to
    make technical and conforming changes. Now that we have
    completed the formal considerations of these measures, again I
    would like to recognize myself for a brief explanation of the
    bill, H.R. 1777, the Increasing American Jobs Through Greater
    Exports to Africa Act of 2013. This bill, which I am happy to
    say is cosponsored by our Ranking Member Karen Bass and
    Congressman Bobby Rush, directs the President to establish a
    comprehensive U.S. strategy for public and private investment,
    trade, and development in Africa. This legislation focuses,
    among other things, on increasing exports of U.S. goods and
    services to Africa by 200 percent in real dollar value within
    10 years. According to the Department of Commerce, every $1
    billion in U.S. exports creates some 6,000 jobs in this
    country.
        My legislation calls for the alignment of U.S. commercial
    interests in the development of priorities in Africa. Trade and
    aid are not mutually exclusive. Capacity building, for example,
    is a development tool and it must be used to enable African
    countries to become more proficient in promoting trade and
    expanding wealth opportunities in their countries. Improving
    the competitiveness of U.S. businesses in Africa is in
    America's interest as well since more prosperous Africans can
    afford U.S.-manufactured goods.
        This legislation encourages a greater understanding among
    U.S. financial and business communities of the opportunities
    that Africa holds for U.S. exports. Today, U.S. publications
    only occasionally describe the commercial opportunities
    available in Africa. If you read Fortune, Business Week, or
    even Black Enterprise magazines, you will read perhaps an
    annual Africa-focused issue that is in general in its
    description of business in Africa, but there is little ongoing
    discussion of the kind of linkages that U.S. businesses are
    missing. Chinese, Japanese, and even Turkish businesspeople are
    taking full advantage of those opportunities today, and
    American businesspeople should have the same chances to benefit
    from them.
        The legislation fosters partnership opportunities between
    U.S. and African small- and medium-sized enterprises,
    especially among the African diaspora businesses which have not
    benefited from the African Growth and Opportunity Act, or AGOA,
    as they might have. Again, this is a function of not having
    sufficient information on which to base important commercial
    decisions.
        The President is required, pursuant to the bill, if it
    becomes law, to designate a special Africa export strategy
    coordinator. U.S. trade policy is too often stovepiped, meaning
    that various agencies pursue their missions without sufficient
    coordination. In an increasingly competitive global trade
    environment, this practice must end. The Secretary of Commerce
    is directed to ensure that at least 10 total U.S. and Foreign
    Commercial Service Officers are assigned to U.S. Embassies in
    Africa for each of the first 5 fiscal years after enactment of
    the act. We tried to increase foreign commercial service
    officers under AGOA, but their numbers are currently, in fact,
    shrinking.
        I see this legislation as complementing AGOA. It is
    absolutely not replacing it. When AGOA is reauthorized, and we
    hope that will be next year, this legislation will be a worthy
    companion to balance the benefits of U.S.-Africa trade for
    businesspeople on both sides of the Atlantic Ocean.
        I would like to now yield to Mr. Cicilline.
        Mr. Cicilline. Thank you, Mr. Chairman. I want to begin by
    thanking you and Ranking Member Bass for your leadership in
    moving to markup H.R. 1777, the Increasing American Jobs
    Through Greater Exports to Africa Act of 2013. You and
    Congressman Rush have shown incredible leadership in
    introducing a bill that is both good for our country and good
    for African nations. I also want to acknowledge the bipartisan
    Senate companion too, S. 718, introduced by Senator Durbin, and
    that includes 10 other Senate members who have shown their
    support for this measure.
        We are now well familiar with the facts that African
    economies are growing at a respectable pace, and several
    consistently beyond that. Over the last dozen years some of the
    world's fastest growing economies are in Africa. With over 1
    billion Africans participating in the global marketplace, we
    see new consumers who are eager to take part in the flow of
    goods and services and who have increasing purchasing power for
    those goods and services. I am pleased and strongly support
    this bill which calls for comprehensive United States strategy
    for public and private investment, trade, and development in
    Africa. Such a strategy is important and essential to U.S.
    private sectors to engage effectively and support this type of
    engagement that African nations require if we are to transition
    from transitional aid models to that of trade and investment.
        I would particularly note the important role played by the
    U.S. Foreign Commercial Service Officers. These dedicated
    representatives of the Department of Commerce play an integral
    role in our efforts to expand U.S. investment in Africa. They
    are key to the local private sector and can introduce visiting
    U.S. companies to local government and private sector
    representatives. We need more of these experts in Africa and I
    heartily support the bill's call for an increase in the number
    of Foreign Commercial Service Officers assigned to countries in
    Africa.
        If our Nation seeks to be competitive on the continent, it
    will require new steps, new strategies, and new thinking to
    recognize that the U.S. can be a market leader and key business
    partner on the continent if we want to be. Indeed, for all of
    the discussion about the aggressive marketing tactics displayed
    by China and others, neither BRICs nations nor former colonial
    powers in Africa can match U.S. companies in terms of the
    marketing of quality of goods and services, the provision of
    sound maintenance contracts, and the development of outstanding
    executive training. This is why so many countries worldwide
    like to work with the U.S. private sector, and in this respect
    Africa is no different.
        It is against this backdrop that I support this bill which
    focuses on an assertive and comprehensive whole of government
    approach to U.S. Government and U.S. private sector engagement
    with the countries of Africa. Mr. Chairman, earlier this year
    President Obama visited Senegal, South Africa, and Tanzania.
    During his visit to the continent, he spoke of his strong
    support for the reauthorization of AGOA and announced two
    landmark Presidential initiatives--Power Africa, aimed at
    building the continent's access to electrical power to help
    grow businesses, and Trade Africa, aimed at developing greater
    interregional trade and augmenting U.S. trade and investment.
    This bill complements these initiatives by promoting greater
    U.S. Government synergy, facilitating public-private
    partnership, and augmenting U.S. bilateral relations with the
    countries of Africa.
        Mr. Chairman, in closing I want to once again acknowledge
    the bipartisan, bicameral support under your leadership for not
    only the African Growth and Opportunity Act (AGOA) but the
    greater goal of growing partnership between the U.S. and
    African private sector. You and many of my colleagues in this
    committee have long recognized the importance of this goal for
    the United States and the countries of Africa. I thank you for
    your continued support and look forward in continuing to work
    with you and Ranking Member Bass and my colleagues in this
    regard. I thank you, Mr. Chairman. I yield back.
        Mr. Smith. Mr. Cicilline, thank you very much. Would any
    other members like to be heard?
        Mr. Meadows?
        Mr. Meadows. Just would like to thank the chairman for his
    foresight and his unrelenting pursuit to make sure that we have
    a good relationship with the continent of Africa, but also in
    terms of creating jobs here in America. And so just my
    compliments to him and wish him a happy Thanksgiving.
        Mr. Smith. Thank you.
        Mr. Weber?
        Mr. Weber. What he said.
        Mr. Smith. Okay, thank you. I want to thank my colleagues
    for their support of this legislation, their cosponsorship of
    it, and we will move to the full committee. The markup session
    of this subcommittee is adjourned.
        [Whereupon, at 10:13 a.m., the subcommittee was adjourned.]

                                A P P E N D I X

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                     Material Submitted for the Record

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