[Congressional Record Volume 144, Number 25 (Wednesday, March 11, 1998)]
[House]
[Pages H1040-H1084]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
AFRICAN GROWTH AND OPPORTUNITY ACT
The Committee resumed its sitting.
Mr. ROYCE. Mr. Chairman, I yield 3 minutes to the gentleman from
Illinois (Mr. Manzullo).
Mr. MANZULLO. Mr. Chairman, Africa is a continent on the move and it
is time we recognized that fact. We have neglected the people of Africa
and ceded many export opportunities to their former European colonial
powers.
This legislation will for the first time focus the attention of the
U.S. Government on a comprehensive trade strategy towards Africa. This
legislation reinforces the positive developments taking place in that
continent. Since 1990, more than 25 African countries have held
democratic elections and more than 30 countries have embarked on free-
market economic reforms.
Let me give my colleagues a taste of what can happen. Last year I
held a hearing before the Subcommittee on Small Business Exports, which
I chair, on the subject of the Overseas Private Investment Corporation,
OPIC. A wonderful lady born in Africa and now residing in
Massachusetts, Monique Maddy, testified how her small
telecommunications firm was able to contribute both to economic
development in Africa and increased U.S. exports to Africa.
She won a deal, thanks to a political risk insurance package from
OPIC, to build wireless public telephones which operate on debit cards
instead of coins for Tanzania. This contract resulted in the export of
$4.5 million worth of goods and services from 8 supplier companies in 7
States: Texas, New Jersey, Washington, Georgia, Missouri, and North
Carolina. In addition, 60 jobs were created in Tanzania.
Because the Africa Communications Group did so well with the Tanzania
sale, Ms. Maddy subsequently won a larger sale to Ghana with OPIC's
help. This will result in the export of approximately $65 million worth
of goods and services from the United States and create 500 jobs in
Ghana. Without OPIC, most likely these deals would have gone to our
European competitors.
My home State of Illinois is another example of the phenomenal growth
of exports to Africa. South Africa alone is Illinois's 20th largest
export destination, totaling $389 million for 1996. The leading exports
to South Africa are industries where Illinois excells: chemical, earth-
moving equipment, agricultural machinery, and aviation parts.
From the Chicago-land area, exports to South Africa grew 148 percent
between 1993 and 1996, starting at $74 million and increasing to $184
million. In Rockford, Illinois, exports to South Africa grew 29
percent, jumping from $2 million in 1994 to $2.6 million in 1995, the
latest date for which we have export statistics.
South Africa is the locomotive that drives much of Sub-Saharan
Africa, and it is critically important we help this big emerging market
on the path of democratic and free-market reform.
Mr. MENENDEZ. Mr. Chairman, I yield 1 minute to the distinguished
gentleman from California (Mr. Berman).
(Mr. BERMAN asked and was given permission to revise and extend his
remarks.)
{time} 1245
Mr. BERMAN. Mr. Chairman, I thank the gentleman for yielding me the
time.
Mr. Chairman, I join the gentleman in support of H.R. 1432, the
African Growth and Opportunity Act. This bill will help sub-Saharan
countries build economic self-sufficiency and reduce their isolation in
an increasingly interdependent world. The bill supports U.S. aid
programs that are vital in the near term, but focus on sustainable
development as the only way to substantially boost living standards in
some of the world's poorest countries. It promotes trade, foreign
investment, debt relief, and private enterprise, including businesses
run by women.
At the same time, the bill requires that beneficiary countries have
or must be moving towards market-based economies. It requires they be
committed to accountable government, the eradication of poverty,
observance of human rights: these criteria offer the best chance for
prosperity and stability in the region.
The debate today will go into great details on many of the
provisions. There will be some amendments which make the bill even
better, and others which will be designed to fundamentally gut the key
provisions of this bill, but I urge support for the bill and opposition
to those amendments, in the context of trying to help H.R. 1432.
Mr. Chairman, opponents of H.R. 1432 say that the United States
should not help Sub-Saharan Africa by dropping quotas and tariffs on
textiles and apparel, even though these are the goods countries in the
region can most readily produce. Opponents argue that reducing trade
barriers will make U.S. imports of such goods soar, threatening U.S.
textile and apparel manufacturers and workers. They vastly overstate
the case.
To address this concern, the Committee on Ways and Means asked the
International Trade Commission to assess potential textile and apparel
imports from Sub-Saharan Africa under the terms of the bill. The ITC
estimated
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that even with duty- and quota-free treatment, textile and apparel
imports from the region will not exceed three percent of total U.S.
imports of such goods over the next 10 years. Sub-Saharan African
imports currently account for less than one percent of total U.S.
textile and apparel imports. Such modest growth, while important to
Africa, clearly would pose no threat to U.S. manufacturers or workers.
The bill provides for a review of the no-tariff, no-quota policy by
requiring the President to report annually to Congress on the growth of
textile and apparel imports from Sub-Saharan Africa. Even if imports
unexpectedly rise dramatically, we can revise the policy before U.S.
textile interests suffer substantial harm.
Opponents also warn that the no-tariff, no-quota policy will spark a
massive increase in illegal transshipments of goods from Asia. While
illegal transshipment is always a concern, they again overstate the
case.
The bill contains strong provisions to prevent illegal transshipment.
Sub-Saharan African countries will enjoy duty- and quota-free treatment
only after they demonstrate that they have effective visa systems in
place to guard against transshipments and counterfeit documents. The
bill directs the U.S. Customs Service to monitor and report annually to
Congress on the operation of those systems.
It also penalizes those who circumvent the visa systems. Exporters
who illegaly transship goods will lose duty-free benefits for two
years.
H.R. 1432 is a welcome change in U.S. policy that views Sub-Saharan
countries as potential partners and not simply aid recipients. Africa's
economic progress ultimately will depend on the policies that states in
the region adopt. This bill guides them in the right direction. I
strongly support H.R. 1432, and I urge my colleagues to do the same.
Mr. MENENDEZ. Mr. Chairman, I yield 2 minutes to the gentleman from
Maryland (Mr. Cummings).
Mr. CUMMINGS. Mr. Chairman, I rise in support of H.R. 1432, the
African Growth and Opportunity Act. As our Nation enjoys a booming
economy, lower unemployment and lower inflation, many countries in sub-
Saharan Africa cannot afford medicine to treat their own children or
buy nourishing food to satisfy their hunger.
Today, by voting for this bill, the United States Congress and
America will give sub-Sahara Africa a chance to prosper. This bill is
not perfect. However, I believe it is a positive start to increasing
investment in sub-Sahara Africa.
Mr. Chairman, when I visited the countries of Ghana and Zambia in
December, I saw firsthand the existing economic crisis. Infrastructure
is extremely limited, health care facilities cannot keep up with the
cases of chronic illnesses. In Zambia, we have 3.5 million children
with no free public education. In Zambia, nearly 650,000 children are
orphaned because their parents have died from AIDS. It is because of
increased commerce and economic opportunity that sub-Saharan countries
can begin to address these concerns.
In 1996, U.S. imports from the 48 countries in sub-Saharan Africa
totaled $15.2 billion. However, U.S. trade with the Nation of Japan
alone totaled just above $200 billion. We see the inequity and we see
the devastation of the absence of economic opportunity.
Mr. Chairman, I urge every Member of this Congress to support this
legislation.
Mr. ROYCE. Mr. Chairman, I yield 2 minutes to the gentleman from
Pennsylvania (Mr. Fox).
Mr. FOX of Pennsylvania. I thank the gentleman for yielding me the
time, Mr. Chairman.
Mr. Chairman, I rise in support of the African Growth and Opportunity
Act, H.R. 1432. This legislation embodies our philosophy that the
United States, as the world's largest and most technologically advanced
economy, can and should do more to contribute to Africa's economic
development.
This bill could provide a positive framework for the competitive U.S.
private sector, in concert with the ingenuity of the sub-Sahara Africa
private sector, to help stimulate growth in Africa while increasing
economic opportunities and jobs here at home. It encourages closer
economic cooperation with the region and supports debt reduction for
the poorest countries in Africa. It recognizes that U.S. trade, aid,
and investment are all important pillars of the U.S. post-Cold War
policy with Africa.
It will enhance market access for African goods and services and
promote multilateral debt relief for the poorest African countries. The
bill will increase U.S.-Africa economic cooperation, and will help pave
the way for the President in his trip to those countries in the latter
part of this month. Most importantly, Mr. Chairman, this bill will
continue the role of the United States as the catalyst for democracy
and the engineer of economic growth around the world.
Mr. MENENDEZ. Mr. Chairman, I yield 5 minutes to the distinguished
gentleman from New Jersey (Mr. Payne), a member of the subcommittee who
has traveled quite extensively in Africa, and spent a lot of time and
effort in his dedication to the continent and to bringing all of our
countries together.
Mr. PAYNE. Mr. Chairman, I rise in support of H.R. 1432, the African
Growth and Opportunity Act. I join the rest of my colleagues who are
original cosponsors of this bill. We have been talking about this issue
for some time now. I am finally pleased that this initiative is
happening. The Subcommittee on Africa, of which I am a member, proudly
marked up this legislation last year.
I would like to thank the gentleman from Illinois (Mr. Crane), the
gentleman from New York (Mr. Rangel), the gentleman from Washington
(Mr. McDermott) and the gentleman from Louisiana (Mr. Jefferson) of the
Committee on Ways and Means, who worked so hard with their vision to
bring this particular bill to the floor.
I would also like to commend my chairman of the Subcommittee on
Africa, the gentleman from California (Mr. Royce), and the ranking
member, who we have heard from also, the gentleman from New Jersey (Mr.
Menendez) for the time, effort, and energy they have spent in trying to
perfect this bill. It is still not a perfect bill, but it would not be
in the shape that it is in now had it not been for the work of the
gentleman from California (Mr. Royce) and the gentleman from New Jersey
(Mr. Menendez) and the other Members that I mentioned.
This is a historic and exciting occasion. Today I stand before you to
say that the Africa trade bill will improve the lives of many African-
Americans on the continent. Imagine, as we approach the new millennium,
a new partnership has been forged, a partnership that is not based on
dependency on aid. People want to earn their way. They want to earn
their keep.
This is an opportunity for people to show that it is trade, not aid.
If we give a person a fish, they eat for a day. If we teach a person to
fish, they eat for a lifetime. This bill will finally bring Africa into
the new millennium.
I must also applaud the Africa diplomatic corps for their constant
and unwavering faith that they would one day be active participants in
the global economy. They are very supportive of this bill.
What would this bill do? It would enhance market access for African
goods and services; it would promote multilateral debt relief for the
poorest of the poor; it would open free markets which otherwise would
be closed to Africa. It directs OPEC to create a $150 million equity
fund and a $500 million infrastructure fund to begin this year. It will
increase authority and flexibility to provide assistance under the
Development Fund for Africa.
This bill will also establish a U.S. economic forum to facilitate
annual high-level discussions of bilateral and multilateral trade and
investment. Also, for the first time in over 20 years, a U.S. President
will travel to Africa, and President Clinton will be armed with this
legislation to talk about his partnership for growth and opportunity in
Africa. I commend the President for his trip, going to Africa.
Let me just say that I become disturbed when people say there is no
national interest in Africa. We had an interest during the Cold War
where we propped up illegal governments, like the Mobutu regime and
some of the activities in Angola and other places, Mozambique and
around the continent.
Finally, we are able to say, let us forget the Cold War. That time
has past. Let us look to the sub-Sahara African countries, and let us
have a bill that recognizes that U.S. trade, aid, and investment are
all important policy goals.
Mr. Chairman, a foreign trade policy that ignores some 32 Sub-Saharan
African nations is a distorted policy. This bill recognizes that
[[Page H1042]]
U.S. trade, aid and investment are all important foreign policy goals.
32 countries have joined the new World Trade Organization, and we are
helping them to share its benefits and to meet its requirements.
In conclusion, liberalization will not be beneficial without a
transformation in the thoughts and attitudes toward Africa. It must no
longer be thought of as a region devoid of hope, but a region which the
hope of civil society, popular struggle can be fostered to bring Africa
to the ``center.''
I support this bill and urge my colleagues on both sides of the aisle
to do the same.
Mr. JACKSON of Illinois. Mr. Chairman, will the gentleman yield?
Mr. PAYNE. I yield to the gentleman from Illinois.
Mr. JACKSON of Illinois. Mr. Chairman, I thank the gentleman for
yielding.
I would ask the gentleman, is he aware in the bill of any African
countries losing foreign aid they are now receiving unless they adopt
the economic reforms dictated in this bill?
Mr. PAYNE. Mr. Chairman, I am glad the gentleman brought that
question up. This bill is separate from aid. The Development Fund for
Africa was an earmarked area that this year is funded for about $700
billion, and $30 million has been allocated or recommended by the
administration to go into the aid. Therefore, the answer is, no. This
is a separate entity, and it will not take aid from any country that
does not conform to the bill.
Secondly, I might say that a country that does not comply with
governance and human rights, with transparency and basic human rights,
will not be invited to be in the rounds, just as NATO expansion has
been done.
Mr. JACKSON of Illinois. Mr. Chairman, if the gentleman will continue
to yield, is the gentleman aware of any African countries being forced
to cut corporate taxes, privatize, and shrink their government
services, or grant expanded rights to foreign investors under the bill?
Mr. PAYNE. To my knowledge, I know of none. If the gentleman knows of
any information that I am not privy to, I would certainly appreciate
it, but to my knowledge it does not negatively impact on what is going
on in those countries. There will be IMF requirements which already are
in in many countries. What we are talking about is a new trade and
investment opportunity for the various countries.
Mr. JACKSON of Illinois. I thank the gentleman.
Mr. ROYCE. Mr. Chairman, I yield 2 minutes to my colleague, the
gentleman from Ohio (Mr. Chabot), on the Subcommittee on Africa.
Mr. CHABOT. Mr. Chairman, I thank the gentleman for yielding me the
time.
Mr. Chairman, I rise in strong support of H.R. 1342, the African
Growth and Opportunity Act. As the gentleman from New York (Chairman
Gilman) and the gentleman from California (Chairman Royce) have pointed
out, this legislation creates a transition path from developmental
assistance to economic self-reliance for those countries in sub-Saharan
Africa committed to economic and political reform, market incentives,
and private sector growth.
Mr. Chairman, while we have seen much turmoil and tragedy in Africa
in recent years, we have also witnessed a number of positive
developments on the continent. Since 1990, for example, more than 25
African countries have held democratic elections. More than 30 nations
have taken steps to institute market-oriented economic reforms. Many of
us who have worked regularly on African issues are hopeful and
confident that those numbers will continue to increase.
I have talked with a number of African leaders, having had the
opportunity to travel to Africa recently on a CODEL headed by the
distinguished gentleman from Arizona (Mr. Kolbe), and many of the
leaders who would greatly like to move away from dependency on foreign
assistance and move towards economic self-reliance. The adoption of the
African Growth and Opportunity Act will help to move that process
forward.
On an editorial which appeared this morning in the Washington Times,
after being generally supportive, they stated, ``The problems faced by
Africa are not going to be solved by a single piece of U.S.
legislation. But too often, our Africa policy has been an ad hoc
response to crises. If Congress passes this bill, there is a chance to
get the policy on a firm footing at last.'' I agree with the Washington
Times editorial this morning.
I want to thank particularly the gentleman from California (Mr.
Royce), the distinguished chairman of the Subcommittee on Africa, and
also the gentleman from New York (Mr. Gilman), the distinguished
chairman of the Committee on International Relations itself, for
crafting this legislation and bringing this bill forward. It is a
balanced bill and it makes a lot of sense. I strongly encourage my
colleagues to support this bill.
Mr. MENENDEZ. Mr. Chairman, I yield 2 minutes to the distinguished
gentleman from New York (Mr. Rangel), the ranking Democrat on the
committee and a strong proponent of the bill.
Mr. RANGEL. Mr. Chairman, I have never felt more proud as an
American, but more so in being a Member of this Congress during this
historic time, where we have dealt with the problems in Europe, we have
dealt with the problems of Asia and Central and South America, and now
this beautiful, rich continent that tries so desperately hard to
struggle out of poverty has now started moving towards a fair market
economy, democracy, and all of the things that we said were necessary
in order to be trading partners with the United States.
Now that she has done those things, and we see the progress that has
been made in the sub-Saharan countries, I think that we are just about
to give her a chance to prove that she can compete with the best of the
countries, given the opportunity.
For those who fear transshipment, there have been laws put right into
the bill to increase the penalty for those who are guilty, but the
people who do not want transshipment are the African people, because
they want their people to work and improve the quality of life.
But look at it as Americans. Once we develop this market, once we
give disposable income for people in Africa, and once they start
rebuilding their economies and the infrastructure, who will be
providing the technology, the services, and the jobs? With our help, we
will be able to beat out the colonial powers and America, once again,
will be first, and our friends will be our friends in Africa.
{time} 1300
I hope that Members are able to support the bill, because I think,
throughout the world, we will be able to see that we were not there as
fast as we should have been in apartheid; but once we got there,
America has demonstrated to the world, including our friends in Africa,
that we will be fair, we will be equitable, and we will make certain
that they will be able to play in this market as a free economy.
Mr. MENENDEZ. Mr. Chairman, I yield 6 minutes and 30 seconds to the
distinguished gentlewoman from Texas (Ms. Jackson-Lee), whom I traveled
with to Africa.
Ms. JACKSON-LEE of Texas. Mr. Chairman, I thank the gentleman from
New Jersey for yielding me this time.
I thank the gentleman from Illinois (Mr. Crane) and the gentleman
from New York (Mr. Rangel). And the gentleman from California (Mr.
Royce), we have spent some time together in Africa. I thank him for his
leadership.
This past Sunday, a group of us, Members of the United States
Congress, traveled to Selma, Alabama, to reenact the march in 1965 of
those brave souls who walked across the Edmond Pettus Bridge in Selma,
Alabama.
There was a great deal of trepidation and wonderment as to whether or
not this approach was right. The reason they were doing it was because
there were people in the United States who were disenfranchised from
their rights under the Constitution of the United States of America.
The gentleman from Georgia (Mr. Lewis), my colleague, was in the
forefront. And as they proceeded over the bridge, they saw danger
ahead. But rather than retreat, they went forward in order to create
more opportunity for African Americans, people of color, women in the
United States political process. They literally unshackled the very
destructive laws by being the true result, or the true basis upon which
the Voting Rights Act of 1965 was passed.
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Albeit some may argue and say we are not on the precipice of a Civil
Rights Act today, I still take the words of Dr. Martin Luther King and
say, If not now, then when; for, for the first time in the history of
this Nation, I do believe we have elevated the discussion of the
continent of Africa, sub-Saharan Africa, 48 countries, to a level of
equality and equal partnership in business.
So I would simply like to say that we are on a journey. Danger is
ahead. There are many concerns that my good friends have. I am
concerned about work safety conditions, the environment. I have,
particularly in the last mission that I was honored to be on, the
presidential mission headed by the gentleman from New York (Mr.
Rangel), particularly focused and asked to lead out on the question of
HIV infection in sub-Saharan Africa. I take that as a special
commitment, the ravaging of HIV and AIDs. This bill does not
necessarily address it, but it opens the doors of opportunity so that
the pharmaceutical industry in this country can itself be involved in
trade to provide the much-needed medicine for that devastating disease.
That is important to me.
My support of this bill does not in any way cause me to stand aside
from my longstanding commitment to safety in the workplace, working
conditions respective or responsive to the workers who will work there.
Likewise, this bill emphasizes something very near and dear to me, and
that is that the continent and sub-Saharan Africa must accord the human
rights and dignity that is befitting of an international arena and
trade.
I am sorry to say that we have not done that for China in our most-
favored-nation debate we debate constantly. But here in this
legislation there is a direct provision for making sure that the
African countries who will participate adhere to the dignity and the
responsibility of human rights. This is key.
In addition, this bill has a provision for my friends from the
agricultural belt. In the agricultural belt, $15 million is remaining
that allows our agricultural expertise to interact with Africa to
develop products and expertise and to open up that market of 800
million citizens who want to be included.
Lastly, let me say that this question of dumping is extremely
important. It bothers me, coming through Africa and relabeling it.
Diplomats and presidents alike, when spoken to directly, have said, we
will enforce our customs laws. We will be the kind of watchdog that
refuses to allow Africa and this trade bill to be abused. Can we not
give them respect as heads of state? Would we not ask this of China
when we vote year after year for most favored nation? Why should not
the continent have the same dignity and respect?
We did not enslave Africans, those colonies, colonization; European
colonizers did. Why can we not have the same opportunity now to come
back and say, we do not have the baggage of Europe. We are ready to do
trade and to develop economic opportunities. Do we not realize how
important it is to make this continent, this relationship, to put
ourselves in front of the colonizers of Europe?
Lastly, let me say for inner-city America, for African Americans, for
those who think their jobs will be taken, quite the contrary. Many of
those in my district, the 18th congressional district, have said, I can
work with this bill, small- and medium-size businesses, which are the
backbone of America, creating jobs for people in the inner city because
the trade barriers and tariffs are down for the little person to be
able to be up.
Mr. JACKSON of Illinois. Mr. Chairman, will the gentlewoman yield?
Ms. JACKSON-LEE of Texas. I yield to the gentleman from Illinois.
Mr. JACKSON of Illinois. Mr. Speaker, two questions for the
gentlewoman.
I am wondering, does the bill require American businesses to invest
in the education and training of Africans and to hire and value African
employees? And what knowledge, if any, does the gentlewoman have about
multinational corporations here in America who stand to benefit from
the bill, as to whether or not they have been supportive of affirmative
action at home, so that African Americans can also be the beneficiaries
of such a trade policy?
Ms. JACKSON-LEE of Texas. Mr. Chairman, let me say, two very good
questions. This bill gives us the opportunity with that kind of
leverage and, yes, this bill opens the doors for small and minority
businesses to be engaged. In fact, as we went through Africa with the
African presidents, they pointedly said, we want a joint venture, and
there is $150 million in this bill just for joint ventures.
And as well on the multinationals, what kind of leverage will we have
on the multinationals with 800 million black people in Africa saying,
you will not do business with us if you do not support affirmative
action. What kind of business will they get? None.
Support this bill.
Mr. ROYCE. Mr. Chairman, I yield 2 minutes to the gentleman from
Arizona (Mr. Kolbe).
Mr. KOLBE. Mr. Chairman, I thank the gentleman for yielding. I want
to congratulate the gentleman from California (Mr. Royce) and thank him
for the leadership he has given the body, bringing to our attention the
issues surrounding Africa, and for making it a high-profile issue for
all of us.
Mr. Chairman, I rise in strong support of this bipartisan
legislation. It is heartening for me to see many of my colleagues who
oppose granting fast track negotiating authority to the President stand
here today and declare their support for expanding trade with sub-
Saharan Africa.
As my friend, the gentleman from Ohio (Mr. Chabot) said, last August
I had an opportunity to lead an eight-member bipartisan delegation to
Africa to view firsthand many of the issues that surround our relations
with this important region. During my short time there, I was very
impressed with the spirit, the ingenuity and the initiative of the
African people. My visit left me with little doubt that the Africa we
see today is vastly different than the Africa of yesterday. It is truly
remarkable that a continent once racked by the insidious evils of
apartheid, civil strife, dependence and economic stagnation is today in
the dawn of a new renaissance. The engineers of this renaissance are
not the Americans, nor the Europeans, who colonized the continent, nor
the Japanese or the Chinese or the Asians who followed them. The
engineers of this renaissance are the Africans themselves.
Today there is a new generation of leadership in sub-Saharan Africa,
leadership dedicated not to the failed status development models of the
past, but to market-based reforms and private sector growth.
This new generation does not ask America for help, but for hope. They
do not ask America for food, but for the tools to make their own crops
grow. They do not ask America for schools or hospitals or dams, but for
capital incentives to build their own. That is precisely what this bill
would do.
H.R. 1432 extends and expands the generalized system of preferences
program for sub-Saharan Africa. It provides duty-free access to U.S.
markets for eligible items, thereby creating incentives for private
capital investment. The bill establishes for the first time a U.S.-
Africa Trade and Economic Cooperation Forum to facilitate annual high-
level meetings to discuss trade and economic issues.
Mr. Chairman, through their actions, the African people have asked us
to hear their call for hope, opportunity and self-sufficiency and
sustainable economic growth. We should give them that. We should
support H.R. 1432.
Mr. MENENDEZ. Mr. Chairman, I yield 1 minute to the gentleman from
Illinois (Mr. Jackson).
Mr. JACKSON of Illinois. Mr. Chairman, this debate is in serious need
of a historical perspective. The earliest trade policy of the United
States, even before the Declaration of Independence, in 1619, involved
African kings and potentates selling other common Africans to shipping
companies owned by whites to be sold as exploited slaves and slave
masters in the new territory.
I have been to West Africa. I have seen the infrastructure of West
African participation in the transatlantic slave trade. I have been to
Jamestown and Charleston and seen the historic sites of events which
precipitated the Civil War, the bloodiest war in American history. The
agricultural, shipping and plantation companies and communities served
primarily as the infrastructure for American complicity in this trade
policy.
The question before this Congress today of who benefited then and who
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benefits now is really the gravamen of this debate. As we seek to
establish a new trading paradigm between African nations and America,
it is critically important that the new trading arrangement create a
mutually beneficial partnership between black people in Africa and
African Americans in the United States, which I believe will benefit
all Americans.
It is the only way that historical boats stuck at the bottom will
become participants in a new trading relationship.
Mr. MENENDEZ. Mr. Chairman, could the Chair advise what time remains
on both sides?
The CHAIRMAN. The gentleman from New Jersey (Mr. Menendez) has 5
minutes remaining, and the gentleman from California (Mr. Royce) has
6\1/2\ minutes remaining.
Mr. ROYCE. Mr. Chairman, I yield 1 minute to the gentleman from
California (Mr. Campbell), who also serves on the Subcommittee on
Africa.
Mr. CAMPBELL. Mr. Chairman, I thank the gentleman for his leadership
in bringing this bill to the floor. I am strongly in favor of this
resolution. I emphasize the importance of allowing free market
economics to provide the means of economic development and freedom for
the people of Africa.
One of the most striking things that I have studied over the last
couple of years (and I want to particularly single out the good
friendship and support of my colleague, the gentleman from New Jersey
(Mr. Payne), who sits across from me today in doing so) is that the
horrors that have occasionally surfaced, such as in Rwanda, such as in
Burundi, are in countries that are internally focused, that do not have
large links of trade with the world, that are not largely export-
oriented, that are at best self-sufficient in a good year. The key to
diminishing the likelihood of such occurrences is to give Africa the
opportunity to be looking to the world, and not just internally where
the strife has arisen.
I wish to emphasize a second point also--that those of our colleagues
who mistrust American aid to African governments sometimes are right,
and sometimes they are wrong, but they ought to be supportive of this
bill in that it does not give money to a government. It rather empowers
the individual to build his or her own economic future.
Mr. Chairman, I strongly support this bill and urge all of my
colleagues to do so.
Mr. ROYCE. Mr. Chairman, I yield 2 minutes to the gentleman from
Indiana (Mr. Burton).
Mr. BURTON of Indiana. Mr. Chairman, I thank the gentleman for
yielding me the time.
I am in favor of free trade around the world and free trade with
Africa, I think, is extremely important. But there are provisions in
this law that really concern me. For instance, only 35 percent of the
product that is produced has to be completed or made in Africa. That
means 65 percent of it can be transshipped from another country.
Right now, Communist China, one of the worst violators of human
rights in the world, is violating people's human rights with impunity.
We have not done anything in this body, and many of our friends, other
countries around the world, have done virtually nothing to put pressure
on the Chinese Government to bring about changes in their human rights
activities.
{time} 1315
Just last week two people were arrested in New York from China who
were selling body parts, if my colleagues can believe that. They sell
retinas for $5,000 a pair; they will sell a kidney for $10,000 or
$20,000. What they do is go to these concentration camps, these gulags,
and they shoot these people and then take orders for their livers or
kidneys and hearts and sell them in the United States and around the
world.
This country, China, is going to transship through Africa billions of
dollars of products because of the provision in this law that allows 65
percent of the product to be manufactured outside of Africa and then
the remaining 35 percent can be completed in Africa and then sold to
the United States or wherever. We are already buying billions of
dollars in products from China today.
I can remember when Wal-Mart said only buy American. They had ``Buy
America'' advertisements all over the place. If we go into Wal-Mart
today, probably 75 percent of the products we see are made in China by
slave labor, by women and children, people whose human rights are being
violated. And now we are going to expand their ability to garner a
large part of the world market by saying that two-thirds of the product
that is made in Africa can be made in China and transshipped through
Africa to the United States and elsewhere.
We need to be concerned about human rights throughout the world, and
that provision in this law does concern me. We should have a different
percentage in the bill.
Mr. MENENDEZ. Mr. Chairman, I yield 1 minute to the gentleman from
New Jersey (Mr. Payne).
Mr. PAYNE. Mr. Chairman, I thank the gentleman for yielding me this
time.
For many years we have tried to dictate policies for other countries
and tell them what they ought to do. We have had a year-long meeting
with the African diplomatic corps, and many of them are offended by the
statements that we hear that we are going to transship through them.
They say they have been dealing with other countries before.
There is the ECOWAS community of 16 West African countries; we have
SADC, made up of the 12 southern; we have the east and southern
countries. And the African diplomatic corps indicate that they want
this bill to come through. They think it is best for them.
It is racism when we try to apply our views on other people, whether
they are countries in Africa or whether they are minorities in this
country. And if African diplomats and African presidents feel that this
bill is at least a step up in the right direction, then who are we to
tell them that it is wrong for them?
Mr. MENENDEZ. Mr. Chairman, I yield myself the balance of my time,
and would like to say to the gentleman from California, the chairman,
that I have enjoyed very much working with him as the ranking Democrat
on the subcommittee and thank him for all his courtesies during the
process of this markup.
Mr. Chairman, a stronger, stable, prosperous Africa will be a better
partner for security and peace in the fight against drug trafficking,
international crime, terrorism, the spread of disease and environmental
degradation.
The philosophy of this bill is simple: America stands ready to help
those African countries that help themselves. The bill gives greater
trade benefits to those countries that undertake sustained reform.
Those efforts should include, for example, eliminating trade barriers,
improving fiscal policies, promoting private sector development,
fostering good governance, fighting corruption, and investment and
social development. And countries engaging in gross violations of human
rights would not be eligible.
Increased trade and investment would be good for Africa and good for
American workers. Africa constitutes a market of over 660 million
people, potentially one of the largest markets in the world. More
people than Japan and all of the Asian nations combined. If reform
spurs growth, it will create new and bigger markets for U.S. exports.
Our exports to Africa already are intensive in high-wage industries
such as machinery, transportation equipment, electronics and services.
Exports to Africa are already much greater, 27 percent greater than our
exports to all the former Soviet Union combined.
Mr. Chairman, this bill can also bolster nascent African democracies,
which can decrease the need for U.S. military, humanitarian and
disaster relief. Let us consider the example of Mozambique.
After 16 years of civil war, democratic elections were held in
Mozambique in 1994 and economic stability has been restored. Inflation
has been reduced from a high of 70 percent to approximately 5 percent
in just 3 years. Over 780 State-owned industries have been privatized,
some purchased by U.S. companies. The economic recovery has helped
provide jobs for demobilized fighters and made it possible for the
government to boost investment in education and health, the building
blocks for the future of that nation.
[[Page H1045]]
Mozambique's dramatic turnaround underscores what investment and
trade can do, how they can help economies, governments and people
recover from the trauma of war and build successful, stable, democratic
societies. Increased trade and investment complements continuing
assistance, and we cannot afford to let Africa fail. We must seize upon
the opportunity to help Africa help itself.
We have policy interests that are clear and compelling. Let us not
lose, let us not lose this historic opportunity to make a difference in
the annals of history. Let us not lose this opportunity now at the turn
of the century. It is time for a new paradigm as it relates to Africa,
and we should be taking advantage of that opportunity by the adoption
of this legislation.
Mr. Chairman, I yield back the balance of my time.
Mr. ROYCE. Mr. Chairman, I yield myself the balance of my time, and I
want to commend the gentleman from New Jersey (Mr. Menendez), who I
have enjoyed working with on shaping this bill and on other legislation
that has come before our committee.
Let me respond quickly to some of the discussions on the criteria in
the bill. The criteria call for such participation requirements as
protection of property rights, reduction of high import taxes,
elimination of corruption, observance of the rule of law. These and
other criteria are minimal reasonable standards for nations doing
business with one another.
The criteria in this bill represent international standards. They are
not U.S.-imposed standards that are unworkable in the African context.
Ugandan Ambassador Edith Ssempala has said they are necessary to
encourage African nations to address issues they might choose to ignore
otherwise.
Human rights, the importation, the development of a court system, the
rule of law, these are important policies. And, frankly, these are
policies, these are criteria that have brought economic progress
worldwide, and they are supported by the African ambassadors. They have
embraced this bill.
As chairman of the Africa subcommittee, I have had the chance to
speak with many Africans, both at home and in their own countries,
about this bill. I will be traveling with President Clinton and a few
of my House colleagues in 2 weeks. For my colleagues, I cannot
overestimate this bill's importance to Africa. It is so well received
because Africans desperately want to be part of the world economy and
they realize that a special economic relationship with the United
States, not a perpetual aid relationship, is a big step in that
direction.
Now, this body should not pass this bill because of that alone. It
should pass this bill because it helps Americans. We have heard of the
growing American business interests in Africa, brought about by the
reforms this bill encourages. We have heard about why a prosperous
Africa matters to the United States.
Africans can reach their limitless potential, or Africa's many social
and environmental problems, problems that increasingly impact
Americans, can overwhelm the continent. So the stakes are high, but I
believe the future of many African countries is bright. This bill will
help make it brighter, and I urge my colleagues to support this
landmark piece of legislation.
Mr. Chairman, I yield back the balance of my time.
Mr. CRANE. Mr. Chairman, I yield myself such time as I may consume,
and I rise in support of H.R. 1432, the African Growth and Opportunity
Act, which represents the culmination of 3 years of bipartisan work to
develop a trade and investment policy toward the 48 countries in sub-
Saharan Africa. I am pleased that the bill will take this important
step forward today.
I believe that this legislation comes at a time of great hope and
opportunity for sub-Saharan Africa. In recent years the region has
undergone a quiet but persistent evolution toward democratic
transformation as well as free market reforms. Indeed, 25 of the 48
countries in sub-Saharan Africa have held democratic elections and 30
have embarked on significant economic reforms, including tightening
their fiscal discipline, the privatization of state enterprises, and
the liberalization of trade and investment regimes.
Due in no small part to these reform efforts, African economic growth
is picking up, and U.S.-Africa trade has grown at nearly 20 percent a
year for the past 2 years. Perhaps nothing describes the changes
underway better than an African diplomat's statement at the Committee
on Ways and Means markup of this bill that ``Africa is open for
business.''
In recognition of the progress sub-Saharan Africa has made, H.R. 1432
moves our African policy away from its historical focus on aid towards
a focus on trade. In particular, the bill promotes mutually beneficial
trade relationships and partnerships with those countries in the region
committed to economic and political reform.
First, to facilitate trade and investment policy discussions, the
bill creates a U.S.-Africa Trade and Economic Cooperation Forum similar
to the successful APEC model in the Asia-Pacific region.
Second, to provide enhanced export opportunities for nonimport-
sensitive products from Africa, the bill provides a 10-year extension
of the Generalized System of Preferences program for sub-Saharan
African countries committed to economic and political reform.
Third, to promote trade liberalization in the region, the bill
requires the President to formulate a plan to enter into free trade
agreements with countries meeting the bill's economic criteria.
And just as a side comment, I would like to reassure colleagues
present, because this issue has arisen already, that the bill in no
way, in no way cuts back or eliminates the aid programs that are
currently in place.
While this legislation offers many important benefits for sub-Saharan
Africa, the bill also furthers important policy goals of the United
States. Clearly, it is in our interest to support the democratic and
free market trends in Africa, because a stronger, more stable and
prosperous Africa will be a greater and better partner for security and
peace in the region and a better ally in our mutual fight against
narcotics trafficking, international crime, terrorism, the spread of
disease and environmental degradation.
At the same time, a strong and stable sub-Saharan Africa constitutes
a combined market of nearly 700 million people, more than Japan and all
of the ASEAN nations combined. Already U.S. exports to sub-Saharan
Africa are 27 percent greater than our exports to all of the former
Soviet Union, and yet our exports, which were valued at $6.2 billion in
1997, have just begun to tap into the rapidly growing markets in the
region. At present, our exports are intensive in high-wage industries,
such as machinery, transportation equipment, electronics and services.
{time} 1330
As sub-Saharan Africa benefits from its own decision to embrace free
market principles, U.S. firms and workers will benefit in terms of
higher levels of U.S. exports. I also believe that it is important that
we hear the voices of Africans themselves in our debate today about
what they believe H.R. 1432 means to their future.
As the sponsor of this legislation, I believe that it will establish
sub-Saharan Africa as a priority in U.S. trade policy and will
encourage countries in the region to continue and perhaps redouble
their economic and political reform efforts.
In addition, H.R. 1432 is important to the advancement of the wide
range of U.S. policy and security interests in the region and to codify
many significant initiatives already underway by this administration. I
urge its favorable consideration by the House today.
Mr. Chairman, I include for the Record the following:
Embassy of the Republic of Djibouti,
Washington, DC, July 8, 1997.
Re passage of the African Growth and Opportunity Act.
Hon. Phillip Crane,
Member of Congress, Cannon House Office Building, Washington,
DC.
Dear Congressman Crane: As outlined in our statement sent
to you on May 15, 1997, we would like to express our strong
support for the passage of H.R. 1432, African Growth and
Opportunity Act, this year. We urge Congress to pass this
legislation based on its merits.
This legislation presents a unique opportunity to build a
new relationship between the United States and Africa. It
also serves to reinforce the very positive changes that are
taking place throughout the continent of Africa.
[[Page H1046]]
Please accept the assurances of our highest consideration.
Sincerely,
H.E. Amos Bernard M. Midzi, Ambassador, Zimbabwe; H.E.
Gaetan R. Ouedraogo, Ambassador, Burkina Faso; H.E.
Willie Chokani, Ambassador, Malawi; H.E. Chitmansing
Jesseramsing, Ambassador, Mauritius; H.E. Azouz
Ennifar, Ambassador, Tunisia; H.E. Mary M. Kanya,
Ambassador, Swaziland; H.E. Archibald M. Mogwe,
Ambassador, Botswana; H.E. Paul Boundoukou-Latha,
Ambassador, Gabon; Mr. Nana Effah-Apenteng, Charge
D'Affaires, Ghana; Mr. John Mathew Mwendwa, Charge
D'Affaires, Tanzania; H.E. Berhane Gebre-Christos,
Ambassador, Ethiopia; H.E. Dieudonne Antoine Ganga,
Ambassador, Congo; Mr. Malamin K. Juwara, Charge
D'Affaires, Gambia; H.E. Eunice M. Bulane, Ambassador,
Lesotho; H.E. Ahmat Mahamat Saleh, Ambassador, Chad;
H.E. Benjamin Edgar Kipkorir, Ambassador, Kenya; H.E.
Edith Grace Ssempala, Ambassador, Uganda; H.E. Ramtane
Lamamra, Ambassador, Algeria.
H.E. Mamadou Mansour Seck, Ambassador, Senegal; H.E.
Ahmed Ould Sid Ahmed, Ambassador, Mauritania; H.E.
Jerome Mendouga, Ambassador, Cameroon; Mr. Biclair
Andrianantoandro, Charge D'Affaires, Madagascar; Mr.
Mustapha Cherkaoui, Charge D'Affaires, Morocco; Rufino
Jose Mendes, Ambassador, Guinea Bissau; Mirghani
Mohamed Salih, Charge D'Affaires, Sudan; H.E. Kofi
Moise Koumoue, Ambassador, Cote D'Ivoire; H.E. Lucien
Tonoukouin, Ambassador, Benin; Mr. Manuel De Matos,
Charge D'Affaires, Cape Verde; H.E. Joseph Diatta,
Ambassador, Niger; H.E. Pastor M.O. Bile, Ambassador,
Equitorial Guinea; Mr. Fungbe Ralf Aderele, Minister,
Nigeria; H.E. Marcos G. Namashulua, Ambassador,
Mozambique; H.E. Veiccoh K. Nghiwete, Ambassador,
Namibia; Mr. George Rowe Nzala, Charge D'Affaires,
Zambia; H.E. Roble Olhaye, Ambassador, Djibouti.
Embassy of the Republic
of Zimbabwe,
Washington, DC, 15 May 1997.
Re: statement by African Ambassadors to the United States on
the US economic agenda toward Africa
Congressman Phillip Crane,
Cannon House Office Building,
Washington, DC.
Dear Congressman Crane: In my capacity as Chairman of the
Economic Committee of the African Ambassadors Group, I have
the pleasure to forward for your attention, a statement from
the African Ambassadors in response to the Partnership for
Economic Growth and Opportunity in Africa document and the
Bill H.R. 1432. Africa Growth and Opportunity Act.
Please accept the assurances of my highest consideration.
Amos B.M. Midzi,
Ambassador.
Statement by African Ambassadors to the United States on the US
Economic Agenda Toward Africa
We, the African Ambassadors to the United States of
America, appreciate the continued efforts by the United
States Congress to promote trade and investment ties with
Africa, in the spirit of interdependence, as detailed in the
Bill H.R. 1432 ``African Growth and Opportunity Act''
(Hereinafter called the Bill).
We further appreciate the United States Administration's
continuing efforts and initiatives in this area as espoused
in the ``Partnership for Economic Growth and Opportunity in
Africa'' document (Hereinafter called the initiative) and the
President's second report to Congress entitled ``A
Comprehensive Trade and Development Policy For the Countries
of Africa.''
As regards the need for eligibility requirements, we trust
that there will be bilateral consultations with all countries
concerned in order to achieve transparency.
We are pleased to note that the Bill/Initiative
emphasize(s) the need to strengthen the various US agencies
which facilitate foreign investment enabling them to respond
more effectively to the investment needs of Sub-Saharan
African countries. We urge the United States to continue to
support bilateral and multilateral programs that enhance
capacity building, technical assistance and transfer of
technology to Africa.
We welcome the recognition of the importance and crucial
role the US companies that are already doing business in Sub-
Saharan Africa should play in the Inter-agency Credit Risk
Assessment System (ICRAS) to render the process of assessment
more transparent and objective.
We equally welcome the intention of the Bill/Initiative to
support the development and growth of the private sector in
particular the Small and Medium scale Enterprises (SMEs),
especially women-owned businesses in Africa as a way of
achieving self-reliance. In this regard, we hope the Equity
Fund that is being proposed will be used for investment in
enterprises which add value to our raw materials.
We welcome the proposal in the Bill/Initiative to establish
an annual United States-Sub-Saharan Africa Trade and Economic
Forum which will facilitate discussions, at Cabinet/
Ministerial level, of economic issues.
The proposal for summit meetings between the President of
the United States and African Heads of State and Government,
at least once every two years is commendable.
The establishment of a Free Trade Area between the United
States and Sub-Saharan Africa, is a good long term objective
taking into account the differences in the levels of economic
development between the United States and Sub-Saharan Africa.
We particularly welcome the provision in the Bill/
Initiative to admit Sub-Saharan Africa's textiles and apparel
into the United States free of quotas and urge that duty free
access be incorporated in the new Bill. We also urge that
this provision be extended to other manufactured products.
That measure would have a significant and immediate positive
impact on the economies of Sub-Saharan African countries.
The expansion and revamping of the GSP program is a welcome
development as are the proposed rules of origin. We however
urge that since GSP for Sub-Saharan Africa represents only
3.4 percent of total U.S. imports under the GSP program, it
be re-authorized for a ten year period to facilitate planning
by both importers and exporters.
The indebtedness of African countries is a major obstacle
to their economic development. The leadership of the United
States in debt reduction with respect to both bilateral and
multilateral debt is therefore required, particularly in the
G-7 forum.
As a complement to our national efforts, we welcome the
initiative that recognizes that education, health, the
eradication of poverty and the enhancement of human life are
necessary for sustainable economic development. We support
the United States initiatives to financially strengthen the
agencies dealing with these matters.
As is well known, good infrastructure is a prerequisite for
investment and economic development. We therefore appreciate
the efforts being made to stimulate infrastructure
development in Sub-Saharan Africa by creating an
Infrastructure Fund.
We welcome the proposal to establish a position of
Assistant United States Trade Representative to deal
exclusively with issues relating to Africa. We hope this
initiative will be replicated in all the agencies of the
Administration.
We express our appreciation to the people, the
Administration and the Congress of the United States for
their long-standing economic and financial assistance to our
continent. We reiterate that economic assistance remains an
indispensable and crucial complement to the development
efforts of African countries to enable them to become more
viable economic partners.
As always, we express our readiness to work with Congress,
the Administration and other interested parties to enhance
the position of Sub-Saharan Africa as a meaningful player in
the international marketplace in view of the globalization of
the world economy.
Mr. Chairman, I reserve the balance of my time.
Mr. RANGEL. Mr. Chairman, I yield myself such time as I may consume.
I rise with great pride in support of this legislation. How many
bills can come before this House supported by the President of the
United States, the Speaker of the House, the minority leader of the
House, and the support of the leadership in the Senate? It has been
long overdue that we recognize the potential in trading with Africa.
And it is not just helping a people that have been excised from
economic development because of colonialism, but it is certainly in our
best interest to develop those markets and to be able to see, as
countries rebuild themselves, that these European countries not having
the priority, but the friendship would be with those that were there
when they needed them. That is why it amazes me how some of the so-
called friends of Africa have now found out what they think is best for
Africans, when we have been working with their leadership here.
African economists, African leaders have come and they have said that
they want to be able to work in that same atmosphere as other countries
in terms of encouraging investment and allowing the free marketplace to
work for them, to support their ever-growing democracies. And yet, we
have people that say, oh, no, that is not good enough for Africa.
I do not know where they were with the Europeans, where they were
with Asia, where they were in South America. But Africa does not need
those kinds of friends now. What they need are people to support the
beginning. And that is all this is, the beginning.
There are no provisions in this bill that mandates that any African
nation succumbs to it. They decide, based on the rules, whether they
want to participate. All of the suggestions that are in the bill, the
President of the United States does not have to have all of those
requirements. This weak continent, and certainly the few countries that
are the beneficiary, now has become a threat to the powerful industrial
United States of America.
[[Page H1047]]
We are now importing 1 percent, the International Trade Commission
said that it could be 2 percent, of textiles. And now the industry is
shaking at its foundation, and we are going to lose African-American
jobs. Well, I represent the Harlem community, which is the African-
American capital of the world, and if we lose one job as a result of
some African working in the sub-Saharan, I would like to see it. It
just does not make any sense at all to believe that with these low-
skilled jobs, anyone in this continent, much less in this country,
would be adversely affected.
But the arrogance of saying that we want to trade with Africa,
knowing that the low-skilled jobs are in textiles, and what would we
say to them; we will trade with you if you only use American fabrics.
That is to say that, we will manufacture the fabrics, we will send it
to you, you can put a couple of stitchings on the label on it, and send
it back to us.
When the Africans say it does not make sense, when we supporters say
it does not make sense, they say, well, we do it for Mexico. I would
suggest to those people taking that position that in terms of
transportation costs, it is a heck of a lot different bringing goods
from Mexico to Texas than it is to take it from New York to Africa.
In any event, we do have an opportunity for an historic vote here. I
want to thank the gentleman from Illinois (Mr. Crane), because without
his help, the input of the gentleman from Washington (Mr. McDermott),
the gentleman from Louisiana (Mr. Jefferson), and the gentleman from
New Jersey (Mr. Payne), and so many others on the Committee on Ways and
Means, the leadership of both sides of the House. And we should not go
to bed when this becomes law thinking that we have done it all, because
it has been too long that Africa has been shut out from international
trade. But one thing that we will know is that we were a part of the
beginning.
And just as many of my colleagues remember the conditions that
existed in Korea 10 years ago, for those who would be around to be able
to hopefully see an Africa that is thriving in economy, thriving in
democracy, and competing with the best of the world, that is what makes
us feel so good to be a part of the Congress and to be able to say we
made a difference.
Mr. Chairman, I reserve the balance of my time.
Mr. CRANE. Mr. Chairman, I yield 2\1/2\ minutes to our distinguished
colleague, the gentleman from Pennsylvania (Mr. English), who has been
conscientious and worked strenuously on behalf of the advancement of
this bill.
Mr. ENGLISH of Pennsylvania. Mr. Chairman, I thank the gentleman for
that acknowledgment.
I would like to associate myself with the gentleman from New York, as
a friend of Africa, who supports this legislation that establishes a
transitional path from development assistance to economic reliance for
sub-Saharan African countries committed to economic and political
reform.
Sadly, the story of sub-Sahara Africa in the past few decades has too
often been one of economic decline and stagnation, fostered by statist
economic policies too often imbedded by the perverse design of well-
intentioned international aid programs.
In recent years, this grim vista has given way to mild regional
economic growth. This legislation would promote further growth by
creating new incentives for economic reform and by bolstering free
economies and free institutions.
H.R. 1432 develops a partnership between the competitive U.S. private
sector and the creative sub-Saharan African private sector to help
stimulate growth in Africa, while increasing economic opportunities and
jobs back home. This legislation establishes a cooperative forum
between our countries to facilitate high-level discussions of bilateral
and multilateral trade and investment policy initiatives.
The bill extends GSP benefits to those countries eligible to
participate in the bill for the next 10 years. On top of that, quotas
on textile and apparel projects from Kenya and Mauritius are eliminated
after these countries adopt a visa system to guard against
transshipment.
There is very strong language in this bill to protect the American
economy against transshipment. These provisions will not, as has been
argued on the floor of this House, lead to a surge of apparel and
textile imports into the U.S. that damages American workers.
In fact, given that these imports account for less than 1 percent of
total imports of such goods, removing the tariffs and quotas would only
increase these imports by less than another 1 percent. The import-
sensitive products, as determined by the ITC, would be excluded from
duty-free treatment altogether.
This legislation would create 200,000 new jobs in Africa, without
significant job loss to the U.S. economy. It would reduce the
dependence of this poverty-wracked region on direct U.S. financial
assistance.
I urge its passage.
Mr. RANGEL. Mr. Chairman, I yield 2 minutes to the gentleman from
California (Mr. Matsui).
Mr. MATSUI. Mr. Chairman, I would like to thank the gentleman from
New York (Mr. Rangel), obviously the gentleman from Illinois (Mr.
Crane), the gentleman from Washington (Mr. McDermott), the gentleman
from Louisiana (Mr. Jefferson), and many others who have been really
pushing this very historic piece of legislation.
I really urge strong support of this African trade act. It will go a
long ways in showing our relationship and our involvement with the
African nations. What we really have here are 48 nations in the lower
sub-Saharan area, 680 million people. The average per capita income of
all the 48 nations is $500 per individual.
Anybody in this country who thinks that we cannot compete with these
48 nations who think that, with their $500 per capita income, with our
education levels, with our universities, with our research and
development, with our infrastructure, I just cannot believe that anyone
would think that those 48 nations are a threat to us. They are not a
threat to us in textiles. They are not a threat to us in any way.
What we would be doing with these nations, by joining them in an
African trade agreement, is to bring these 48 nations into the
cooperative trading worlds of the nations that we have with us.
Essentially, what we are talking about is providing a democratic
foundation for these countries. Right now, of the 48, 30 of them are
democracies. In addition, as you know, another 30 or so are market-
oriented countries.
What we want to do is establish a relationship that will go well into
the 21st Century, because this continent, this region will be one of
the great regions over the next 20, 30, and 50 years.
That is why this legislation, it is a small start, but it is so very
important in terms of the free world and in terms of working together
in a cooperative fashion.
Mr. CRANE. Mr. Chairman, I yield 2 minutes to my distinguished
colleague, the gentleman from North Carolina (Mr. Coble), who
unfortunately is on the wrong side of this issue, to represent his
point of view.
(Mr. COBLE asked and was given permission to revise and extend his
remarks.)
Mr. COBLE. Mr. Chairman, I thank the gentleman from Illinois for
yielding me this time.
Mr. Chairman, I do not come to the floor wrapped in the cloak of
protectionism today. Many people vote on trade issues very rigidly and
very inflexibly. I try to examine each trade issue separately as to how
it affects our country.
For example, if the gentleman from Illinois will remember, I voted
for MFN for China, thanks in no small part for his having twisted my
arm; and, finally, he did convert me on that. I voted for NAFTA. But
this is a matter, Mr. Chairman, that I cannot support.
This House just rejected fast track several weeks ago. As I interpret
this bill before us, it would allow the President to negotiate a free
trade agreement with Africa. What is this, fast track light? I think we
are going down the wrong road.
While attempting to help the people of sub-Saharan Africa, the
proposal would do so at a cost of numerous jobs in the U.S. fiber,
textile and, apparel industries, rich in my district, by the way, very
prominent. Thirty-five thousand textile workers probably live in my
district. Nearly 2 million Americans are employed by this industry.
[[Page H1048]]
Approximately one-quarter of those are African-Americans.
In reality, this legislation before us, it seems to me, would not
help the people of sub-Saharan Africa; rather, the bill would benefit
the countries of the Far East and the Indian subcontinent, nations that
already have viable textile industries and stand ready to exploit the
opportunities presented by this proposal.
I believe we can do better. I urge my colleagues to vote against this
bill.
Mr. RANGEL. Mr. Chairman, I yield 2 minutes to the gentleman from
Washington (Mr. McDermott), the person that initiated the concept of
working with the gentleman from Illinois (Mr. Crane).
(Mr. McDERMOTT asked and was given permission to revise and extend
his remarks.)
Mr. McDERMOTT. Mr. Chairman, we are seeing today the end of a process
that began 4 years ago. When I came to the Congress, I had just been
working for the State Department and traveled all over Africa. I had
been in 21 of the countries of Africa. I knew what the conditions were
there.
When I saw the GATT legislation, I asked my staff, what does this do
for Africa? They said nothing. We have no policy toward Africa. So we
put an amendment in the GATT legislation in 1994 saying that the United
States should have a policy toward Africa.
That is really where this started. It would not have happened just
with me. Without the gentleman from Illinois (Mr. Crane), who took the
idea and embellished it, and the gentleman from New York (Mr. Rangel),
and the gentleman from Louisiana (Mr. Jefferson), and the gentleman
from New York (Mr. Houghton), and the gentleman from California (Mr.
Royce), a whole group of people, including the Speaker, have played an
important role in putting this policy together.
I saw Africa in 1961 for the first time when everybody was excited
about how it was going to go. Africa, Ghana where I was, and Korea were
exactly in the same place. Thirty years later, the 11th largest economy
in the world is Korea, and Ghana is right where it was then. That, to
me, said it was American policy about what we were going to do for Asia
that we could do for Africa. That is really what this bill does.
Everyone says there is a free trade agreement in this. There is no
free trade agreement. There is no free trade with Asia. We have no free
trade agreement negotiated with Asia. We are working toward that. This
bill sets us on a transitional path to work toward that with Africa.
But it is not something that is going to happen within 1 year.
{time} 1345
There are other things in this bill that people do not talk about.
The United States Government, when they put their stamp of approval on
something, all kinds of good things start to happen.
For instance, we have the Eximbank. The Eximbank loans 99.8 percent
of its money somewhere else in the world, two-tenths percent for
Africa. This bill changes things like that. It changes our government
toward Africa and says we want to be trading partners with you. It is a
good bill.
Mr. CRANE. Mr. Chairman, I yield 3 minutes to the distinguished the
gentleman from Florida (Mr. Shaw), a member of the committee.
Mr. SHAW. I thank the gentleman for yielding me this time.
Mr. Chairman, I want to speak just briefly about what is happening in
Africa. We have heard other speakers talk about the emerging
democracies and free market systems that are coming around, but I think
also it is important to realize that the colonial powers, the old
colonial powers still exist. Even though it is not by law, it is custom
on the continent of Africa.
There are a lot of things going on in Africa that really demand an
American presence. The natural resources are really unsurpassed in the
world as the potential for oil and other minerals.
Also, of course, the environment of Africa is something we have to be
very concerned about. The clear-cutting that is going on in those
forests is something that should concern us here in the United States
not only because of the preservation of the environment in Africa, but
the effect that that has upon our own environment. The hurricanes are
formed just off the coast of Africa that affect the East Coast of the
United States. If the clear-cutting of the forests is to continue, this
is going to have a drastic effect on weather here in the United States.
I saw firsthand in the Republic of the Congo some of the problems
that they are having with the clear-cutting in that area and the use of
the animals as camp meat, everything from the gorillas to the other
types of animals that exist in that part of the world. Also, that the
Asians are moving into the Africa, and they are doing the clear-
cutting; just as happened in Indonesia, it is now continuing on the
continent of Africa.
I think it is time for us to have the responsible presence of the
United States and the United States businesspeople, who have the
highest standards of any in the world, to have a continuing presence or
a growing presence in Africa. Of course, we know from experience that,
and the prior speaker spoke of this, all of the aid that we have thrown
into that continent really has not done that much; but I think trade
certainly will. We have seen this in other parts of the world. If we
adopt a policy of trade, not aid, I think that we are going to see a
lot of wonderful things happen on that continent.
The future of the world is going to be shared very greatly by the
continent of Africa, and I think it is extremely important that we have
a United States presence on that continent.
Mr. JACKSON of Illinois. Mr. Chairman, will the gentleman yield?
Mr. SHAW. I yield to the gentleman from Illinois.
Mr. JACKSON of Illinois. I would like to ask the gentleman a
question, and I hope he can give me an answer to it.
The current language of H.R. 1432 suggests absolutely no relationship
between the development of businesses in Africa and the participation
of African-American entrepreneurs, negotiators, lawyers, accountants,
brokers to facilitate that business.
I am interested, on either side, of those who are proponents of the
bill whether or not they can name just a company, one African-American
shipping company that will be the beneficiary under this bill.
The CHAIRMAN. The time of the gentleman from Florida (Mr. Shaw) has
expired.
Mr. RANGEL. Mr. Chairman, I yield 2 minutes to the gentleman from
Louisiana (Mr. Jefferson), a long-time friend of Africa, one of the
greatest supporters of the bill.
Mr. JEFFERSON. I thank the gentleman for yielding the time to me.
Mr. Chairman, I want to tell Members about an exciting mission that
we took to Africa on behalf of the President of the United States, a
mission that was led by the gentleman from New York (Mr. Rangel) that
involved some 42 individuals, some six or so Congresspeople, people who
represented the business sector and others who represented the
administration.
What we found was an Africa that it was ready to deal with trading
and investing with the United States in a true partnership, an Africa
that had felt neglected over the years, that was cheered on by the
policy we were discussing, that had had a great hand in redacting the
policy.
This is not a bill that has come out of nowhere. It has been 2\1/2\
years in the making, ever since we were dealing with GATT and found
out, to our surprise and to the surprise of many on our committee, that
we addressed every continent in the world with respect to our trading
and investing relationship, but we did not address Africa.
We thought it was important to turn the attention of the
administration toward that. We got African nations involved in it. We
are now seeing the benefit of their input into this bill. They are
hugely behind it; they are ready to work with us, and Africa is ready.
This is not an Africa that it was 15 years ago. This is an Africa
under great new leadership that has turned toward market-oriented
economies, that is trying very hard to budget its affairs
appropriately, and that is ready to do business with the United States.
It would be to our detriment if we do not take advantage of it now.
This bill is not perfect, as no bill is perfect, but it does take a
huge step in the right direction of putting us on the map of dealing
with a continent that
[[Page H1049]]
has been neglected as a true and important trade and investment
destination. It also does some important things here that will help the
African nations manage their own investments in education and health
much better than they have invested and managed them now.
About a quarter of the African nations' budgets are taken up by debt.
This bill purports to take care of debt relief.
Another good part of the bill deals with an issue that the gentleman
from Illinois (Mr. Jackson) raised a minute ago, that deals with equity
investing in small business opportunities there that helps to put
together chances for people to gain wealth in Africa. And also
microenterprises. It addresses the issue of poor women in Africa, the
most repressed population in the world.
This is a great bill, it is mutually beneficial to our country and to
Africa, and I hope this Congress will pass it.
Mr. CRANE. Mr. Chairman, I yield 2 minutes to the distinguished
gentleman from New York (Mr. Houghton).
Mr. HOUGHTON. Mr. Chairman, I do not have any great words of wisdom
on this that have not already been expressed. I just can talk from my
own experience.
On the negative side, there is always the worry that this will put
some of our textile people out of business. There is always the worry
of transshipment. There is always the worry that people who already
have been hit very hard and have a minority of the share of our
business in this country are going to be further hurt; and they can
say, If you do this to textiles, why do you not do it to the plastics
industry? Why do you not do it to some other industry? I understand
that.
But it just seems to me in terms of the magnitude of the economic
impact and also the fact that, in effect, this will be so dispersed
that there will not be this transshipment issue to quite the degree
that people think. So that is a negative side, but I think there is an
answer such as I have just tried to explain.
The other side, which I think is even more important, is this: Many
times Africans, ambassadors, delegations from countries, come into our
offices and say, please invest in our country. What they are really
doing is thinking of foreign aid, and we do not have very much foreign
aid. I have been around for a long time. It has slowly decreased bit by
bit by bit. But even if it were at the old-time levels, it would not do
what those nations need to have done in order to jump-start their
economies. This does a very, very important, subtle thing. What it does
is, it creates the atmosphere for individual and private investment.
That is a multiplication investment which really is going to have the
most impact on those countries.
Therefore, recognizing the potential issue on the other side, but
being offset by other considerations, I am strongly in favor of this
bill.
Mr. RANGEL. Mr. Chairman, I yield such time as he may consume to the
gentleman from North Carolina (Mr. Hefner).
(Mr. HEFNER asked and was given permission to revise and extend his
remarks.)
Mr. HEFNER. Mr. Chairman, I rise in opposition to the bill. I think
it is unfortunate that we were not able to offer an amendment that
would have corrected this bill. I rise in opposition to the bill and
urge my colleagues to vote against it.
Mr. RANGEL. Mr. Chairman, I yield 2 minutes to the gentlewoman from
Michigan (Ms. Kilpatrick).
Ms. KILPATRICK. Mr. Chairman, I thank the gentleman from New York
(Mr. Rangel) for his leadership and for this opportunity to speak. I
think today is a great day for our country as well as for the hundreds
of millions of people who live on the continent of Africa, the largest
continent in the world; the richest continent in the world, with its
minerals, its gold, its silver, its ivory.
I think this is a good opportunity, and I commend the Committee on
Ways and Means and all those who have worked on this bill over these
years to begin the partnerships that Africa wants, that our country
needs, to stimulate both growth and development here in this country
and on the continent of Africa.
Is it a perfect bill? No, it is not. But as we worked through the
process, it is very much a beginning, a beginning where our American
businesses can partner with African businesses to employ hundreds of
thousands of people, to increase tax revenues on this side of the
Atlantic, as well as improve our schools and offer more revenues for
our national treasury.
I participated in the most recent presidential mission to Africa last
December. It was a fine mission. We visited six different African
countries. It was my fifth visit to Africa. All six of those prime
ministers, heads of state that we met with want this bill. All of the
ambassador corps who work with us in Washington want this bill.
They know it is not perfect. But what it will do is begin to allow
American businesses and African countries to partner in such a way that
we stimulate employment on the continent and revenue-generating,
enterprising government, American businesses growth on this side of the
Atlantic.
I commend the Committee on Ways and Means, the gentleman from
Washington (Mr. McDermott), the gentleman from Illinois (Mr. Crane) and
the gentleman from New York (Mr. Rangel) for their leadership. We have
a long way to go. This is a first step to that.
I believe that as we move to the 21st century, the wellness of Africa
and the wellness of America are inextricably tied together. This
legislation begins to operate what I see and what I view as a real win
for both countries.
Mr. CRANE. Mr. Chairman, I yield myself such time as I may consume.
Mr. JACKSON of Illinois. Mr. Chairman, will the gentleman yield?
Mr. CRANE. I yield to the gentleman from Illinois.
Mr. JACKSON of Illinois. Mr. Chairman, I am very concerned about
majority participation, i.e. African Americans, in the African trade
bill. If the gentleman would indicate any provision of the bill for the
general audience about how African-American shipping companies and
businesses are participants in this bill, I would be grateful for an
answer.
I thank the gentleman for yielding.
Mr. CRANE. All I can say is any American business can be a
participant in the bill. They are all welcomed. We do not discriminate.
We are not really concerned about whether they are white, whether they
are black, whether they are Hispanic, whether they are Asian.
We want to encourage business across the board, one and all. That
specific kind of provision is not incorporated in the language of the
bill.
Mr. JACKSON of Illinois. If those businesses are found to be
discriminatory at home, not hiring African Americans, then it is
problematic for the bill; is it not?
Mr. CRANE. I do not know of any business that is guilty of that and
that would violate our guidelines, anyway.
Mr. Chairman, I yield 2 minutes to the gentleman from Ohio (Mr.
Portman), our distinguished colleague on the Committee on Ways and
Means.
Mr. PORTMAN. Mr. Chairman, I will not take 2 minutes, but I do want
to stand here to support the legislation and what the gentleman from
Illinois (Mr. Crane), the gentleman from New York (Mr. Rangel) and
others have put together.
It is a good bill. It is exactly the right approach to take in terms
of trade because it is going to benefit the United States and sub-
Saharan Africa.
Many nations in sub-Saharan Africa are beginning to implement
democratic reforms, Mr. Chairman, expand economic growth in ways that
they can to try to bring greater prosperity and stabilize the region.
For too long, in my view, we have relied simply on foreign assistance,
and frankly, that is drying up as well, to help facilitate these
changes. This is a much better approach.
Through this legislation today we have got an opportunity to assist
this changing region in a much better way, and that is through
commerce. The legislation allows the U.S. to take a very positive role
in encouraging an economic and political renaissance really throughout
sub-Saharan Africa, it establishes a free trade area to serve as a
catalyst for increasing trade and for increasing private-sector
development in the region. It also helps the U.S. facilitate these
market-led economic reforms in 48 countries in this region.
[[Page H1050]]
The bottom line for me, really the big picture here, is that the
United States, by passing this legislation, is supporting economic
self-reliance for sub-Saharan African countries, particularly those who
are committed to the kind of economic and political reform that many
countries in the region are going toward anyway, and market incentives,
private-sector growth, eradication of poverty. I urge my colleagues to
support it as an important trade initiative, but also something that is
good for the United States and good for the African continent as a
whole.
{time} 1400
Mr. RANGEL. Mr. Chairman, I yield 2 minutes to the gentleman from
North Carolina (Mr. Watt).
Mr. WATT of North Carolina. Mr. Chairman, I thank my colleague from
New York for yielding me this time.
Let me make two points. First of all, I am a strong supporter of
African development. Second of all, I have the greatest respect for the
sponsors of this bill, as well as people who are opposed to the bill.
Having said that, I want to rise in opposition to this bill.
When I was growing up, there was a saying that if it looks like a
duck and quacks like a duck, it probably is a duck. But every once in a
while, what looks like a duck and quacks like a duck is a decoy, and
this bill, it seems to me, is a decoy at this point. It falls short of
being a true development bill for Africa in several respects.
There were opportunities to improve this bill and actually make it a
duck if the Committee on Rules had allowed amendments to be offered on
the floor of the House. They would have addressed worker rights and
human rights. They would have addressed the control of the African
countries over development. They would have addressed the textile and
apparel concerns of people in this country.
Unfortunately, the Committee on Rules saw fit not to make those
proposed amendments in order on this bill. Therefore, the bill must be
considered as it is currently written. Right now, the bill falls short
of being a bill that I believe merits support, and I encourage my
colleagues to vote against the bill.
Mr. CRANE. Mr. Chairman, I yield 1 minute to the gentleman from North
Carolina (Mr. Ballenger), our distinguished colleague.
Mr. BALLENGER. Mr. Chairman, I rise today in opposition to H.R. 1432.
How can we call this bill the African Growth and Opportunity Act when
there is a question about growth and opportunity for anyone in this
bill, except for Asians. Only 35 percent of a product must be produced
in Africa, and the rest can be produced in China or Bangladesh.
In its current form, H.R. 1432 poses a serious risk to our domestic
textile industry and its employees. Thousands of American workers and
many in my district could be without jobs because this bill does not
stop the illegal transshipment of apparel from other countries,
particularly China.
We need to add safeguard provisions that would ensure that U.S.
textile workers, not Asian textile workers, manufacturers, get to
produce the fabric that the African workers turn into clothes. This
would not only help American workers but would provide more jobs to
Africans. Without these provisions, we are looking at a lose/lose
scenario for Africans and American workers.
Unfortunately, the Committee on Rules denied the opportunity to vote
on an amendment to require that the apparel receiving duty-free and
quota-free treatment be constructed of U.S.-manufactured yarn and
fabric, so I ask for a vote against the bill.
Mr. RANGEL. Mr. Chairman, I yield 1 minute to the gentleman from
Virginia (Mr. Moran).
Mr. MORAN of Virginia. Mr. Chairman, I am strongly in favor of this
bill. It is about time we had a bill that actually respected the people
of Africa, that was not based upon colluding with their corrupt leaders
or exploiting them but finally treats the people of Africa with
respect. It will empower the laborers of Africa, particularly the
women, to get microenterprise loans, and to have a competitive market
in this country to sell their handmade apparel and other handicraft
products.
This is the least we can do. There is not another continent in the
world that this country has exploited more than Africa. The African
people were the underpinnings of our slave agricultural economy for our
first two centuries of growth. It is about time we turned American
policy toward Africa around and showed some recognition of the inherent
value of the people of Africa.
Africa is the only continent in the world whose poverty is expected
to increase over the next decade. Given our history of exploitation and
enslavement of African men and women is it not now at least partly our
responsibility to turn that around, to see to it that they progress
with the rest of the world into the 21st century and enjoy some respect
and dignity. We should all be voting ``aye'' on this bill.
Mr. CRANE. Mr. Chairman, I reserve the balance of my time.
Mr. RANGEL. Mr. Chairman, I yield 1 minute to the gentlewoman from
the Virgin Islands (Ms. Christian-Green).
Ms. CHRISTIAN-GREEN. Mr. Chairman, I thank my colleague for yielding
me this time.
The time has come for our Nation to give the continent of Africa the
same opportunities for economic growth that we have given to virtually
every other region of the world. When all is said and done, my
colleagues, that is what H.R. 1432 is all about and seeks to do.
Many of the 48 countries that make up Sub-Saharan Africa have
undergone remarkable changes in recent years. More than 30 of them have
begun programs to replace outdated and corrupt centralized economies
with freer markets. If we pass this bill we will be saying to those
countries that we support their efforts and want to join them in going
even further.
This is an historic moment, Mr. Chairman. It is an opportunity to
give Sub-Saharan Africa the same incentives to address their problems
of chronic poverty, poor infrastructure and limited economic
opportunity that we have given to other nations.
The concerns of some of our colleagues can be addressed, so let us
not derail this opportunity which will be beneficial to both us and
Africa. It is not a perfect bill, but it is a good beginning.
My colleagues, the continent of Africa deserves our support. We
should give it to her. Pass H.R. 1432.
Mr. RANGEL. Mr. Chairman, I yield myself such time as I may consume
to take the opportunity to speak to some of the concerns that some of
my colleagues have had as relates to transshipment, which is always an
issue when we are dealing with any type of a trade bill. Because of
this concern, the Committee on Ways and Means had put in specific
language to increase the penalties for any country that is found guilty
of transshipment. But the interesting thing is that these African
countries, more than any other countries that we are dealing with in
trade, are so sorely in need of jobs that they would be the ones that
are looking forward to getting assistance and having their people
trained and having the ability to participate in international trade.
The World Trade Organization has rules against violations of
transshipment, and certainly we will have the resources as well as the
customs agencies to see what is coming into the United States. We
certainly can determine whether it came from the continent of Africa,
and since they only penetrate our market 1 percent, and it is believed
that they do not have the ability or the capability to penetrate it
more than 2 percent, if there was a question of transshipment, it
should be something that would be easily found.
I also would like to deal with the question of human rights and the
question of workers' rights. As most people know, these are included in
the GSP, and the President of the United States has responsibility
before he signs off on any agreement to make certain that that
agreement is in the international interests as well as the interests of
the people of the United States of America.
So whether we are talking about environment or human rights or
workers' rights incorporated in the concept, the language in the bill
would certainly take care of that.
I am particularly concerned that the people in these developing
African countries have not only looked forward to the United States
executive branch for leadership, but have worked very
[[Page H1051]]
closely with the members of the committee and their staff to make
certain that the relationship was one of mutual respect. I think those
are the magic words when we are dealing with any country: mutual
respect. Whatever guidelines and conditions are necessary in order to
give assurances to investors, it is not the United States who sets the
guidelines, it is the international community that does that.
So the bill was drafted not only with the concerns of the Africans,
but something that could get the support of liberals and conservatives,
Republicans and Democrats, because even though some people may think
this is a decoy and not a duck, the President of the United States
believes it is a trade bill, the Secretary of State believes it is a
trade bill, the members of the committee believe it is a trade bill,
but most importantly, our African friends who are dependent on this,
who are looking forward to this and having hope for the future, believe
it gives them an opportunity as a trade bill.
So I do hope that those that have reservations would understand that
this is far from a perfect document. How could it be, with so many
people coming from so many directions? And the fact that these are
countries in Africa does not mean that they do not have differences
among themselves in terms of what should be in the bill.
Mr. Chairman, this is something to work toward. This is something to
give opportunities to people in the United States to look forward to
having a better working relationship with our friends in Africa, but
just as important, to develop markets in Africa.
So it is hoped, as when we went and traveled throughout the Sub-
Sahara, that African Americans with talent, many of whom were on the
trip with us, would get the opportunity to show to our African brothers
and sisters what we will be able to contribute, not mandate
relationships but to contribute through joint ventures in working with
them. Indeed, on the trip some of these concepts became deals, and we
were able to work out arrangements, working with the Department of
Commerce, working with the Eximbank, working with OPIC.
All of this is a part of it, and of course this is not a substitute
for assistance in terms of education and health and economic
development, but it is also an opportunity for us to continue to give
assistance and at the same time be able to make certain that one day
this type of assistance would not be necessary.
So I think that all of us who would want to be able to say that we
played some very small part in bringing the countries of Africa into
international trade will be proud of the opportunities that have been
given to us, and we look forward to this bill not only becoming law,
but when our President of the United States visits Africa, he will be
armed with a document of friendship, a document, a working document
that can improve the quality of life not only for the Africans, but to
give opportunity to those people in these great United States.
Mr. Chairman, I reserve the balance of my time.
Mr. CRANE. Mr. Chairman, I yield myself such time as I may consume to
commend our distinguished ranking minority member for his comments, his
insights and his explanation as to why this legislation is in the
mutual interests of the countries affected in Sub-Saharan Africa, as
well as in our own national interests. I think that is why it has
attracted the kind of bipartisan support that we have enjoyed.
I want to pay tribute to the gentleman from Washington, (Mr.
McDermott), the gentleman from New York (Mr. Rangel), the gentleman
from Louisiana (Mr. Jefferson), the gentleman from California (Mr.
Matsui) over there, all the people that were there from the beginning
and fighting the good fight.
Mr. Chairman, on this question of transshipment, because it has come
up and it does excite a degree of paranoia, and I think a legitimate
paranoia on the part of those who could be adversely affected, I think
that in this legislation we have gone further than any legislation
heretofore in trying to cope with the situation. To that end, our bill
directs the President to require the exporting countries in Africa to
adopt effective visa systems to guard against transshipments and the
use of counterfeit documents. In order to receive benefits under the
bill, African countries are required to cooperate fully with customs in
combating transshipments. This means enforcement of domestic laws and
procedures, and assisting customs in efforts to verify manufacturing
operations through visits of so-called jump teams and other measures.
Finally, H.R. 1432 provides that exporters who engage in illegal
transshipments and their successors would lose trade benefits under the
bill for two years. With no market for their product, this sanction
will have the effect of putting the bad actors out of business.
We have in this bill, Mr. Chairman, the strongest language dealing
with transshipment that we have ever legislated.
{time} 1415
That is not to say that crime still cannot exist, but what I am
saying is that we have gone further than we have ever gone before. I
think we have a stronger position on this legislation than anything
heretofore, and I think it will address the problem more effectively
than it has ever been addressed before.
Let me make one other observation, too. We have the understandable
concern of our textile and apparel manufacturers in this country, and
one of our colleagues today showed me an article of a plant in his
district that is closing. I think it employed like 350 people. That is
sad. That has been going on for some time.
But his plant in his district is not closing because of our bill that
is under consideration on the floor today. His plant is closing because
of inefficiencies, and the inability of most of our production here in
the United States to keep pace with competition. It is not competition
coming from Africa.
Our textile and apparel imports in the year 1996 totaled $46 billion,
billion. Of that $46 billion, the portion that came from sub-Saharan
Africa totaled roughly $380 million, out of $46 billion. The ITC,
International Trade Commission, has estimated that with the passage of
this bill, our imports from sub-Saharan Africa will increase from $100
to $170 million. It will be less than 2 percent of our total imports,
out of that $46 to $50 billion in imports from around the world.
In addition to that, ITC has projected out that at the end of 10
years, it will be 3 percent of our imports. So when we read these
articles about plant closings, do not point the accusing finger at sub-
Saharan Africa. That is not what is causing the problem. It is a
worldwide development, and it is one that has adversely impacted us, to
be sure, because we do have more efficient competition to face
worldwide. But do not make it look like that is coming from sub-Saharan
Africa, and do not make it look like the passage of 1432 is going to
have any significant impact on it.
I urge all of our colleagues to wholeheartedly support this
legislation.
Mr. Chairman, I reserve the balance of my time.
Mr. RANGEL. Mr. Chairman, I yield such time as she may consume to the
gentlewoman from Florida (Mrs. Meek), who recently returned from Africa
to Florida.
Mrs. MEEK of Florida. Mr. Chairman, I am pleased and privileged to
stand on the floor and support H.R. 1432, the African Growth and
Opportunity Act. If we all understand what this act is supposed to do,
it is supposed to provide opportunity for trade with sub-Saharan
Africa. It is supposed to bring growth as to the African countries.
Two things that are outstanding to me in this bill are political
growth and certainly economic growth. That is a two-way street. It is
political growth for us in the United States, it is political growth
for sub-Saharan Africa, and it is also economic growth for both of us.
I do not think that the Africans, as I talked to them, as we visited
these African countries, they are not looking for a handout from the
United States. They are very proud people. They have a history that
goes all the way back to the Tigris and Euphrates Rivers. They
understand what makes political and educational and economic reform.
They are very, very pleased with this bill.
[[Page H1052]]
I traveled with the gentleman from New York (Mr. Rangel) to Africa,
and day-to-day and word-for-word, the African leaders want this bill. I
do not think this bill is going to threaten in any way what we are
already doing with Africa and with other countries. This is the
beginning of a very, very good start to develop trade with Africa, and
bring the respect and some of the economies of our economy to sub-
Saharan Africa.
I beg my colleagues to vote, yes, on the African Growth and
Opportunity Act, because it will help the world understand that we want
to develop trade with this country. They strongly deserve the same
opportunities that we are giving other countries, and now it is our
time to step up to the plate and say, yes. Let us vote yes on 1432, and
give growth and give opportunity, both economic and political, to sub-
Saharan African countries.
Mr. RANGEL. Mr. Chairman, I yield 2 minutes to the gentlewoman from
Texas (Ms. Jackson-Lee).
(Ms. JACKSON-LEE of Texas asked and was given permission to revise
and extend her remarks.)
Ms. JACKSON-LEE of Texas. Mr. Chairman, I thank the gentleman for
yielding time to me, and I thank he and the gentleman from Illinois
(Mr. Crane) for the bill.
Mr. Chairman, I want to emphasize the good news of this legislation,
for as the legislation was initially offered, there were op eds popping
up around the country saying, ``Trade, Not Aid.'' For those of us who
understand the vast needs of the continent, and particularly sub-
Saharan Africa, our ears perked and our hearts hurt, because we
recognized that the two are not mutually exclusive.
We have now come full circle to have a bill that really confronts the
hard core issues of the continent, particularly the fact of giving them
dignity and respect on the equal playing field of trade throughout the
world, but as well, emphasizing that there is a value to the
humanitarian aid that this country provides. And in fact, it is not
enough. So this bill is not trade and not aid, it is trade and aid.
Specifically, in the bill we have $150 million for joint venturing
and $500 million for infrastructure. I agree with my colleague, the
gentlewoman from Florida (Mrs. Meek), that two for one, the Heads of
State said, we are ready, and we will not engage in abuse, and we are
likewise sensitive to the issue of human rights.
I hope nothing we do today diminishes section 4(a), that has to do
with the responsibility of our African countries to maintain the human
rights of its citizens. I cannot talk about the Most Favored Nation
status. I do not like it continuously going back and forth again, with
China's human rights abuses growing and growing and growing. We should
contend with that. But I do think the Heads of State in Africa are
concerned enough that they want to work on the question of human rights
and the responsibility to all of their citizens.
Lastly, let me say, Mr. Chairman, this is an ideal opportunity for a
continent which saw so many of its own shipped as slaves to this
continent, a devastating time in our history, a tragic time. Here we
now have an opportunity to change those chains of slavery into the
uplifting of all of the boats of economic opportunity, providing 800
million Africans, with African Americans and others in this country,
and challenging our multinational companies once and for all to open
the doors of opportunity.
I ask my colleagues to vote for the bill and lift all the boats at
sea at this time.
Mr. CRANE. Mr. Chairman, I yield 3 minutes to our distinguished
colleague, the gentleman from Minnesota (Mr. Ramstad).
Mr. RAMSTAD. Mr. Chairman, I thank the distinguished gentleman for
yielding time to me.
Mr. Chairman, I rise today in support of the African Growth and
Opportunity Act, and in strong support of this legislation. As I said
during our Subcommittee on Trade hearing on this bill, Mr. Chairman, it
sets up a win-win situation for both the United States and countries in
sub-Saharan Africa. This bill will mean a tax cut for consumers here at
home, who depend on reasonably priced clothing, and it will promote
continued political and market liberalization in sub-Saharan Africa.
As a strong supporter generally of free trade and liberalization, I
know the trade elements of this bill are extremely important.
Inexpensive imports are good for consumers here in America, and
increased exports are good for U.S. workers and employers.
I want to focus on the significant goals of this legislation, because
this legislation before us today, Mr. Chairman, sends a strong signal
of encouragement to the peoples of the sub-Saharan nations.
Just since 1990, more than 25 African nations have held democratic
elections. Over 30, 30 of these nations have instituted programs to
replace their centralized economies with free markets, a very, very
significant fact. We all know stronger economies contribute to social
and political stability, and we must, we must, Mr. Chairman, take steps
to help secure that stability.
Increased investment and trade activity with the United States will
help improve the economic conditions of all the sub-Saharan nations,
and as our Committee on Ways and Means has heard from many African
officials, they want the opportunity to industrialize their economies
and to facilitate technology transfers. They support the bill's efforts
to encourage foreign investment and direct private sector involvement
in further economic development in the region.
The Ambassador of Tanzania, Mr. Chairman, has made one simple yet a
very crucial request of us. He said at the hearing, and I am quoting
now, ``Please, please give Africa a chance to prove that she can become
a valuable and viable trading partner with the United States.''
Mr. Ambassador, we want to give you that chance. We have the
opportunity to give you that chance today by passing this legislation,
and I urge all Members to vote for H.R. 1432 and give Africa this
chance.
Mr. RANGEL. Mr. Chairman, I yield myself such time as I may consume.
As we close this debate, Mr. Chairman, I would like to submit for the
Record letters that have been sent to me by the President and the
Secretary of State, and with the consent of this body, just to read the
last paragraph of each.
From Madeleine Albright, our Secretary of State, she says, ``This
critical legislation will advance one of our most important foreign
policy goals in Africa: Integration of African countries into the
global economy. The approximately 600 million consumers in Africa
deserve a better future. The African Growth and Opportunity Act is an
important first step in that direction, and I strongly urge you to
support it.''
Mr. Chairman, I include this letter for the Record.
The letter referred to is as follows:
The Secretary of State,
Washington.
Hon. Charles Rangel,
Committee on Ways and Means, House of Representatives,
Washington, DC.
Dear Mr. Rangel: The African Growth and Opportunity Act,
H.R. 1432, is scheduled for a floor vote today. Passage of
this landmark legislation is one of our highest legislative
priorities. As you know, President Clinton made a strong
statement in support of the bill during the State of the
Union speech.
Passage of the African Growth and Opportunity Act will send
an important signal to Africa that we will help those
countries which help themselves by pursuing sound economic
and political reform policies. The Act will provide
substantial trade and debt relief benefits to those African
countries which are undertaking significant economic reforms.
The African Growth and Opportunity Act will help African
countries improve their own business climates so that U.S.
companies can better compete in the important emerging
markets of Africa.
We believe the legislation contains adequate provisions to
prevent injury to U.S. industries and jobs. The impact on
U.S. consumers, workers and industries must be assessed by
the International Trade Commission (ITC) before the President
is authorized to grant the additional duty-free preferential
market access provided by the Bill. A recent ITC study of the
textile provisions in the Act concluded that duty-free,
quota-free entry of textile and apparel products from Africa
would have a negligible impact on U.S. industries and
workers.
This critical legislation will advance one of our most
important foreign policy goals in Africa--integration of
African countries into the global economy. The approximately
600 million consumers in Africa deserve a better future. The
African Growth and Opportunity Act is an important first step
in that direction, and I strongly urge you to support it.
Sincerely,
Madeleine K. Albright.
[[Page H1053]]
Mr. Chairman, I also would like to read from a letter from the
President, who says, ``We face a historic opportunity to assist the
renaissance in Africa. Congress has the chance to help this
transformation by enacting the African Growth and Opportunity Act. When
it comes time to cast your vote, I urge you to support this
legislation.''
Mr. Chairman, I include for the Record the entire letter from the
President.
The letter referred to is as follows:
The White House,
Washington, DC, March 11, 1998.
Hon. Charles B. Rangel,
House of Representatives,
Washington, DC.
Dear Charlie: I strongly support passage of H.R. 1432, the
African Growth and Opportunity Act, which would provide
enhanced trade benefits for sub-Saharan countries engaged in
meaningful reform efforts.
The United States strongly supports a stable, prosperous
Africa. Africa is a continent on the doorstep of a new era of
democracy and prosperity, and many countries have adopted
market-oriented economic and political reforms in the past
seven years. A stronger, stable, prosperous Africa will be a
better economic partner, a better partner for security and
peace, and a better partner in the fight against drug
trafficking, international crime, terrorism, and the spread
of disease and environmental degradation. Africa is already
an important trading partner for the United States. Our
exports to Africa are over $6 billion annually.
In addition, America has its own special reasons to
contribute to Africa's economic development. Over thirty
million Americans have ancestral origins in Africa. We should
work to help African nations achieve greater prosperity and
stronger democracies, which will improve the lives of the
African people. The bill helps us do that.
This bill is supported by a bipartisan and diverse cross-
section of Americans and concerned groups--including Jack
Kemp, David Dinkins, Andrew Young, the United States
Conference of Mayors and the National Urban League. They know
this bill is good for both Africa and America.
We face a historic opportunity to assist the renaissance in
Africa. Congress has the chance to help this transformation
by enacting the African Growth and Opportunity Act. When it
comes time to cast your vote, I urge you to support this
legislation.
Sincerely,
Bill.
Mr. CRANE. Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, I thank the gentleman from New York for his remarks.
Mr. Chairman, I would like to conclude with a letter that was sent to
all of our colleagues by a former colleague, Jack Kemp.
He wrote,
I am writing to ask you to support important legislation
that is expected to come to the House floor for a vote on the
African Growth and Opportunity Act. Much of Africa is growing
dynamically. Political and market liberalization are
revitalizing and energizing the continent.
There is a new generation of leaders implementing
democratic reforms, expanding economic growth, and unleashing
the human spirit that will help bring greater stability,
prosperity and democracy to African nations.
African leaders would like some help building this hopeful
start on a full-scale boom, yet they aren't for the most part
asking for more development assistance. They would like
expanded trade, not aid. They would like an opportunity for
their people to become self-reliant.
To that end, the African Growth and Opportunity Act would
create a trade component of U.S. policy towards sub-Saharan
Africa. In particular, it would establish a goal of achieving
a free trade area with countries that meet the economic
criteria of the bill.
In addition, H.R. 1432 calls for a trade and economic
cooperation forum between the United States and economic
reformers in sub-Saharan Africa to facilitate discussion on
the elimination of trade and investment barriers.
In the near term, the bill offers countries in the region
enhanced opportunities for duty-free trade with the U.S.
under the Generalized System of Preferences program. I firmly
believe that we have an historic opportunity to open a new
era in our relations with this region. This bill will foster
a brighter future for sub-Saharan Africa based on free market
reforms, expanded economic activity, and enhanced self-
reliance. I urge you to vote yes on H.R. 1432.
Sincerely,
Jack Kemp.
Mr. HASTINGS of Florida. Mr. Chairman, I would like to express my
strong support for H.R. 1432, ``the African Growth and Opportunity
Act,'' a primary tool for expanding trade and investment with Africa.
Mr. Speaker, I believe that this bill is a major milestone in U.S.-
Africa relations as it brings focus on Africa in a positive manner.
This bipartisan legislation will not only provide new jobs for African
workers, and greater opportunities for the American business community
to invest in Africa, it will contribute to peace, stability and
democracy throughout that continent.
For the past several years the United States has always traded with
Asia and Europe. Today, the wind of change is finally blowing in Africa
which will create U.S. investment and forums for African and American
businessmen to cooperate.
Africa remains a vital place with abundant natural resources. As the
world's largest and most technologically advanced economy, the U.S. can
and must continue to do more to contribute to Africa's economic
development, if not for any other reason than the mere fact that if we
don't help them someone else will.
I am excited about the prospect for this legislation and the enormous
benefits it will bring to both the United States and the countries of
sub-Saharan Africa.
However, there are some legislators who oppose the bill. Some would
have us believe that the bill would lead to a surge of apparel and
textile imports into the U.S. and damage U.S. workers. This is a myth!
U.S. imports of textiles and apparel from sub-Saharan Africa account
for less than 1 percent of total U.S. imports of such goods. Others
will have us further believe that the bill will encourage illegal
transshipments from other countries under quota. That, too, is a myth.
There are current U.S. customs laws to prevent transshipments and would
apply. Moreover, the bill requires exporting countries in sub-Saharan
Africa to adopt a visa system to guard against transshipments, and to
cooperate fully with the United States in preventing transshipments as
required by the WTO.
Among other provisions in the bill are the equity and infrastructure
funds to be supported by the Overseas Private Investment Corporation
(OPIC). OPIC would establish a $150 million equity fund and a $500
million infrastructure fund to support African entrepreneurs in
developing private sector enterprises. This will create new jobs for
Africans and new export opportunities for U.S. companies and American
workers.
Finally, Mr. Speaker, this bill enables the U.S. to play a positive
role in Africa's future. We have now entered into a ``new and promising
phase'' in Africa, and while I applaud the previous efforts of the
administration and the United Nations, as well as other organizations,
I believe that we must now step up our efforts and rise to this
occasion.
Mr. FAZIO of California. Mr. Chairman, I rise in support of the
African Growth and Opportunity Act. This legislation promises to
diverge from the United States historical role of provider to Africa
and establish instead a bilateral agreement for trade. Trade promises
growth in our country's economy and in the nations of Sub-Sahara
Africa. However, I would also like to take opportunity to raise
concerns that industries in my district have voiced. The African Growth
and Opportunity Act provides opportunity for free trade but doesn't
protect some of our product-sensitive industries quite enough.
The Generalized System of Preferences (GSP) and free trade area
preference provisions of the Sub-Sahara African trade bill pose special
concerns for the California cling peach industry because of the
possibility that under those provisions, duty-free access might be
extended to South Africa and other competitive African producers of
cling peach products.
Even with existing U.S. tariff rates, South Africa is already a low-
cost, choice quality supplier of canned peaches, fruit mixtures and
other cling peach products to U.S. markets. We must ensure that South
Africa will not sell their products at a significantly lower price than
U.S. products at the expense of our farmers and processors.
The California cling peach industry's product sensitivity is
undisputed. The industry has long suffered the adverse effects of
canned fruit subsidies provided by the European Union. Our government
has recognized the unfairness of these EU practices and has sought to
correct that unfairness through GATT dispute settlement, a bilateral
agreement, numerous consultations, and most recently multilateral
pressure through the WTO Committee on Agriculture.
I urge our government to take all necessary steps to preserve the
current U.S. tariffs on canned peaches, canned fruit mixtures, and
other cling peach products. This valuable sector of U.S. agriculture,
which for too long has been denied relief from EU subsidies, deserves
no less than this from the U.S. government.
Ms. KILPATRICK. Mr. Chairman, if you support self sufficiency for
Africa, you must support the African Growth and Opportunity Act. Once
you separate fact from fiction, the African Growth and Opportunity Act
deserves your support by removing many of the hurdles impeding free-
market reform.
Myth: The African Growth and Opportunity Act Does Not Have Labor
Protections
Fact: The bill requires the President, as a condition for eligibility
for benefits, to determine that African countries do not engage in
gross violations of internationally-recognized
[[Page H1054]]
human right, including core labor standards. Also, African nations must
observe existing statutory criteria on internationally-recognized
worker rights as a condition for duty-free benefits under the
Generalized System of Preferences (GSP).
Myth: The African Growth and Opportunity Act Does Not Help African
Self-Sufficiency
Fact: The bill was developed with the full input of African
governments and represents a shift from dependence on foreign
assistance to a private sector, market oriented incentive approach.
Myth: The African Growth and Opportunity Act Hurts U.S. Textile
Imports
Fact: U.S. imports of textiles and apparel from Africa accounts for
less than one percent of total U.S. imports of textiles and apparel.
The impact on the U.S. textile industry would be negligible.
We have a unique opportunity, and a window of opportunity, for self-
determination--kujichagulia--for the countries of sub-saharan Africa.
According to the Congressional Research Service:
Most of U.S. trade with sub-Saharan Africa is with only a
few countries. In 1997, three-quarters of U.S. exports to the
region went to five countries: South Africa (49% of U.S.
exports to the region), Nigeria (13%), Ghana (5%), Angola
(5%), and Kenya (4%). The other 43 countries accounted for
the remaining one-quarter of U.S. exports to the region. In
1997, 84% of U.S. imports from the region came from four
countries: Nigeria (37% of U.S. imports from the region),
Angola (17%), South Africa( 15%) and Gabon (13%). The other
44 countries accounted for only 16% of U.S. imports from the
region. (CRS Issue Brief for Congress, Number 98015, March 5,
1998, page 3.)
We need to expand trade and development with the continent that is
the cradle of civilization--Africa. In combination with continued
effective aid, this bill will expand trade beyond these four nations.
This legislation is but a start in the right direction toward
encouraging private investment and development in sub-saharan Africa. I
have attached an editorial article in the Washington Post in support of
this bill on final passage, and encourage the support of all of my
colleagues on this great opportunity and fantastic initiative toward
empowerment for Africa. I thank the Speaker and my colleagues for this
time.
[From the Washington Post, Mar. 7, 1998]
How To Help Africa
The House is scheduled to vote next week on an African
trade bill. In the past, that would have been an oxymoron.
The United States traded with Asia and Europe but sent aid to
sub-Saharan Africa. This new approach, which treats African
nations more as partners than as charities, is welcome--
though not sufficient.
Many of the world's poorest people inhabit Africa, their
economies in danger of being left behind altogether as trade
and investment unite the rest of the world. But in recent
years, the true picture has not been quite as gloomy as news
reports on civil wars and coups d'etat might suggest. Many
African countries have moved toward democracy and free-market
reforms. Many are trying to spend more on basic health and
primary education. Many want to help themselves and not
depend forever on foreign aid.
This bill is aimed at those nations. It was put together by
Republican Rep. Philip Crane and Democrats Charles Rangel,
Jim McDermott and William Jefferson, and embraced by the
Clinton administration. It would seek to encourage trade
between Africa and the United States by removing quotas and
many tariffs from the kinds of products these poor nations
could most plausibly export: textiles, clothing, footwear. It
would stimulate and insure private U.S. investment in Africa,
and create forums for African and American businessmen to
cooperate.
The legislation carries a tiny price tag, but some in the
House and Senate oppose it for protectionist reasons. Yet
African textiles now account for only two-thirds of one
percent of total U.S. textile imports and are unlikely to
rise above 2 percent even in the most optimistic (by African
lights) scenarios. Africa's industry is not a threat to the
U.S. economy.
A more serious objection--though not a disqualifying one--
is that this bill will accomplish less than some rhetoric
suggests. For countries as poor as those in sub-Saharan
Africa, where average annual per capita income hovers below
$500, trade and investment alone can't do the job. Aid
remains essential, as the bill's authors acknowledge, and yet
U.S. assistance to Africa declined by 25 percent during the
past two years. This trade bill can help, but only in
combination with effective aid and substantial debt relief.
Mr. WOLF. Mr. Chairman, I rise in strong support of the amendment
offered by Representative Linda Smith to the Africa Growth and
Opportunity Act (H.R. 1432). The amendment would require the President
to consider, when deciding whether a country is eligible to participate
in the trade benefits provided in the bill, whether that country is
cooperating with the United States to eliminate slavery in Africa.
Real life chattel slavery is not a thing of the past, Mr. Chairman.
It exists today in the Sudan--a country I have visited three times.
Today, any member here could board a plane, fly to Kenya and get on a
transport plane in Lokichokio air base in Northern Kenya. Several hours
later, you would land at a remote air strip in Southern Sudan. You
would walk several hours through tough, dry and desolate terrain, where
you could then visit a slave market where women and children are sold
for money. Some for as little as $15 a piece.
Slavery in Sudan has been well documented. The State Department has
known about it since 1993. I submit for the record a State Department
cable which I had declassified in 1993, which states ``credible sources
say Government of Sudan forces, especially in the PDF [People's Defense
Forces], routinely steal women and children in the Bahr El Ghazal. Some
women and girls are kept as wives; the others are shipped north where
they perform labor on Kordofan farms or are exported, notably to Libya.
Many Dinka are reported to be performing forced labor in the areas of
Meiram and Abyei.''
In 1996, two Baltimore Sun reporters visited Sudan, bought back
children who had been enslaved and returned them to their families.
They interviewed former slaves and published a provocative series of
articles about their experience.
There is no doubt. Slavery is taking place in the Sudan. We must
encourage governments to end it.
The amendment offered by Representative Smith sends an important
message. No trade benefits with the United States until you eliminate
this brutal human rights abuse. I urge my colleagues to support it.
U.S. Department of State,
Washington, DC.
Hon. Frank R. Wolf,
House of Representatives.
Dear Mr. Wolf: Thank you for your letter of May 5,
regarding human rights abuses in Sudan. The Embassy in
Khartoum provided the information you requested, which is
enclosed. Assistant Secretary Moose provided much of this
information in his testimony on May 4 to the Senate Foreign
Relations Subcommittee on Africa.
Sincerely,
Robert A. Bradtke,
Acting Assistant Secretary
for Legislative Affairs.
Sudanese Government personnel appear to be perpetrating
widespread human rights abuses in parts of the Bahr El Ghazal
and the Nuba Mountains. There are recent, credible reports of
massacres, kidnapping and forced labor, conscription of
children, forced displacement and Arabization, and other
abuses in these regions. There is evidence that some abuses,
notably kidnapping, may be carried out by poorly-controlled
militias without the approval and perhaps against the wishes
of the authorities. Other abuses, however, are occurring with
a frequency and on a scale that make it difficult to think
that they are happening without the knowledge of the
authorities.
Reliable information on the western ``transition zone''--
south Kordofan, including the Nuba Mountains, and Bahr El
Ghazal--is hard to obtain. Access to the area is restricted.
Recently, however, there has been evidence from credible,
well-informed sources of widespread GOS abuses in this zone.
According to several sources, forces of the Government of
Sudan regard the entire Bahr El Ghazal south of Babanusa,
outside of government-held towns, as an ``operational area.''
Anyone found there is considered a SPLA member or supporter
and killed or captured. For example:
In late 1992 and in February-March 1993 two military
trains, each with about 3,000 troops aboard, proceeded from
Babanusa to Wau. Some of the troops were from the army, but
most were members of former Arab tribal militias, which the
Government of Sudan/National Islamic Front (GOS/NIF) has
incorporated into the Popular Defense Forces (PDF).
The first train advanced preceded by foot soldiers who
killed or captured the civilians on their path. They burned
houses, fields, and granaries, and stole thousands of cattle.
Hundreds are estimated to have died.
The March 1993 train carried horses that extended the
soldiers' range. In five days, they reportedly killed almost
a thousand persons between Manwal Station and Aweil and
captured 300 women and children. The burning of granaries and
fields and theft of cattle caused many who escaped the troops
to die later of starvation.
The sources state that when military convoys moving in the
Bahr El Ghazal lose vehicles to SPLA mines, the troops
typically burn the first village they find and kill its
inhabitants.
Credible sources report heavy fighting from December 1992
to March 1993 in the Nuba Mountains, particularly in the
Tulisci Range. Fleeing Nubans speak of widespread destruction
of villages and killings near Dilling and Kadugli--including
a massacre at Belenya, which reportedly was razed.
Credible sources say GOS forces, especially the PDF,
routinely steal women and children in the Bahr El Ghazal.
Some women and girls are kept as wives; the others are
shipped north where they perform forced labor on Kordofan
farms or are exported, notably to Libya. Many Dinka are
reported to
[[Page H1055]]
be performing forced labor in the areas of Meiram and Abyei.
Others are said to be on farms throughout Kordofan.
There are also credible reports of kidnappings in Kordofan.
In March 1993 hundreds of Nuer displaced reached northern
Kordofan, saying that Arab militias between Abyei and Muglad
had taken children by force, killing the adults who resisted.
The town of Hamarat el Sheikh, northwest of Sodiri in north
Kordofan, is reported to be a transit point for Dinka and
Nuba children who are then trucked to Libya.
While PDF kidnapping of women and children seems recurrent,
it is not, however, condoned by all GOS authorities. When the
March train from Babanusa arrived in Wau, authorities forced
the PDF to release the 300 women and children they had
captured. Later that month, army forces at Aweil searched a
train of PDF returning from Wau. They found and freed women
and children who were being held in boxcars. In early 1993
the PDF captured near Meiram five children between 7 and 12.
When a relative learned of their whereabouts and contacted
the police, the children were released.
Credible sources say that when the March military train to
Wau reached Meiram, soldiers raped scores of displaced women.
Thousands of displaced are currently reaching northern
Kordofan from Bentiu and the Nuba Mountains. Medical workers
note an unusually high rate of pregnancies among the women,
who say the PDF raped them.
There are credible reports of widespread conscription into
government militias of children 10 or 11 and above from
``peace camps'' (resettlement camps) in the Nuba Mountains.
In late January, 1993, soldiers in El Obeid impressed into
the PDF scores of boys 13 and above. (The families, however,
later secured the release of the children who could prove
they were enrolled in school.)
Credible sources state that since November 1992, thousands
of displaced Nubans, particularly from the Tulisci, Habila,
Koalib, Mendi, Tima, Lagawa, Sellara, Dilling, Kadugli, and
Miri areas have been passing through El Obeid. Some are
fleeing on their own, but others are being moved by the
authorities. The governor of Kordofan has publicly said that
the Government has moved many civilians from ``unsafe to
secure areas.'' Some 2000 Nubans from En Nahud were left in
rags last November outside El Obeid, without money, food, or
shelter.
Credible sources describe different forms of forced
Arabization. Under a policy sometimes known as ``the marriage
of fifty,'' Arab soldiers are encouraged to wed southern
women they capture. Soldiers who have children from these
marriages get special premiums. In displaced camps in Meiram
and Abyei, some Islamic charities reportedly offer to feed,
clothe, and educate destitute Dinka children--but in return,
parents may not have contact with their offspring. Some areas
are closed to Christian charities, even indigenous ones,
while Muslim charities operate freely.
There are reports that thousands died of starvation in
Meiram displaced camp last year, while local authorities
would not release donated relief food stored in Babanusa.
There are consistent, credible reports that the PDF routinely
steals large amounts of relief food donated for the
displaced. Credible sources state that if the populations in
the displaced camps at Meiram, Abyei, and Daeim do not
receive food urgently, thousands more will die this year.
Some casualty figures and other details may have been
exaggerated by frightened and shocked witnesses, but the
general tenor of the above reports appears credible. It
tracks with fragmentary reports of abuses in the Nuba
Mountains and Bahr El Ghazal that have become available from
other sources over a period of months.
To be fair, it must be said that many of these abuses,
including the massacres, kidnapping and forced Arabization,
have occurred time and again in these areas for years.
Moreover, the reaction of the authorities in specific cases
of kidnapping and enslavement suggest that the latter may be
the fact of poorly-controlled militias acting without
official approval--although, if this is the case, the
authorities are derelict for not energetically curbing PDF
excess. Other abuses, however, are occurring with a
frequency, and, in the case of the massacres in particular,
on a scale that make it difficult to think that they are
happening without the knowledge of the Government of Sudan.
Mr. KLINK. Mr. Chairman, I am opposed to this legislation for both
process and policy reasons.
On process, the rule for this bill has shut out those who will be
most affected by the bill: those Members who represent American textile
workers.
We have denied the textile caucus the ability and the opportunity to
fix this bill and protect those jobs, and for that reason alone, we
should oppose this bill.
However, my opposition to this legislation goes beyond process. This
bill will create a ``free trade'' area in Africa.
Mr. Speaker, I don't care if it is Africa or Pluto, we don't need any
more ``free trade'' areas like those created by NAFTA because NAFTA is
a job losing failure.
In 1993, before NAFTA, the U.S. ran a trade surplus with Mexico of
$1.7 billion. In 1996, the U.S. trade deficit with Mexico was more than
$16 billion.
By my calculations, we are already running a trade deficit of $9
billion with sub-Saharan Africa. This legislation will only make that
worse.
Officially, Pennsylvania has lost more than 13,000 jobs because of
NAFTA, and those are Labor Department NAFTA-TAA numbers. Actual losses
are probably higher, and the economic policy institute estimates that
Pennsylvania has lost almost 20,000 jobs due to increased trade
deficits with NAFTA countries.
Nationwide, the official NAFTA-TAA job losses are almost 141,000.
Other estimates are much higher than that: some say 625,000.
Another ``free trade'' area, in Africa or anywhere else, will only
mean most lost jobs, and this particular ``free trade'' bill will mean
lost jobs for textile workers.
Another ``free trade'' area will only give big multinational
corporations another platform from which to use lower cost labor,
weaker environmental regulations and minimal protections for worker or
human rights, to ship cheaper goods to the United States, just like
they are using Mexico as a platform. That will only mean more jobs
lost.
Mr. Speaker, we have tried the ``free trade'' model and it has
failed. We need to look for a new trade model that recognizes human
rights, democracy, worker safety and health. That trade model would
benefit all the people of the world, Americans, Mexicans, and Africans,
not just big corporations.
I urge my colleagues to oppose this job loss legislation.
Mr. HAMILTON. Mr. Chairman, I rise in support of H.R. 1432.
This bill is an innovative measure that holds considerable promise
for Africa and for U.S. relations with African nations.
Several of our colleagues deserve credit for bringing this important
measure before us today. I would like to commend the principal authors
of this bill--Congressmen Crane, McDermott, and Rangel. Other members
of the African Trade and Investment Caucus and of the Ways and Means
Committee also made important contributions to this bill. I would also
like to commend several members of the International Relations
Committee--Congressmen Royce and Menendez, and our Chairman, Mr.
Gilman--for starting this bill on its way last June.
what the bill does
H.R. 1432 will alter the U.S. economic relationship with Africa.
To African countries that are prepared for it, the bill offers a new
economic compact: In exchange for economic reforms necessary to benefit
from expanded commercial ties, H.R. 1432 would offer increased U.S.
trade and investment.
This compact will not only reward reforms that have already been
implemented: It will serve as an incentive for reforms elsewhere. And
by strengthening commercial ties between the United States and Africa,
this bill will not only benefit Africans: It will also help build new
U.S. export markets, boosting our own economy.
The bill has several key components:
First, the bill restricts eligibility to African countries that are
not committing human rights abuses and are progressing toward market-
based economies.
Second, eligible countries would be invited to participate in a U.S.-
sponsored annual meeting aimed at promoting trade and investment. The
United States would be represented at these meetings by the Secretaries
of Commerce and Treasury and by the U.S. Trade Representative. The
President would also be required to convene a summit meeting of African
heads of state every two years.
Third, the bill would require the President to develop a strategy for
negotiating free trade agreements between the United States and African
countries.
Fourth, the bill will eliminate U.S. quotas on imports of textiles--
an important industry in the developing world--from each African
country that the President determines has in place an effective system
for preventing the violation of U.S. import laws.
Fifth, the bill gives the President authority to extend tariff-free
treatment under the Generalized System of Preferences program to
additional imports from Africa, as long as those imports pose no threat
to domestic industries.
Sixth, the bill directs the U.S. Oversees Private Investment
Corporation to establish two new investment-promotion funds for Africa,
and to expand its regular programs in Africa. The bill also directs the
Export-Import Bank to expand its export-promotion programs in Africa,
and it requires both OPIC and the Eximbank to establish new advisory
committees on Africa.
Finally, the bill creates a new Assistant U.S. Trade Representative
for Africa, and it urges an increase in the number of U.S. Commercial
officers stationed there.
Taken together, these measures will create a more intensive and
mutually beneficial economic relationship between the United States and
Africa.
A stronger economic relationship will serve other U.S. interests in
Africa.
[[Page H1056]]
By helping move African nations and the United States away from
donor-recipient relationships, and toward economic partnership, the
bill will strengthen bilateral political ties.
By promoting growth, the bill will bolster political stability and
give African nations the wherewithal to address environmental crime,
health, and other problems of mutual concern.
aid vs. trade
Mr. Chairman, the premise of this bill--which I support--is that
increased trade and investment can promote economic growth in Africa in
ways that aid alone cannot.
We need to do more to promote trade and investment in Africa because
foreign assistance budgets are declining worldwide, and because a
number of African countries have taken the tough steps necessary to
benefit from expanding commercial ties.
But many other African countries are not yet ready to graduate from
aid recipient to trading partner. The poorest countries in Africa still
need substantial foreign assistance and debt relief to accomplish
things that increased trade and investment will not address: Relieving
hunger and satisfying other basic needs; developing the human and
physical capital necessary for an industrial economy; building
democratic political institutions; and strengthening indigenous
conflict-resolution capabilities.
H.R. 1432 does not diminish U.S. foreign assistance programs. In
fact, two of the bill's provisions strengthen our programs:
Our provision gives the President additional flexibility to shift
funds among different African aid priorities.
Another provision urges the President to push for ``deep debt
reduction'' for the poorest countries.
But, regrettably, Congress has already diminished the effectiveness
of our foreign assistance program in Africa by cutting spending too
far. Appropriations for the Development Fund for Africa were cut from
$802 million in fiscal year 1995 to roughly $665 million in fiscal year
1996. The 1998 figure is $700 million, still $100 million below where
we were in 1995.
As we begin with H.R. 1432 to build new commercial relationships with
African countries, I hope we will not lose sight of the continuing,
critical importance of aid in Africa. As we seek to expand trade and
investment with some African nations, we should rededicate ourselves to
strengthening aid programs that can help all Africans participate more
fully in the world economy.
Mr. HALL of Ohio. Mr. Chairman, I am proud to be an original co-
sponsor of this bill, and I want to extend a hearty congratulations to
my colleagues Mr. Crane, Mr. Rangel, and Mr. McDermott in particular
for their tremendous achievement in bringing this landmark piece of
legislation to fruition. It could not have happened without their
vision and tireless leadership in championing a new era in U.S.-Africa
relations.
The bill establishes a new U.S. trade and investment policy toward
Africa. While I am a strong believer in the potential benefits of free
trade and open markets, I was initially skeptical that this bill sought
to prematurely substitute such reforms for direct human and social
development and poverty alleviation goals on the continent.
The fact is, Africa sorely needs both. Increased trade and investment
are critically important to the successful integration of African
countries into the global economy, and this bill takes us in the right
direction in that regard. If carefully implemented, it may help reduce
poverty in Africa in the long run. But it is not an overnight fix for
Africa's formidable human development challenges and pressing
humanitarian needs.
That reality is recognized in the bill's policy language recognizing
the vital supporting role of sustainable development, grassroots
initiatives, conflict resolution, and debt relief in helping trade an
investment initiatives to succeed. We ignore Africa's massive food
security concerns, in particular, at our own peril; trade and
investment cannot thrive in a region where USDA predicts that left
unaddressed, two-thirds of Africa's people will be malnourished by the
year 2010. In that light, I would have liked to see the bill call for
an increased investment of foreign assistance funds in such programs,
to reverse steep cuts of recent years.
As it is, I am pleased that my proposed language is retained in the
bill, which protects and exempts essential humanitarian and development
programs from being shifted to other purposes. I supported the bill on
the condition that child survival activities, immunization programs,
health and nutrition programs, HIV/AIDS funding, basic education, and
support for UNICEF would be expressly protected from the bill's waiver
authority. Those programs that are directly saving and improving lives
every day should not be sacrificed to other goals, however important,
in fact such funding should be increased.
This bill, and the policy direction it sets, would be strongly
enhanced and complemented by a future Africa assistance package that
more directly targets African farmers and struggling rural communities,
and provides more adequate levels of support for investments in basic
health, nutrition, and education programs. Those investments will
vastly increase this bill's prospects for making a real dent in poverty
and hunger in Africa. I urge my colleagues to support the bill, and to
lend similar support in the future to enhanced development and
humanitarian assistance funding for Africa when this year's foreign aid
bill is formulated.
The CHAIRMAN. All time for general debate has expired.
Pursuant to the rule, the committee amendment in the nature of a
substitute printed in the bill, modified by the amendments printed in
Part I of House Report 105-431, is considered as an original bill
for the purpose of amendment and is considered as read.
The text of the committee amendment in the nature of a substitute, as
modified, is as follows:
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 ``African Growth and
Opportunity Act''.
SEC. 2. FINDINGS.
The Congress finds that it is in the mutual economic
interest of the United States and sub-Saharan Africa to
promote stable and sustainable economic growth and
development in sub-Saharan Africa. To that end, the United
States seeks to facilitate market-led economic growth in, and
thereby the social and economic development of, the countries
of sub-Saharan Africa. In particular, the United States seeks
to assist sub-Saharan African countries, and the private
sector in those countries, to achieve economic self-reliance
by--
(1) strengthening and expanding the private sector in sub-
Saharan Africa, especially women-owned businesses;
(2) encouraging increased trade and investment between the
United States and sub-Saharan Africa;
(3) reducing tariff and nontariff barriers and other trade
obstacles;
(4) expanding United States assistance to sub-Saharan
Africa's regional integration efforts;
(5) negotiating free trade areas;
(6) establishing a United States-Sub-Saharan Africa Trade
and Investment Partnership;
(7) focusing on countries committed to accountable
government, economic reform, and the eradication of poverty;
(8) establishing a United States-Sub-Saharan Africa
Economic Cooperation Forum; and
(9) continuing to support development assistance for those
countries in sub-Saharan Africa attempting to build civil
societies.
SEC. 3. STATEMENT OF POLICY.
The Congress supports economic self-reliance for sub-
Saharan African countries, particularly those committed to--
(1) economic and political reform;
(2) market incentives and private sector growth;
(3) the eradication of poverty; and
(4) the importance of women to economic growth and
development.
SEC. 4. ELIGIBILITY REQUIREMENTS.
(a) In General.--A sub-Saharan African country shall be
eligible to participate in programs, projects, or activities,
or receive assistance or other benefits under this Act if the
President determines that the country does not engage in
gross violations of internationally recognized human rights
and has established, or is making continual progress toward
establishing, a market-based economy, such as the
establishment and enforcement of appropriate policies
relating to--
(1) promoting free movement of goods and services between
the United States and sub-Saharan Africa and among countries
in sub-Saharan Africa;
(2) promoting the expansion of the production base and the
transformation of commodities and nontraditional products for
exports through joint venture projects between African and
foreign investors;
(3) trade issues, such as protection of intellectual
property rights, improvements in standards, testing, labeling
and certification, and government procurement;
(4) the protection of property rights, such as protection
against expropriation and a functioning and fair judicial
system;
(5) appropriate fiscal systems, such as reducing high
import and corporate taxes, controlling government
consumption, participation in bilateral investment treaties,
and the harmonization of such treaties to avoid double
taxation;
(6) foreign investment issues, such as the provision of
national treatment for foreign investors and other measures
to create an environment conducive to domestic and foreign
investment;
(7) supporting the growth of regional markets within a free
trade area framework;
(8) governance issues, such as eliminating government
corruption, minimizing government intervention in the market
such as price controls and subsidies, and streamlining the
business license process;
(9) supporting the growth of the private sector, in
particular by promoting the emergence of a new generation of
African entrepreneurs;
(10) encouraging the private ownership of government-
controlled economic enterprises through divestiture programs;
(11) removing restrictions on investment; and
[[Page H1057]]
(12) observing the rule of law, including equal protection
under the law and the right to due process and a fair trial.
(b) Additional Factors.--In determining whether a sub-
Saharan African country is eligible under subsection (a), the
President shall take into account the following factors:
(1) An expression by such country of its desire to be an
eligible country under subsection (a).
(2) The extent to which such country has made substantial
progress toward--
(A) reducing tariff levels;
(B) binding its tariffs in the World Trade Organization and
assuming meaningful binding obligations in other sectors of
trade; and
(C) eliminating nontariff barriers to trade.
(3) Whether such country, if not already a member of the
World Trade Organization, is actively pursuing membership in
that Organization.
(4) Where applicable, the extent to which such country is
in material compliance with its obligations to the
International Monetary Fund and other international financial
institutions.
(5) The extent to which such country has a recognizable
commitment to reducing poverty, providing basic health and
education for poor citizens, the expansion of physical
infrastructure in a manner designed to maximize
accessibility, increased access to market and credit
facilities for small farmers and producers, and improved
economic opportunities for women as entrepreneurs and
employees.
(6) Whether or not such country engages in activities that
undermine United States national security or foreign policy
interests.
(c) Continuing Compliance.--
(1) Monitoring and review of certain countries.--The
President shall monitor and review the progress of sub-
Saharan African countries in order to determine their current
or potential eligibility under subsection (a). Such
determinations shall be based on quantitative factors to the
fullest extent possible and shall be included in the annual
report required by section 15.
(2) Ineligibility of certain countries.--A sub-Saharan
African country described in paragraph (1) that has not made
continual progress in meeting the requirements with which it
is not in compliance shall be ineligible to participate in
programs, projects, or activities, or receive assistance or
other benefits, under this Act.
(d) Violations of Human Rights and Ineligible Countries.--
It is the sense of the Congress that a sub-Saharan African
country should not be eligible to participate in programs,
projects, or activities, or receive assistance or other
benefits under this Act if the government of that country is
determined by the President to engage in a consistent pattern
of gross violations of internationally recognized human
rights.
SEC. 5. ADDITIONAL AUTHORITIES AND INCREASED FLEXIBILITY TO
PROVIDE ASSISTANCE UNDER THE DEVELOPMENT FUND
FOR AFRICA.
(a) Use of Sustainable Development Assistance To Support
Further Economic Growth.--It is the sense of the Congress
that sustained economic growth in sub-Saharan Africa depends
in large measure upon the development of a receptive
environment for trade and investment, and that to achieve
this objective the United States Agency for International
Development should continue to support programs which help to
create this environment. Investments in human resources,
development, and implementation of free market policies,
including policies to liberalize agricultural markets and
improve food security, and the support for the rule of law
and democratic governance should continue to be encouraged
and enhanced on a bilateral and regional basis.
(b) Declarations of Policy.--The Congress makes the
following declarations:
(1) The Development Fund for Africa established under
chapter 10 of part I of the Foreign Assistance Act of 1961
(22 U.S.C. 2293 et seq.) has been an effective tool in
providing development assistance to sub-Saharan Africa since
1988.
(2) The Development Fund for Africa will complement the
other provisions of this Act and lay a foundation for
increased trade and investment opportunities between the
United States and sub-Saharan Africa.
(3) Assistance provided through the Development Fund for
Africa will continue to support programs and activities that
promote the long term economic development of sub-Saharan
Africa, such as programs and activities relating to the
following:
(A) Strengthening primary and vocational education systems,
especially the acquisition of middle-level technical skills
for operating modern private businesses and the introduction
of college level business education, including the study of
international business, finance, and stock exchanges.
(B) Strengthening health care systems.
(C) Strengthening family planning service delivery systems.
(D) Supporting democratization, good governance and civil
society and conflict resolution efforts.
(E) Increasing food security by promoting the expansion of
agricultural and agriculture-based industrial production and
productivity and increasing real incomes for poor
individuals.
(F) Promoting an enabling environment for private sector-
led growth through sustained economic reform, privatization
programs, and market-led economic activities.
(G) Promoting decentralization and local participation in
the development process, especially linking the rural
production sectors and the industrial and market centers
throughout Africa.
(H) Increasing the technical and managerial capacity of
sub-Saharan African individuals to manage the economy of sub-
Saharan Africa.
(I) Ensuring sustainable economic growth through
environmental protection.
(4) The African Development Foundation has a unique
congressional mandate to empower the poor to participate
fully in development and to increase opportunities for
gainful employment, poverty alleviation, and more equitable
income distribution in sub-Saharan Africa. The African
Development Foundation has worked successfully to enhance the
role of women as agents of change, strengthen the informal
sector with an emphasis on supporting micro and small sized
enterprises, indigenous technologies, and mobilizing local
financing. The African Development Foundation should develop
and implement strategies for promoting participation in the
socioeconomic development process of grassroots and informal
sector groups such as nongovernmental organizations,
cooperatives, artisans, and traders into the programs and
initiatives established under this Act.
(c) Additional Authorities.--
(1) In general.--Section 496(h) of the Foreign Assistance
Act of 1961 (22 U.S.C. 2293(h)) is amended--
(A) by redesignating paragraph (3) as paragraph (4); and
(B) by inserting after paragraph (2) the following:
``(3) Democratization and conflict resolution
capabilities.--Assistance under this section may also include
program assistance--
``(A) to promote democratization, good governance, and
strong civil societies in sub-Saharan Africa; and
``(B) to strengthen conflict resolution capabilities of
governmental, intergovernmental, and nongovernmental entities
in sub-Saharan Africa.''.
(2) Conforming amendment.--Section 496(h)(4) of such Act,
as amended by paragraph (1), is further amended by striking
``paragraphs (1) and (2)'' in the first sentence and
inserting ``paragraphs (1), (2), and (3)''.
(d) Waiver Authority.--Section 496 of the Foreign
Assistance Act of 1961 (22 U.S.C. 2293) is amended by adding
at the end the following:
``(p) Waiver Authority.--
``(1) In general.--Except as provided in paragraph (2), the
President may waive any provision of law that earmarks, for a
specified country, organization, or purpose, funds made
available to carry out this chapter if the President
determines, subject to the notification procedures under
section 634A, that the waiver of such provision of law would
provide improved conditions for the people of Africa. The
President shall notify the appropriate congressional
committees, in accordance with the procedures applicable to
reprogramming notifications under section 634A of this Act,
at least 15 days before any determination under this
paragraph takes effect.
``(2) Exceptions.--
``(A) Child survival activities.--The authority contained
in paragraph (1) may not be used to waive a provision of law
that earmarks funds made available to carry out this chapter
for the following purposes:
``(i) Immunization programs.
``(ii) Oral rehydration programs.
``(iii) Health and nutrition programs, and related
education programs, which address the needs of mothers and
children.
``(iv) Water and sanitation programs.
``(v) Assistance for displaced and orphaned children.
``(vi) Programs for the prevention, treatment, and control
of, and research on, tuberculosis, HIV/AIDS, polio, malaria,
and other diseases.
``(vii) Basic education programs for children.
``(viii) Contribution on a grant basis to the United
Nations Children's Fund (UNICEF) pursuant to section 301 of
this Act.
``(B) Requirement to supersede waiver authority.--The
provisions of this subsection shall not be superseded except
by a provision of law enacted after the date of the enactment
of the African Growth and Opportunity Act which specifically
repeals, modifies, or supersedes such provisions.''.
SEC. 6. UNITED STATES-SUB-SAHARAN AFRICA TRADE AND ECONOMIC
COOPERATION FORUM.
(a) Declaration of Policy.--The President shall convene
annual high-level meetings between appropriate officials of
the United States Government and officials of the governments
of sub-Saharan African countries in order to foster close
economic ties between the United States and sub-Saharan
Africa.
(b) Establishment.--Not later than 12 months after the date
of the enactment of this Act, the President, after consulting
with the governments concerned, shall establish a United
States-Sub-Saharan Africa Trade and Economic Cooperation
Forum (hereafter in this section referred to as the
``Forum'').
(c) Requirements.--In creating the Forum, the President
shall meet the following requirements:
(1) The President shall direct the Secretary of Commerce,
the Secretary of the Treasury, the Secretary of State, and
the United States Trade Representative to host the first
annual meeting with the counterparts of such Secretaries from
the governments of sub-Saharan African countries eligible
under section 4, the Secretary General of the Organization of
African Unity, and government officials from other
appropriate countries in Africa, to discuss expanding trade
and investment relations between the United States and sub-
Saharan Africa and the implementation of this Act.
(2)(A) The President, in consultation with the Congress,
shall encourage United States nongovernmental organizations
to host annual meetings with nongovernmental organizations
from sub-Saharan Africa in conjunction with the annual
meetings of the Forum for the purpose of discussing the
issues described in paragraph (1).
(B) The President, in consultation with the Congress, shall
encourage United States representatives of the private sector
to host annual
[[Page H1058]]
meetings with representatives of the private sector from
sub-Saharan Africa in conjunction with the annual meetings
of the Forum for the purpose of discussing the issues
described in paragraph (1).
(3) The President shall, to the extent practicable, meet
with the heads of governments of sub-Saharan African
countries eligible under section 4 not less than once every
two years for the purpose of discussing the issues described
in paragraph (1). The first such meeting should take place
not later than twelve months after the date of the enactment
of this Act.
(d) Dissemination of Information by USIA.--In order to
assist in carrying out the purposes of the Forum, the United
States Information Agency shall disseminate regularly,
through multiple media, economic information in support of
the free market economic reforms described in this Act.
(e) Authorization of Appropriations.--There are authorized
to be appropriated such sums as may be necessary to carry out
this section.
SEC. 7. UNITED STATES-SUB-SAHARAN AFRICA FREE TRADE AREA.
(a) Declaration of Policy.--The Congress declares that a
United States-Sub-Saharan Africa Free Trade Area should be
established, or free trade agreements should be entered into,
in order to serve as the catalyst for increasing trade
between the United States and sub-Saharan Africa and
increasing private sector development in sub-Saharan Africa.
(b) Plan Requirement.--
(1) In general.--The President, taking into account the
provisions of the treaty establishing the African Economic
Community and the willingness of the governments of Sub-
Saharan African countries to engage in negotiations to enter
into free trade agreements, shall develop a plan for the
purpose of entering into one or more trade agreements with
sub-Saharan African countries eligible under section 4 in
order to establish a United States-Sub-Saharan Africa Free
Trade Area (hereafter in this section referred to as the
``Free Trade Area'').
(2) Elements of plan.--The plan shall include the
following:
(A) The specific objectives of the United States with
respect to the establishment of the Free Trade Area and a
suggested timetable for achieving those objectives.
(B) The benefits to both the United States and sub-Saharan
Africa with respect to the Free Trade Area.
(C) A mutually agreed-upon timetable for establishing the
Free Trade Area.
(D) The implications for and the role of regional and sub-
regional organizations in sub-Saharan Africa with respect to
the Free Trade Area.
(E) Subject matter anticipated to be covered by the
agreement for establishing the Free Trade Area and United
States laws, programs, and policies, as well as the laws of
participating eligible African countries and existing
bilateral and multilateral and economic cooperation and trade
agreements, that may be affected by the agreement or
agreements.
(F) Procedures to ensure the following:
(i) Adequate consultation with the Congress and the private
sector during the negotiation of the agreement or agreements
for establishing the Free Trade Area.
(ii) Consultation with the Congress regarding all matters
relating to implementation of the agreement or agreements.
(iii) Approval by the Congress of the agreement or
agreements.
(iv) Adequate consultations with the relevant African
governments and African regional and subregional
intergovernmental organizations during the negotiations of
the agreement or agreements.
(c) Reporting Requirement.--Not later than 12 months after
the date of the enactment of this Act, the President shall
prepare and transmit to the Congress a report containing the
plan developed pursuant to subsection (b).
SEC. 8. ELIMINATING TRADE BARRIERS AND ENCOURAGING EXPORTS.
(a) Findings.--The Congress makes the following findings:
(1) The lack of competitiveness of sub-Saharan Africa in
the global market, especially in the manufacturing sector,
make it a limited threat to market disruption and no threat
to United States jobs.
(2) Annual textile and apparel exports to the United States
from sub-Saharan Africa represent less than 1 percent of all
textile and apparel exports to the United States, which
totaled $45,932,000,000 in 1996.
(3) Sub-Saharan Africa has limited textile manufacturing
capacity. During 1998 and the succeeding 4 years, this
limited capacity to manufacture textiles and apparel is
projected to grow at a modest rate. Given this limited
capacity to export textiles and apparel, it will be very
difficult for these exports from sub-Saharan Africa, during
1998 and the succeeding 9 years, to exceed 3 percent annually
of total imports of textile and apparel to the United States.
If these exports from sub-Saharan Africa remain around 3
percent of total imports, they will not represent a threat to
United States workers, consumers, or manufacturers.
(b) Sense of the Congress.--It is the sense of the Congress
that--
(1) it would be to the mutual benefit of the countries in
sub-Saharan Africa and the United States to ensure that the
commitments of the World Trade Organization and associated
agreements are faithfully implemented in each of the member
countries, so as to lay the groundwork for sustained growth
in textile and apparel exports and trade under agreed rules
and disciplines;
(2) reform of trade policies in sub-Saharan Africa with the
objective of removing structural impediments to trade,
consistent with obligations under the World Trade
Organization, can assist the countries of the region in
achieving greater and greater diversification of textile and
apparel export commodities and products and export markets;
and
(3) the President should support textile and apparel trade
reform in sub-Saharan Africa by, among other measures,
providing technical assistance, sharing of information to
expand basic knowledge of how to trade with the United
States, and encouraging business-to-business contacts with
the region.
(c) Treatment of Quotas.--
(1) Kenya and mauritius.--Pursuant to the Agreement on
Textiles and Clothing, the United States shall eliminate the
existing quotas on textile and apparel exports to the United
States--
(A) from Kenya within 30 days after that country adopts a
cost-effective and efficient visa system to guard against
unlawful transshipment of textile and apparel goods; and
(B) from Mauritius within 30 days after that country adopts
such a visa system.
The Customs Service shall provide the necessary assistance to
Kenya and Mauritius in the development and implementation of
those visa systems. The Customs Service shall monitor and the
Commissioner of Customs shall submit to the Congress, not
later than March 31 of each year, a report on the
effectiveness of those visa systems during the preceding
calendar year.
(2) Other sub-saharan countries.--The President shall
continue the existing no quota policy for countries in sub-
Saharan Africa. The President shall submit to the
Congress, not later than March 31 of each year, a report
on the growth in textiles and apparel exports to the
United States from countries in sub-Saharan Africa in
order to protect United States consumers, workers, and
textile manufacturers from economic injury on account of
the no quota policy. The President should ensure that any
country in sub-Saharan Africa that intends to export
substantial textile and apparel goods to the United States
has in place a functioning and efficient visa system to
guard against unlawful transshipment of textile and
apparel goods.
(d) Definition.--For purposes of this section, the term
``Agreement on Textiles and Clothing'' means the Agreement on
Textiles and Clothing referred to in section 101(d)(4) of the
Uruguay Round Agreements Act (19 U.S.C. 3511(d)(4)).
SEC. 9. GENERALIZED SYSTEM OF PREFERENCES.
(a) Preferential Tariff Treatment for Certain Articles.--
Section 503(a)(1) of the Trade Act of 1974 (19 U.S.C.
2463(a)) is amended--
(1) by redesignating subparagraph (C) as subparagraph (D);
and
(2) by inserting after subparagraph (B) the following:
``(C) Eligible countries in sub-saharan africa.--The
President may provide duty-free treatment for any article set
forth in paragraph (1) of subsection (b) that is the growth,
product, or manufacture of an eligible country in sub-Saharan
Africa that is a beneficiary developing country, if, after
receiving the advice of the International Trade Commission in
accordance with subsection (e), the President determines that
such article is not import-sensitive in the context of
imports from eligible countries in sub-Saharan Africa. This
subparagraph shall not affect the designation of eligible
articles under subparagraph (B).''.
(b) Rules of Origin.--Section 503(a)(2) of the Trade Act of
1974 (19 U.S.C. 2463(a)(2)) is amended by adding at the end
the following:
``(C) Eligible countries in sub-saharan africa.--For
purposes of determining the percentage referred to in
subparagraph (A) in the case of an article of an eligible
country in sub-Saharan Africa that is a beneficiary
developing country--
``(i) if the cost or value of materials produced in the
customs territory of the United States is included with
respect to that article, an amount not to exceed 15 percent
of the appraised value of the article at the time it is
entered that is attributed to such United States cost or
value may be applied toward determining the percentage
referred to in subparagraph (A); and
``(ii) the cost or value of the materials included with
respect to that article that are produced in any beneficiary
developing country that is an eligible country in sub-Saharan
Africa shall be applied in determining such percentage.''.
(c) Waiver of Competitive Need Limitation.--Section
503(c)(2)(D) of the Trade Act of 1974 (19 U.S.C.
2463(c)(2)(D)) is amended to read as follows:
``(D) Least-developed beneficiary developing countries and
eligible countries in sub-saharan africa.--Subparagraph (A)
shall not apply to any least-developed beneficiary developing
country or any eligible country in sub-Saharan Africa.''.
(d) Extension of Program.--Section 505 of the Trade Act of
1974 (19 U.S.C. 2465) is amended to read as follows:
``SEC. 505. DATE OF TERMINATION.
``(a) Countries in Sub-Saharan Africa.--No duty-free
treatment provided under this title shall remain in effect
after May 31, 2007, with respect to beneficiary developing
countries that are eligible countries in sub-Saharan Africa.
``(b) Other Countries.--No duty-free treatment provided
under this title shall remain in effect after May 31, 1997,
with respect to beneficiary developing countries other than
those provided for in subsection (a).''.
(e) Definition.--Section 507 of the Trade Act of 1974 (19
U.S.C. 2467) is amended by adding at the end the following:
``(6) Eligible country in sub-saharan africa.--The terms
`eligible country in sub-Saharan Africa' and `eligible
countries in sub-Saharan Africa' means a country or countries
that the President has determined to be eligible under
section 4 of the African Growth and Opportunity Act.''.
[[Page H1059]]
SEC. 10. INTERNATIONAL FINANCIAL INSTITUTIONS AND DEBT
REDUCTION.
(a) Better Mechanisms To Further Goals for Sub-Saharan
Africa.--It is the sense of the Congress that the Secretary
of the Treasury should instruct the United States Executive
Directors of the International Bank for Reconstruction and
Development, the International Monetary Fund, and the African
Development Bank to use the voice and votes of the Executive
Directors to encourage vigorously their respective
institutions to develop enhanced mechanisms which further the
following goals in eligible countries in sub-Saharan Africa:
(1) Strengthening and expanding the private sector,
especially among women-owned businesses.
(2) Reducing tariffs, nontariff barriers, and other trade
obstacles, and increasing economic integration.
(3) Supporting countries committed to accountable
government, economic reform, the eradication of poverty, and
the building of civil societies.
(4) Supporting deep debt reduction at the earliest possible
date with the greatest amount of relief for eligible poorest
countries under the ``Heavily Indebted Poor Countries''
(HIPC) debt initiative.
(b) Sense of Congress.--It is the sense of the Congress
that relief provided to countries in sub-Saharan Africa which
qualify for the Heavily Indebted Poor Countries debt
initiative should primarily be made through grants rather
than through extended-term debt, and that interim relief or
interim financing should be provided for eligible countries
that establish a strong record of macroeconomic reform.
(c) Executive Branch Initiatives.--The Congress supports
and encourages the implementation of the following
initiatives of the executive branch:
(1) American-african business partnership.--The Agency for
International Development devoting up to $1,000,000 annually
to help catalyze relationships between United States firms
and firms in sub-Saharan Africa through a variety of business
associations and networks.
(2) Technical assistance to promote reforms.--The Agency
for International Development providing up to $5,000,000
annually in short-term technical assistance programs to help
the governments of sub-Saharan African countries to--
(A) liberalize trade and promote exports;
(B) bring their legal regimes into compliance with the
standards of the World Trade Organization in conjunction with
membership in that Organization; and
(C) make financial and fiscal reforms, as well as the
United States Department of Agriculture providing support to
promote greater agribusiness linkages.
(3) Agricultural market liberalization.--The Agency for
International Development devoting up to $15,000,000 annually
as part of the multi-year Africa Food Security Initiative to
help address such critical agricultural policy issues as
market liberalization, agricultural export development, and
agribusiness investment in processing and transporting
agricultural commodities.
(4) Trade promotion.--The Trade Development Agency
increasing the number of reverse trade missions to growth-
oriented countries in sub-Saharan Africa.
(5) Trade in services.--Efforts by United States embassies
in the countries in sub-Saharan Africa to encourage their
host governments--
(A) to participate in the ongoing negotiations on financial
services in the World Trade Organization;
(B) to revise their existing schedules to the General
Agreement on Trade in Services of the World Trade
Organization in light of the successful conclusion of
negotiations on basic telecommunications services; and
(C) to make further commitments in their schedules to the
General Agreement on Trade in Services in order to encourage
the removal of tariff and nontariff barriers and to foster
competition in the services sector in those countries.
SEC. 11. SUB-SAHARAN AFRICA EQUITY AND INFRASTRUCTURE FUNDS.
(a) Initiation of Funds.--It is the sense of the Congress
that the Overseas Private Investment Corporation should,
within 12 months after the date of the enactment of this Act,
exercise the authorities it has to initiate 2 or more equity
funds in support of projects in the countries in sub-Saharan
Africa.
(b) Structure and Types of Funds.--
(1) Structure.--Each fund initiated under subsection (a)
should be structured as a partnership managed by professional
private sector fund managers and monitored on a continuing
basis by the Corporation.
(2) Capitalization.--Each fund should be capitalized with a
combination of private equity capital, which is not
guaranteed by the Corporation, and debt for which the
Corporation provides guaranties.
(3) Types of funds.--
(A) Equity fund for sub-saharan africa.--One of the funds
should be an equity fund, with assets of up to $150,000,000,
the primary purpose of which is to achieve long-term capital
appreciation through equity investments in support of
projects in countries in sub-Saharan Africa.
(B) Infrastructure fund.--One or more of the funds, with
combined assets of up to $500,000,000, should be used in
support of infrastructure projects in countries of sub-
Saharan Africa. The primary purpose of any such fund would be
to achieve long-term capital appreciation through investing
in financing for infrastructure projects in sub-Saharan
Africa, including for the expansion of businesses in sub-
Saharan Africa, restructurings, management buyouts and
buyins, businesses with local ownership, and privatizations.
(4) Emphasis.--The Corporation shall ensure that the funds
are used to provide support in particular to women
entrepreneurs and to innovative investments that expand
opportunities for women and maximize employment opportunities
for poor individuals.
SEC. 12. OVERSEAS PRIVATE INVESTMENT CORPORATION AND EXPORT-
IMPORT BANK INITIATIVES.
(a) Overseas Private Investment Corporation.--
(1) Advisory committee.--Section 233 of the Foreign
Assistance Act of 1961 is amended by adding at the end the
following:
``(e) Advisory Committee.--The Board shall take prompt
measures to increase the loan, guarantee, and insurance
programs, and financial commitments, of the Corporation in
sub-Saharan Africa, including through the establishment and
use of an advisory committee to assist the Board in
developing and implementing policies, programs, and financial
instruments with respect to sub-Saharan Africa. In addition,
the advisory committee shall make recommendations to the
Board on how the Corporation can facilitate greater support
by the United States for trade and investment with and in
sub-Saharan Africa. The advisory committee shall terminate
4 years after the date of the enactment of this
subsection.''.
(2) Reports to the congress.--Within 6 months after the
date of the enactment of this Act, and annually for each of
the 4 years thereafter, the Board of Directors of the
Overseas Private Investment Corporation shall submit to the
Congress a report on the steps that the Board has taken to
implement section 233(e) of the Foreign Assistance Act of
1961 and any recommendations of the advisory board
established pursuant to such section.
(b) Export-Import Bank.--
(1) Advisory committee for sub-saharan africa.--Section
2(b) of the Export-Import Bank Act of 1945 (12 U.S.C. 635(b))
is amended by inserting after paragraph (8) the following:
``(9)(A) The Board of Directors of the Bank shall take
prompt measures, consistent with the credit standards
otherwise required by law, to promote the expansion of the
Bank's financial commitments in sub-Saharan Africa under the
loan, guarantee, and insurance programs of the Bank.
``(B)(i) The Board of Directors shall establish and use an
advisory committee to advise the Board of Directors on the
development and implementation of policies and programs
designed to support the expansion described in subparagraph
(A).
``(ii) The advisory committee shall make recommendations to
the Board of Directors on how the Bank can facilitate greater
support by United States commercial banks for trade with sub-
Saharan Africa.
``(iii) The advisory committee shall terminate 4 years
after the date of the enactment of this subparagraph.''.
(2) Reports to the congress.--Within 6 months after the
date of the enactment of this Act, and annually for each of
the 4 years thereafter, the Board of Directors of the Export-
Import Bank of the United States shall submit to the Congress
a report on the steps that the Board has taken to implement
section 2(b)(9)(B) of the Export-Import Bank Act of 1945 and
any recommendations of the advisory committee established
pursuant to such section.
SEC. 13. ESTABLISHMENT OF ASSISTANT UNITED STATES TRADE
REPRESENTATIVE FOR SUB-SAHARAN AFRICA.
(a) Establishment.--The President shall establish a
position of Assistant United States Trade Representative
within the Office of the United States Trade Representative
to focus on trade issues relating to sub-Saharan Africa.
(b) Funding and Staff.--The President shall ensure that the
Assistant United States Trade Representative appointed
pursuant to paragraph (1) has adequate funding and staff to
carry out the duties described in paragraph (1) subject to
the availability of appropriations.
SEC. 14. EXPANSION OF THE UNITED STATES AND FOREIGN
COMMERCIAL SERVICE IN SUB-SAHARAN AFRICA.
(a) Sense of the Congress.--It is the sense of the Congress
that the United States and Foreign Commercial Service should
expand its presence in sub-Saharan Africa by increasing the
number of posts and the number of personnel it allocates to
sub-Saharan Africa.
(b) Reporting Requirement.--Not later than 120 days after
the date of the enactment of this Act, the Secretary of
Commerce, in consultation with the Secretary of State, should
report to the Congress on the feasibility of expanding the
presence in sub-Saharan Africa of the United States and
Foreign Commercial Service.
SEC. 15. REPORTING REQUIREMENT.
The President shall submit to the Congress, not later than
1 year after the date of the enactment of this Act, and not
later than the end of each of the next 4 1-year periods
thereafter, a report on the implementation of this Act.
SEC. 16. SUB-SAHARAN AFRICA DEFINED.
For purposes of this Act, the terms ``sub-Saharan Africa'',
``sub-Saharan African country'', ``country in sub-Saharan
Africa'', and ``countries in sub-Saharan Africa'' refer to
the following:
Republic of Angola (Angola)
Republic of Botswana (Botswana)
Republic of Burundi (Burundi)
Republic of Cape Verde (Cape Verde)
Republic of Chad (Chad)
Democratic Republic of Congo
Republic of the Congo (Congo)
Republic of Djibouti (Djibouti)
State of Eritrea (Eritrea)
Gabonese Republic (Gabon)
Republic of Ghana (Ghana)
Republic of Guinea-Bissau (Guinea-Bissau)
Kingdom of Lesotho (Lesotho)
Republic of Madagascar (Madagascar)
[[Page H1060]]
Republic of Mali (Mali)
Republic of Mauritius (Mauritius)
Republic of Namibia (Namibia)
Federal Republic of Nigeria (Nigeria)
Democratic Republic of Sao Tome and Principe (Sao Tome and
Principe)
Republic of Sierra Leone (Sierra Leone)
Somalia
Kingdom of Swaziland (Swaziland)
Republic of Togo (Togo)
Republic of Zimbabwe (Zimbabwe)
Republic of Benin (Benin)
Burkina Faso (Burkina)
Republic of Cameroon (Cameroon)
Central African Republic
Federal Islamic Republic of the Comoros (Comoros)
Republic of Cote d'Ivoire (Cote d'Ivoire)
Republic of Equatorial Guinea (Equatorial Guinea)
Ethiopia
Republic of the Gambia (Gambia)
Republic of Guinea (Guinea)
Republic of Kenya (Kenya)
Republic of Liberia (Liberia)
Republic of Malawi (Malawi)
Islamic Republic of Mauritania (Mauritania)
Republic of Mozambique (Mozambique)
Republic of Niger (Niger)
Republic of Rwanda (Rwanda)
Republic of Senegal (Senegal)
Republic of Seychelles (Seychelles)
Republic of South Africa (South Africa)
Republic of Sudan (Sudan)
United Republic of Tanzania (Tanzania)
Republic of Uganda (Uganda)
Republic of Zambia (Zambia)
SECTION 1. SHORT TITLE.
This Act may be cited as the ``African Growth and
Opportunity Act''.
SEC. 2. FINDINGS.
The Congress finds that it is in the mutual economic
interest of the United States and sub-Saharan Africa to
promote stable and sustainable economic growth and
development in sub-Saharan Africa. To that end, the United
States seeks to facilitate market-led economic growth in, and
thereby the social and economic development of, the countries
of sub-Saharan Africa. In particular, the United States seeks
to assist sub-Saharan African countries, and the private
sector in those countries, to achieve economic self-reliance
by--
(1) strengthening and expanding the private sector in sub-
Saharan Africa, especially women-owned businesses;
(2) encouraging increased trade and investment between the
United States and sub-Saharan Africa;
(3) reducing tariff and nontariff barriers and other trade
obstacles;
(4) expanding United States assistance to sub-Saharan
Africa's regional integration efforts;
(5) negotiating free trade areas;
(6) establishing a United States-Sub-Saharan Africa Trade
and Investment Partnership;
(7) focusing on countries committed to accountable
government, economic reform, and the eradication of poverty;
(8) establishing a United States-Sub-Saharan Africa
Economic Cooperation Forum; and
(9) continuing to support development assistance for those
countries in sub-Saharan Africa attempting to build civil
societies.
SEC. 3. STATEMENT OF POLICY.
The Congress supports economic self-reliance for sub-
Saharan African countries, particularly those committed to--
(1) economic and political reform;
(2) market incentives and private sector growth;
(3) the eradication of poverty; and
(4) the importance of women to economic growth and
development.
SEC. 4. ELIGIBILITY REQUIREMENTS.
(a) In General.--A sub-Saharan African country shall be
eligible to participate in programs, projects, or activities,
or receive assistance or other benefits under this Act if the
President determines that the country does not engage in
gross violations of internationally recognized human rights
and has established, or is making continual progress toward
establishing, a market-based economy, such as the
establishment and enforcement of appropriate policies
relating to--
(1) promoting free movement of goods and services between
the United States and sub-Saharan Africa and among countries
in sub-Saharan Africa;
(2) promoting the expansion of the production base and the
transformation of commodities and nontraditional products for
exports through joint venture projects between African and
foreign investors;
(3) trade issues, such as protection of intellectual
property rights, improvements in standards, testing, labeling
and certification, and government procurement;
(4) the protection of property rights, such as protection
against expropriation and a functioning and fair judicial
system;
(5) appropriate fiscal systems, such as reducing high
import and corporate taxes, controlling government
consumption, participation in bilateral investment treaties,
and the harmonization of such treaties to avoid double
taxation;
(6) foreign investment issues, such as the provision of
national treatment for foreign investors and other measures
to create an environment conducive to domestic and foreign
investment;
(7) supporting the growth of regional markets within a free
trade area framework;
(8) governance issues, such as eliminating government
corruption, minimizing government intervention in the market
such as price controls and subsidies, and streamlining the
business license process;
(9) supporting the growth of the private sector, in
particular by promoting the emergence of a new generation of
African entrepreneurs;
(10) encouraging the private ownership of government-
controlled economic enterprises through divestiture programs;
(11) removing restrictions on investment; and
(12) observing the rule of law, including equal protection
under the law and the right to due process and a fair trial.
(b) Additional Factors.--In determining whether a sub-
Saharan African country is eligible under subsection (a), the
President shall take into account the following factors:
(1) An expression by such country of its desire to be an
eligible country under subsection (a).
(2) The extent to which such country has made substantial
progress toward--
(A) reducing tariff levels;
(B) binding its tariffs in the World Trade Organization and
assuming meaningful binding obligations in other sectors of
trade; and
(C) eliminating nontariff barriers to trade.
(3) Whether such country, if not already a member of the
World Trade Organization, is actively pursuing membership in
that Organization.
(4) Where applicable, the extent to which such country is
in material compliance with its obligations to the
International Monetary Fund and other international financial
institutions.
(5) The extent to which such country has a recognizable
commitment to reducing poverty, increasing the availability
of health care and educational opportunities, the expansion
of physical infrastructure in a manner designed to maximize
accessibility, increased access to market and credit
facilities for small farmers and producers, and improved
economic opportunities for women as entrepreneurs and
employees, and promoting and enabling the formation of
capital to support the establishment and operation of micro-
enterprises.
(6) Whether or not such country engages in activities that
undermine United States national security or foreign policy
interests.
(c) Continuing Compliance.--
(1) Monitoring and review of certain countries.--The
President shall monitor and review the progress of sub-
Saharan African countries in order to determine their current
or potential eligibility under subsection (a). Such
determinations shall be based on quantitative factors to the
fullest extent possible and shall be included in the annual
report required by section 15.
(2) Ineligibility of certain countries.--A sub-Saharan
African country described in paragraph (1) that has not made
continual progress in meeting the requirements with which it
is not in compliance shall be ineligible to participate in
programs, projects, or activities, or receive assistance or
other benefits, under this Act.
(d) Violations of Human Rights and Ineligible Countries.--
It is the sense of the Congress that a sub-Saharan African
country should not be eligible to participate in programs,
projects, or activities, or receive assistance or other
benefits under this Act if the government of that country is
determined by the President to engage in a consistent pattern
of gross violations of internationally recognized human
rights.
SEC. 5. ADDITIONAL AUTHORITIES AND INCREASED FLEXIBILITY TO
PROVIDE ASSISTANCE UNDER THE DEVELOPMENT FUND
FOR AFRICA.
(a) Use of Sustainable Development Assistance To Support
Further Economic Growth.--It is the sense of the Congress
that sustained economic growth in sub-Saharan Africa depends
in large measure upon the development of a receptive
environment for trade and investment, and that to achieve
this objective the United States Agency for International
Development should continue to support programs which help to
create this environment. Investments in human resources,
development, and implementation of free market policies,
including policies to liberalize agricultural markets and
improve food security, and the support for the rule of law
and democratic governance should continue to be encouraged
and enhanced on a bilateral and regional basis.
(b) Declarations of Policy.--The Congress makes the
following declarations:
(1) The Development Fund for Africa established under
chapter 10 of part I of the Foreign Assistance Act of 1961
(22 U.S.C. 2293 et seq.) has been an effective tool in
providing development assistance to sub-Saharan Africa since
1988.
(2) The Development Fund for Africa will complement the
other provisions of this Act and lay a foundation for
increased trade and investment opportunities between the
United States and sub-Saharan Africa.
(3) Assistance provided through the Development Fund for
Africa will continue to support programs and activities that
promote the long term economic development of sub-Saharan
Africa, such as programs and activities relating to the
following:
(A) Strengthening primary and vocational education systems,
especially the acquisition of middle-level technical skills
for operating modern private businesses and the introduction
of college level business education, including the study of
international business, finance, and stock exchanges.
(B) Strengthening health care systems.
(C) Strengthening family planning service delivery systems.
[[Page H1061]]
(D) Supporting democratization, good governance and civil
society and conflict resolution efforts.
(E) Increasing food security by promoting the expansion of
agricultural and agriculture-based industrial production and
productivity and increasing real incomes for poor
individuals.
(F) Promoting an enabling environment for private sector-
led growth through sustained economic reform, privatization
programs, and market-led economic activities.
(G) Promoting decentralization and local participation in
the development process, especially linking the rural
production sectors and the industrial and market centers
throughout Africa.
(H) Increasing the technical and managerial capacity of
sub-Saharan African individuals to manage the economy of sub-
Saharan Africa.
(I) Ensuring sustainable economic growth through
environmental protection.
(4) The African Development Foundation has a unique
congressional mandate to empower the poor to participate
fully in development and to increase opportunities for
gainful employment, poverty alleviation, and more equitable
income distribution in sub-Saharan Africa. The African
Development Foundation has worked successfully to enhance the
role of women as agents of change, strengthen the informal
sector with an emphasis on supporting micro and small sized
enterprises, indigenous technologies, and mobilizing local
financing. The African Development Foundation should develop
and implement strategies for promoting participation in the
socioeconomic development process of grassroots and informal
sector groups such as nongovernmental organizations,
cooperatives, artisans, and traders into the programs and
initiatives established under this Act.
(c) Additional Authorities.--
(1) In general.--Section 496(h) of the Foreign Assistance
Act of 1961 (22 U.S.C. 2293(h)) is amended--
(A) by redesignating paragraph (3) as paragraph (4); and
(B) by inserting after paragraph (2) the following:
``(3) Democratization and conflict resolution
capabilities.--Assistance under this section may also include
program assistance--
``(A) to promote democratization, good governance, and
strong civil societies in sub-Saharan Africa; and
``(B) to strengthen conflict resolution capabilities of
governmental, intergovernmental, and nongovernmental entities
in sub-Saharan Africa.''.
(2) Conforming amendment.--Section 496(h)(4) of such Act,
as amended by paragraph (1), is further amended by striking
``paragraphs (1) and (2)'' in the first sentence and
inserting ``paragraphs (1), (2), and (3)''.
SEC. 6. UNITED STATES-SUB-SAHARAN AFRICA TRADE AND ECONOMIC
COOPERATION FORUM.
(a) Declaration of Policy.--The President shall convene
annual high-level meetings between appropriate officials of
the United States Government and officials of the governments
of sub-Saharan African countries in order to foster close
economic ties between the United States and sub-Saharan
Africa.
(b) Establishment.--Not later than 12 months after the date
of the enactment of this Act, the President, after consulting
with the governments concerned, shall establish a United
States-Sub-Saharan Africa Trade and Economic Cooperation
Forum (hereafter in this section referred to as the
``Forum'').
(c) Requirements.--In creating the Forum, the President
shall meet the following requirements:
(1) The President shall direct the Secretary of Commerce,
the Secretary of the Treasury, the Secretary of State, and
the United States Trade Representative to host the first
annual meeting with the counterparts of such Secretaries from
the governments of sub-Saharan African countries eligible
under section 4, the Secretary General of the Organization of
African Unity, and government officials from other
appropriate countries in Africa, to discuss expanding trade
and investment relations between the United States and sub-
Saharan Africa and the implementation of this Act.
(2)(A) The President, in consultation with the Congress,
shall encourage United States nongovernmental organizations
to host annual meetings with nongovernmental organizations
from sub-Saharan Africa in conjunction with the annual
meetings of the Forum for the purpose of discussing the
issues described in paragraph (1).
(B) The President, in consultation with the Congress, shall
encourage United States representatives of the private sector
to host annual meetings with representatives of the private
sector from sub-Saharan Africa in conjunction with the annual
meetings of the Forum for the purpose of discussing the
issues described in paragraph (1).
(3) The President shall, to the extent practicable, meet
with the heads of governments of sub-Saharan African
countries eligible under section 4 not less than once every
two years for the purpose of discussing the issues described
in paragraph (1). The first such meeting should take place
not later than twelve months after the date of the enactment
of this Act.
(d) Dissemination of Information by USIA.--In order to
assist in carrying out the purposes of the Forum, the United
States Information Agency shall disseminate regularly,
through multiple media, economic information in support of
the free market economic reforms described in this Act.
(e) Authorization of Appropriations.--There are authorized
to be appropriated such sums as may be necessary to carry out
this section.
(f) Limitation on Use of Funds.--None of the funds
authorized under this section may be used to create or
support any nongovernmental organization for the purpose of
expanding or facilitating trade between the United States and
sub-Saharan Africa.
SEC. 7. UNITED STATES-SUB-SAHARAN AFRICA FREE TRADE AREA.
(a) Declaration of Policy.--The Congress declares that a
United States-Sub-Saharan Africa Free Trade Area should be
established, or free trade agreements should be entered into,
in order to serve as the catalyst for increasing trade
between the United States and sub-Saharan Africa and
increasing private sector development in sub-Saharan Africa.
(b) Plan Requirement.--
(1) In general.--The President, taking into account the
provisions of the treaty establishing the African Economic
Community and the willingness of the governments of sub-
Saharan African countries to engage in negotiations to enter
into free trade agreements, shall develop a plan for the
purpose of entering into one or more trade agreements with
sub-Saharan African countries eligible under section 4 in
order to establish a United States-Sub-Saharan Africa Free
Trade Area (hereafter in this section referred to as the
``Free Trade Area'').
(2) Elements of plan.--The plan shall include the
following:
(A) The specific objectives of the United States with
respect to the establishment of the Free Trade Area and a
suggested timetable for achieving those objectives.
(B) The benefits to both the United States and sub-Saharan
Africa with respect to the Free Trade Area.
(C) A mutually agreed-upon timetable for establishing the
Free Trade Area.
(D) The implications for and the role of regional and sub-
regional organizations in sub-Saharan Africa with respect to
the Free Trade Area.
(E) Subject matter anticipated to be covered by the
agreement for establishing the Free Trade Area and United
States laws, programs, and policies, as well as the laws of
participating eligible African countries and existing
bilateral and multilateral and economic cooperation and
trade agreements, that may be affected by the agreement or
agreements.
(F) Procedures to ensure the following:
(i) Adequate consultation with the Congress and the private
sector during the negotiation of the agreement or agreements
for establishing the Free Trade Area.
(ii) Consultation with the Congress regarding all matters
relating to implementation of the agreement or agreements.
(iii) Approval by the Congress of the agreement or
agreements.
(iv) Adequate consultations with the relevant African
governments and African regional and subregional
intergovernmental organizations during the negotiations of
the agreement or agreements.
(c) Reporting Requirement.--Not later than 12 months after
the date of the enactment of this Act, the President shall
prepare and transmit to the Congress a report containing the
plan developed pursuant to subsection (b).
SEC. 8. ELIMINATING TRADE BARRIERS AND ENCOURAGING EXPORTS.
(a) Findings.--The Congress makes the following findings:
(1) The lack of competitiveness of sub-Saharan Africa in
the global market, especially in the manufacturing sector,
make it a limited threat to market disruption and no threat
to United States jobs.
(2) Annual textile and apparel exports to the United States
from sub-Saharan Africa represent less than 1 percent of all
textile and apparel exports to the United States, which
totaled $45,932,000,000 in 1996.
(3) Sub-Saharan Africa has limited textile manufacturing
capacity. During 1998 and the succeeding 4 years, this
limited capacity to manufacture textiles and apparel is
projected to grow at a modest rate. Given this limited
capacity to export textiles and apparel, it will be very
difficult for these exports from sub-Saharan Africa, during
1998 and the succeeding 9 years, to exceed 3 percent annually
of total imports of textile and apparel to the United States.
If these exports from sub-Saharan Africa remain around 3
percent of total imports, they will not represent a threat to
United States workers, consumers, or manufacturers.
(b) Sense of the Congress.--It is the sense of the Congress
that--
(1) it would be to the mutual benefit of the countries in
sub-Saharan Africa and the United States to ensure that the
commitments of the World Trade Organization and associated
agreements are faithfully implemented in each of the member
countries, so as to lay the groundwork for sustained growth
in textile and apparel exports and trade under agreed rules
and disciplines;
(2) reform of trade policies in sub-Saharan Africa with the
objective of removing structural impediments to trade,
consistent with obligations under the World Trade
Organization, can assist the countries of the region in
achieving greater and greater diversification
[[Page H1062]]
of textile and apparel export commodities and products and
export markets; and
(3) the President should support textile and apparel trade
reform in sub-Saharan Africa by, among other measures,
providing technical assistance, sharing of information to
expand basic knowledge of how to trade with the United
States, and encouraging business-to-business contacts with
the region.
(c) Treatment of Quotas.--
(1) Kenya and mauritius.--Pursuant to the Agreement on
Textiles and Clothing, the United States shall eliminate the
existing quotas on textile and apparel exports to the United
States--
(A) from Kenya within 30 days after that country adopts an
efficient visa system to guard against unlawful transshipment
of textile and apparel goods and the use of counterfeit
documents; and
(B) from Mauritius within 30 days after that country adopts
such a visa system.
The Customs Service shall provide the necessary technical
assistance to Kenya and Mauritius in the development and
implementation of those visa systems.
(2) Other sub-saharan countries.--The President shall
continue the existing no quota policy for countries in sub-
Saharan Africa. The President shall submit to the Congress,
not later than March 31 of each year, a report on the growth
in textiles and apparel exports to the United States from
countries in sub-Saharan Africa in order to protect United
States consumers, workers, and textile manufacturers from
economic injury on account of the no quota policy.
(d) Customs Procedures and Enforcement.--
(1) Actions by countries against transshipment and
circumvention.--The President should ensure that any country
in sub-Saharan Africa that intends to export textile and
apparel goods to the United States--
(A) has in place a functioning and effective visa system
and domestic laws and enforcement procedures to guard against
unlawful transshipment of textile and apparel goods and the
use of counterfeit documents; and
(B) will cooperate fully with the United States to address
and take action necessary to prevent circumvention, as
provided in Article 5 of the Agreement on Textiles and
Clothing.
(2) Penalties against exporters.--If the President
determines, based on sufficient evidence, that an exporter
has willfully falsified information regarding the country of
origin, manufacture, processing, or assembly of a textile or
apparel article for which duty-free treatment under section
503(a)(1)(C) of the Trade Act of 1974 is claimed, then the
President shall deny to such exporter, and any successors of
such exporter, for a period of 2 years, duty-free treatment
under such section for textile and apparel articles.
(3) Applicability of united states laws and procedures.--
All provisions of the laws, regulations, and procedures of
the United States relating to the denial of entry of articles
or penalties against individuals or entities for engaging in
illegal transshipment, fraud, or other violations of the
customs laws shall apply to imports from Sub-Saharan
countries.
(4) Monitoring and reports to congress.--The Customs
Service shall monitor and the Commissioner of Customs shall
submit to the Congress, not later than March 31 of each year,
a report on the effectiveness of the visa systems described
in subsection (c)(1) and paragraph (1) of this subsection and
on measures taken by countries in Sub-Saharan Africa which
export textiles or apparel to the United States to prevent
circumvention as described in Article 5 of the Agreement on
Textiles and Clothing.
(e) Definition.--For purposes of this section, the term
``Agreement on Textiles and Clothing'' means the Agreement on
Textiles and Clothing referred to in section 101(d)(4) of the
Uruguay Round Agreements Act (19 U.S.C. 3511(d)(4)).
SEC. 9. GENERALIZED SYSTEM OF PREFERENCES.
(a) Preferential Tariff Treatment for Certain Articles.--
Section 503(a)(1) of the Trade Act of 1974 (19 U.S.C.
2463(a)(1)) is amended--
(1) by redesignating subparagraph (C) as subparagraph (D);
and
(2) by inserting after subparagraph (B) the following:
``(C) Eligible countries in sub-saharan africa.--The
President may provide duty-free treatment for any article set
forth in paragraph (1) of subsection (b) that is the growth,
product, or manufacture of an eligible country in sub-Saharan
Africa that is a beneficiary developing country, if, after
receiving the advice of the International Trade Commission in
accordance with subsection (e), the President determines that
such article is not import-sensitive in the context of
imports from eligible countries in sub-Saharan Africa. This
subparagraph shall not affect the designation of eligible
articles under subparagraph (B).''.
(b) Rules of Origin.--Section 503(a)(2) of the Trade Act of
1974 (19 U.S.C. 2463(a)(2)) is amended by adding at the end
the following:
``(C) Eligible countries in sub-saharan africa.--For
purposes of determining the percentage referred to in
subparagraph (A) in the case of an article of an eligible
country in sub-Saharan Africa that is a beneficiary
developing country--
``(i) if the cost or value of materials produced in the
customs territory of the United States is included with
respect to that article, an amount not to exceed 15 percent
of the appraised value of the article at the time it is
entered that is attributed to such United States cost or
value may be applied toward determining the percentage
referred to in subparagraph (A); and
``(ii) the cost or value of the materials included with
respect to that article that are produced in any beneficiary
developing country that is an eligible country in sub-Saharan
Africa shall be applied in determining such percentage.''.
(c) Waiver of Competitive Need Limitation.--Section
503(c)(2)(D) of the Trade Act of 1974 (19 U.S.C.
2463(c)(2)(D)) is amended to read as follows:
``(D) Least-developed beneficiary developing countries and
eligible countries in sub-saharan africa.--Subparagraph (A)
shall not apply to any least-developed beneficiary developing
country or any eligible country in sub-Saharan Africa.''.
(d) Extension of Program.--Section 505 of the Trade Act of
1974 (19 U.S.C. 2465) is amended to read as follows:
``SEC. 505. DATE OF TERMINATION.
``(a) Countries in Sub-Saharan Africa.--No duty-free
treatment provided under this title shall remain in effect
after June 30, 2008, with respect to beneficiary developing
countries that are eligible countries in sub-Saharan Africa.
``(b) Other Countries.--No duty-free treatment provided
under this title shall remain in effect after June 30, 1998,
with respect to beneficiary developing countries other than
those provided for in subsection (a).''.
(e) Definition.--Section 507 of the Trade Act of 1974 (19
U.S.C. 2467) is amended by adding at the end the following:
``(6) Eligible country in sub-saharan africa.--The terms
`eligible country in sub-Saharan Africa' and `eligible
countries in sub-Saharan Africa' mean a country or countries
that the President has determined to be eligible under
section 4 of the African Growth and Opportunity Act.''.
(f) Effective Date.--The amendments made by this section
take effect on July 1, 1998.
SEC. 10. INTERNATIONAL FINANCIAL INSTITUTIONS AND DEBT
REDUCTION.
(a) Better Mechanisms To Further Goals for Sub-Saharan
Africa.--It is the sense of the Congress that the Secretary
of the Treasury should instruct the United States Executive
Directors of the International Bank for Reconstruction and
Development, the International Monetary Fund, and the African
Development Bank to use the voice and votes of the Executive
Directors to encourage vigorously their respective
institutions to develop enhanced mechanisms which further the
following goals in eligible countries in sub-Saharan Africa:
(1) Strengthening and expanding the private sector,
especially among women-owned businesses.
(2) Reducing tariffs, nontariff barriers, and other trade
obstacles, and increasing economic integration.
(3) Supporting countries committed to accountable
government, economic reform, the eradication of poverty, and
the building of civil societies.
(4) Supporting deep debt reduction at the earliest possible
date with the greatest amount of relief for eligible poorest
countries under the ``Heavily Indebted Poor Countries''
(HIPC) debt initiative.
(b) Sense of Congress.--It is the sense of the Congress
that relief provided to countries in sub-Saharan Africa which
qualify for the Heavily Indebted Poor Countries debt
initiative should primarily be made through grants rather
than through extended-term debt, and that interim relief or
interim financing should be provided for eligible countries
that establish a strong record of macroeconomic reform.
(c) Executive Branch Initiatives.--The Congress supports
and encourages the implementation of the following
initiatives of the executive branch:
(1) American-african business partnership.--The Agency for
International Development devoting up to $1,000,000 annually
to help catalyze relationships between United States firms
and firms in sub-Saharan Africa through a variety of business
associations and networks.
(2) Technical assistance to promote reforms.--The Agency
for International Development providing up to $5,000,000
annually in short-term technical assistance programs to help
the governments of sub-Saharan African countries to--
(A) liberalize trade and promote exports;
(B) bring their legal regimes into compliance with the
standards of the World Trade Organization in conjunction with
membership in that Organization; and
(C) make financial and fiscal reforms, as well as the
United States Department of Agriculture providing support to
promote greater agribusiness linkages.
(3) Agricultural market liberalization.--The Agency for
International Development devoting up to $15,000,000 annually
as part of the multi-year Africa Food Security Initiative to
help address such critical agricultural policy issues as
market liberalization, agricultural export development, and
agribusiness investment in processing and transporting
agricultural commodities.
(4) Trade promotion.--The Trade Development Agency
increasing the number of reverse trade missions to growth-
oriented countries in sub-Saharan Africa.
[[Page H1063]]
(5) Trade in services.--Efforts by United States embassies
in the countries in sub-Saharan Africa to encourage their
host governments--
(A) to participate in the ongoing negotiations on financial
services in the World Trade Organization;
(B) to revise their existing schedules to the General
Agreement on Trade in Services of the World Trade
Organization in light of the successful conclusion of
negotiations on basic telecommunications services; and
(C) to make further commitments in their schedules to the
General Agreement on Trade in Services in order to encourage
the removal of tariff and nontariff barriers and to foster
competition in the services sector in those countries.
SEC. 11. SUB-SAHARAN AFRICA EQUITY AND INFRASTRUCTURE FUNDS.
(a) Initiation of Funds.--It is the sense of the Congress
that the Overseas Private Investment Corporation should,
within 12 months after the date of the enactment of this Act,
exercise the authorities it has to initiate 2 or more equity
funds in support of projects in the countries in sub-Saharan
Africa.
(b) Structure and Types of Funds.--
(1) Structure.--Each fund initiated under subsection (a)
should be structured as a partnership managed by professional
private sector fund managers and monitored on a continuing
basis by the Corporation.
(2) Capitalization.--Each fund should be capitalized with a
combination of private equity capital, which is not
guaranteed by the Corporation, and debt for which the
Corporation provides guaranties.
(3) Types of funds.--
(A) Equity fund for sub-saharan africa.--One of the funds
should be an equity fund, with assets of up to $150,000,000,
the primary purpose of which is to achieve long-term capital
appreciation through equity investments in support of
projects in countries in sub-Saharan Africa.
(B) Infrastructure fund.--One or more of the funds, with
combined assets of up to $500,000,000, should be used in
support of infrastructure projects in countries of sub-
Saharan Africa. The primary purpose of any such fund would be
to achieve long-term capital appreciation through investing
in financing for infrastructure projects in sub-Saharan
Africa, including for the expansion of businesses in sub-
Saharan Africa, restructurings, management buyouts and
buyins, businesses with local ownership, and
privatizations.
(4) Emphasis.--The Corporation shall ensure that the funds
are used to provide support in particular to women
entrepreneurs and to innovative investments that expand
opportunities for women and maximize employment opportunities
for poor individuals.
SEC. 12. OVERSEAS PRIVATE INVESTMENT CORPORATION AND EXPORT-
IMPORT BANK INITIATIVES.
(a) Overseas Private Investment Corporation.--
(1) Advisory committee.--Section 233 of the Foreign
Assistance Act of 1961 is amended by adding at the end the
following:
``(e) Advisory Committee.--The Board shall take prompt
measures to increase the loan, guarantee, and insurance
programs, and financial commitments, of the Corporation in
sub-Saharan Africa, including through the establishment and
use of an advisory committee to assist the Board in
developing and implementing policies, programs, and financial
instruments with respect to sub-Saharan Africa. In addition,
the advisory committee shall make recommendations to the
Board on how the Corporation can facilitate greater support
by the United States for trade and investment with and in
sub-Saharan Africa. The advisory committee shall terminate 4
years after the date of the enactment of this subsection.''.
(2) Reports to the congress.--Within 6 months after the
date of the enactment of this Act, and annually for each of
the 4 years thereafter, the Board of Directors of the
Overseas Private Investment Corporation shall submit to the
Congress a report on the steps that the Board has taken to
implement section 233(e) of the Foreign Assistance Act of
1961 (as added by paragraph (1)) and any recommendations of
the advisory board established pursuant to such section.
(b) Export-Import Bank.--
(1) Advisory committee for sub-saharan africa.--Section
2(b) of the Export-Import Bank Act of 1945 (12 U.S.C. 635(b))
is amended by inserting after paragraph (12) the following:
``(13)(A) The Board of Directors of the Bank shall take
prompt measures, consistent with the credit standards
otherwise required by law, to promote the expansion of the
Bank's financial commitments in sub-Saharan Africa under the
loan, guarantee, and insurance programs of the Bank.
``(B)(i) The Board of Directors shall establish and use an
advisory committee to advise the Board of Directors on the
development and implementation of policies and programs
designed to support the expansion described in subparagraph
(A).
``(ii) The advisory committee shall make recommendations to
the Board of Directors on how the Bank can facilitate greater
support by United States commercial banks for trade with sub-
Saharan Africa.
``(iii) The advisory committee shall terminate 4 years
after the date of the enactment of this subparagraph.''.
(2) Reports to the congress.--Within 6 months after the
date of the enactment of this Act, and annually for each of
the 4 years thereafter, the Board of Directors of the Export-
Import Bank of the United States shall submit to the Congress
a report on the steps that the Board has taken to implement
section 2(b)(13)(B) of the Export-Import Bank Act of 1945 (as
added by paragraph (1)) and any recommendations of the
advisory committee established pursuant to such section.
SEC. 13. ESTABLISHMENT OF ASSISTANT UNITED STATES TRADE
REPRESENTATIVE FOR SUB-SAHARAN AFRICA.
(a) Establishment.--The President shall establish a
position of Assistant United States Trade Representative
within the Office of the United States Trade Representative
to focus on trade issues relating to sub-Saharan Africa.
(b) Funding and Staff.--The President shall ensure that the
Assistant United States Trade Representative appointed
pursuant to subsection (a) has adequate funding and staff to
carry out the duties described in subsection (a).
SEC. 14. EXPANSION OF THE UNITED STATES AND FOREIGN
COMMERCIAL SERVICE IN SUB-SAHARAN AFRICA.
(a) Sense of the Congress.--It is the sense of the Congress
that the United States and Foreign Commercial Service should
expand its presence in sub-Saharan Africa by increasing the
number of posts and the number of personnel it allocates to
sub-Saharan Africa.
(b) Reporting Requirement.--Not later than 120 days after
the date of the enactment of this Act, the Secretary of
Commerce, in consultation with the Secretary of State, should
report to the Congress on the feasibility of expanding the
presence in sub-Saharan Africa of the United States and
Foreign Commercial Service.
SEC. 15. REPORTING REQUIREMENT.
The President shall submit to the Congress, not later than
1 year after the date of the enactment of this Act, and not
later than the end of each of the next 4 1-year periods
thereafter, a report on the implementation of this Act.
SEC. 16. SUB-SAHARAN AFRICA DEFINED.
For purposes of this Act, the terms ``sub-Saharan Africa'',
``sub-Saharan African country'', ``country in sub-Saharan
Africa'', and ``countries in sub-Saharan Africa'' refer to
the following:
Republic of Angola (Angola)
Republic of Botswana (Botswana)
Republic of Burundi (Burundi)
Republic of Cape Verde (Cape Verde)
Republic of Chad (Chad)
Democratic Republic of Congo
Republic of the Congo (Congo)
Republic of Djibouti (Djibouti)
State of Eritrea (Eritrea)
Gabonese Republic (Gabon)
Republic of Ghana (Ghana)
Republic of Guinea-Bissau (Guinea-Bissau)
Kingdom of Lesotho (Lesotho)
Republic of Madagascar (Madagascar)
Republic of Mali (Mali)
Republic of Mauritius (Mauritius)
Republic of Namibia (Namibia)
Federal Republic of Nigeria (Nigeria)
Democratic Republic of Sao Tome and Principe (Sao Tome and
Principe)
Republic of Sierra Leone (Sierra Leone)
Somalia
Kingdom of Swaziland (Swaziland)
Republic of Togo (Togo)
Republic of Zimbabwe (Zimbabwe)
Republic of Benin (Benin)
Burkina Faso (Burkina)
Republic of Cameroon (Cameroon)
Central African Republic
Federal Islamic Republic of the Comoros (Comoros)
Republic of Cote d'Ivoire (Cote d'Ivoire)
Republic of Equatorial Guinea (Equatorial Guinea)
Ethiopia
Republic of the Gambia (Gambia)
Republic of Guinea (Guinea)
Republic of Kenya (Kenya)
Republic of Liberia (Liberia)
Republic of Malawi (Malawi)
Islamic Republic of Mauritania (Mauritania)
Republic of Mozambique (Mozambique)
Republic of Niger (Niger)
Republic of Rwanda (Rwanda)
Republic of Senegal (Senegal)
Republic of Seychelles (Seychelles)
Republic of South Africa (South Africa)
Republic of Sudan (Sudan)
United Republic of Tanzania (Tanzania)
Republic of Uganda (Uganda)
Republic of Zambia (Zambia)
SEC. 17. CLARIFICATION OF DEDUCTION FOR SEVERANCE PAY.
(a) In General.--Section 404(a) of the Internal Revenue
Code of 1986 (relating to deduction for contributions of an
employer to an employee's trust or annuity plan and
compensation under a deferred-payment plan) is amended by
adding at the end the following new paragraph:
``(11) Determinations relating to severance pay.--For
purposes of determining under this section--
``(A) whether severance pay is deferred compensation, and
``(B) when severance pay is paid,
no amount shall be treated as received by the employee, or
paid, until it is actually received by the employee.''
(b) Effective Date.--
(1) In general.--The amendment made by subsection (a) shall
apply to taxable years ending after October 8, 1997.
(2) Change in method of accounting.--In the case of any
taxpayer required by the amendment made by subsection (a) to
[[Page H1064]]
change its method of accounting for its first taxable year
ending after October 8, 1997--
(A) such change shall be treated as initiated by the
taxpayer,
(B) such change shall be treated as made with the consent
of the Secretary of the Treasury, and
(C) the net amount of the adjustments required to be taken
into account by the taxpayer under section 481 of the
Internal Revenue Code of 1986 shall be taken into account in
such first taxable year.
The CHAIRMAN. No amendment to the committee amendment in the nature
of a substitute will be in order except those printed in Part II of
House Report 105-431. Each amendment may be offered only in the order
printed in the report, may be offered only by a Member designated in
the report, shall be considered as read, debatable for the time
specified in the report, equally divided and controlled by the
proponent and an opponent, and shall not be subject to amendment.
The Chairman of the Committee of the Whole may postpone a request for
a recorded vote on any amendment and may reduce to a minimum of 5
minutes the time for voting on any postponed question that immediately
follows another vote, provided that the time for voting on the first
question shall be a minimum of 15 minutes.
{time} 1430
It is now in order to consider amendment No. 1 printed in Part II of
House Report 105-431.
Amendment No. 1 Offered by Mrs. Linda Smith of Washington
Mrs. LINDA SMITH of Washington. Mr. Chairman, I offer an amendment.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:
Amendment No. 1 offered by Mrs. Linda Smith of Washington:
In subsection (b) of section 4 (Eligibility Requirements),
redesignate paragraph (6) as paragraph (7) and insert after
paragraph (5) the following:
(6) Whether or not such country is cooperating with the
United States in efforts to eliminate slavery in Africa.
The CHAIRMAN. Pursuant to House Resolution 383, the gentlewoman from
Washington (Mrs. Linda Smith) and a Member opposed, each will control 5
minutes.
The Chair recognizes the gentlewoman from Washington (Mrs. Linda
Smith).
Mrs. LINDA SMITH of Washington. Mr. Chairman, I yield myself such
time as I may consume.
I would first like to thank the gentleman from Illinois (Mr. Crane)
for his consideration of this amendment which is also cosponsored by
the gentleman from New Jersey (Mr. Payne) and the gentleman from
Virginia (Mr. Wolf).
The Africa Growth and Opportunity Act already has in place specific
eligibility requirements, and I am encouraged that certain protections
for human rights are involved and in place in the bill. However, one
condition is missing: ensuring the freedom of African people who are
daily threatened by slavery.
Today is March 11, 1998. Today, in America, we breathe freedom, but
today, right now today in Africa, innocent men, women and children are
violently pulled from their families by Arab slave raiders. One
Sudanese woman witnessed all five of her children, late last year, tied
to horses and screaming as they were taken away.
Today, this amendment sends a strong message from this Congress that
we will not turn a blind eye to this grieving mother or to these
people. The value and dignity of all people in all nations will be
honored and protected.
Trade recognizes the value and worth of another nation's economy, an
economy built and sustained by the sweat and toil of its citizens. To
advance trade without advancing the rights of a nation's citizens
rejects the principles of liberty and justice.
Let us resolve today, by passing this amendment, that human rights
and trade are bound together and can advance the global cause of
freedom. We must not veil freedom's light with the shadow of slavery.
Mr. Chairman, I reserve the balance of my time.
Mr. ROYCE. Mr. Chairman, I am not opposed to the amendment, and I do
not see any Member seeking to oppose the amendment. I ask unanimous
consent to control the time.
The CHAIRMAN. Is there objection to the request of the gentleman from
California?
There was no objection.
The CHAIRMAN. The gentleman from California (Mr. Royce) is recognized
for 5 minutes.
Mr. ROYCE. Mr. Chairman, I support this amendment, and I yield to the
gentlewoman from Washington (Mrs. Linda Smith).
Mrs. LINDA SMITH of Washington. Mr. Chairman, there seems to be no
problem with this amendment. Our State Department has said that there
is a problem with slavery, and they have also stated we cannot allow
countries to continue this practice.
I would also like to submit for the Record an article from the
Chicago Tribune which illustrates how important this amendment is.
[From the Chicago Tribune, Feb. 22, 1998]
Trafficking In Humans; Fed By A 14-Year-Old Civil War, Slave Trade
Thrives In Sudan
(By Karin Davies)
Madhol, Sudan.--Stacks of money pass from the Christian
foreigner to the Muslim trader, an exchange anxiously watched
by a 13-year-old girl with diamonds of sweat on her brow.
The Sudanese trader, his lap buried by currency worth
$13,200, waves carelessly to free his merchandise--132
slaves.
Akuac Malong, the young Dinka girl, is among them. She has
spent seven years--more than half her life--enslaved by an
Arab in northern Sudan.
Her brilliant smile belies the beatings, near-starvation,
mutilation and attempted brainwashing she endured. ``I
thought it would be better to die than to reman a slave,''
Akuac says.
Trafficking in humans has resurged with civil war in
Africa's largest and poorest country, said John Eibner of
Christian Solidarity International, a humanitarian group that
brought Akuac's freedom.
For all but a decade since Sudan's independence in 1956,
southern rebels, mainly black Christians and followers of
tribal religions, have fought for autonomy from the national
government in Khartoum, which is dominated by northern Arabs.
The southerners believe the north is trying to impose Islam
and the Arabic language and to monopolize Sudan's wealth.
Since the rebellion resumed 14 years ago, fighting, famine
and disease have killed an estimated 1.5 million Sudanese--
more than died in the genocides and civil wars in Rwanda or
Bosnia. More than 3 million people have fled or been forced
from their homes.
Much of the fighting on the government side is done by
local militias. Unpaid, their bounty is as old as war
itself--slaves. Sudan's radical Islamic leaders encourage
soldiers to take slaves as their compensation, according
United Nations investigators and the U.S. State Department.
Young women and children are the most valuable war booty.
Eibner said old people are beaten and robbed while young men
are killed because they cannot be trained into useful,
harmless slaves.
``According to the Khartoum's regime ideology of jihad,
members of this resistant black African community--be they
men, women or children--are infidels, and may be arbitrarily
killed, enslaved, looted or otherwise abused,'' Eibner said.
The Sudanese government denies condoning slavery, insisting
the practice persists because holding prisoners for ransom is
a tradition rooted in tribal disputes.
No side has a claim on morality in this war. The rebel
Sudan People's Liberation Army has been accused of forcibly
inducting teenage boys into its ragtag army. But the southern
blacks do not take Arab prisoners for slaves.
Paul Malong Awan, a regional rebel commander, said
enslavement is a government tactic to weaken the morale and
military might of the south.
Many of the blacks taken away are Dinkas, a million-member
tribe that is the biggest ethnic group in southern Sudan.
Dinkas are vulnerable because they predominate in northern
Bahr el Ghazal, a region that is close to the front between
north and south.
Christian Solidarity International estimates tens of
thousands of black slaves are owned by Arabs in northern
Sudan. The Swiss-based charity has made more than a dozen
risky, clandestine bush flights to southern Sudan to redeem
800 slaves since 1995, most recently in Madhol, 720 miles
southwest of Khartoum.
Some criticize its work.
Alex de Waal, of the London-based group African Rights,
said that by paying large sums to free slaves, the Swiss
charity undercuts Dinkas living in the north who do the same
secretive work for a fraction of the cost.
Eibner countered: ``There is no evidence to suggest that
our work has undermined efforts to redeem abducted women and
children. In fact, Dinka elders encourage us to press ahead
with our activities.''
Gaspar Biro, a researcher for the UN Commission on Human
Rights for Sudan, has cited ``an alarming increase'' in
``cases of slavery, servitude, slave trade and forced labor''
since February 1994.
``The total passivity of the government can only be
regarded as tacit political approval
[[Page H1065]]
and support of the institution of slavery,'' he said.
A U.S. State Department report said accounts it received on
the taking of slaves in the south ``indicates the direct and
general involvement'' of Sudan's army and militias ``backed
by the government.''
The centuries-old tensions between Arabs and blacks in
Sudan are linked to slaving expeditions by Arabs to the upper
Nile, a trade that the 19th Century explorer David
Livingstone called ``an open sore on the world.''
Akuac's mother, Abuong Malong, sobs when she sees her
daughter for the first time in seven years. ``It's like she's
been born again.''
She recognizes her only from her straight, square teeth.
``She was very small when she was taken, her features have
changed, but she came back with the same spirit.''
Recalling that traumatic day, Abuong Malong says they were
fetching water when Arab militiamen on camels and horses
thundered into their village, Rumalong. The raiders began
shooting at the clusters of mud and wattle huts and rounding
up cows and goats.
``I was running with Akuac for the trees when a horseman
grabbed her,'' Abuong Malong says. ``I was afraid that if I
chased the horseman, he would kill me.''
Akuac and her older brother were tied to horsebacks and
taken north with more than a dozen others from their village,
a short walk southeast of Madhol. The women and older
children had to carry the booty of their captors.
In Kordofan, Akuac was sold to an Arab who made her wash
clothes, haul water, gather firewood and help with cooking.
She survived on table scraps, and slept in the kitchen.
``I was badly treated,'' Akuac says.
Her master also tried to make her a Muslim--taking her to
mosque and giving her the Arabic name of Fatima.
But Akuac says she maintained her Christian faith, praying
and singing hymns in secret and never forgetting her true
name. ``My name is my name and nobody can change that.''
She does bear scars--in the local Muslim tradition, she was
forcibly circumcised with her master's daughters when she was
11.
``It was very brutal. It is strange to our culture,'' Akuac
says. ``The master told me, `If I don't circumcise you, I
will have to kill you because you will still hold the ideas
of your people, and you will try to escape.' ''
Her heart is scarred, too. Her older brother, Makol, was
killed two years ago at age 13 while trying to escape.
Another returnee, Akec Kwol Kiir, who is in her 40s, says
she was repeatedly raped by four soldiers who took her north.
She ended up in a camp where slaves were bought and sold.
``They treated us like cattle,'' she says.
Her Arab master insisted that she, too, be circumcised. She
refused, and was brutally slashed. Her ear is notched and her
chin and neck scarred.
Kwol finally submitted. ``Otherwise, they would have killed
me. Because I was a slave, they had the right to do whatever
they wanted to me,'' she says.
Akuac and Kwol have been brought back to Madhol along with
130 other former slaves by a trader who calls himself Ahmed
el-Noor Bashir.
Slipping into a cowhide-strung chair beneath a shade tree,
the 27-year-old dressed in a fine white cotton robe and a
close-fitting embroidered cap denies he rescues slaves for
the money.
``To others it may seem 6.6 million Sudanese pounds
($13,200) is a lot of money. But how can you put a price on
human life? I do it for humanitarian reasons, not for the
money,'' he says.
``My father is Arab but my mother is Dinka. When I see my
mother's people are suffering, I must do something.''
But many families among the Dinka, particularly those who
also lose cattle and crops to raiders, cannot afford Bashir's
price--five cows or the equivalent of $100 in cash for each
slave returned.
He says he rescues slaves by buying some from owners, takes
others from wives jealous of their husbands' concubines, and
protects escapees who seek him out.
Though Bashir insists he loses money, he flaunts the
Sudanese signs of wealth--on his feet are tasseled, leather
loafers, on his wrist a Casio watch, in his hand a shortwave
radio.
Eibner says he doesn't begrudge the trader his money. ``If
this man is caught, he's a dead man.''
For that reason, the slave caravan traveled only by the
light of a melon slice of moon to reach Madhol.
The three-night walk wearied the 132 freed women and
children. Infants of Arab fathers were carried on their raped
mother's backs.
Years of abuse are written in bruises and scars on their
long, dust-caked limbs. Some wear tattered rags; others are
naked.
Yet Akuac's joy at freedom beams from her animated face and
chocolately eyes. She sings a song of praise for the Sudan
People's Liberation Army and dances with family and friends
to the twangs of a homemade, stringed rababa.
The first Sunday after her release. Akuac worships beneath
a tree with a crucifix nailed to the trunk. Roman Catholic
hymns are sung to the beat of drums and the mewling of
infants.
On Monday, she goes to school--but is clearly bewildered as
other children practice writing letters in the dirt with
sticks and add up four-digit figures.
``I'll have to catch up,'' she says.
Mr. ROYCE. Mr. Chairman, I yield back the balance of my time.
Mrs. LINDA SMITH of Washington. Mr. Chairman, I yield back the
balance of my time.
The CHAIRMAN. The question is on the amendment offered by the
gentlewoman from Washington (Mrs. Linda Smith).
The amendment was agreed to.
The CHAIRMAN. It is now in order to consider amendment No. 2 printed
in part II of House Report 105-431.
Amendment No. 2 Offered by Ms. Waters
Ms. WATERS. Mr. Chairman, I offer an amendment.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:
Amendment No. 2 offered by Ms. Waters:
In subsection (a) of section 4 (Eligibility Requirements),
insert after paragraph (12) the following:
A country need not meet all the requirements set forth in
paragraphs (1) through (12) in order to be eligible under
this subsection.
The CHAIRMAN. Pursuant to House Resolution 383, the gentlewoman from
California (Ms. Waters) and a Member opposed each will control 10
minutes.
The Chair recognizes the gentlewoman from California (Ms. Waters).
Ms. WATERS. Mr. Chairman, I yield myself such time as I may consume.
I rise today to present several amendments. This is one of three
amendments. I rise today to present these amendments in an attempt to
answer some of the concerns that have been raised about this bill.
I take this opportunity to say that I am deeply respectful of all who
have spoken on the bill. I am deeply respectful of the proponents and
the opponents of the Africa Growth and Opportunity Act. It is incumbent
upon those of us who have identified concerns with this bill to not
only try to make it a better bill, but to acknowledge that none of us
are right on this bill.
Some of us have advanced this bill as the best thing that could ever
happen for Africa. While I wish that was true, it is not necessarily
true. And for others, who have condemned this as the worst thing that
could have ever happened, that is not true either.
What we have, I think, is an attempt by those of us who care about
Africa to try to advance something that will lead us to a trade
agreement.
I think all of the Members of this House who are involved in this
legislation would like to get to the point where we can do a good trade
bill. We differ on what the guiding policy should be to get to that
point. Some Members think that everything in this bill is good and
should be embraced. I am one who believes that there are some things in
the bill that are unnecessary, that may be harmful and need to be dealt
with. I take this opportunity to try to deal with some of this in
amendments.
My first amendment is a very simple amendment that says, no country
would be forced to have to comply with all of the requirements of this
bill. This underscores the flexibility of the President to take a look
at countries and make some determination about whether or not they are
in compliance with some things, whether or not they are working toward
compliance, whether or not they are making progress, whether or not
they are, in fact, acting in good faith despite the fact they do not
meet all of the strict requirements. When I talked with the proponents
of this bill, they said to me, that was the intent of the bill. I said
to them, that was not clear. As I looked at the laundry list, I became
concerned. I pointed out some of my concerns.
For example, if we take a look at page 40 of the legislation, line
20, item 5, it says, appropriate fiscal systems such as reducing high
import and corporate taxes, controlling government consumption,
participation in bilateral investment treaties and the harmonization of
such treaties to avoid double taxation.
I would have struck that from the bill if I had had my way. I
attempted to do that. That amendment was not accepted. However, this
amendment would at least give the President the opportunity to evaluate
whether or not a country is moving in that direction, whether or not
they should move in that direction in a strict way or whether or not
there is some flexibility, as
[[Page H1066]]
we look as things such as controlling government consumption.
What does that mean? For some Members, they would spend less money on
education and health. For some Members, that would mean we would spend
less money on the infrastructure. For some Members, that would mean
something quite different than what I would be concerned about.
I think that we need some flexibility to review these kinds of
things, and for the President, who will be making some determination
about these things, to determine exactly what is meant in this policy
direction and to have the ability not to force anyone to have to be in
strict compliance with every aspect of this bill as it tries to give us
some direction for public policy.
I do not think there should be any opposition to that. That, I am
told, is the intent anyway. I said to those who told me that that was
the intent that then they should have no problems with me just
restating it in ways that are understood.
I have talked with many of those who represent nongovernment
organizations. I have talked with some of the proponents of the bill. I
have talked with Members on the opposite side of the aisle; to date and
since this amendment was placed in order in the Committee on Rules, I
have not heard any objections. Certainly, I would ask that my
colleagues would support me, given this kind of flexibility and
documenting it as it was intended when the bill was constructed.
Again, let me bring to the attention of the Members that this is not
a bill that is perfect. As a matter of fact, there are many things that
I would strike in the bill if I had an opportunity to. I think that if
we have enough flexibility to at least act in good faith by supporting
this kind of amendment, it may go a long way to getting Members who
have some trouble with the bill to support this legislation.
In the final analysis, I think what we all want is, we want to
develop guiding policies. We want to give the direction. We want to
make the flame work by which to have a treaty, by which to have an
agreement, by which to work out with Africa ways by which we can do
trade that respects Africa and respects the guiding principles of this
country.
Mr. Chairman, I reserve the balance of my time.
Mr. ROYCE. Mr. Chairman, I rise in opposition to the amendment.
The CHAIRMAN. The gentleman from California (Mr. Royce) is recognized
for 10 minutes.
Mr. ROYCE. Mr. Chairman, before I speak in opposition to the
amendment, I yield 3 minutes to the gentleman from New Jersey (Mr.
Payne), my colleague on the Subcommittee on Africa, who wished to speak
on the last amendment.
Mr. PAYNE. Mr. Chairman, let me thank the chairman of our
subcommittee for yielding me this time.
I arrived on the floor just as the vote was called, but as the
Members know, the Smith-Payne amendment is the amendment that said that
we cannot condone slavery and that anywhere this is practiced should
certainly not be considered for this bill. I thank the House for the
endorsement of our amendment.
I have personally continued to address the issue of slavery
throughout the world. I have introduced H. Con. Res. 234 which calls on
both Sudan and Mauritania to stop all overt and covert practices of
chattel slavery and all other forms of booty. While acknowledging the
prolonged campaign of human rights abuses and discrimination,
especially on women and children, the bill commends the Clinton
administration for sanctioning Sudan and monitoring acts of Mauritania.
Similar proof of the existence of slavery in Mauritania has been
provided by a variety of sources, yet at our hearing in March of last
year, Assistant Secretary Shattuck reported in the Country Report on
Human Rights that no vestiges of slavery existed in Mauritania, even
though 3 years prior to the report it stated that 90,000 slaves were
repressed at the hands of the government. I just wonder how such a
transformation could have taken place without significant reporting and
international coverage.
I contend that the successful abolition of slavery has not taken
place in Mauritania and additional steps must be taken to completely
eradicate the practice from the country. I am pleased, though, that
this year Ambassador Shattuck testified that in its latest annual human
rights report a system of officially sanctioned slavery in which
government and society join to force individuals to serve masters is
not the case; however, slavery in the form of unofficial voluntary or
forced and involuntary servitude persists.
Let me just move quickly to the Sudan. Sudan has been a problem for a
long time, and I want to submit for the record these three copies of
the Baltimore Sun report where two reporters went to Sudan and
purchased two slaves several years ago.
The Sudanese Government Popular Defense Force enslaved 18 women and
children during the slave raid on four villages.
{time} 1445
There is continued support from the NIF as they continue to get
predominantly Christians and animists who live in the south and in the
Nuba Mountains.
I say that the fact that slavery is still existing in these countries
is an abomination today. The ongoing abduction in northern Uganda,
where young people are taken into armies to fight for the Liberation
Army in the north of Uganda, the LRA, should end. And so I am glad that
this issue has been raised in this very important bill.
I think as this bill moves forward, as we say it, it is not a perfect
instrument, but it is certainly giving us an opportunity to highlight
some of the problems that occur there on the continent, and gives us an
opportunity to work towards the elimination of some of the atrocities
that still exist. I know this bill will go a long way into making the
continent move, and I certainly wholeheartedly support the bill.
Ms. WATERS. Mr. Chairman, I yield 1 minute to the gentleman from
Maryland (Mr. Cummings).
Mr. CUMMINGS. Mr. Chairman, I rise in support of the amendment
offered by the gentlewoman from California (Ms. Waters).
Historically, small businesses, especially those owned by people of
color and women, have not fully enjoyed the benefits of uniform trade
agreements negotiated by the United States. I believe that the Waters
amendment will allow small businesses, especially those found within
inner-city communities, to gain access to the opportunities of uniform
trade agreements.
Mr. Chairman, I support the gentlewoman's second amendment, which
ensures that the Development Fund of Africa will not be reduced below
$700 million.
Finally, I support the gentlewoman's third amendment, which will
limit the mandate for each participating country to comply with all
stated requirements of section 4(a).
Ms. WATERS. Mr. Chairman, may I inquire how much time is remaining on
this amendment?
The CHAIRMAN. The gentlewoman from California (Ms. Waters) has 2
minutes remaining, and the gentleman from California (Mr. Royce) has 7
minutes remaining.
Ms. WATERS. Mr. Chairman, I yield 1 minute to the gentlewoman from
Texas (Ms. Jackson-Lee).
Ms. JACKSON-LEE of Texas. Mr. Chairman, I thank the gentlewoman for
yielding me this time, and I thank her for her leadership.
This is an excellent amendment. I think that this helps to make this
bill realistic in that it allows the 12 items that are being required
to have some flexibility, while still leaving intact the very important
requirement of human rights. This is absolutely making this bill work.
Without it, this would be an onerous piece of legislation that might
make it very difficult for the countries to even participate.
Let me also add my support for her amendment dealing with the African
Development Fund, certainly creating greater opportunities for small
and medium-sized businesses to be engaged in this trade bill, making it
work for inner-city America and for minority businesses throughout this
Nation.
Ms. WATERS. Mr. Chairman, I yield myself the balance of my time.
I believe all that has been said is all that can be said. This is not
a complicated amendment. What we do is simply codify the intent of the
bill to allow for flexibility; to say that no country would have to be
in absolute
[[Page H1067]]
strict compliance with every item that is required in the bill; that
there could be some recognition of countries that are making every
effort, of countries that are working in ways that are acceptable in
forging a trade agreement with that country.
So I would ask that my colleagues support the idea that this bill
that we have before us today is the framework, it is the guidepost, it
is the direction leading toward an agreement with Africa on trade. We
want to be as fair as we can possibly be. We do not want to be overly
harsh. We do not want to be overly punitive. We do not want to do
anything that will interfere with their ability to really get involved
with trade in ways that will benefit them and their people.
I think that we do not know everything and we are not always as wise
as we would like to be. We come up with the best ideas that we can when
we try and forge these agreements. And recognizing that, let us allow
for this flexibility so we do not make the kinds of mistakes that are
not easily corrected.
Mr. ROYCE. Mr. Chairman, I yield myself such time as I may consume.
We have put a lot of time in in crafting this bill, and I understand
what the gentlewoman is trying to accomplish here, but I want to make a
couple of points.
The bill does not now require compliance with each criteria, which
represent at any rate general guidelines and are not specific in the
sense of quantifiable percentages or levels of compliance. The criteria
call for countries to make, as we say, and let me quote, ``continual
progress toward establishing a market-based economy'' relative to the
12 items listed in the bill.
The application of the criteria have been left somewhat vague, even
though the parameters are specific. The intention is to reward nations
that are making progress without requiring they meet a specific target.
However, it is expected that nations will make a good-faith effort to
address all the concerns expressed as participation criteria.
To delete the need to address them all says that they can do well in
some areas and absolutely ignore others. This would be our concern.
Would we be satisfied in seeing nations participate in this process if
they made reforms in governance but failed to reform human rights?
Would we find it acceptable to accept a nation that made changes in tax
laws but refused to honor the rule of law?
So let me explain our concerns, and that is, by waiving the need to
deal with all the criteria, we would encourage African nations to pick
and choose what reforms they will address, which could result in their
failing to take advantage of potentially valuable opportunity. That is
why I speak in opposition, Mr. Chairman.
Ms. WATERS. Mr. Chairman, will the gentleman yield?
Mr. ROYCE. I yield to the gentlewoman from California.
Ms. WATERS. One of the criticisms of the NGOs about this bill is
precisely what we are trying to cure. This amendment in no way allows
anybody to pick and choose anything. As a matter of fact, the
flexibility that is codified in this kind of amendment speaks to the
responsibility of the President in negotiating the agreement, not to
countries to pick and choose. And this bill in no way allows that to
happen.
The intent that the gentleman described is the intent that I have
captured in language to satisfy the criticisms and the objections of
some who do not wish to vote for this bill because they do not
understand that implicit in the bill is that kind of flexibility.
I would suggest to the gentleman that we are basically saying the
same thing, and that if we are interested in not only helping to
communicate this to those who have some concerns but ensuring that we
do not have the kind of legislation that would be misread or be
misimplemented in ways that will take all of the requirements and
strictly review them and strictly hold them to a certain kind of
standard, then I think there is no need to oppose this simple
amendment.
As a matter of fact, I really do believe that the gentleman would
gain friends and votes by simply codifying the intent that the
gentleman described.
Mr. ROYCE. Mr. Chairman, reclaiming my time, I will close and respond
by saying that I guess partly it is a question of perspective. From the
perspective that many of us who have worked on the bill have, the bill
itself gives that flexibility. The bill itself says, as I said,
``continual progress towards establishing a market-based economy''
relative to 12 different items.
So in our view it is general guidelines that are in the bill itself
at this time. We have a difference of perspective, but let me just
close at this time and thank the gentlewoman from California for
bringing her concerns to us.
The CHAIRMAN. The question is on the amendment offered by the
gentlewoman from California (Ms. Waters).
The question was taken; and the Chairman announced that the noes
appeared to have it.
Ms. WATERS. Mr. Chairman, I demand a recorded vote.
The CHAIRMAN. Pursuant to House Resolution 383, further proceedings
on the amendment offered by the gentlewoman from California (Ms.
Waters) will be postponed.
It is now in order to consider amendment No. 3 printed in part II of
House Report 105-431.
Amendment No. 3 Offered by Ms. Waters
Ms. WATERS. Mr. Chairman, I offer an amendment.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:
Amendment No. 3 offered by Ms. Waters:
In section 5 (Additional Authorities and Increased
Flexibility to Provide Assistance under the Development Fund
For Africa), add the following at the end:
(e) Funding Levels.--Section 497 of the Foreign Assistance
Act of 1961 (22 U.S.C. 2294) is amended by adding at the end
the following: ``Amounts to carry this chapter for each of
fiscal years 1999 through 2007 shall be made available at not
less than the amount made available for such purpose for
fiscal year 1998.''.
The CHAIRMAN. Pursuant to House Resolution 383, the gentlewoman from
California (Ms. Waters) and a Member opposed each will control 10
minutes.
The Chair recognizes the gentlewoman from California (Ms. Waters).
Ms. WATERS. Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, this amendment achieves an important goal of supporters
of development assistance for Africa. This amendment sets a floor for
appropriations of not less than the funding year levels for the crucial
monies that have historically made up the Development Fund for Africa.
The amount appropriated for these purposes for funding year 1998 is
$700 million.
This amendment achieves this goal by amending section 497 of the
Foreign Assistance Act to specify that the amounts to carry this
chapter for each fiscal year from 1999 to 2007 shall be at least the
amount funded for fiscal year 1998.
As I attempted to describe in the last amendment, we have criticisms
that have come from many nongovernmental organizations who have spent
years working on the question of Africa. I recognize that some of the
work that is being done today by opponents and proponents of this bill
is work that is new to them, and that they do not bring with them the
same kind of historical background and perspective on Africa as some of
the nongovernmental organizations who have spent years working on these
kinds of questions.
And so when I advance this amendment, I advance it because of
concerns about what are we doing. Are we simply trying to undermine the
support that we give to Africa with trade that will take some time to
realize? Are we committed to the proposition that they deserve to have
assistance and that that assistance should not in any way be eliminated
or diminished or reduced; that we should be going forward, not only
from the base that was established last year, but we should increase
it? As a matter of fact, the President has an increase in his budget
for it.
Mr. Chairman, I would ask my colleagues for an ``aye'' vote.
Mr. Chairman, I reserve the balance of my time.
Mr. ROYCE. Mr. Chairman, I yield myself such time as I may consume,
and I rise in opposition to this amendment.
Mr. Chairman, I yield 3 minutes to the gentleman from Washington
State (Mr. McDermott).
[[Page H1068]]
Mr. McDERMOTT. Mr. Chairman, I must say that I rise with mixed
feelings about this, because when I started in this process some years
ago, it was with a concern for the fact that many people were talking
about we had to end aid toward Africa, and I strongly oppose ending aid
for Africa. There are many countries for whom it is an integral part of
their ability to respond and grow and become democracies and
participate in the other provisions of this bill. So in no way do I
want aid to Africa to be cut at this point.
It was really with that in mind I started to talking to the gentleman
from Illinois (Mr. Crane). This amendment does something I think which
is, while laudable in intent, I think not good public policy, and that
is it sets in law an entitlement for Africa which I do not think makes
good sense.
{time} 1500
We meet here every 2 years. We vote on budgets. We go over these
issues. And the appropriation or the authorization committee, which is
the Committee on International Relations, sets a level for foreign aid
and then the Committee on Appropriations considers that authorization
and decides what is an appropriate amount. I think that that is the
appropriate way that we ought to do that.
I think that to say to put a number amount in here and say that that
is how much ought to go to Africa, putting it out for 9 years into the
future, is a little bit more crystal-balling than I think makes sense.
I really think that the gentleman from California (Mr. Royce) has been
a very good supporter of this bill and of this whole process of aid for
Africa. And I do not think there is any reason to put this kind of
thing in this bill.
I think, if anything, it makes people unwilling to vote for it. I do
not want to lose the support of many who are supporting aid and trade.
I do not want to split them off and say they just want to go for trade,
and they want to get rid of aid. I want to keep them in the tent. And I
think that the important thing, then, is not to take this particular
issue, and put it in this bill at this time. For that reason, I would
have to oppose this amendment.
Ms. WATERS. Mr. Chairman, I yield 4 minutes to the gentleman from New
York (Mr. Owens).
Mr. OWENS. Mr. Chairman, I rise in strong support of the amendment
and in support of passage of this bill. This Africa Growth and
Opportunity Act is not a fast track trade bill. It does not hand out
great advantages to competing economies. It does not hand out
advantages to nations that prosper by ruthlessly exploiting their own
people. This is a slow track bill that is long overdue. This is a bill
which places Africa on the playing field of world trade.
Africa has not only been left behind, Africa has been left out. This
is a comprehensive bill with many positive components, and this
amendment suggests one of those positive components. It is not perfect
and there are pitfalls. We must not fall into the trap of throwing away
programs that work as we move to initiate new components. The
development needs our continued support. Instead of allowing any
decrease in our commitment, we should work towards expansions and
increases.
I cannot emphasize too much the fact that Africa has not only been
left behind by the U.S. trade and assistance programs, it has been left
out of any significant involvement. Africa has not enjoyed the kind of
general recognition that we have shown to Mexico or China or Indonesia.
No country in Africa has its hands out for a 40 to $50 billion bailout
from the United States and International Monetary Fund. Do not cut off
one hand to Africa while we offer it another hand.
Levels of this kind as proposed by this amendment are often set in
legislation without being accused of seeking entitlement status. We
should understand the difference between principles and dogma. There
are certain kinds of principles we want to continue to support. I
certainly wholeheartedly support the principles established by the
informal caucus against the fast track caucus last November. But the
principles there need to be looked at as principle and not as dogma.
Let us not get into the ceremony of opposing all trade bills just
because they are trade bills.
Africa needs to have a chance; it needs to be put on the playing
field. If we look at the statistics, we will find that Africa, as
opposed to China or Mexico or South Korea or Hong Kong, in a very
sensitive area like textiles, it is way, way behind.
Less than .6 percent allowed textiles came from Africa last year,
while China is way up there with Mexico and they have all the
advantages. China, which, of course, has no organized labor laws, and
China is quite ruthless in the way they handle their trade. They have
8.6 percent of our textile imports. Mexico has 11.5 percent. Mexico is
right across the border. How can we compare competition between Mexico
and the textile industries in this country versus Africa, which has
whole oceans between us and the continents.
Let me just point out that in sub-Saharan Africa, all the countries
of sub-Sahara Africa and together, as I said before, have less than .6
percent of our textile trade. The per capita income of these countries
is way down, around $400 a year, $400 a year; while per capita income
of Taiwan, which has 8.6 percent of the trade, is way up at $12,000 a
year.
If there are going to be any offsets, if Africa is going to take away
any of the textile business from anybody, it is going to be in these
countries that are already outside the United States and already have
taken jobs from our textile workers. They are going to underbid these
countries because their labor costs will be lower. They are lower than
anybody else, and they will be competing with these countries that have
taken trade away already.
If we are not going to try to balance out things and take some trade
back from Mexico and China, then at least let Africa into the game. And
right across the board, we have a great deal to gain because Africa is
one of the last great markets in the world. We have a billion dollars
in exports to Africa right now. We can greatly increase that. Let us
not be dogmatic. Let us vote for a bill which opens up the playing
field for Africa.
Mr. Chairman, I rise in strong support of H.R. 1432, the ``Africa
Growth and Opportunity Act.'' H.R. 1432 would authorize a new trade and
investment policy toward the countries of sub-Saharan Africa. It is not
a perfect bill; however, it represents a positive, historic,
comprehensive effort to reach out to the continent of Africa and
enhance and share in its vast economic possibilities. Africa, the
mother of civilization, the victim of imperialism, and the beholder of
natural riches, is the last region virtually ignored by U.S. trade
policy. Its acceptance into the world trade arena, spearheaded by the
United States, is long overdue. The arguments against opening up U.S.
trade policy to Africa pale in comparison to the economic, social,
moral and historic reasons for supporting the bill. Unequivocally, we
must admit Africa to the world trade playing field.
Contrary to the argument made by opponents of the bill, H.R. 1432
will not harm the domestic textile industry. Research has shown that
workers in the U.S. textile industry will not be displaced by workers
in the African textile industry. In fact, should there be any loss of
jobs, it will occur in those countries that have already suffered a
loss of jobs because of an expansion of trade opportunities to those
areas. The countries most likely to be hurt by Africa's imminent
trading status with the U.S. are those which already export the largest
percentage of textiles to the U.S.: Mexico, China, Taiwan, and Hong
Kong. In 1996, Mexican textile imports represented 11.57% of total
textile imports. In addition, textile imports from China represented
8.63% of total imports. Moreover, imports from Taiwan represented 6.31%
of total U.S. textile imports. On the other hand, imports from sub-
Saharan Africa represent a paltry 0.67%. The point is clear: The fear
that the African textile industry will benefit economically at the
expense of the U.S. textile industry is unfounded. Mexico is more to
blame for a loss of U.S. jobs in the textile industry. And no matter
how sweet the trade deal with Africa is, the continent will not be able
to compete fairly with our bordering neighbor, Mexico.
Again, it must be reiterated that Sub-Saharan Africa does not have
the capacity to compete with any industries in the U.S. No American
workers will lose jobs as a result of this bill. In the area of
textiles, Africa's lower wages may take business away from China or
Mexico or Hong Kong, but not from the United States.
H.R. 1432 deserves the support of all members and components of the
Caring Majority. The labor community should lend their support to this
unique piece of legislation. Expanding trade in any area, including
Africa, has been opposed by this community because of a fear
[[Page H1069]]
that countries with weaker labor and environmental laws than the U.S.
will undermine the availability of jobs here in the America. I want to
make a special appeal to those who stood in solidarity with me against
the ``fast track'' trade legislative process last fall: Africa must be
given a chance to demonstrate its commitments to fair labor laws and to
the development of internationally accepted environmental standards.
China has no organized labor laws, and it is quite ruthless in its
treatment of Chinese citizens. Yet, it is the country that is able to
secure regularly Most-Favored-Nation trading status.
The principles we all enunciated against ``fast track'' trade
legislation remain sound and necessary; however, we must not allow our
principles to degenerate into the dogma of a religion. We must not
begin to oppose all trade opportunities blindly and ceremoniously. This
is true especially of those trade bills applied to desperately poor
countries in Africa and the Caribbean. Our goal is justice and a decent
standard of living for workers and common people all over the world. At
the hands of European and American powers, Africa has been made to
suffer for centuries. It is important now to support opportunity in
Africa.
H.R. 1432 helps correct a situation where trade and assistance to
Africa has been MIA--missing in action. I cannot emphasize too much the
fact that Africa has not only been left behind by the U.S. trade and
assistance programs, it has been left out of any significant
involvement. Africa has not enjoyed the generosity we have shown to
Mexico, China and Indonesia. No country in Africa has its hands out for
a $40 to $50 billion bailout from the U.S. and the International
Monetary Fund.
It is high time for alarmists to put H.R. 1432 in its proper
perspective. It is not a fast track trade bill which hands out great
advantages to competing economies or to nations that prosper by
ruthlessly exploiting their own people. It is not the billion dollar
budget buster or bailout swindle for Africa. It is not a fat check from
the U.S. Treasury to underwrite Africa's economic policies that will
injure working people in America. Those benefits have already accrued
to other countries. H.R. 1432 is a slow track bill that deserves our
enthusiastic support. I urge my colleagues to say ``YES'' to ``growth''
and ``opportunity'' for Africa.
Mr. ROYCE. Mr. Chairman, I yield 4 minutes to the gentleman from
Alabama (Mr. Callahan), the chairman of the Subcommittee on Foreign
Operations, Export Financing and Related Programs.
(Mr. CALLAHAN asked and was given permission to revise and extend his
remarks.)
Mr. CALLAHAN. Mr. Chairman, I thank the gentleman for yielding time
to me.
I rise in opposition to the amendment of the gentlelady from
California (Ms. Waters), and rise in support of the statement made by
the gentleman from Washington. Never, to my recollection, can I ever
find that this Congress or any other Congress in the history of this
country has ever mandated with a floor of foreign appropriations to a
foreign country. I think this is a very dangerous precedence to begin
to obligate future Congresses. I think possibly it might not even pass
the constitutional test.
But regardless of that, we are facing this issue here today; and for
the first time in history, what we are saying is that we are going to
give one country, one area of the world, a floor as to the amount of
money any Congress in the future can appropriate. And that, my
colleagues, is absolutely wrong and certainly a precedent we do not
want to set.
At the request of the gentlewoman from California, among others, last
year, they came to me, as did the President, and said, we would like to
have $700 million for sub-Saharan Africa. We did that. We complied with
your request then. But to obligate me or this Congress for 9 years into
the future is something that is very, very rare and unique and
unprecedented, as I have said.
Let me give an example. Latin America, which is our closest neighbor
and our greatest trade potential and ally, only gets $293 million; and
there are efforts being made to even reduce that. So what we are
saying, if we impose this $700 million floor on the amount of money we
can give to any country or any nation, regardless of what activities
are taking place at that time in the future, we are going to have to
take money away from Latin America to do it.
All countries of the world recognize that we have limited resources
for foreign policy. Even the State of Israel has come to us and said,
we recognize your problems; we recognize your limitation, and they have
made a bold initiative to come to us and tell us they recognize our
plight and that they are requesting that we begin to downsize our
economic support for them.
So in the middle of our session here, second session of this
Congress, we are going to say to the next Congress, you guys have to do
this. We do not care what is taking place there now. We do not care
what the governments are doing there now. We do not care what
insurrection is taking place. No matter what you do, here is a check
for $700 million.
Go back to your district, and ask your constituents if they believe
we ought to do that. We can go back and we can justify today the $700
million we appropriated this year because progress is being made, and
we are assisting that nation.
But to obligate in this forum is not only unconstitutional, as far as
I am concerned, it certainly is unprecedented in the history of the
country to do such a thing for this period of time, for such an
extended period of time.
Mr. OWENS. Mr. Chairman, will the gentleman yield?
Mr. CALLAHAN. I yield briefly to the gentleman from New York.
Mr. OWENS. Mr. Chairman, I would like the gentleman to enlighten me.
When he said that if we have a floor like this for one country or one
set of countries, we would have to take it from South America or
somewhere else, do we have the same situation with respect to the
International Monetary Fund. We are about to be asked to vote $18
billion more into the fund. We have a lot of money in there already.
There is a limitation on the amount of money we put in this.
Mr. CALLAHAN. Reclaiming my time, this Congress has the ability to
make this decision on the International Monetary Fund, but we do not
commit to future Congresses. I mean, what if we came to the Congress,
we said we need $3 billion for the International Monetary Fund and
said, we are going to do it for the next 10 years.
Mr. OWENS. Is there a ceiling on the amount we put into the
International Monetary Fund? Do we stop somewhere?
Mr. CALLAHAN. We are talking about floors, an unprecedented amendment
being introduced in this House.
I urge my colleagues to vote against it.
Mr. OWENS. I thank the gentleman.
Ms. WATERS. Mr. Chairman, how much time is remaining on both sides?
The CHAIRMAN. The gentlewoman from California (Ms. Waters) has 4
minutes remaining, and the gentleman from California (Mr. Royce) has
3\1/2\ minutes remaining.
Ms. WATERS. Mr. Chairman, I yield to myself such time as I may
consume.
Mr. Chairman, this is a very important and enlightening debate, and
this is precisely what I wanted to happen. I wanted to hear arguments
against a kind of real commitment to ongoing funding for Africa and
sub-Saharan Africa. Of course, it is easy to talk about other countries
who may be indicating that somehow they are sensitive to the problems
of our country and they would like to do something to be helpful.
Sub-Saharan Africa has been the stepchild of appropriations from this
country in relationship to their needs and their numbers. While I
appreciate what the gentleman did last year, and I hope the gentleman
will do even better this year. I want this debate to go forward.
I want the debate to go forward because the NGOs who have been
pointing to the problems of this bill, pointing to the problems that we
have, as we try to be good advocates for Africa, I wanted them to know
that there is some of us who are committed to this fight and committed
to this struggle, even in light of tough opposition and the kind of
arguments that have been raised by the chairman.
I will not yield because this is the only time that I am going to get
to tell the Members publicly what I think about the way that Africa has
been treated.
Those of us who have spent years, not only trying to dismantle, get
rid of apartheid in South Africa, but those of us who have tried to
give support to places like Angola, where people on the other side of
the aisle were supporting Savimbi, and a country whose resources have
been drained because we
[[Page H1070]]
were on the wrong side of history, just as we were on the wrong side of
history with Mobuto, countries that have been in desperate need of our
help, yes, I want to send a signal that we are going to give ongoing
support for them.
So, yes, I created this debate about it. I am glad that the chairman
rose to the challenge. I am glad that the chairman described it in some
of the ways that he did. I think the chairman is interested in giving
ongoing support to Africa.
I am going to be asking him again, as many of us will be asking him
again, to do even better, to meet the President's mark with an increase
for Africa.
Yes, I know this sets out and identifies an amount for a period of
time because it puts the light on the need. It sheds the light on a
section of this world that we have not really paid attention to.
We can travel on all the CODELs we want to, and we can go over and
speak to all the heads of government, and tell them how much we love
them. But if you do not bring the resources, and you do not bring the
money, and you do not treat them the way you treat other countries,
your words are shallow, and they mean nothing.
So, yes, I dare to come to this floor and challenge my colleagues to
make a strong commitment to Africa, put it in the legislation, where we
dare put do you not have too much government consumption, where you
tell them to privatize, where you tell them what they will do with
their land reforms.
If you are bold enough to dictate to sub-Saharan Africa, how they
should control their country and take away from them the right to
guarantee the things that protect and secure their countries by not
allowing investment in some sectors, then I have the audacity to tell
you to come and put the money in the bill and guarantee it.
Mr. Chairman, I reserve the balance of my time.
The CHAIRMAN. The time of the gentlewoman from California (Ms.
Waters) has expired.
Mr. ROYCE. Mr. Chairman, I yield 1\1/2\ minutes to the gentleman from
Alabama (Mr. Callahan) from the Subcommittee on Foreign Operations,
Export Financing, and Related Programs.
Mr. CALLAHAN. Mr. Chairman, I want to say that I have great respect
for the gentlewoman of California (Ms. Waters). But I recall about a
year ago next month when I was trying to handle the foreign operations
bill giving sub-Saharan Africa $700 million that I mentioned that the
limited $293 million we sent in Latin America created a peace; that
there was no country in this hemisphere at war.
As I recall, the gentlewoman from California jumped my case and
chastised me for not giving that money to Watts and not giving that
money to poverty areas who have drug problems.
So I just want to remind the gentlewoman from California that, while
we gave the $700 million when we attempted to do something for our
neighbors just to the south of us who do have the same similar problems
of sub-Saharan Africa, she really jumped my case to the point that I
had really no available response to what she said.
{time} 1515
She also has some problems in southern California that she ought to
be addressing. While she is addressing all of this $700 million for the
next 9 years to Africa, why is she not protecting her own district and
saying that we are going to have drug programs for the next 9 years?
That, Mr. Chairman, is the response to what I have to say about this,
to remind the gentlewoman that I cannot do one thing one year and
another thing the next year.
I am trying to comply with her wishes, trying to grant her the
audience and an appearance before our committee and trying to do
everything we can to give assistance to sub-Saharan Africa. At the same
time, she must be fair in her debate.
Mr. ROYCE. Mr. Chairman, I yield myself such time as I may consume.
Let me close by noting that by earmarking a set level of spending for
Africa aid, we would take away the ability of Congress to discuss and
debate for the next decade what the level of aid spending should be.
Earmarking a specific level of aid to Africa for 9 years also locks up
dollars that requires the administration to go forward with a level of
spending on Africa that might be contrary to U.S. policy at some point
during the next 9 years.
The administration has consistently opposed setting minimum levels
for regional accounts, including Asia, Africa and Latin America.
Mr. Chairman, I will conclude by making a couple of points that I
think need to be made. It makes no sense to authorize 9 years down the
line.
Ms. JACKSON-LEE of Texas. Mr. Chairman, will the gentleman yield?
Mr. ROYCE. I yield to the gentlewoman from Texas.
Ms. JACKSON-LEE of Texas. I appreciate the gentleman's perspective.
Let me just add one point as he finishes his remarks.
I think the distinction that we may be trying to make here is the
fact that this has been done in a budget year, a balanced budget year,
and the $700 million is within a balanced budget, and sub-Saharan
Africa has been light-years behind other continents in getting funding
for economic development. I thank the gentleman for yielding.
Mr. ROYCE. But let me make the point, since this bill does not
require a cutoff of aid to Africa, the aid floor is unnecessary in the
bill.
I will close by saying that the gentleman from New York (Mr. Gilman),
chairman of the Committee on International Relations, opposes this
amendment to the bill as well. I close, in opposition, with that
argument.
The CHAIRMAN. The question is on the amendment offered by the
gentlewoman from California (Ms. Waters).
The amendment was rejected.
The CHAIRMAN. It is now in order to consider amendment No. 4 printed
in Part II of House Report 105-431.
Amendment No. 4 Offered by Ms. Waters
Ms. WATERS. Mr. Chairman, I offer an amendment.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:
Amendment No. 4 offered by Ms. Waters:
In subsection (c) of section 6 (United States-Sub-Saharan
Africa Trade and Economic Cooperation Forum), insert before
the period at the end of paragraph (1) the following: ``,
including encouraging joint ventures between small and large
businesses''.
The CHAIRMAN. Pursuant to House Resolution 383, the gentlewoman from
California (Ms. Waters) and a Member opposed each will control 10
minutes.
The Chair recognizes the gentlewoman from California (Ms. Waters).
Ms. WATERS. Mr. Chairman, I yield myself such time as I may consume.
I continue with discussion on this legislation by way of amendment.
Mr. Chairman, I proudly stand before this House as an advocate for
Africa, but I proudly stand before this House as an advocate for my
district and for my people. I do not take a back seat to anybody when
it comes to taking this floor or taking my place in committee to talk
about the needs of people in this country or people in other places in
the world.
As a matter of fact, not only do I ask for money for Africa, I ask
for money for south central Los Angeles, I ask for money for Harlem, I
ask for money for Philadelphia, I ask for money for St. Louis, I ask
for money for communities in this Nation and sections of this world
where I think resources should be directed. I do it without taking a
back seat to anybody.
Do not forget, those of us who do this are oftentimes referred to as
those who wish to tax and spend, as we would say. And so anybody who
has any mistakes about what my priorities are, let me set them straight
right now. I ask for money for Africa and I ask for money for Los
Angeles and I ask for money for other communities that I think are in
need.
Having said that, let me also talk about what I have gone to the
Committee on Appropriations for. There seems to be some belated debate
about drugs. In the Congressional Black Caucus agenda that is
published, the number one priority is the eradication of drugs in this
society. I, as Chair of the Congressional Black Caucus, have gone to
every appropriate Appropriations subcommittee to support an increase in
the Drug Czar's budget to make sure we have money for prevention and
education and outreach and all of those things.
There is this funny little game that is going on now where some of
the people on the other side of the aisle would like to pretend that
somehow they are
[[Page H1071]]
more for the eradication of drugs in our society than people on this
side of the aisle, and some attempts to undermine the Drug Czar.
That little game will not work. Everybody knows that those on the
other side of the aisle, who have been with the Just Say No policy for
years, have done nothing, have accomplished nothing and have done
nothing for the children of this society, nor have they been about the
business of prevention and education.
Having said that, with this bill and with this amendment, in an
effort to try and make it a better bill, given all that I have said and
my concerns about the fact that there are requirements in this
legislation that you will see in no other trade agreement, and I have
looked at them all, including the Caribbean Basin Initiative; and you
have gone overboard in trying to dictate what the trade relationship
will be with Africa in ways that it has not been done before, but I
recognize many of you who have worked on the bill really do believe
that you are doing the right thing when you try to dictate land reform
policies, and when you try to dictate how much money will be spent by
government on its own needs, when you try to dictate that there will be
no exclusion of any industries to invest in. I understand that.
But the amendment that I have brought before you today that would
allow some flexibility in the review when these countries are being
looked at was a simple amendment that simply codified what you said
your intent was. This amendment that I have before you at this moment
goes beyond simply allowing major corporations to swoop into Africa
with all of its money and do the kind of investments that others will
not have an opportunity to compete with.
This amendment that I have before you will continue the debate, will
force more conversation about what are the best ways by which to have
trade agreements. In addition to that, it will encourage cooperation
for joint ventures between large businesses and small businesses.
We hear a lot in this Congress all the time about how much we care
about small business. You ask any person on the other side of the aisle
on any given day of the week, and you will hear them talk about being
advocates for small business, we want to reduce the taxes, do not want
to support an increase in the minimum wage, would like to do something
with one-stop shopping to make it possible for small businesses to get
their licenses and other kinds of things without having to go through
bureaucracies, want to do more in having subsidies and loans available
to small businesses.
Let me tell you how you can help small businesses with this
legislation. You can encourage in the conferences that are dictated,
the meetings, the advisory boards, all of those things where you
identify encouraging in this bill, you can encourage joint ventures
between large businesses, corporations, and small businesses. That is
essentially what this is all about.
In the final analysis, these amendments are not tough amendments.
They are not complicated amendments. They are not amendments that would
undo the bill. These amendments for the most part are clarifying
amendments. These amendments for the most part are good-faith
amendments. These amendments for the most part are amendments that will
show that those of you who have little experience in Africa are willing
to at least listen to some of the information and advice that is coming
from NGOs and those who have worked in Africa for many, many years.
I would commend to you not only this amendment. Even though the other
amendment that I advanced was just voted down and one is waiting for a
vote when the votes will be taken up, and even if this work does not
get done while this bill is going through the House, there will be
attempts, if this bill passes, to continue to work to make it a better
bill. There will be attempts to continue to work on the Senate side to
make this a better bill.
And then there are other opportunities where attempts will be made.
Those opportunities lie with trying to influence the President of the
United States when these kinds of agreements are forged. I say to you,
in ways that you perhaps do not understand when you talk about Africa,
Africa is not simply another place in the world for many of us. Whether
you know it or not, it is from whence we come. It is the land of my
ancestors. It is a place that is as dear to me as Ireland is to the
Irish, as Israel is to the Jewish community, as other places in the
country are to those whose families, whose histories emanate from those
countries.
And so I do not speak about this simply in an intellectual way and
not simply in a policy way in the tradition that you understand. Yes,
this is an emotional issue with me, and even though we have members of
the Congressional Black Caucus who will stand here in the finest
tradition and try to promote and be advocates on behalf of Africa in
ways that make you all comfortable, I really do not care if you get
uncomfortable with my advocacy for Africa. It is a place that I hold
dear. It is part of my legislative agenda. It is a place that I care
about in ways that perhaps you will never understand.
I do not think that you understand that what I do for Africa, what I
advocate for Africa comes from deep within my heart. It is not a
political game. It is not about trying to send the message that perhaps
``I'm okay, you're okay.'' This is serious business about saving a
continent. This is serious business about being concerned about the
resources of Africa and what happens to them.
This is serious business about not having the United States or any
other country do what we have done in too many places in Africa. This
is about never ever having another Mobuto; this is about never ever
having another Savimbi; this is about never ever seeing another
catastrophe in Rwanda like we saw.
This is about trying to get ahold of a direction for this country as
it relates to Africa. This is about trying to be fair in the
dissemination of resources. This is about respect. It is about saying
to those heads of Africa, you have a voice, and while we want to help
you, we are not going to run roughshod over you.
This is not about trying to open up opportunities to go in and drill
oil without compensating. This is not about trying to take out the
diamonds and the gold without compensating. This is about creating that
debate at this moment, this time in history, that will give a direction
to Africa that will never have us go back again, but move forward with
good will and with a conscience and get rid of the kind of policies we
have had in the past on this continent.
The CHAIRMAN. The time of the gentlewoman from California (Ms.
Waters) has expired.
Does any Member rise in opposition to the amendment?
Mr. ROYCE. Mr. Chairman, I am not opposed to the amendment, but I ask
unanimous consent to claim the time in opposition.
The CHAIRMAN. Is there objection to the request of the gentleman from
California?
There was no objection.
Mr. ROYCE. Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, I have spoken previously about my perception that this
bill does allow flexibility. We do have concerns about equal access to
U.S. firms. And, yes, there are guidelines in the bill regarding equal
access to U.S. firms. But let us go to the subject of this amendment.
{time} 1530
I applaud the gentlewoman from California (Ms. Waters) for this good
amendment to the bill.
Many Members have visited Africa and have spoken with African and
American businesses, both large and small, on the issue of U.S.-Africa
trade. Indeed, the gentlewoman and myself were on a CODEL where we met
with business interests across the continent in Africa. It is entirely
appropriate that language be included to support joint ventures between
large and small businesses. So this is a good amendment and I support
this amendment.
Mr. Chairman, I yield 2 minutes to the gentleman from Washington (Mr.
Hastings) for a statement that he would like to make on the bill at
this time.
Mr. HASTINGS of Washington. Mr. Chairman, I thank the gentleman for
yielding.
I rise to express my concern over certain provisions in this bill.
While we
[[Page H1072]]
certainly support all of the efforts to expand trade between our Nation
and the rest of the world, we also must take action to ensure that the
trade is not a one-way trade.
This bill outlines several criteria that the President must consider
before granting preferential trade status to any Sub-Saharan African
nation. Specifically, the President must consider a country's progress
in reducing tariffs on American products, eliminating other nontariff
barriers to American imports, and abiding by internationally accepted
trading practices.
Mr. Chairman, this bill is very clear that free and open trade ought
to be the goal of the administration in this country. Prohibitive
actions against U.S. products run counter to the intent of this bill
and, by definition, would preclude those countries from being granted
preferential treatment under this bill.
A number of my constituents have already attempted to pry open the
doors of African nations. In particular, our domestic apple, pear and
peach producers and processors have on a number of occasions attempted
to export their products to South Africa. On each occasion they have
been rejected. Potential recipients should therefore be put on notice:
Any effort to continue to block access to U.S. products violates the
provisions of this bill and would preclude receiving the benefits of
this proposal.
I and my colleagues from the Northwest will certainly be monitoring
the administration's implementation of this bill. We expect the
administration to abide by the eligibility factors contained in this
bill, and we will continue to work closely with the U.S. Trade
Representative to ensure that all trade with Sub-Saharan Africa is both
free and fair for U.S. producers, processors and consumers.
Mr. ROYCE. Mr. Chairman, I support this amendment, and I yield back
the balance of my time
The CHAIRMAN. The question is on the amendment offered by the
gentlewoman from California (Ms. Waters).
The amendment was agreed to.
The CHAIRMAN. It is now in order to consider amendment No. 5 printed
in Part II of House Report 105-431.
Amendment No.5 Offered by Mr. Davis of Illinois
Mr. DAVIS of Illinois. Mr. Chairman, I offer an amendment.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:
Amendment No. 5 offered by Mr. Davis of Illinois:
At the end add the following:
SEC. 18. DONATION OF OBSOLETE AIR TRAFFIC CONTROL EQUIPMENT
TO ELIGIBLE SUB-SAHARAN AFRICAN COUNTRIES.
It is the sense of the Congress that, to the extent
appropriate, the United States Government should make every
effort to donate to governments of sub-Saharan African
countries (determined to be eligible under section 4 of this
Act) obsolete air traffic control equipment, including
appropriate related reimbursable technical assistance for
such equipment.
The CHAIRMAN. Pursuant to House Resolution 383, the gentleman from
Illinois (Mr. Davis) and a Member opposed each will control 10 minutes.
The Chair recognizes the gentleman from Illinois (Mr. Davis).
Mr. DAVIS of Illinois. Mr. Chairman, the amendment which I offer
today does not change the intent of this bill in any way. Rather, it
seeks to ensure that as we increase trade with Sub-Saharan African
countries, we do so knowing that the infrastructure for air traffic is
sound and safe. Therefore, this amendment expresses the sense of
Congress that the United States should make every effort to donate
surplus traffic control equipment, including related reimbursable
technical equipment, to eligible Sub-Saharan countries.
This amendment primarily does three things. First, it reaffirms our
commitment as the leader in technology to bridge the gap in technology
that currently exists in Sub-Saharan African countries with regard to
air traffic control equipment. Secondly, we seek to ensure that our
planes and personnel traveling in African airspace will be safe.
Essentially, we are investing in the infrastructure of our trading
partner. Finally, this amendment increases the communication between
our two nations.
Currently, the International Federation of Airline Pilots Association
and others have declared that the majority of airspace over Africa is
critically deficient in air traffic control. Moreover, pilots have
stated that the deficiencies such as lack of radars, no VHF radio
coverage, inconsistencies in air traffic control, and sparse
meteorological information, have contributed to Africa's poor safety
record. In fact, according to recent articles, in much of the
uncontrolled airspace pilots generally provide their own form of air
traffic control from the cockpit by broadcasting their next position in
hopes that crews from other aircraft will be listening.
In 1996, the International Airline Pilots Association reported that
there were 77 near-midair collisions in the African airspace. Thirty of
the 77 near-midair collisions occurred over the following Sub-Saharan
countries: Cameroon, Chad, Congo, Madagascar, Mauritania, Niger and
Senegal. Most of the airspace north of Zimbabwe is uncontrolled, with
little radar and no VHF radio coverage.
As trade has increased in Africa with the lifting of apartheid
sanctions in South Africa, air traffic has increased 120 percent in
some parts of Africa. However, during this period of growth the
aviation infrastructure has remained the same or deteriorated. This has
led to a situation where the safety of aircraft flying in the region
may be seriously compromised.
Clearly, the need for better air traffic control equipment and
communications systems exists in Africa. We stand in a unique position
as a world leader in technology, and I believe that we have an
obligation to help bridge the technology gap that exists between our
country and Africa.
This amendment would be beneficial to both of our countries, and I,
therefore, urge its immediate adoption.
Mr. Chairman, I reserve the balance of my time.
The CHAIRMAN pro tempore (Mr. Wicker). Does any Member rise in
opposition to the amendment?
Mr. ROYCE. Mr. Chairman, I ask unanimous consent to claim the time in
opposition to speak in favor of the amendment.
The CHAIRMAN pro tempore (Mr. Wicker). Is there objection to the
request of the gentleman from California?
There was no objection.
The CHAIRMAN pro tempore (Mr. Wicker). The gentleman from California
(Mr. Royce) is recognized for 10 minutes.
Mr. ROYCE. Mr. Chairman, I yield myself such time as I may consume to
make the point, cash-poor African governments must balance many needs
for expenditures, and new air traffic control equipment is not at the
top of their list. U.S. obsolete equipment is not obsolete for smaller,
less busy African airports, and therefore this is a good amendment to
the bill. We support this amendment.
Mr. Chairman, I yield back the balance of my time.
Mr. DAVIS of Illinois. Mr. Chairman, I yield such time as she may
consume to the gentlewoman from Florida (Ms. Brown).
Ms. BROWN of Florida. Mr. Chairman, I want to say that I am a strong
supporter of the African Growth and Opportunity Act. For many years we
have worked to bring Africa to the world table with trade and economic
development, and today will be an historical day for our country. I
also want to commend President Clinton for his upcoming trip to Africa,
where he will be the first sitting United States President to visit
Africa to promote relations and trade.
Many Americans are descendents of slaves brought here from Africa. In
fact, it is estimated that 400 million Africans died in the slave trade
process. This bill is just a first step in reworking our relationship
with Africa. I think it makes an incredible statement to finally
establish a positive economic cooperation between this country and
Africa, and we must take this opportunity to do it.
Infrastructure is a key component of economic growth and development,
and it is the country's vision for economic success. As a member of the
Committee on Transportation and Infrastructure, I have seen this in our
own country.
I support the Davis amendment because it is critical that these
countries have the proper equipment with which to grow. Our excess air
traffic control
[[Page H1073]]
equipment and technical assistance in this area could be very
beneficial to these countries.
This bill and this amendment is the first of what I hope are many
steps toward developing economic and political relationships with
Africa. It will give these African countries an opportunity to expand
their economic and political potential through a strong link with the
United States.
Mr. DAVIS. Mr. Chairman, I yield such time as he may consume to the
gentleman from New Jersey (Mr. Payne).
Mr. PAYNE. Mr. Chairman, let me commend the gentleman from Illinois
(Mr. Davis) for his amendment. I have traveled extensively in Africa by
land, by rail, by air, and by sea. As we are developing infrastructure
in Africa, I think that it is essential and important that as we move
towards Africa into the area of trade and development and growth, that
we need to take a look at the infrastructure.
In the bill there are dollars that are set aside through OPIC to deal
with the infrastructure, to improve the roads and the ports. But I do
not think anything could be more important than to shore up the air
traffic control.
We have members of our FAA that travel around the world to certify
airports. Several airports in Africa are not certified, in particular
the airport in Lagos, Nigeria.
We are here saying that there should be standards so that air safety
is secure. There should be standards so that air transport can be
moved. I have traveled on charter planes and other kinds of aircraft,
and I would like to say that the Davis amendment will go far to shore
up and improve the air transportation in these countries which is so
essential for communications.
So I once again commend the gentleman from Illinois for his amendment
and urge support for the Davis amendment.
Mr. DAVIS. Mr. Chairman, I have no further requests for time, and I
yield back the balance of my time, and urge adoption of this amendment.
The CHAIRMAN. The question is on the amendment offered by the
gentleman from Illinois (Mr. Davis).
The amendment was agreed to.
The CHAIRMAN pro tempore (Mr. Wicker). It is now in order to consider
amendment No. 6 printed in Part II of House Report 105-31.
Amendment No.6 Offered by Mr. Bereuter
Mr. BEREUTER. Mr. Chairman, I offer an amendment.
The CHAIRMAN pro tempore (Mr. Wicker). The Clerk will designate the
amendment.
The text of the amendment is as follows:
Amendment No. 6 offered by Mr. Bereuter:
Add at the end of section 4 the following:
(e) Designation of Additional Countries and a Region in
Africa.--
(1) Authority of the president.--The President may
designate any of the countries or the region listed in
paragraph (2) as eligible to participate in programs,
projects, or activities, or receive assistance or other
benefits under this Act if the President determines that the
country or region otherwise meets the requirements of this
section and that the designation is in the national interest
of the United States. Any country or region so designated
shall be deemed to be an eligible country in sub-Saharan
Africa under subsection (a) for purposes of this Act if,
within 1 year after such designation, a law is enacted
approving the designation.
(2) Countries.--The countries referred to in paragraph (1)
and Mauritania, Morocco, Algeria, Egypt, and Tunisia, and the
region referred to is the Western Sahara region of northwest
Africa.
The CHAIRMAN pro tempore (Mr. Wicker). Pursuant to House Resolution
383, the gentleman from Nebraska (Mr. Bereuter) and a Member opposed
each will control 10 minutes.
The Chair recognizes the gentleman from Nebraska (Mr. Bereuter).
Modification to Amendment Offered by Mr. Bereuter
Mr. BEREUTER. Mr. Chairman, I have a modification, and I ask
unanimous consent that the Clerk be permitted to read the modification
to the amendment and that the amendment be so modified.
The CHAIRMAN pro tempore (Mr. Wicker). The Clerk will report the
modification to the amendment offered by the gentleman from Nebraska
(Mr. Bereuter).
The Clerk read as follows:
Amendment offered by Mr. Bereuter, as modified:
Add at the end of section 4 the following:
(e) Designation of Morocco.--The President may designate
Morocco as eligible to participate in programs, projects, or
activities, or receive assistance or other benefits under
this Act if the President determines that Morocco otherwise
meets the requirements of this section and that the
designation is in the national interest of the United States.
If so designated, Morocco shall be deemed to be an eligible
country in sub-Saharan Africa under subsection (a) for
purposes of this Act, if, within 1 year after such
designation, a law is enacted approving the designation.
The CHAIRMAN pro tempore (Mr. Wicker). Is there objection to the
modification to the amendment offered by the gentleman from Nebraska
(Mr. Bereuter)?
There was no objection.
Mr. BEREUTER. Mr. Chairman, I yield myself such time as I may
consume. Mr. Chairman, this simply narrows the scope of the original
amendment to include Morocco. I would like to take this opportunity to
thank the distinguished gentleman from Illinois and all of his leading
cosponsors for introducing this important legislation.
There is not a better time than on the eve of the President's visit
to Africa to send an important message to many countries of Africa that
we want them as trade partners, and that we are going to be assisting
them in that respect.
{time} 1545
The message this legislation sends to governments of the country of
Africa is clear: Undertake sustained economic reform and trade
liberalization policies, and we will trade with you, and you will
benefit.
In fact, Mr. Chairman, this message is so important I think it should
not be lost on the countries of North Africa. That is why this Member,
along with the distinguished gentleman from New York (Mr. Solomon),
have proposed this amendment covering Morocco. It still, of course,
would permit the President to make a determination that this is in our
national interests, that they meet the criteria, it would still come to
Congress for approval. Our amendment simply permits that.
Mr. Chairman, it is clear to this Member that there is really no
valid reason to exclude Morocco from the scope of this act. For
example, there are many sub-Saharan countries with per capita incomes
higher than that of Morocco, which desperately needs the direction
provided by this act.
Secondly, since the 1990s, the Moroccan government has pursued
economic reform programs supported by the IMF and the World Bank. It
has restrained spending, revised the tax system, reformed the banking
system, lifted import restrictions and lowered tariffs.
Also, Mr. Chairman, let me say that the Congressional Budget Office
has determined that our amendment has no direct effect on revenues
because any future eligibility designation would require implementing
legislation.
Mr. Chairman, I yield such time as he may consume to the gentleman
from New York (Mr. Solomon).
Mr. SOLOMON. Mr. Chairman, I thank the gentleman for yielding to me.
I will not take the committee's time, since we are under time
constraints now to get out at a reasonable hour tonight. Let me just
concur with the remarks of the gentleman from Nebraska (Mr. Bereuter).
Morocco has been such a strong ally and such a stabilizing force in
that part of the world that we wanted to make sure they were included
in this legislation.
I commend the gentleman and I thank the very distinguished chairman
of the Committee on International Relations for his support, as well as
the gentleman from New Jersey.
Mr. BEREUTER. Mr. Chairman, I yield 2 minutes to the gentleman from
New York (Mr. Gilman).
(Mr. GILMAN asked and was given permission to revise and extend his
remarks.)
Mr. GILMAN. Mr. Chairman, I rise in strong support of the Bereuter
and Solomon amendment to provide for the possibility of including
Morocco in the African Growth and Opportunity Act, and I want to
commend the distinguished chairman of our Subcommittee on Asia and the
Pacific, the gentleman from Nebraska (Mr. Bereuter), and our
distinguished chairman of the Committee on Rules, the gentleman from
New York (Mr. Solomon), for their work on this measure.
[[Page H1074]]
As currently written, the bill includes only sub-Saharan African
nations, but there is no reason why Morocco in North Africa should not
be part of the legislation. Morocco has been a strong ally to our
Nation for many years, and under the leadership of King Hassan, Morocco
has played a constructive role in the Arab-Israeli peace process and
numerous other foreign policy priorities of our Nation.
In addition, Morocco has taken significant steps towards democracy,
toward market economics, and respect for human rights. Indeed, it is a
model Nation for the entire African region. Accordingly, I fully
support the amendment, and I urge my colleagues to do the same.
Mr. BEREUTER. I thank the distinguished chairman, and I reserve the
balance of my time, Mr. Chairman.
The CHAIRMAN pro tempore. Does the gentleman from New Jersey (Mr.
Payne) claim the time in opposition?
Mr. PAYNE. Yes, I do, Mr. Chairman.
The CHAIRMAN pro tempore. The gentleman from New Jersey (Mr. Payne)
is recognized for 10 minutes.
Mr. PAYNE. Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, I rise in opposition to this amendment. I think it is
utterly preposterous that we have before us the African Growth and
Opportunity Act bill with the specific intent of helping countries in
sub-Saharan Africa, and there are certain eligibility requirements that
are outlined in the bill, which many of the countries in North Africa
do not fit in.
The fact that North Africa was separated from Africa was not done by
African-Americans, but it was done by the West. During World War II we
talked about North Africa, and post-World War II it was referred to as
North Africa. At one time we had Asia Minor. It became the Middle East.
How all of a sudden do we now determine that North Africa should be a
part of sub-Saharan Africa, when throughout our modern history North
Africa was North Africa; not that they wanted it, but that was what the
West said it was, and therefore they accepted it? Now, finally,
something to help sub-Saharan Africa, 700 million people, 50 countries.
We have always heard sub-Saharan Africa referred to as sub-Saharan
Africa.
We know that if you take aid to Africa, if you add the Middle East,
then Africa would have the greatest amount of aid, because $3 billion
goes to Israel, $2 billion goes to Egypt, and if you add that to the
$600 million that sub-Saharan Africa gets, you would have $5.6 billion.
But we do not do that. We separate sub-Saharan Africa, where you have
$1 a person when you take the 600 or $700 million for the 700 million
sub-Saharan Africans, the poorest region in the world.
So all of a sudden along comes something positive, and we are saying
that Egypt now, that gets $2 billion, that should be accorded the
something, when finally sub-Saharan Africa has a bill that might start
to have some trading benefit.
Mr. BEREUTER. Mr. Chairman, will the gentleman yield?
Mr. PAYNE. I yield to the gentleman from Nebraska.
Mr. BEREUTER. Mr. Chairman, I thank the gentleman for yielding for a
clarification.
I wanted the gentleman to know that the modification that I made
restricted the amendment to Morocco. It does not include Egypt or other
North African countries.
Mr. PAYNE. That certainly eases it a bit. I think also in this bill,
we are talking about governance; that the countries, the five or six
that will be selected have to go through elections. We are saying that
there cannot be human rights abuses. We are saying that there has to be
transparency in government. We are saying that there must be elections
that are going on in these countries, or they do not fit into the first
round.
It is simply like NATO expansion. There are three countries that are
going to be selected in NATO expansion. You have the Czech Republic,
you have Poland, you have the third country in the NATO expansion,
Hungary. It is those countries, because they have proven that they are
moving in the right direction.
There are still allegations of people being tortured, and the abuses
of detainees, and prison conditions, even in Morocco. The government's
use of force to dispel student protesters in Casablanca in January and
February resulted in many human rights violations. There have been
continued delays in elections, and at the time when the United Nations
is finally attempting to broker an agreement between Morocco and
western Sahara, the report that came back this week by former Secretary
James Baker and Representative Dunbar states that Morocco has stalled
the process again just last week. So I say, in conclusion, that we are
sending the wrong message if we start to alter sub-Saharan Africa.
If this occurred a decade ago, that would be fine, because then sub-
Saharan Africa could have been brought into the benefits that Northern
Africa has. But I think it is wrong that we all of a sudden start this.
That is simply like calling a new government, Benin, Liberia and Togo,
part of the Newly Independent States of central Europe. They are not.
They are newly independent States, but they do not qualify for funds of
the Newly Independent States in the former Soviet countries.
So I think when we do revisionary government, when we redefine, when
we define for the convenience of what we want, I think we move in a
wrong direction.
Mr. Chairman, I reserve the balance of my time.
Mr. BEREUTER. Mr. Chairman, I yield myself such time as I may
consume.
Mr. Chairman, I would say to my distinguished colleague with whom I
serve with on the Committee on International Relations, he is at a bit
of a disadvantage. We had modified this, and he was not aware of it,
earlier.
I would also say that we do not want to change the criteria for
Morocco. They have to meet the same qualifications. The President must
actually make a certification that they meet them, and then it must
come to the Congress, unlike all of the other sub-Saharan African
countries that are named in the bill. There is another step we have
added.
I would also say to the gentleman this: This legislation, which is, I
think, the outstanding foreign policy legislation this Congress will
see, is not a zero sum game. If, in fact, Morocco is deemed eligible by
the President and the Congress then agrees, it is not at the loss of
sub-Saharan countries. It should be open to all who meet the
qualifications, because we benefit from it, and it is not a zero sum
game for African countries.
Beyond that, it is important to consider this. It is a delicate
matter, but I think it is important that we not give the impression
that race or religion has anything to do with respect to this
legislation.
Many of the border nations have people of several races, ethnic
groups, and religions, so they are already incorporated. I understand
that this legislation was careful and sensitive in that respect. But I
did want the gentleman to know that all of these protections are there.
In fact, there is an additional set of protections before Morocco could
come in, but to close off that part of Africa, I think, is the wrong
message.
So I hope the gentleman might reconsider when he understands the
additional steps we have taken to make sure it is not overextended or
there is no free ride. I thank the gentleman for listening.
Mr. Chairman, I reserve the balance of my time.
Mr. PAYNE. Mr. Chairman, I yield myself such time as I may consume.
Let me just reiterate, Mr. Chairman, I appreciate the clarification,
the fact that the $2 billion that Egypt is getting, that it will not be
part of this bill.
I still contend that if we are going to deal with sub-Saharan Africa,
that has been the forgotten area. The only time we dealt with sub-
Saharan Africa was in the Cold War when we dealt with Mobutu, who now
has left that country in such bad straits that even a new government, a
fledgling government, I question whether the Kabila government will
actually make it. And the fact that we have still a Civil War in Angola
between Savimbi holding out, and the dos Santos government, we still
have remnants of the Cold War, where we used Africa as a vehicle in
that war.
I simply say it is time we try to correct those Cold War problems
that we
[[Page H1075]]
created. I think this is a vehicle that we could do it with. I think it
is too little. All of these fears that I hear of organized labor,
hundreds of thousands of textile jobs being lost, I just cannot believe
that people would believe that this first step would create that. I do
not believe it will do that. I think it will really just be a little
drop in the bucket and a step in the right direction.
I still say, there are no kings in sub-Saharan Africa. If we are
going to have elections, how can, therefore, governance be declared in
Morocco when they do not elect their head of State? Right there it
would seem to me to eliminate that country from this bill, because how
do they have governance at that time?
Mr. BEREUTER. Mr. Chairman, will the gentleman yield?
Mr. PAYNE. I yield to the gentleman from Nebraska.
Mr. BEREUTER. Mr. Chairman, in constitutional monarchies the monarchs
are never elected, but Morocco has an important, improving elected
legislative body. Just last year they added a second Chamber, which is
directly elected. So like Britain, like Denmark, like Norway, they are
a constitutional monarchy, but of course those bodies and Morocco has
an elected legislative body.
Mr. PAYNE. The difference, if I may reclaim my time, Mr. Chairman,
the difference is in the countries that the gentleman has explained
where the legislature has some authority. They are able, then, to have
the will of the people move forward.
In the so-called constitutional monarchies that we find in other
areas in the Middle East and in the Far East, we do not find the
legislature, as the gentleman mentioned, they are moving into the tier.
In Europe they have been into that tier for decades, for centuries.
I have nothing against Morocco, but I simply think there is too
little already going into the bill, and I just think to bring in all of
North Africa to the bill, when we are talking about three or four
initial countries to be included, I think it dilutes the bill.
Mr. BEREUTER. If the gentleman will continue to yield once more, so
our colleagues are not confused, this relates to one country only, not
all of North Africa. I thank the gentleman for yielding.
Mr. PAYNE. They say, ``Start me with 10 who are stout-hearted men,
and I'll soon give you 10,000 more.'' We start one, and then we might
find it is good for one and good for another.
I think we should do something in North Africa. I think Tunisia's
government is working in the right direction. They are also certainly
good. I think this new fledgling western Sahara, once the determination
has been made there, should be assisted.
Why not have a North African growth and development bill? That would
make a lot of sense. I would just ask the gentleman from Nebraska (Mr.
Bereuter) and the gentleman from New York (Mr. Solomon), that might be
what they want to introduce, a North African growth and development
bill. I would be as supportive of that bill as I know the gentlemen are
of this. That might be the solution.
Mr. BEREUTER. Mr. Chairman, if the gentleman will continue to yield,
I cannot be any more supportive of this legislation. I am an original
cosponsor. I think it is the most important foreign policy initiative
the United States has even ever taken in post-colonial days with
respect to Africa. It deserves to be broadened. If the gentleman would
like to add Tunisia by unanimous consent, I would be happy to receive
it.
Mr. PAYNE. If the gentleman is willing to introduce his legislation,
I would be more than happy to at that time identify Tunisia as one of
those that should have the opportunity.
But once again, I just hope that my statement is clearly understood.
It is that it is pro sub-Saharan Africa. There is too little, too late
at this point. I just fear a dilution of this first step that we are
attempting to move forward.
Mr. Chairman, I yield back the balance of my time.
{time} 1600
Mr. BEREUTER. Mr. Chairman, I yield myself such time as I may
consume.
Just to reiterate, this legislation is not a zero sum game. Adding
Morocco as a country, the President may consider to meet all of the
criteria, including human rights and everything else that is in the
bill; to make a recommendation that it is in our national interest to
ask the Congress to approve it is all this legislation does. It sets in
place a requirement that Congress take action.
It should not be closed. We should not send that message to North
Africa.
This is an excellent bill. The amendments that have been adopted and
this amendment will make it an even better one. I urge my colleagues to
support the amendment.
Mr. Chairman, I yield back the balance of my time.
The CHAIRMAN pro tempore (Mr. Wicker). The question is on the
amendment, as modified, offered by the gentleman from Nebraska (Mr.
Bereuter).
The question was taken; and the Chairman pro tempore announced that
the ayes appeared to have it.
Mr. PAYNE. Mr. Chairman, I demand a recorded vote.
The CHAIRMAN pro tempore. Pursuant to House Resolution 383, further
proceedings on the amendment, as modified, offered by gentleman from
Nebraska (Mr. Bereuter) will be postponed.
Sequential Votes Postponed in Committee of the Whole
The CHAIRMAN pro tempore. Pursuant to House Resolution 383,
proceedings will now resume on those amendments on which further
proceedings were postponed in the following order:
Amendment No. 2 offered by the gentlewoman from California (Ms.
Waters); modified form of amendment No. 6 offered by the gentleman from
Nebraska (Mr. Bereuter).
The Chair will reduce to 5 minutes the time for any electronic vote
after the first vote in this series.
Amendment No. 2 Offered by Ms. Waters
The CHAIRMAN pro tempore. The pending business is the demand for a
recorded vote on the amendment offered by the gentlewoman from
California (Ms. Waters) on which further proceedings were postponed and
on which the noes prevailed by voice vote.
The Clerk will redesignate the amendment.
The Clerk redesignated the amendment.
Recorded Vote
The CHAIRMAN pro tempore. A recorded vote has been demanded.
A recorded vote was ordered.
The CHAIRMAN pro tempore. Pursuant to House Resolution 383, the Chair
announces he will reduce to a minimum of 5 minutes the period of time
within which a vote by electronic device will be taken on the
additional amendment on which the Chair has postponed further
proceedings.
The vote was taken by electronic device, and there were--ayes 81,
noes 334, not voting 15, as follows:
[Roll No. 44]
AYES--81
Abercrombie
Barrett (WI)
Berman
Bishop
Bonior
Brown (CA)
Brown (FL)
Brown (OH)
Campbell
Carson
Clay
Clayton
Clyburn
Conyers
Crane
Cummings
Davis (IL)
Davis (VA)
DeFazio
Delahunt
DeLauro
Dixon
Dooley
Engel
Farr
Fattah
Filner
Ford
Frank (MA)
Gejdenson
Gephardt
Gutierrez
Hastings (FL)
Hefner
Hilliard
Hoyer
Jackson (IL)
Jackson-Lee (TX)
Jefferson
Johnson, E. B.
Kaptur
Kennedy (MA)
Kennedy (RI)
Kildee
Kilpatrick
Kucinich
Lewis (GA)
Maloney (CT)
Markey
Martinez
Matsui
McKinney
Meehan
Meek (FL)
Meeks (NY)
Millender-McDonald
Miller (CA)
Mink
Moran (VA)
Nadler
Olver
Owens
Pastor
Payne
Pelosi
Rangel
Rivers
Roybal-Allard
Rush
Sanders
Scott
Serrano
Stark
Stokes
Thompson
Thurman
Towns
Velazquez
Waters
Watt (NC)
Wynn
NOES--334
Ackerman
Aderholt
Allen
Andrews
Archer
Armey
Bachus
Baesler
Baker
Baldacci
Ballenger
Barcia
Barr
Barrett (NE)
Bartlett
Barton
Bass
Bateman
Becerra
Bentsen
Bereuter
Berry
Bilbray
Bilirakis
Blagojevich
Bliley
Blumenauer
Blunt
Boehlert
Boehner
Bonilla
Borski
Boswell
Boucher
Boyd
Brady
Bryant
Bunning
Burr
Burton
Buyer
Callahan
Calvert
Camp
Canady
Cannon
Cardin
Castle
[[Page H1076]]
Chabot
Chambliss
Christensen
Clement
Coble
Coburn
Collins
Combest
Condit
Cook
Cooksey
Costello
Cox
Coyne
Cramer
Crapo
Cubin
Cunningham
Danner
Davis (FL)
Deal
DeGette
DeLay
Diaz-Balart
Dickey
Dicks
Dingell
Doggett
Doolittle
Doyle
Dreier
Duncan
Dunn
Edwards
Ehlers
Ehrlich
Emerson
English
Ensign
Eshoo
Etheridge
Evans
Everett
Ewing
Fawell
Fazio
Foley
Forbes
Fossella
Fowler
Fox
Franks (NJ)
Frelinghuysen
Frost
Gallegly
Ganske
Gekas
Gibbons
Gilchrest
Gillmor
Gilman
Goode
Goodlatte
Goodling
Gordon
Goss
Graham
Granger
Green
Greenwood
Gutknecht
Hall (OH)
Hall (TX)
Hamilton
Hansen
Hastert
Hastings (WA)
Hayworth
Hefley
Herger
Hill
Hilleary
Hinchey
Hinojosa
Hobson
Hoekstra
Holden
Hooley
Horn
Hostettler
Houghton
Hulshof
Hunter
Hutchinson
Hyde
Inglis
Istook
Jenkins
Johnson (CT)
Johnson (WI)
Johnson, Sam
Jones
Kanjorski
Kasich
Kelly
Kennelly
Kim
Kind (WI)
King (NY)
Kingston
Kleczka
Klink
Klug
Knollenberg
Kolbe
LaFalce
LaHood
Lampson
Lantos
Largent
Latham
LaTourette
Lazio
Leach
Levin
Lewis (CA)
Lewis (KY)
Linder
Lipinski
Livingston
LoBiondo
Lofgren
Lowey
Lucas
Luther
Maloney (NY)
Manzullo
Mascara
McCarthy (MO)
McCarthy (NY)
McCollum
McCrery
McDade
McDermott
McGovern
McHale
McHugh
McInnis
McIntosh
McIntyre
McKeon
McNulty
Menendez
Metcalf
Mica
Miller (FL)
Minge
Moakley
Mollohan
Moran (KS)
Morella
Murtha
Myrick
Neal
Nethercutt
Neumann
Ney
Northup
Norwood
Nussle
Oberstar
Obey
Ortiz
Oxley
Packard
Pallone
Pappas
Parker
Pascrell
Paul
Paxon
Pease
Peterson (MN)
Peterson (PA)
Petri
Pickering
Pickett
Pitts
Pombo
Pomeroy
Porter
Portman
Price (NC)
Pryce (OH)
Quinn
Rahall
Ramstad
Regula
Reyes
Riggs
Riley
Roemer
Rogan
Rogers
Rohrabacher
Ros-Lehtinen
Rothman
Roukema
Royce
Ryun
Sabo
Salmon
Sanchez
Sandlin
Sanford
Sawyer
Saxton
Scarborough
Schaefer, Dan
Schaffer, Bob
Schumer
Sensenbrenner
Sessions
Shadegg
Shaw
Shays
Sherman
Shimkus
Shuster
Sisisky
Skaggs
Skeen
Skelton
Slaughter
Smith (MI)
Smith (NJ)
Smith (OR)
Smith (TX)
Smith, Adam
Smith, Linda
Snowbarger
Snyder
Solomon
Souder
Spratt
Stabenow
Stearns
Stenholm
Strickland
Stump
Stupak
Sununu
Talent
Tanner
Tauscher
Tauzin
Taylor (MS)
Taylor (NC)
Thomas
Thornberry
Thune
Tiahrt
Tierney
Traficant
Turner
Upton
Vento
Visclosky
Walsh
Wamp
Watkins
Watts (OK)
Weldon (FL)
Weldon (PA)
Weller
Wexler
Weygand
White
Whitfield
Wicker
Wise
Wolf
Woolsey
Yates
Young (AK)
Young (FL)
NOT VOTING--15
Chenoweth
Deutsch
Furse
Gonzalez
Harman
John
Manton
Poshard
Radanovich
Redmond
Rodriguez
Schiff
Spence
Torres
Waxman
{time} 1623
Mr. SAM JOHNSON of Texas and Mr. BILBRAY changed their vote from
``aye'' to ``no.''
Messrs. FARR of California, GEJDENSON, MILLER of California, FRANK of
Massachusetts, Ms. DeLAURO, Ms. PELOSI, and Messrs. MARKEY, MATSUI and
KENNEDY of Massachusetts changed their vote from ``no'' to ``aye.''
So the amendment was rejected.
The result of the vote was announced as above recorded.
Amendment No. 6, as Modified, Offered by Mr. Bereuter
The CHAIRMAN pro tempore (Mr. Wicker). The pending business is the
demand for a recorded vote on the amendment No. 6, as modified, offered
by the gentleman from Nebraska (Mr. Bereuter), on which further
proceedings were postponed and on which the ayes prevailed by voice
vote.
The Clerk will redesignate the amendment.
The Clerk redesignated the amendment.
Recorded Vote
The CHAIRMAN pro tempore. A recorded vote has been demanded.
A recorded vote was ordered.
The CHAIRMAN pro tempore. This will be a 5-minute vote.
The vote was taken by electronic device, and there were--ayes 156,
noes 258, not voting 16, as follows:
[Roll No. 45]
AYES--156
Armey
Barr
Barrett (NE)
Bass
Bateman
Bereuter
Berman
Bilbray
Bilirakis
Blagojevich
Bliley
Blumenauer
Boehlert
Boehner
Brown (CA)
Buyer
Callahan
Calvert
Camp
Campbell
Canady
Cannon
Chabot
Christensen
Clement
Coburn
Cooksey
Cox
Crane
Davis (VA)
DeLay
Diaz-Balart
Doggett
Doolittle
Dreier
Dunn
Ehlers
Ehrlich
English
Eshoo
Ewing
Fawell
Foley
Forbes
Fossella
Fox
Franks (NJ)
Frelinghuysen
Gejdenson
Gekas
Gibbons
Gilchrest
Gillmor
Gilman
Goodlatte
Goss
Graham
Greenwood
Gutierrez
Gutknecht
Hall (OH)
Hamilton
Hastert
Hastings (WA)
Hayworth
Hill
Hobson
Hoekstra
Horn
Hostettler
Houghton
Hoyer
Hyde
Johnson (CT)
Kasich
Kelly
Kim
Kind (WI)
Kingston
Klug
Knollenberg
LaFalce
LaHood
Latham
LaTourette
Lazio
Leach
Lewis (CA)
Lucas
Luther
Manzullo
McCollum
McDade
McHugh
McInnis
McIntosh
Mica
Miller (FL)
Minge
Moran (KS)
Moran (VA)
Morella
Nethercutt
Neumann
Northup
Owens
Oxley
Pappas
Paxon
Pease
Peterson (PA)
Petri
Pickett
Pitts
Pomeroy
Portman
Pryce (OH)
Quinn
Ramstad
Rivers
Rogan
Ros-Lehtinen
Roukema
Ryun
Salmon
Saxton
Scarborough
Schaefer, Dan
Schaffer, Bob
Sensenbrenner
Sessions
Shadegg
Shays
Sherman
Shimkus
Shuster
Skaggs
Skeen
Smith (MI)
Smith (NJ)
Smith (OR)
Smith (TX)
Snowbarger
Snyder
Solomon
Sununu
Thune
Tiahrt
Walsh
Watkins
Wexler
White
Whitfield
Wicker
Young (AK)
Young (FL)
NOES--258
Abercrombie
Ackerman
Aderholt
Allen
Andrews
Archer
Bachus
Baesler
Baker
Baldacci
Ballenger
Barcia
Barrett (WI)
Bartlett
Barton
Becerra
Bentsen
Berry
Bishop
Blunt
Bonilla
Bonior
Borski
Boswell
Boucher
Boyd
Brady
Brown (FL)
Brown (OH)
Bryant
Bunning
Burr
Burton
Cardin
Carson
Castle
Chambliss
Clay
Clayton
Clyburn
Coble
Collins
Combest
Condit
Conyers
Cook
Costello
Coyne
Cramer
Crapo
Cubin
Cummings
Cunningham
Danner
Davis (FL)
Davis (IL)
Deal
DeFazio
DeGette
Delahunt
DeLauro
Dickey
Dicks
Dingell
Dixon
Dooley
Doyle
Duncan
Edwards
Emerson
Engel
Ensign
Etheridge
Evans
Everett
Farr
Fattah
Fazio
Filner
Ford
Fowler
Frank (MA)
Frost
Gallegly
Ganske
Gephardt
Goode
Goodling
Gordon
Granger
Green
Hall (TX)
Hansen
Hastings (FL)
Hefley
Hefner
Herger
Hilleary
Hilliard
Hinchey
Hinojosa
Holden
Hooley
Hulshof
Hunter
Hutchinson
Inglis
Istook
Jackson (IL)
Jackson-Lee (TX)
Jefferson
Jenkins
Johnson (WI)
Johnson, E. B.
Johnson, Sam
Jones
Kanjorski
Kaptur
Kennedy (MA)
Kennedy (RI)
Kennelly
Kildee
Kilpatrick
King (NY)
Kleczka
Klink
Kolbe
Kucinich
Lampson
Lantos
Largent
Levin
Lewis (GA)
Lewis (KY)
Linder
Lipinski
Livingston
LoBiondo
Lofgren
Lowey
Maloney (CT)
Maloney (NY)
Markey
Martinez
Mascara
Matsui
McCarthy (MO)
McCarthy (NY)
McCrery
McDermott
McGovern
McHale
McIntyre
McKeon
McKinney
McNulty
Meehan
Meeks (NY)
Menendez
Metcalf
Millender-McDonald
Miller (CA)
Mink
Moakley
Mollohan
Murtha
Myrick
Nadler
Neal
Ney
Norwood
Nussle
Oberstar
Obey
Olver
Ortiz
Packard
Pallone
Parker
Pascrell
Pastor
Paul
Payne
Pelosi
Pickering
Pombo
Porter
Price (NC)
Rahall
Rangel
Regula
Reyes
Riggs
Riley
Roemer
Rogers
Rohrabacher
Rothman
Roybal-Allard
Royce
Rush
Sabo
Sanchez
Sanders
Sandlin
Sanford
Sawyer
Schumer
Scott
Serrano
Shaw
Sisisky
Skelton
Slaughter
Smith, Adam
Smith, Linda
Souder
Spence
Spratt
Stabenow
Stearns
Stenholm
Stokes
Strickland
Stump
Stupak
Talent
Tanner
Tauscher
Tauzin
Taylor (MS)
Taylor (NC)
Thomas
Thompson
Thornberry
Thurman
Tierney
Torres
Towns
Traficant
Turner
Upton
Velazquez
Vento
Visclosky
Wamp
Waters
Watt (NC)
Watts (OK)
Weldon (FL)
Weldon (PA)
Weller
[[Page H1077]]
Weygand
Wise
Wolf
Woolsey
Wynn
Yates
NOT VOTING--16
Chenoweth
Deutsch
Furse
Gonzalez
Harman
John
Manton
Meek (FL)
Peterson (MN)
Poshard
Radanovich
Redmond
Rodriguez
Schiff
Stark
Waxman
{time} 1631
Mr. PASTOR changed his vote from ``aye'' to ``no.''
Messrs. DeLAY, BERMAN and COX of California changed their vote from
``no'' to ``aye.''
So the amendment, as modified, was rejected.
The result of the vote was announced as above recorded.
Ms. JACKSON-LEE of Texas. Mr. Chairman, I ask unanimous consent to
strike the last word to enter in a colloquy with the gentleman from
Illinois (Mr. Crane).
The CHAIRMAN pro tempore (Mr. Wicker). Is there objection to the
request of the gentlewoman from Texas?
There was no objection.
(Ms. JACKSON-LEE of Texas asked and was given permission to revise
and extend her remarks.)
Ms. JACKSON-LEE of Texas. Mr. Chairman, I would like to thank the
gentleman from Illinois (Mr. Crane), first of all, for his graciousness
and the gentleman from New York (Mr. Rangel), as well. I know we will
have to deliberate further on these very important issues and take the
time to go through conference and the Senate and have deliberation and
further thought on these issues.
Mr. Chairman, I will mention these collectively and acknowledge the
need for further thought and deliberation, but these are very important
points. One is the devastation of HIV, AIDS, on the continent and the
ability of this bill to help with pharmaceuticals getting over to the
continent to be able to help with this devastation.
The other issue, of course, is the GSP program, which already helps
in workers' safety rights and workers' rights, that certainly under
that we would see that applying on the continent or aiding in making
sure that we have good conditions for workers.
Lastly, let me say I think it is very important that once this
important bill passes, if our colleagues join us in passing it, that it
not drop off the deep end and it may be helpful to consider a working
committee that in 6 months would look at where we are on the question
of how this bill is being implemented.
I would like to bring to both the Chair of the International
Relations Committee and the Trade Subcommittee on Ways and Means of my
concern of the overwhelming HIV/AIDS epidemic that is currently
plaguing Africa and the world. According to the World Health
Organization, over 550,000 cases have been reported in Africa alone.
The Aids epidemic is affecting the young work force between the ages of
18-55, and if the work force keeps dying, how can they benefit from
this bill?
I would like to see, Mr. Chairman, that through this improved trade
legislation we can encourage the expeditious exporting of much needed
pharmecuticals to the continent in order to combat the AIDS epidemic
ravaging Africa. Upon that effort we can build further on solving the
AIDS problems in Africa by encouraging more research by various world
health agencies on this problem.
I am concerned, Mr. Chairman, that the Africa Growth and Opportunity
Act can protect the rights of African workers. I understand and want to
make sure that through the GSP (General System of Preferences) program
protection for good work place conditions and more importantly worker
safety issues will be in place under this legislation. Therefore, I
raise with the Chairman of the Trade Subcommittee on Ways and Means the
question as to whether this legislation would preclude the putting in
place good work place conditions and safe work places in Africa.
I am also concerned that this bill which will allow for increased
trade and investment in Africa will ultimately benefit American
workers. Africa constitutes a market of 800 million people, potentially
one of the largest markets in the world--more people than Japan and all
of the Asian nations combined. If this bill works, and I think it will,
spur growth and create bigger markets for U.S. exports. Our exports to
Africa already are intensive in high-wage industries, such as
machinery, transportation equipment, electronics and services.
Exports to Africa are 27% greater than our exports to all of the
former Soviet Union combined. By aggressively following the path of
reform, African countries can provide prosperity for their people and
create robust markets that will help working Americans and small
businesses. It is also important that the protection of these workers
is inherent in this bill and that this bill will seek to protect the
safety of these workers.
As someone who deeply cares about Africa and our American workers, I
just want to ensure this bill helps our nation's workers, African
workers and creates jobs for us all.
I am concerned, Mr. Chairman, that once the Africa Growth and
Opportunity Act passes that its provisions are implemented. I am fully
aware that Section 12 of the bill calls for a private advisory
committee to assist the Board of Directors of the Overseas Private
Investment Corporation in developing policies and programs. I am
interested in soliciting the consideration of the Trade Subcommittee
Chairman on Ways and Means in including in the report language of this
bill a working advisory group established with both Members of the
House and Senate, and the administration that would meet within six
months of passage to monitor the implementation of the bill.
I thank the Chair of the Trade Subcommittee for his support of the
bill language which seeks to bring Members of Congress and the
Administration together 6 months after the bill is enacted to monitor
the implementation of the bill, see how it can be improved, and to
continue to work towards creating more jobs in America and Africa.
Mr. Chairman, I yield to the gentleman from Illinois (Mr. Crane) to
be able to respond to these important points that I think will make
this bill better and help the people of Africa.
Mr. CRANE. Mr. Chairman, I think the points that my colleague has
just made are valid and will be under consideration.
Under the GSP program and under the bill, the President must consider
whether a country is taking steps to afford its workers internationally
recognized workers' rights when determining whether to designate a
country as eligible for trade benefits.
So I think it addresses the concerns that the gentlewoman raises and
raises properly. We appreciate the support that the gentlewoman has
given and look forward to working with her in the future, too.
Ms. JACKSON-LEE of Texas. I yield back the balance of my time.
The CHAIRMAN pro tempore. The question is on the committee amendment
in the nature of a substitute, as modified, as amended.
The committee amendment in the nature of a substitute, as modified,
as amended, was agreed to.
The CHAIRMAN pro tempore. Under the rule, the Committee rises.
Accordingly the Committee rose; and the Speaker pro tempore (Mr.
Ewing) having assumed the chair, Mr. Wicker, Chairman pro tempore of
the Committee of the Whole House on the State of the Union, reported
that that committee, having had under consideration the bill (H.R.
1432), to authorize a new trade and investment policy for sub-Saharan
Africa, pursuant to House Resolution 383, he reported the bill back to
the House with an amendment adopted by the Committee of the Whole.
The SPEAKER pro tempore. Under the rule, the previous question is
ordered.
Is a separate vote demanded on any amendment to the committee
amendment in the nature of a substitute adopted by the Committee of the
Whole? If not, the question is on the amendment.
The amendment was agreed to.
The SPEAKER pro tempore. The question is on the engrossment and third
reading of the bill.
The bill was ordered to be engrossed and read a third time, and was
read the third time.
Motion To Recommit Offered By Mr. Bishop.
Mr. BISHOP. Mr. Speaker, I offer a motion to recommit.
The SPEAKER pro tempore. Is the gentleman opposed to the bill.
Mr. BISHOP. Yes. In its current form, I am, Mr. Speaker.
The SPEAKER pro tempore. The Clerk will report the motion to
recommit.
The Clerk read as follows:
Mr. Bishop moves to recommit the bill H.R. 1432 to the
Committee on Ways and Means with instructions to report the
same to the House forthwith with the following amendment:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``African Growth and
Opportunity Act''.
SEC. 2. FINDINGS.
The Congress finds that it is in the mutual economic
interest of the United States and
[[Page H1078]]
sub-Saharan Africa to promote stable and sustainable economic
growth and development in sub-Saharan Africa. To that end,
the United States seeks to facilitate market-led economic
growth in, and thereby the social and economic development
of, the countries of sub-Saharan Africa. In particular, the
United States seeks to assist sub-Saharan African countries,
and the private sector in those countries, to achieve
economic self-reliance by--
(1) strengthening and expanding the private sector in sub-
Saharan Africa, especially women-owned businesses;
(2) encouraging increased trade and investment between the
United States and sub-Saharan Africa;
(3) reducing tariff and nontariff barriers and other trade
obstacles;
(4) expanding United States assistance to sub-Saharan
Africa's regional integration efforts;
(5) establishing a United States-Sub-Saharan Africa Trade
and Investment Partnership;
(6) focusing on countries committed to accountable
government, economic reform, and the eradication of poverty;
(7) establishing a United States-Sub-Saharan Africa
Economic Cooperation Forum; and
(8) continuing to support development assistance for those
countries in sub-Saharan Africa attempting to build civil
societies.
SEC. 3. STATEMENT OF POLICY.
The Congress supports economic self-reliance for sub-
Saharan African countries, particularly those committed to--
(1) economic and political reform;
(2) market incentives and private sector growth;
(3) the eradication of poverty; and
(4) the importance of women to economic growth and
development.
SEC. 4. ELIGIBILITY REQUIREMENTS.
(a) In General.--For each fiscal year, the President shall
determine, on a case-by-case basis after providing an
opportunity for public comment, whether each sub-Saharan
African country is eligible to participate in programs,
projects, or activities, or receive assistance or other
benefits under this Act. The President's determination shall
be based on the establishment and enforcement of appropriate
policies relating to--
(1) promoting free movement of goods and services between
the United States and sub-Saharan Africa and among countries
in sub-Saharan Africa;
(2) promoting the expansion of the production base and the
transformation of commodities and nontraditional products for
exports through joint venture projects between African and
foreign investors;
(3) trade issues, such as protection of intellectual
property rights, particularly intellectual property rights
with respect to textile and apparel goods, improvements in
standards, testing, labeling, and certification;
(4) the protection of property rights, such as protection
against expropriation and a functioning and fair judicial
system;
(5) participation in bilateral investment treaties and the
harmonization of such treaties to avoid double taxation;
(6) supporting the growth of regional markets within a free
trade area framework;
(7) governance issues, such as eliminating government
corruption, minimizing government intervention in the market
such as price controls and subsidies, and streamlining the
business license process;
(8) encouraging private ownership of government-controlled
economic enterprises;
(9) removing restrictions on investment;
(10) engaging in a cooperative effort with the United
States Customs Service to monitor and enforce policies
necessary to implement the special access program authorized
by section 8, including penalties for transshipment of
textile and apparel goods in contravention of United States
law, and providing to the Customs Service entry into that
country, and access to accurate information in that country,
in order to monitor and enforce such policies;
(11) progress on human and worker rights, such as the
protection of internationally recognized worker rights as
defined in section 507(4) of the Trade Act of 1974,
especially restrictions on child labor; and
(12) reducing tariffs and eliminating nontariff barriers to
United States textile and apparel goods.
(b) Additional Factors.--In determining whether a sub-
Saharan African country is eligible under subsection (a), the
President shall take into account the following factors:
(1) An expression by such country of its desire to be an
eligible country under subsection (a).
(2) The extent to which such country has made substantial
progress toward--
(A) reducing tariff levels;
(B) binding its tariffs in the World Trade Organization and
assuming meaningful binding obligations in other sectors of
trade; and
(C) eliminating nontariff barriers to trade.
(3) Whether such country, if not already a member of the
World Trade Organization, is actively pursuing membership in
that Organization.
(4) The extent to which such country has a recognizable
commitment to reducing poverty, increasing the availability
of health care and educational opportunities, the expansion
of physical infrastructure in a manner designed to maximize
accessibility, increased access to market and credit
facilities for small farmers and producers, and improved
economic opportunities for women as entrepreneurs and
employees, and promoting and enabling the formation of
capital to support the establishment and operation of micro-
enterprises.
(5) Whether or not such country engages in activities that
undermine United States national security or foreign policy
interests.
(c) Continuing Compliance.--
(1) Monitoring and review of certain countries.--The
President shall monitor and review the progress of sub-
Saharan African countries in order to determine their current
or potential eligibility under subsection (a). Such
determinations shall be based on quantitative factors to the
fullest extent possible and shall be included in the annual
report required by section 16.
(2) Ineligibility of certain countries.--A sub-Saharan
African country described in paragraph (1) that has not made
continual progress in meeting the requirements with which it
is not in compliance shall be ineligible to participate in
programs, projects, or activities, or receive assistance or
other benefits, under this Act.
(3) Ineligibility of counties not cooperating with united
states customs.--The President shall not renew the
eligibility of a sub-Saharan African country which does not
fully cooperate with the United States Customs Service in the
enforcement of laws against transshipment of textile and
apparel goods as set forth in subsection (a)(10).
(d) Violations of Human Rights and Ineligible Countries.--
It is the sense of the Congress that a sub-Saharan African
country should not be eligible to participate in programs,
projects, or activities, or receive assistance or other
benefits under this Act if the government of that country is
determined by the President to engage in a consistent pattern
of gross violations of internationally recognized human
rights.
(e) Exception.--This section does not apply with respect to
the amendments made by section 10 of this Act.
SEC. 5. ADDITIONAL AUTHORITIES AND INCREASED FLEXIBILITY TO
PROVIDE ASSISTANCE UNDER THE DEVELOPMENT FUND
FOR AFRICA.
(a) Use of Sustainable Development Assistance To Support
Further Economic Growth.--It is the sense of the Congress
that sustained economic growth in sub-Saharan Africa depends
in large measure upon the development of a receptive
environment for trade and investment, and that to achieve
this objective the United States Agency for International
Development should continue to support programs which help to
create this environment. Investments in human resources,
development, and implementation of free market policies,
including policies to liberalize agricultural markets and
improve food security, and the support for the rule of law
and democratic governance should continue to be encouraged
and enhanced on a bilateral and regional basis.
(b) Declarations of Policy.--The Congress makes the
following declarations:
(1) The Development Fund for Africa established under
chapter 10 of part I of the Foreign Assistance Act of 1961
(22 U.S.C. 2293 et seq.) has been an effective tool in
providing development assistance to sub-Saharan Africa since
1988.
(2) The Development Fund for Africa will complement the
other provisions of this Act and lay a foundation for
increased trade and investment opportunities between the
United States and sub-Saharan Africa.
(3) Assistance provided through the Development Fund for
Africa will continue to support programs and activities that
promote the long term economic development of sub-Saharan
Africa, such as programs and activities relating to the
following:
(A) Strengthening primary and vocational education systems,
especially the acquisition of middle-level technical skills
for operating modern private businesses and the introduction
of college level business education, including the study of
international business, finance, and stock exchanges.
(B) Strengthening health care systems.
(C) Strengthening family planning service delivery systems.
(D) Supporting democratization, good governance and civil
society and conflict resolution efforts.
(E) Increasing food security by promoting the expansion of
agricultural and agriculture-based industrial production and
productivity and increasing real incomes for poor
individuals.
(F) Promoting an enabling environment for private sector-
led growth through sustained economic reform, privatization
programs, and market-led economic activities.
(G) Promoting decentralization and local participation in
the development process, especially linking the rural
production sectors and the industrial and market centers
throughout Africa.
(H) Increasing the technical and managerial capacity of
sub-Saharan African individuals to manage the economy of sub-
Saharan Africa.
(I) Ensuring sustainable economic growth through
environmental protection.
(4) The African Development Foundation has a unique
congressional mandate to empower the poor to participate
fully in development and to increase opportunities for
gainful employment, poverty alleviation, and more equitable
income distribution in sub-Saharan Africa. The African
Development Foundation has worked successfully to enhance the
role of women as agents of change, strengthen the informal
sector with an emphasis on supporting micro and small
[[Page H1079]]
sized enterprises, indigenous technologies, and mobilizing
local financing. The African Development Foundation should
develop and implement strategies for promoting participation
in the socioeconomic development process of grassroots and
informal sector groups such as nongovernmental organizations,
cooperatives, artisans, and traders into the programs and
initiatives established under this Act.
(c) Additional Authorities.--
(1) In general.--Section 496(h) of the Foreign Assistance
Act of 1961 (22 U.S.C. 2293(h)) is amended--
(A) by redesignating paragraph (3) as paragraph (4); and
(B) by inserting after paragraph (2) the following:
``(3) Democratization and conflict resolution
capabilities.--Assistance under this section may also include
program assistance--
``(A) to promote democratization, good governance, and
strong civil societies in sub-Saharan Africa; and
``(B) to strengthen conflict resolution capabilities of
governmental, intergovernmental, and nongovernmental entities
in sub-Saharan Africa.''.
(2) Conforming amendment.--Section 496(h)(4) of such Act,
as amended by paragraph (1), is further amended by striking
``paragraphs (1) and (2)'' in the first sentence and
inserting ``paragraphs (1), (2), and (3)''.
SEC. 6. UNITED STATES-SUB-SAHARAN AFRICA TRADE AND ECONOMIC
COOPERATION FORUM.
(a) Declaration of Policy.--The President shall convene
annual high-level meetings between appropriate officials of
the United States Government and officials of the governments
of sub-Saharan African countries in order to foster close
economic ties between the United States and sub-Saharan
Africa.
(b) Establishment.--Not later than 12 months after the date
of the enactment of this Act, the President, after consulting
with the governments concerned, shall establish a United
States-Sub-Saharan Africa Trade and Economic Cooperation
Forum (hereafter in this section referred to as the
``Forum'').
(c) Requirements.--In creating the Forum, the President
shall meet the following requirements:
(1) The President shall direct the Secretary of Commerce,
the Secretary of the Treasury, the Secretary of State, and
the United States Trade Representative to host the first
annual meeting with the counterparts of such Secretaries from
the governments of sub-Saharan African countries eligible
under section 4, the Secretary General of the Organization of
African Unity, and government officials from other
appropriate countries in Africa, to discuss expanding trade
and investment relations between the United States and sub-
Saharan Africa and the implementation of this Act.
(2)(A) The President, in consultation with the Congress,
shall encourage United States nongovernmental organizations
to host annual meetings with nongovernmental organizations
from sub-Saharan Africa in conjunction with the annual
meetings of the Forum for the purpose of discussing the
issues described in paragraph (1).
(B) The President, in consultation with the Congress, shall
encourage United States representatives of the private sector
to host annual meetings with representatives of the private
sector from sub-Saharan Africa in conjunction with the annual
meetings of the Forum for the purpose of discussing the
issues described in paragraph (1).
(3) The President shall, to the extent practicable, meet
with the heads of governments of sub-Saharan African
countries eligible under section 4 not less than once every
two years for the purpose of discussing the issues described
in paragraph (1). The first such meeting should take place
not later than twelve months after the date of the enactment
of this Act.
(d) Dissemination of Information by USIA.--In order to
assist in carrying out the purposes of the Forum, the United
States Information Agency shall disseminate regularly,
through multiple media, economic information in support of
the free market economic reforms described in this Act.
(e) Authorization of Appropriations.--There are authorized
to be appropriated such sums as may be necessary to carry out
this section.
(f) Limitation on Use of Funds.--None of the funds
authorized under this section may be used to create or
support any nongovernmental organization for the purpose of
expanding or facilitating trade between the United States and
sub-Saharan Africa.
SEC. 7. UNITED STATES-SUB-SAHARAN AFRICA FREE TRADE AREA.
(a) Declaration of Policy.--The Congress declares that the
President should investigate the establishment of a United
States-Sub-Saharan Africa Free Trade Area as a result of a
fully reciprocal free trade agreement, if the President
determines that increased trade and private sector
development have led to open market economies in the
countries of sub-Saharan Africa.
(b) Plan Requirement.--
(1) In general.--The President, taking into account the
provisions of the treaty establishing the African Economic
Community and the willingness of the governments of sub-
Saharan African countries to engage in negotiations to enter
into free trade agreements, may develop a plan for the
purpose of entering into one or more trade agreements with
sub-Saharan African countries eligible under section 4 in
order to establish a United States-Sub-Saharan Africa Free
Trade Area (hereafter in this section referred to as the
``Free Trade Area'').
(2) Elements of plan.--The plan may include the following:
(A) The specific objectives of the United States with
respect to the establishment of the Free Trade Area and a
suggested timetable for achieving those objectives.
(B) The benefits to both the United States and sub-Saharan
Africa with respect to the Free Trade Area.
(C) A mutually agreed-upon timetable for establishing the
Free Trade Area.
(D) The implications for and the role of regional and sub-
regional organizations in sub-Saharan Africa with respect to
the Free Trade Area.
(E) Subject matter anticipated to be covered by the
agreement for establishing the Free Trade Area and United
States laws, programs, and policies, as well as the laws of
participating eligible African countries and existing
bilateral and multilateral and economic cooperation and trade
agreements, that may be affected by the agreement or
agreements.
(F) Procedures to ensure the following:
(i) Adequate consultation with the Congress and the private
sector during the negotiation of the agreement or agreements
for establishing the Free Trade Area.
(ii) Consultation with the Congress regarding all matters
relating to implementation of the agreement or agreements.
(iii) Approval by the Congress of the agreement or
agreements.
(iv) Adequate consultations with the relevant African
governments and African regional and subregional
intergovernmental organizations during the negotiations of
the agreement or agreements.
(c) Reporting Requirement.--The President shall prepare and
transmit to the Congress a report containing the results of
his investigation under subsection (a).
SEC. 8. SPECIAL ACCESS PROGRAM FOR TEXTILE AND APPAREL
ARTICLES FROM ELIGIBLE COUNTRIES.
(a) Special Access Program.--
(1) Establishment.--The President, in consultation with
representatives of the domestic textile and apparel industry
and with representatives of countries in sub-Saharan Africa
that are eligible under section 4 and after providing an
opportunity for public comment, shall establish a special
access program for imports of textile and apparel articles
from such eligible countries in sub-Saharan Africa under
which specified levels of imports of eligible textile and
apparel articles would not be subject to duties or quotas.
(2) Program modeled on existing programs.--The program
under paragraph (1) should be modeled on existing programs
providing for similar preferential tariff and quota
treatment, such as the program in effect for countries in the
Caribbean Basin, consistent with the international
obligations of the United States under the Agreement on
Textiles and Clothing and other trade agreements.
(b) Eligible Goods.--
(1) In general.--Textile and apparel articles are eligible
for the special access program established under subsection
(a) only if the articles are--
(A) textile or apparel articles assembled in an eligible
sub-Saharan African country from fabrics wholly formed and
cut in the United States, from yarns wholly formed in the
United States, that are--
(i) entered under subheading 9802.00.80 of the Harmonized
Tariff Schedule of the United States; or
(ii) entered under chapter 61 or 62 of the Harmonized
Tariff Schedule of the United States, if, after such
assembly, the articles would have qualified for entry under
subheading 9802.00.80 of such Schedule but for the fact that
the articles were subjected to stone-washing, enzyme-washing,
acid-washing, perma-pressing, oven-baking, bleaching,
garment-dyeing, embroidery, or other similar processes; or
(B) handloomed, handmade, or folklore articles of an
eligible sub-Saharan African country identified under
paragraph (2) that are certified as such by the competent
authority of such country.
(2) Determination of handloomed, handmade, or folklore
goods.--For purposes of paragraph (1)(B), the President,
after consultation with the eligible sub-Saharan African
country concerned, shall determine which, if any, particular
textile and apparel goods of the country shall be treated as
being handloomed, handmade, or folklore goods of a kind
described in section 2.3(a), (b), or (c) or Appendix 3.1.B.11
of Annex 300-B of the North American Free Trade Agreement.
(3) Actions by president to prevent market disruption.--The
President may impose the prevailing general column I rates of
duty, restrict the quantity of imports, or both, with respect
to imports of eligible goods under this subsection from any
eligible sub-Saharan African country if such action is
necessary to prevent market disruption or the threat thereof.
(c) Report.--The President shall include as part of the
first annual report under section 16 a report on the
establishment of the special access program under subsection
(a) and shall report to the Congress annually thereafter on
the implementation of the program and its effect on the
textile and apparel industry in the United States.
[[Page H1080]]
(d) Definition.--For purposes of this section, the term
``Agreement on Textiles and Clothing'' means the Agreement on
Textiles and Clothing referred to in section 101(d)(4) of the
Uruguay Round Agreements Act (19 U.S.C. 3511(d)(4)).
SEC. 9. PENALTIES FOR VIOLATIONS OF CUSTOMS LAWS INVOLVING
TEXTILE AND APPAREL GOODS.
(a) Penalties.--Section 592 of the Tariff Act of 1930 (19
U.S.C. 1592) is amended by adding at the end the following:
``(g) Penalties Involving Textile and Apparel Goods.--
``(1) Fraud.--Notwithstanding subsection (c), the civil
penalty for a fraudulent violation of subsection (a) based on
a claim that textile and apparel goods are products of
countries in sub-Saharan Africa--
``(A) shall, subject to subparagraph (B), be double the
amount that would otherwise apply under subsection (c)(1);
and
``(B) shall be an amount not to exceed 300 percent of the
declared value in the United States of the merchandise if the
violation has the effect of circumventing any quota on
textile and apparel goods.
``(2) Gross negligence.--Notwithstanding subsection (c),
the civil penalty for a grossly negligent violation of
subsection (a) based on a claim that textile and apparel
goods are products of countries in sub-Saharan Africa--
``(A) shall, subject to subparagraphs (B) and (C), be
double the amount that would otherwise apply under subsection
(c)(2);
``(B) shall, if the violation has the effect of
circumventing any quota of the United States on textile and
apparel goods, and subject to subparagraph (C), be 200
percent of the declared value of the merchandise; and
``(C) shall, if the violation is a third or subsequent
offense occurring within 3 years, be the penalty for a
fraudulent violation under paragraph (1) (A) or (B),
whichever is applicable.
``(3) Negligence.--Notwithstanding subsection (c), the
civil penalty for a negligent violation of subsection (a)
based on a claim that textile and apparel goods are products
of countries in sub-Saharan Africa--
``(A) shall, subject to subparagraphs (B) and (C), be
double the amount that would otherwise apply under subsection
(a)(3);
``(B) shall, if the violation has the effect of
circumventing any quota of the United States on textile and
apparel goods, and subject to subparagraph (C), be 100
percent of the declared value of the merchandise; and
``(C) shall, if the violation is a third or subsequent
offense occurring within 3 years, be the penalty for a
grossly negligent violation under paragraph (2) (A) or (B),
whichever is applicable.''.
(b) Mitigation.--Section 618 of the Tariff Act of 1930 (19
U.S.C. 1618) is amended--
(1) by striking ``Whenever'' and inserting ``(a) In
General.--Whenever'', and
(2) by adding at the end the following new subsection:
``(b) Mitigation Rules Relating to Textile and Apparel
Goods.--
``(1) General rule.--Notwithstanding any other provision of
law, the Secretary of the Treasury may remit or mitigate any
fine or penalty imposed pursuant to section 592 based on a
claim that textile and apparel goods are products of
countries in sub-Saharan Africa only if--
``(A) in the case of a first offense, the violation is due
to either negligence or gross negligence; and
``(B) in the case of a second or subsequent offense, prior
disclosure (as defined in section 592(c)(4)) is made within
180 days after the entry of the goods.
``(2) Special rule for prior disclosures after 180 days.--
In the case of a second or subsequent offense where prior
disclosure (as defined in section 592(c)(4)) is made after
180 days after the entry of the goods, the Secretary of the
Treasury may remit or mitigate not more than 50 percent of
such fines or penalties.''.
(c) Seizure and Forfeiture.--Section 596(c)(2) of the
Tariff Act of 1930 (19 U.S.C. 1595a(c)(2)) is amended--
(1) in subparagraph (E), by striking ``or'' after the
semicolon;
(2) in subparagraph (F), by striking the period and
inserting ``; or''; and
(3) by inserting after subparagraph (F) the following:
``(G) it consists of textile or apparel goods that are
claimed to be products of countries in sub-Saharan Africa
introduced into the United States for entry, transit, or
exportation, and
``(i) the merchandise or its container bears false or
fraudulent markings with respect to the country of origin,
unless the importer of the merchandise demonstrates that the
markings were made in order to comply with the rules of
origin of the country that is the final destination of the
merchandise, or
``(ii) the merchandise or its container is introduced or
attempted to be introduced into the United States by means
of, or such introduction or attempt is aided or facilitated
by means of, a material false statement, act, or omission
with the intention or effect of--
``(I) circumventing any quota that applies to the
merchandise, or
``(II) undervaluing the merchandise.''.
(d) Certificates of Origin.--Notwithstanding any other
provision of law, all importations of textile and apparel
goods that are claimed to be products of countries in sub-
Saharan Africa shall be accompanied by--
(1)(A) the name and address of the manufacturer or producer
of the goods, and any other information with respect to the
manufacturer or producer that the Customs Service may
require; and
(B) if there is more than one manufacturer or producer, or
there is a contractor or subcontractor of the manufacturer or
producer with respect to the manufacture or production of the
goods, the information required under subparagraph (A) with
respect to each such manufacturer, producer, contractor, or
subcontractor, including a description of the process
performed by each such entity;
(2) a certification by the importer that the importer has
exercised reasonable care to ascertain the true country of
origin of the textile and apparel goods and the accuracy of
all other information provided on the documentation
accompanying the imported goods, as well as a certification
of the specific action taken by the importer to ensure
reasonable care for purposes of this paragraph; and
(3) a certification by the importer that the goods being
entered do not violate applicable trademark, copyright, and
patent laws.
Information provided under this subsection shall be
sufficient to demonstrate compliance with the United States
rules of origin for textile and apparel goods.
SEC. 10. GENERALIZED SYSTEM OF PREFERENCES.
(a) Extension of Program.--Section 505 of the Trade Act of
1974 (19 U.S.C. 2465) is amended to read as follows:
``SEC. 505. DATE OF TERMINATION.
``(a) Countries in Sub-Saharan Africa.--No duty-free
treatment provided under this title shall remain in effect
after June 30, 2008, with respect to beneficiary developing
countries that are countries in sub-Saharan Africa.
``(b) Other Countries.--No duty-free treatment provided
under this title shall remain in effect after June 30, 1998,
with respect to beneficiary developing countries other than
those provided for in subsection (a).''.
(b) Definition.--Section 507 of the Trade Act of 1974 (19
U.S.C. 2467) is amended by adding at the end the following:
``(6) Countries in sub-saharan africa.--The term `countries
in sub-Saharan Africa' has the meaning given that term in
section 17 of the African Growth and Opportunity Act.''.
(c) Effective Date.--The amendments made by this section
take effect on July 1, 1998.
SEC. 11. INTERNATIONAL FINANCIAL INSTITUTIONS AND DEBT
REDUCTION.
(a) Better Mechanisms To Further Goals for Sub-Saharan
Africa.--It is the sense of the Congress that the Secretary
of the Treasury should instruct the United States Executive
Directors of the International Bank for Reconstruction and
Development, the International Monetary Fund, and the African
Development Bank to use the voice and votes of the Executive
Directors to encourage vigorously their respective
institutions to develop enhanced mechanisms which further the
following goals in eligible countries in sub-Saharan Africa:
(1) Strengthening and expanding the private sector,
especially among women-owned businesses.
(2) Reducing tariffs, nontariff barriers, and other trade
obstacles, and increasing economic integration.
(3) Supporting countries committed to accountable
government, economic reform, the eradication of poverty, and
the building of civil societies.
(4) Supporting deep debt reduction at the earliest possible
date with the greatest amount of relief for eligible poorest
countries under the ``Heavily Indebted Poor Countries''
(HIPC) debt initiative.
(b) Sense of Congress.--It is the sense of the Congress
that relief provided to countries in sub-Saharan Africa which
qualify for the Heavily Indebted Poor Countries debt
initiative should primarily be made through grants rather
than through extended-term debt, and that interim relief or
interim financing should be provided for eligible countries
that establish a strong record of macroeconomic reform.
(c) Executive Branch Initiatives.--The Congress supports
and encourages the implementation of the following
initiatives of the executive branch:
(1) American-african business partnership.--The Agency for
International Development devoting up to $1,000,000 annually
to help catalyze relationships between United States firms
and firms in sub-Saharan Africa through a variety of business
associations and networks.
(2) Technical assistance to promote reforms.--The Agency
for International Development providing up to $5,000,000
annually in short-term technical assistance programs to help
the governments of sub-Saharan African countries to--
(A) liberalize trade and promote exports;
(B) bring their legal regimes into compliance with the
standards of the World Trade Organization in conjunction with
membership in that Organization; and
(C) make financial and fiscal reforms, as well as the
United States Department of Agriculture providing support to
promote greater agribusiness linkages.
(3) Agricultural market liberalization.--The Agency for
International Development devoting up to $15,000,000 annually
as part of the multi-year Africa Food Security Initiative to
help address such critical agricultural policy issues as
market liberalization, agricultural export development, and
[[Page H1081]]
agribusiness investment in processing and transporting
agricultural commodities.
(4) Trade promotion.--The Trade Development Agency
increasing the number of reverse trade missions to growth-
oriented countries in sub-Saharan Africa.
(5) Trade in services.--Efforts by United States embassies
in the countries in sub-Saharan Africa to encourage their
host governments--
(A) to participate in the ongoing negotiations on financial
services in the World Trade Organization;
(B) to revise their existing schedules to the General
Agreement on Trade in Services of the World Trade
Organization in light of the successful conclusion of
negotiations on basic telecommunications services; and
(C) to make further commitments in their schedules to the
General Agreement on Trade in Services in order to encourage
the removal of tariff and nontariff barriers and to foster
competition in the services sector in those countries.
SEC. 12. SUB-SAHARAN AFRICA EQUITY AND INFRASTRUCTURE FUNDS.
(a) Initiation of Funds.--It is the sense of the Congress
that the Overseas Private Investment Corporation should,
within 12 months after the date of the enactment of this Act,
exercise the authorities it has to initiate 2 or more equity
funds in support of projects in the countries in sub-Saharan
Africa.
(b) Structure and Types of Funds.--
(1) Structure.--Each fund initiated under subsection (a)
should be structured as a partnership managed by professional
private sector fund managers and monitored on a continuing
basis by the Corporation.
(2) Capitalization.--Each fund should be capitalized with a
combination of private equity capital, which is not
guaranteed by the Corporation, and debt for which the
Corporation provides guaranties.
(3) Types of funds.--
(A) Equity fund for sub-saharan africa.--One of the funds
should be an equity fund, with assets of up to $150,000,000,
the primary purpose of which is to achieve long-term capital
appreciation through equity investments in support of
projects in countries in sub-Saharan Africa.
(B) Infrastructure fund.--One or more of the funds, with
combined assets of up to $500,000,000, should be used in
support of infrastructure projects in countries of sub-
Saharan Africa. The primary purpose of any such fund would be
to achieve long-term capital appreciation through investing
in financing for infrastructure projects in sub-Saharan
Africa, including for the expansion of businesses in sub-
Saharan Africa, restructurings, management buyouts and
buyins, businesses with local ownership, and privatizations.
(4) Emphasis.--The Corporation shall ensure that the funds
are used to provide support in particular to women
entrepreneurs and to innovative investments that expand
opportunities for women and maximize employment opportunities
for poor individuals.
SEC. 13. OVERSEAS PRIVATE INVESTMENT CORPORATION AND EXPORT-
IMPORT BANK INITIATIVES.
(a) Overseas Private Investment Corporation.--
(1) Advisory committee.--Section 233 of the Foreign
Assistance Act of 1961 is amended by adding at the end the
following:
``(e) Advisory Committee.--The Board shall take prompt
measures to increase the loan, guarantee, and insurance
programs, and financial commitments, of the Corporation in
sub-Saharan Africa, including through the establishment and
use of an advisory committee to assist the Board in
developing and implementing policies, programs, and financial
instruments with respect to sub-Saharan Africa. In addition,
the advisory committee shall make recommendations to the
Board on how the Corporation can facilitate greater support
by the United States for trade and investment with and in
sub-Saharan Africa. The advisory committee shall terminate 4
years after the date of the enactment of this subsection.''.
(2) Reports to the congress.--Within 6 months after the
date of the enactment of this Act, and annually for each of
the 4 years thereafter, the Board of Directors of the
Overseas Private Investment Corporation shall submit to the
Congress a report on the steps that the Board has taken to
implement section 233(e) of the Foreign Assistance Act of
1961 (as added by paragraph (1)) and any recommendations of
the advisory board established pursuant to such section.
(b) Export-Import Bank.--
(1) Advisory committee for sub-saharan africa.--Section
2(b) of the Export-Import Bank Act of 1945 (12 U.S.C. 635(b))
is amended by inserting after paragraph (12) the following:
``(13)(A) The Board of Directors of the Bank shall take
prompt measures, consistent with the credit standards
otherwise required by law, to promote the expansion of the
Bank's financial commitments in sub-Saharan Africa under the
loan, guarantee, and insurance programs of the Bank.
``(B)(i) The Board of Directors shall establish and use an
advisory committee to advise the Board of Directors on the
development and implementation of policies and programs
designed to support the expansion described in subparagraph
(A).
``(ii) The advisory committee shall make recommendations to
the Board of Directors on how the Bank can facilitate greater
support by United States commercial banks for trade with sub-
Saharan Africa.
``(iii) The advisory committee shall terminate 4 years
after the date of the enactment of this subparagraph.''.
(2) Reports to the congress.--Within 6 months after the
date of the enactment of this Act, and annually for each of
the 4 years thereafter, the Board of Directors of the Export-
Import Bank of the United States shall submit to the Congress
a report on the steps that the Board has taken to implement
section 2(b)(13)(B) of the Export-Import Bank Act of 1945 (as
added by paragraph (1)) and any recommendations of the
advisory committee established pursuant to such section.
SEC. 14. ESTABLISHMENT OF ASSISTANT UNITED STATES TRADE
REPRESENTATIVE FOR SUB-SAHARAN AFRICA.
(a) Establishment.--The President shall establish a
position of Assistant United States Trade Representative
within the Office of the United States Trade Representative
to focus on trade issues relating to sub-Saharan Africa.
(b) Funding and Staff.--The President shall ensure that the
Assistant United States Trade Representative appointed
pursuant to subsection (a) has adequate funding and staff to
carry out the duties described in subsection (a), subject to
the availability of appropriations.
SEC. 15. EXPANSION OF THE UNITED STATES AND FOREIGN
COMMERCIAL SERVICE IN SUB-SAHARAN AFRICA.
(a) Sense of the Congress.--It is the sense of the Congress
that the United States and Foreign Commercial Service should
expand its presence in sub-Saharan Africa by increasing the
number of posts and the number of personnel it allocates to
sub-Saharan Africa.
(b) Reporting Requirement.--Not later than 120 days after
the date of the enactment of this Act, the Secretary of
Commerce, in consultation with the Secretary of State, should
report to the Congress on the feasibility of expanding the
presence in sub-Saharan Africa of the United States and
Foreign Commercial Service.
SEC. 16. REPORTING REQUIREMENT.
The President shall submit to the Congress, not later than
1 year after the date of the enactment of this Act, and not
later than the end of each of the next 4 1-year periods
thereafter, a report on the implementation of this Act.
SEC. 17. SUB-SAHARAN AFRICA DEFINED.
For purposes of this Act, the terms ``sub-Saharan Africa'',
``sub-Saharan African country'', ``country in sub-Saharan
Africa'', and ``countries in sub-Saharan Africa'' refer to
the following:
Republic of Angola (Angola)
Republic of Botswana (Botswana)
Republic of Burundi (Burundi)
Republic of Cape Verde (Cape Verde)
Republic of Chad (Chad)
Democratic Republic of Congo
Republic of the Congo (Congo)
Republic of Djibouti (Djibouti)
State of Eritrea (Eritrea)
Gabonese Republic (Gabon)
Republic of Ghana (Ghana)
Republic of Guinea-Bissau (Guinea-Bissau)
Kingdom of Lesotho (Lesotho)
Republic of Madagascar (Madagascar)
Republic of Mali (Mali)
Republic of Mauritius (Mauritius)
Republic of Namibia (Namibia)
Federal Republic of Nigeria (Nigeria)
Democratic Republic of Sao Tome and Principe (Sao Tome and
Principe)
Republic of Sierra Leone (Sierra Leone)
Somalia
Kingdom of Swaziland (Swaziland)
Republic of Togo (Togo)
Republic of Zimbabwe (Zimbabwe)
Republic of Benin (Benin)
Burkina Faso (Burkina)
Republic of Cameroon (Cameroon)
Central African Republic
Federal Islamic Republic of the Comoros (Comoros)
Republic of Cote d'Ivoire (Cote d'Ivoire)
Republic of Equatorial Guinea (Equatorial Guinea)
Ethiopia
Republic of the Gambia (Gambia)
Republic of Guinea (Guinea)
Republic of Kenya (Kenya)
Republic of Liberia (Liberia)
Republic of Malawi (Malawi)
Islamic Republic of Mauritania (Mauritania)
Republic of Mozambique (Mozambique)
Republic of Niger (Niger)
Republic of Rwanda (Rwanda)
Republic of Senegal (Senegal)
Republic of Seychelles (Seychelles)
Republic of South Africa (South Africa)
Republic of Sudan (Sudan)
United Republic of Tanzania (Tanzania)
Republic of Uganda (Uganda)
Republic of Zambia (Zambia)
SEC. 18. CLARIFICATION OF DEDUCTION FOR SEVERANCE PAY.
(a) In General.--Section 404(a) of the Internal Revenue
Code of 1986 (relating to deduction for contributions of an
employer to an employee's trust or annuity plan and
compensation under a deferred-payment plan) is amended by
adding at the end the following new paragraph:
``(11) Determinations relating to severance pay.--For
purposes of determining under this section--
``(A) whether severance pay is deferred compensation, and
``(B) when severance pay is paid,
no amount shall be treated as received by the employee, or
paid, until it is actually received by the employee.''
[[Page H1082]]
(b) Effective Date.--
(1) In general.--The amendment made by subsection (a) shall
apply to taxable years ending after October 8, 1997.
(2) Change in method of accounting.--In the case of any
taxpayer required by the amendment made by subsection (a) to
change its method of accounting for its first taxable year
ending after October 8, 1997--
(A) such change shall be treated as initiated by the
taxpayer,
(B) such change shall be treated as made with the consent
of the Secretary of the Treasury, and
(C) the net amount of the adjustments required to be taken
into account by the taxpayer under section 481 of the
Internal Revenue Code of 1986 shall be taken into account in
such first taxable year.
Mr. BISHOP (during the reading). Mr. Speaker, I ask unanimous consent
that the motion to recommit be considered as read and printed in the
Record.
The SPEAKER pro tempore. Is there objection the request of the
gentleman from Georgia?
There was no objection.
The SPEAKER pro tempore. The gentleman from Georgia (Mr. Bishop) is
recognized for 5 minutes.
Mr. BISHOP. Mr. Speaker, we do have a motion to recommit H.R. 1432.
The African Growth and Opportunity Act embodies an important ideal for
which I have long been in support; namely, that the countries of sub-
Saharan Africa should improve their economic lot through development
and trade.
This bill would begin the process, Mr. Speaker, of weaning these
countries from our traditional direct aid relationship.
I became an original cosponsor of this bill for several reasons, and
I still believe that this ideal can be obtained. However, Mr. Speaker,
charity begins at home.
It was brought to my attention soon after the bill's introduction
that the bill's textile and apparel provisions could cause harm to
these U.S. industries as well as cause harm to the U.S. market for
cotton.
Instead of going to the well and removing my name from the bill, I
decided that I should work as an agent of change to convince the bill's
sponsors to have these troublesome sections modified.
Indeed, the changes that we push for would have resulted in the
textile and cotton industries embracing the bill and working for its
passage for the betterment of the economies of the United States and
sub-Saharan Africa. The changes that we advocated would be of great
mutual benefit.
In April of last year, nearly a year ago, I secured assurances from
the ranking member of the Committee on Ways and Means that these
concerns would be addressed. Not long after this, the ranking member
arranged a meeting between our staff, representatives of the textile
and cotton industries, and the Committee on Ways and Means' staff.
We also continued to dialogue with the administration officials and
had the issue of illegal textile and apparel transshipment put to the
U.S. trade representatives in the course of the Subcommittee on Trade
hearing on the bill.
It is worth noting, Mr. Speaker, that throughout the process, the
administration has agreed that illegal transshipments and protection of
domestic industries remains a concern.
While the full committee made a late attempt to address the illegal
transshipment concerns in its markup of the bill, the remedies provided
are widely believed not to be adequately protective of American jobs,
while still benefiting a well-developed Asian textile market.
{time} 1645
For instance, the bill as offered today would disallow benefits for 2
years to any importer found to be engaged in illegal transshipment.
However, I myself have seen at the border that inadequate Customs
resources do not allow tracking of successor companies which can be
back in business in a few days nor does it allow monitoring of the
rules of origin. Furthermore, once the illegal goods flow into the U.S.
stream of commerce, the damage is already done.
To address this reality, we offered a bipartisan substitute before
the Committee on Rules. Our substitute would have incorporated
substantial penalties on the transshipping companies, allow for seizure
and forfeiture of textile and apparel goods and reform U.S. Customs
mitigation procedures.
Those procedures allow bad actors to escape meaningful fines and
penalties and to avoid punitive sanctions. Our substitute would provide
that the special access program established by the President should be
modeled on the program already in effect for the countries of the
Caribbean. This would include only those articles of textile and
apparel which have been assembled from fabric formed from the yarn-
stage forward in the U.S. and cut in the U.S. The thread used in sewing
also must be spun in the U.S.
What I have described is commonly referred to as an 807A-type
program. It is in this program where the win-win for the countries of
sub-Saharan Africa and the U.S. textile and cotton industries lies.
In short, Mr. Speaker, I urge that this bill be sent back to
committee and that it be perfected so that we can do something for sub-
Saharan African countries, as well as the U.S. domestic industries.
Mr. Speaker, I yield to the gentleman from Georgia (Mr. Collins).
Mr. COLLINS. Mr. Speaker, I thank the gentleman for yielding. He has
graciously advised the House on the importance of this committee and
the importance of his motion to recommit, which contains substitute
language.
Mr. Speaker, on behalf of the textile workers, agriculture workers,
their families and the communities which depend on those jobs as their
economic base, I rise in support of the motion to recommit with
instructions to insert into this bill the same provisions we have in
other trade agreements pertaining to textiles, and also language that
will address the transshipment problem.
Mr. CRANE. Mr. Speaker, I rise in opposition to the motion to
recommit.
The SPEAKER pro tempore (Mr. Ewing). The gentleman from Illinois (Mr.
Crane) is recognized for 5 minutes.
Mr. CRANE. Mr. Speaker, I want to say a few words about the proposal
to require that any apparel products receiving benefits under this bill
be sewn in Africa only from U.S.-formed and -cut component parts. That
would add, 17 percent are the estimates, to the cost of the product and
negate any possibility of any textile and apparel coming from the sub-
Saharan continent.
What we are attempting to do here is to provide an opportunity for a
section of the world that numbers almost 700 million in population and
which, in terms of a component of our textile and apparel imports,
which in 1996 totaled $46 billion, their component was $380 million;
and ITC says, ``Wow, that could almost double with this bill,'' add
another $100 to $170 million.
Be realistic, folks. We are not looking at the kinds of threats that
have been raised by some that have spoken in opposition to the
legislation. I understand they have constituencies that have concerns.
They have had concerns for years, long before this bill came down the
pike, and they will have continued concerns.
Mr. Speaker, when all the fine words about encouraging economic
development in Africa are set aside, the trade measures in H.R. 1432
stand out as concrete attempts to offer real opportunities and a solid
transition path. We are moving from the old ways of transferring
billions of dollars in foreign aid and towards the goal that Africans
have for themselves, economic health and self-reliance.
I urge my colleagues to defeat the motion to recommit.
Mr. Speaker, I yield to the gentleman from New York (Mr. Rangel), the
distinguished ranking minority member.
Mr. RANGEL. I thank the distinguished gentleman for yielding. Mr.
Speaker, I oppose the motion to recommit, but I would like to tell the
gentleman from Georgia (Mr. Bishop) that there are things in this bill
that can be perfected.
The question of transshipment is always a serious problem with any
trade bill. We have tried to tighten it up. The bill has not passed the
Senate. It will go to conference. We hope to be working with the
President, the WTO and Customs to make certain that we do not lose
jobs, that we do not adversely affect the industries here. Of course,
to say that Africans cannot manufacture any African fabric does not
make a heck of a lot of sense, but I am certain,
[[Page H1083]]
working together, we can find some compromise to improve the
legislation.
Mr. CRANE. Mr. Speaker, I yield to our distinguished Speaker to make
concluding remarks.
Mr. GINGRICH. I thank the gentleman for yielding.
Mr. Speaker, let me say first of all that the Africa Growth and
Opportunity Act has taken 3 years of dedicated bipartisan work, led by
the gentleman from Illinois (Mr. Crane), by the gentleman from New York
(Mr. Rangel), by the gentleman from Texas (Mr. Archer), by the
gentleman from Washington (Mr. McDermott), by the gentleman from New
York (Mr. Houghton), by the gentleman from California (Mr. Royce), by
the gentleman from California (Mr. Matsui). A lot of people worked on
this bill.
Let me say to my friends, this is a very important bill. It is
important, first, because it says to the countries of sub-Saharan
Africa that if you meet the test of the rule of law, if you meet the
test of private property, if you meet the test of moving towards a
market economy, the United States wants to be your trading partner.
This bill sets the right standard.
In conversations that I have had with the presidents of Uganda and
Ghana, with the vice president of South Africa, all of them regard this
as a significant step towards moving away from an aid-based system
towards a trade-based system and helping develop real jobs in the world
market.
Second, this bill is an important bill because it communicates our
commitment to being in the world market where we create American jobs
competing successfully with everyone. I would say to any of my friends
who are worried about protectionism, look at the European experience
where they have 12, 13 and 14 percent unemployment. And then look at
the American experience where in November and December alone we created
more jobs than Western Europe has created in the last decade. The fact
is, being in the world market helps us create jobs because it forces us
to be competitive.
Finally, I would say to my good friends from Georgia, both the
gentlemen from the Republican side and the Democratic side in their
bipartisan effort, if they will read pages 62 to 64 of the bill, they
will see that transshipments are specifically blocked, that the
President, in fact, certifies that countries have met our standards for
transshipment, and that any parent company, if an Asian company, for
example, were to attempt to ship goods inappropriately through an
African country, we could level triple damages against the quota of the
Asian country. So there is in fact a strong, legitimate
antitransshipment provision.
This is a good bill. It is an important bill for our relationship
with Africa. I urge every Member to vote no on the motion to recommit
and then to vote yes on final passage.
The SPEAKER pro tempore. Without objection, the previous question is
ordered on the motion to recommit.
There was no objection.
The SPEAKER pro tempore. The question is on the motion to recommit.
The question was taken; and the Speaker pro tempore announced that
the noes appeared to have it.
Recorded Vote
Mr. BISHOP. Mr. Speaker, I demand a recorded vote.
A recorded vote was ordered.
The SPEAKER pro tempore. Pursuant to clause 5(b) of rule XV, the
Chair will reduce to a minimum of 5 minutes the period of time time
within which a vote by electronic device, if ordered, will be taken on
the question of passage of the bill.
The vote was taken by electronic device, and there were--ayes 193,
noes 224, not voting 13, as follows:
[Roll No. 46]
AYES--193
Abercrombie
Ackerman
Aderholt
Andrews
Bachus
Baesler
Baker
Baldacci
Ballenger
Barcia
Barr
Barrett (WI)
Bass
Becerra
Berry
Bishop
Blagojevich
Bonilla
Bonior
Borski
Boswell
Boucher
Boyd
Brown (CA)
Brown (OH)
Bryant
Bunning
Burr
Burton
Callahan
Canady
Cardin
Carson
Chambliss
Clay
Clayton
Clement
Clyburn
Coble
Coburn
Collins
Combest
Condit
Conyers
Cooksey
Costello
Coyne
Cramer
Cunningham
Danner
Deal
DeFazio
Delahunt
DeLauro
Dickey
Dingell
Doyle
Duncan
Emerson
Engel
Etheridge
Evans
Everett
Farr
Filner
Forbes
Fowler
Frank (MA)
Ganske
Gejdenson
Gephardt
Gibbons
Goode
Goodlatte
Goodling
Gordon
Graham
Green
Gutierrez
Hall (TX)
Hayworth
Hefner
Hilleary
Hinchey
Holden
Hunter
Inglis
Jenkins
Johnson (WI)
Jones
Kanjorski
Kaptur
Kennedy (MA)
Kennedy (RI)
Kennelly
Kildee
Kingston
Kleczka
Klink
Kucinich
LaFalce
Lantos
Largent
Lewis (GA)
Lewis (KY)
Lucas
Luther
Maloney (CT)
Maloney (NY)
Markey
Martinez
Mascara
McCarthy (MO)
McDade
McGovern
McHale
McHugh
McIntosh
McIntyre
McNulty
Meehan
Miller (CA)
Mink
Moakley
Mollohan
Moran (KS)
Murtha
Myrick
Nadler
Neal
Ney
Norwood
Oberstar
Obey
Olver
Ortiz
Pallone
Pappas
Pascrell
Pastor
Pelosi
Peterson (MN)
Pickering
Pickett
Pomeroy
Price (NC)
Rahall
Reyes
Riley
Rivers
Rogers
Rohrabacher
Ros-Lehtinen
Roybal-Allard
Rush
Sanchez
Sanders
Sanford
Sawyer
Serrano
Sherman
Sisisky
Skelton
Slaughter
Spence
Spratt
Stark
Stearns
Stenholm
Stokes
Strickland
Stump
Stupak
Talent
Tanner
Tauzin
Taylor (MS)
Thompson
Thornberry
Tierney
Torres
Traficant
Velazquez
Vento
Wamp
Waters
Watkins
Watt (NC)
Watts (OK)
Weygand
Wicker
Woolsey
Yates
NOES--224
Allen
Archer
Armey
Barrett (NE)
Bartlett
Barton
Bateman
Bentsen
Bereuter
Berman
Bilbray
Bilirakis
Bliley
Blumenauer
Blunt
Boehlert
Boehner
Brady
Brown (FL)
Buyer
Calvert
Camp
Campbell
Cannon
Castle
Chabot
Chenoweth
Christensen
Cook
Cox
Crane
Crapo
Cubin
Cummings
Davis (FL)
Davis (IL)
Davis (VA)
DeGette
DeLay
Diaz-Balart
Dicks
Dixon
Doggett
Dooley
Doolittle
Dreier
Dunn
Edwards
Ehlers
Ehrlich
English
Ensign
Eshoo
Ewing
Fattah
Fawell
Fazio
Foley
Ford
Fossella
Fox
Franks (NJ)
Frelinghuysen
Frost
Gallegly
Gekas
Gilchrest
Gillmor
Gilman
Goss
Granger
Greenwood
Gutknecht
Hall (OH)
Hamilton
Hansen
Hastert
Hastings (FL)
Hastings (WA)
Hefley
Herger
Hill
Hilliard
Hinojosa
Hobson
Hoekstra
Hooley
Horn
Hostettler
Houghton
Hoyer
Hulshof
Hutchinson
Hyde
Istook
Jackson (IL)
Jackson-Lee (TX)
Jefferson
Johnson (CT)
Johnson, E. B.
Johnson, Sam
Kasich
Kelly
Kilpatrick
Kim
Kind (WI)
King (NY)
Klug
Knollenberg
Kolbe
LaHood
Lampson
Latham
LaTourette
Lazio
Leach
Levin
Lewis (CA)
Linder
Lipinski
Livingston
LoBiondo
Lofgren
Lowey
Manzullo
Matsui
McCarthy (NY)
McCollum
McCrery
McDermott
McInnis
McKeon
McKinney
Meek (FL)
Meeks (NY)
Menendez
Metcalf
Mica
Millender-McDonald
Miller (FL)
Minge
Moran (VA)
Morella
Nethercutt
Neumann
Northup
Nussle
Owens
Oxley
Packard
Parker
Paul
Paxon
Payne
Pease
Peterson (PA)
Petri
Pitts
Pombo
Porter
Portman
Pryce (OH)
Quinn
Radanovich
Ramstad
Rangel
Regula
Riggs
Roemer
Rogan
Rothman
Roukema
Royce
Ryun
Sabo
Salmon
Sandlin
Saxton
Scarborough
Schaefer, Dan
Schaffer, Bob
Scott
Sensenbrenner
Sessions
Shadegg
Shaw
Shays
Shimkus
Shuster
Skaggs
Skeen
Smith (MI)
Smith (NJ)
Smith (OR)
Smith (TX)
Smith, Adam
Smith, Linda
Snowbarger
Snyder
Souder
Sununu
Tauscher
Taylor (NC)
Thomas
Thune
Thurman
Tiahrt
Towns
Turner
Upton
Visclosky
Walsh
Waxman
Weldon (FL)
Weldon (PA)
Weller
Wexler
White
Whitfield
Wise
Wolf
Wynn
Young (AK)
Young (FL)
NOT VOTING--13
Deutsch
Furse
Gonzalez
Harman
John
Manton
Poshard
Redmond
Rodriguez
Schiff
Schumer
Solomon
Stabenow
{time} 1711
Messrs. CUNNINGHAM, KENNEDY of Rhode Island, CALLAHAN, DICKEY and
MORAN of Kansas changed their vote from ``no'' to ``aye.''
So the motion to recommit was rejected.
The result of the vote was announced as above recorded.
[[Page H1084]]
personal explanation
Ms. STABENOW. Mr. Speaker, I missed the vote on rollcall no. 46. On
the motion to recommit with instructions for H.R. 1432, the African
Growth and Opportunity Act; has I been present, I would have voted yes.
(Mr. ARMEY asked and was given permission to speak out of order.)
Legislative Program
Mr. ARMEY. Mr. Speaker, I thank the Members for their attention.
Mr. Speaker, we have been working with the gentleman from Texas (Mr.
Smith) and the gentleman from North Carolina (Mr. Watt) about the
Tucker Act, the bill to be taken up tonight, and we reached an
arrangement that allows us to inform the Members that we will, on the
next vote, have the last vote of the evening. There will be general
debate and some work on the Tucker Act, for those who are interested in
that, but any votes on the Tucker Act will be postponed until tomorrow.
So following the next vote, the Members will have had their last vote
for the evening, and I want to thank the gentleman from Texas (Mr.
Smith) and the gentleman from North Carolina (Mr. Watt) for their
cooperation.
{time} 1715
The SPEAKER pro tempore (Mr. Ewing). The question is on the passage
of the bill.
The question was taken; and the Speaker pro tempore announced that
the ayes appeared to have it.
Recorded Vote
Mr. DICKS. Mr. Speaker, I demand a recorded vote.
A recorded vote was ordered.
The SPEAKER pro tempore. This will be a 5-minute vote.
The vote was taken by electronic device, and there were--ayes 233,
noes 186, not voting 12, as follows:
[Roll No. 47]
AYES--233
Ackerman
Allen
Archer
Armey
Baker
Barrett (NE)
Barrett (WI)
Barton
Bass
Bateman
Becerra
Bentsen
Bereuter
Berman
Bilbray
Blagojevich
Bliley
Blumenauer
Boehlert
Boehner
Boswell
Brady
Brown (FL)
Calvert
Camp
Campbell
Cannon
Cardin
Castle
Chabot
Christensen
Cook
Cox
Coyne
Crane
Cubin
Cummings
Davis (FL)
Davis (VA)
DeGette
DeLay
Dicks
Dixon
Doggett
Dooley
Doolittle
Dreier
Dunn
Edwards
Ehlers
Ehrlich
Engel
English
Eshoo
Ewing
Fattah
Fawell
Fazio
Foley
Ford
Fossella
Fox
Franks (NJ)
Frelinghuysen
Frost
Gallegly
Ganske
Gekas
Gephardt
Gilchrest
Gillmor
Gilman
Gingrich
Goodlatte
Goss
Granger
Gutknecht
Hall (OH)
Hamilton
Hansen
Hastert
Hastings (FL)
Hastings (WA)
Hayworth
Herger
Hill
Hilliard
Hinchey
Hinojosa
Hobson
Hoekstra
Hooley
Horn
Houghton
Hoyer
Hulshof
Hutchinson
Hyde
Istook
Jackson-Lee (TX)
Jefferson
Johnson (CT)
Johnson, E. B.
Johnson, Sam
Kasich
Kelly
Kennedy (MA)
Kennelly
Kilpatrick
Kim
Kind (WI)
King (NY)
Klug
Knollenberg
Kolbe
LaHood
Lampson
Largent
Latham
LaTourette
Lazio
Leach
Levin
Lewis (CA)
Lewis (GA)
Linder
Livingston
Lofgren
Lowey
Luther
Maloney (NY)
Manzullo
Markey
Martinez
Matsui
McCarthy (MO)
McCarthy (NY)
McCollum
McCrery
McDade
McDermott
McInnis
McIntosh
McKeon
McKinney
McNulty
Meehan
Meek (FL)
Meeks (NY)
Menendez
Millender-McDonald
Miller (FL)
Minge
Moran (VA)
Morella
Neal
Nethercutt
Northup
Nussle
Owens
Oxley
Packard
Parker
Paxon
Payne
Pease
Pelosi
Peterson (PA)
Petri
Pitts
Pombo
Pomeroy
Porter
Portman
Pryce (OH)
Radanovich
Ramstad
Rangel
Regula
Riggs
Rivers
Roemer
Rogan
Ros-Lehtinen
Rothman
Roukema
Royce
Ryun
Sabo
Salmon
Sandlin
Sawyer
Scarborough
Scott
Sessions
Shadegg
Shaw
Shays
Shimkus
Shuster
Skaggs
Skeen
Smith (MI)
Smith (TX)
Smith, Adam
Smith, Linda
Snowbarger
Snyder
Stabenow
Sununu
Tauscher
Tauzin
Thomas
Thune
Thurman
Tiahrt
Towns
Turner
Upton
Vento
Waters
Watkins
Watts (OK)
Waxman
Weldon (FL)
Weller
Wexler
White
Wise
Wolf
Wynn
Yates
Young (FL)
NOES--186
Abercrombie
Aderholt
Andrews
Bachus
Baesler
Baldacci
Ballenger
Barcia
Barr
Bartlett
Berry
Bilirakis
Bishop
Blunt
Bonilla
Bonior
Borski
Boucher
Boyd
Brown (CA)
Brown (OH)
Bryant
Bunning
Burr
Burton
Buyer
Callahan
Canady
Carson
Chambliss
Chenoweth
Clay
Clayton
Clement
Clyburn
Coble
Coburn
Collins
Combest
Condit
Conyers
Cooksey
Costello
Cramer
Crapo
Cunningham
Danner
Davis (IL)
Deal
DeFazio
Delahunt
DeLauro
Diaz-Balart
Dickey
Dingell
Doyle
Duncan
Emerson
Ensign
Etheridge
Evans
Everett
Farr
Filner
Forbes
Fowler
Frank (MA)
Gejdenson
Gibbons
Goode
Goodling
Gordon
Graham
Green
Greenwood
Gutierrez
Hall (TX)
Hefley
Hefner
Hilleary
Holden
Hostettler
Hunter
Inglis
Jackson (IL)
Jenkins
Johnson (WI)
Jones
Kanjorski
Kaptur
Kennedy (RI)
Kildee
Kingston
Kleczka
Klink
Kucinich
LaFalce
Lantos
Lewis (KY)
Lipinski
LoBiondo
Lucas
Maloney (CT)
Mascara
McGovern
McHale
McHugh
McIntyre
Metcalf
Mica
Miller (CA)
Mink
Moakley
Mollohan
Moran (KS)
Murtha
Myrick
Nadler
Neumann
Ney
Norwood
Oberstar
Obey
Olver
Ortiz
Pallone
Pappas
Pascrell
Pastor
Paul
Peterson (MN)
Pickering
Pickett
Price (NC)
Quinn
Rahall
Reyes
Riley
Rogers
Rohrabacher
Roybal-Allard
Rush
Sanders
Sanford
Saxton
Schaefer, Dan
Schaffer, Bob
Sensenbrenner
Serrano
Sherman
Sisisky
Skelton
Slaughter
Smith (NJ)
Smith (OR)
Solomon
Souder
Spence
Spratt
Stark
Stearns
Stenholm
Stokes
Strickland
Stump
Stupak
Talent
Tanner
Taylor (MS)
Taylor (NC)
Thompson
Thornberry
Tierney
Torres
Traficant
Velazquez
Visclosky
Walsh
Wamp
Watt (NC)
Weldon (PA)
Weygand
Whitfield
Wicker
Woolsey
Young (AK)
NOT VOTING--12
Deutsch
Furse
Gonzalez
Harman
John
Manton
Poshard
Redmond
Rodriguez
Sanchez
Schiff
Schumer
{time} 1721
Mr. MARKEY and Mr. BARRETT of Wisconsin changed their vote from
``no'' to ``aye.''
So the bill was passed.
The result of the vote was announced as above recorded.
A motion to reconsider was laid on the table.
____________________