[Congressional Record Volume 142, Number 100 (Tuesday, July 9, 1996)]
[Extensions of Remarks]
[Page E1224]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                  EXPORTS, JOBS AND GROWTH ACT OF 1996

                                 ______
                                 

                             HON. TOBY ROTH

                              of wisconsin

                    in the house of representatives

                         Tuesday, July 9, 1996

  Mr. ROTH. Mr. Speaker, today I have introduced the Exports, Jobs and 
Growth Act of 1996. Joining me as original cosponsors are Mr. Gilman, 
Mr. Hamilton, Mr. Gejdenson, Mr. Leach, Mr. Bereuter, Mrs. Meyers, Mr. 
Manzullo, Mr. Gallegly, Mr. Martinez, Mr. Johnston, and Mr. Torricelli.
  The Exports, Jobs and Growth Act of 1996 extends the authority for 
three export assistance agencies: the Overseas Private Investment 
Corporation [OPIC], the Trade Development Agency [TDA], and the export-
related programs of the Department of Commerce's International Trade 
Administration. These authorities will otherwise expire at the end of 
this fiscal year. The bill also incorporates several recommendations 
made during hearings conducted by the International Economic Policy and 
Trade Subcommittee.
  This subcommittee, which I chair, during the last year conducted 
numerous oversight hearings on export competitiveness. Two of these 
hearings were specifically on the programs reauthorized in this bill. 
Testimony was received from both the administration and the U.S. 
exporting community, with all witnesses strongly endorsing continuation 
of the agencies' programs. The bill is the result of our findings from 
these hearings, and reflects the strong bipartisan interest on our 
committee for promoting U.S. export competitiveness.
  The bill also reflects the strong support for reauthorization that 
has been communicated to the subcommittee over the last month from such 
groups as the Coalition for Employment through Exports, the National 
Association of Manufacturers, the U.S. Chamber of Commerce, the 
National Foreign Trade Council, the Small Business Exporters 
Association, the American Consulting Engineers Council, and the 
National Independent Energy Producers.
  A more detailed description of the programs and the bill's provisions 
follows:


           the overseas private investment corporation (opic)

       OPIC began operations in 1971, with start up funds of $106 
     million. It is a wholly owned U.S. government corporation 
     that provides insurance and financing to U.S. companies 
     investing in overseas markets. OPIC's mandate is to 
     facilitate private sector investment in the developing 
     world, to expand U.S. exports and to advance U.S. foreign 
     and domestic policy goals, within certain statutory 
     parameters and guidelines.
       During its 25 years of operations, OPIC has generated $43 
     billion in U.S. exports to 140 countries, creating 200,000 
     U.S. jobs.
       Significantly, OPIC is financially self-sustaining. Years 
     ago it reimbursed the U.S. Treasury for its initial 
     capitalization. Through its own operations it has built up 
     $2.3 billion in reserves (on deposit at the U.S Treasury) to 
     cover its contingent liabilities.
       Each year, OPIC's income from insurance premiums and 
     financing fees covers all its operating costs and any losses, 
     as well as generating funds for the U.S. government. Last 
     year, OPIC generated a net $122 million surplus for the U.S. 
     Treasury.
       Testimony from the exporting community was that OPIC's 
     insurance and financing programs are essential to U.S. 
     companies which are seeking to expand into newly emerging 
     markets in Asia, Eastern and Central Europe, Latin America 
     and the Middle East. Private sector risk insurance and 
     financing is largely unavailable for these emerging markets.
       The bill reflects recommendations by both the exporting 
     community and the Administration that OPIC continue to expand 
     its level of assistance to U.S. companies. The bill provides 
     that OPIC's programs would gradually rise over the next 4 
     years.
       The bill also corrects a longstanding statutory defect by 
     specifying that OPIC shall operate under U.S. trade policy as 
     well as U.S. foreign policy. In line with this correction, 
     the bill also would remove the statutory requirement that the 
     AID Administrator is Chairman of the OPIC Board.


                   trade and development agency [tda]

       The Trade and Development Agency began operations in 1981. 
     It is an independent agency under the direction of the 
     President that funds engineering and feasibility studies for 
     large capital projects overseas, principally in the energy, 
     transportation, communications, environmental, and 
     industrial sectors.
       Over time, TDA has proved that by supporting the initial 
     design studies, the U.S. effectively influences the follow-on 
     procurement decisions toward U.S. companies. As a result, TDA 
     estimates that U.S. companies have obtained $29 in new 
     overseas contracts for every dollar invested in TDA 
     activities since 1981. In FY 1995, TDA funded 430 activities 
     in 72 middle-income and developing nations.
       Under the bill, TDA's authority would be extended for two 
     years, specifying that the FY 1997 level would be $40 
     million, the Administration request.


           international trade administration export programs

       The International Trade Administration's budget for export 
     promotion has been holding steady at just under $240 million. 
     This primarily covers the work of the U.S. and Foreign 
     Commercial Service. The Commercial Service, with a staff of 
     under 1,300 worldwide, states that according to its clients 
     it facilitated an estimated $5.4 billion in 1995 export 
     sales, producing 92,000 new U.S. jobs.
       Other programs include the Trade Development office, the 
     International Economic Policy office, and the Secretary's 
     stewardship of the Trade Promotion Coordinating Committee 
     (TPCC). The TPCC, which was created in statute by our 
     committee, has helped bring greater coordination and 
     effectiveness to export promotion.
       The bill proposes to reauthorize these activities at the 
     current $240 million level for FY 1997 and ``such sums as are 
     necessary'' for FY 1998. As recommended in our hearings, the 
     bill would add a new provision to the TPCC's strategic plan 
     that emphasizes the importance of improving these programs 
     for small business.

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