[Congressional Record Volume 140, Number 112 (Friday, August 12, 1994)]
[Extensions of Remarks]
[Page E]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: August 12, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                JOBS THROUGH TRADE EXPANSION ACT OF 1994

                                 ______


                           HON. SAM GEJDENSON

                             of connecticut

                    in the house of representatives

                        Friday, August 12, 1994

  Mr. GEJDENSON. Mr. Speaker, today I, along with several members of 
the House Foreign Affairs Committee, am introducing the Jobs Through 
Trade Expansion Act of 1994 which will improve the effectiveness of 
U.S. export promotion programs and create jobs here at home.
  The bill will significantly enhance the ability of the U.S. 
Government to provide grants, loans, loan guarantees and risk insurance 
for U.S. export projects and investments overseas, provide specific 
programs for the expansion of U.S. environmental exports and protect 
U.S. intellectual property overseas. A conservative estimate of job 
creation from passage of this bill is 100,000 U.S. jobs.
  The following is a summary of the bill:


    title i: rewrite of the overseas private investment corporation

  Title I is a rewrite of the authorities of the Overseas Private 
Investment Corporation or OPIC. OPIC offers U.S. investors assistance 
in finding overseas investment opportunities, insurance to protect 
those investments and loans and loan guarantees to help finance 
projects. OPIC cannot insure or finance projects that would displace 
American workers.
  This title rewrites sections 231-240B of the Foreign Assistance Act 
to update OPIC's original language and eliminate outdated provisions. 
Much of this title is identical to last year's rewrite of OPIC which 
passed the House. The primary differences are in the eligibility 
restrictions and in the authorization levels for insurance and 
financing.
  We have amended the eligibility criteria for participating countries 
to reflect the changing structure of the current international 
environment. The new language is on page 4 of the bill regarding the 
process OPIC must follow when a country is no longer eligible for 
assistance. This provision is much more explicit and strict than past 
OPIC language on ineligibility. The cosponsors and OPIC believe that 
this language will remedy the fact that under current law it is 
difficult to tell when or if a country is ever ineligible for OPIC 
assistance. Essentially, if a country is no longer eligible for OPIC or 
foreign aid assistance, OPIC must cease its programs except (1) it does 
not have to terminate existing contracts and (2) if the President of 
the United States determines it is the national interest to continue 
OPIC in that country. This takes the decision out of the hands of OPIC 
and places it in the office of the President.
  The bill provides OPIC with a 3-year authorization and, under this 
legislation, OPIC will use its own earnings to pay for its programs, 
instead of drawing funds appropriated from the Treasury. The cosponsors 
do not believe that the Congress should appropriate scarce foreign 
assistance resources for OPIC when the Corporation has close to $2 
billion in assets. Therefore, wherever appropriate, we have authorized 
OPIC to use funds available in its noncredit revolving fund account to 
cover the subsidy costs of its programs.
  The bill extends OPIC's program levels in order for the Corporation 
to work effectively in the former Soviet Union. Under this bill OPIC is 
authorized to offer up to $15 billion in insurance (current law is $9 
billion), and no more than $14.5 billion (maximum outstanding 
liability) for financing. We break down the financing for direct loans 
and guarantees as follows: $3 billion for fiscal year 1995, $4 billion 
for fiscal year 1996, and $5 billion for fiscal year 1997.
  There is a change under the financing section. In current law, OPIC 
can only provide direct loans to small companies. OPIC found that 
guarantees were very expensive to administer so it has asked for 
authorization to provide direct loans to medium and large sized 
businesses as well. They have asked to retain their guarantee 
authority, however, in the rare cases where it is sensible to offer 
guarantees over direct loans.
  The remainder of the title is similar, if not identical, to last 
year's bill.


 title ii: amendments to the trade and development agency (Sec. 661 of 
                                the FAA)

  The U.S. Trade and Development Agency or TDA simultaneously promotes 
economic development and the export of U.S. goods and services to 
developing countries. TDA provides funds for feasibility studies and 
other activities related to development projects which provide 
opportunities for the use of U.S. exports. In the last Congress the 
TDA's mandate was expanded to include architectural and engineering 
design to create a clear advantage in setting the standard for U.S. 
exports in overseas projects. In addition, TDA has the authority to 
provide technical assistance for project related activities. TDA 
conservatively estimates that for every dollar disbursed, the return to 
the U.S. economy is $25.
  The authorizing language for the Trade and Development Agency [TDA] 
was completely reformed in the Jobs Through Exports Act of 1992. 
Therefore, TDA's language required minor editing only. Most of the 
changes reflect language in H.R. 3765, the bill Chairman Hamilton 
introduced on behalf of the administration reflecting its vision of 
foreign aid reform. We also permit TDA to use its funding to do 
environmental assessments, much like OPIC. We provided TDA with the 
funding of $65 million for fiscal year 1995, and $90 million for fiscal 
year 1996, demonstrating the cosponsors continued confidence and 
support of the program.


 title iii: reauthorization of funds for the export promotion programs 
             within the international trade administration

  This purpose of this title is to reauthorize the export promotion 
programs (International Economic Policy, Trade and Development and the 
U.S. and Foreign Commercial Service) within the International Trade 
Administration of the U.S. Department of Commerce. Our authorization of 
$250 million is higher than past years reflecting the need for 
increases in export counselors both domestically and overseas. We are 
authorizing $275 million for fiscal year 1996.


           title iv: promotion of u.s. environmental exports

  The title promotes U.S. exports of environmental technologies, 
products, and services by:
  (1) Requiring the annual designation of five countries whose markets 
have the greatest potential for U.S. environmental exports;
  (2) Specifying that plans be developed outlining the steps the 
government's export promotion agencies will take to allow U.S. 
companies to capture the five priority markets;
  (3) Establishing an Environmental Trade Advisory Committee to guide 
the Trade Promotion Coordinating Committee [TPCC] in carrying out 
export promotion programs;
  (4) Placing environmental technology specialists within the U.S. and 
Foreign Commercial Service [U.S. & F.C.S.];
  (5) Requiring the development of a calendar of significant overseas 
sales opportunities for U.S. envirotech firms; and
  (6) Authorizing matching grants to regional centers which promote 
environmental exports.
  This language is identical to the language passed by the House in 
H.R. 3813.


       title v: international protection of intellectual property

  Title V requires AID, in conjunction with Commerce's Patent and 
Trademark Office, to establish a program of training and technical 
assistance in intellectual property protection. This program is aimed 
at countries that have expressed a willingness to improve but lack the 
expertise or the resources to do so. Training assistance could be for 
patent and trademark examiners, and for law enforcement personnel such 
as judiciary, police, and customs officials. Technical assistance could 
include the provision of microfiche and computer software on patents 
and patent searches, legal advice to governments writing intellectual 
property law, guidelines on setting up a patent office, and training in 
the protection of emerging technologies such as biotechnology.
  Funding required for this title is expected to be modest and will 
come out of AID's existing programs (no new authorization required). 
This language was also introduced as H.R. 4239 in April of this year.

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