[Congressional Record Volume 144, Number 90 (Thursday, July 9, 1998)]
[Senate]
[Pages S7882-S7884]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. FAIRCLOTH:
  S. 2280. A bill to provide for fairness in the home for closure 
process; to the Committee on Banking, Housing, and Urban Affairs.


                    Foreclosure Fairness Act of 1998

 Mr. FAIRCLOTH. Mr. President, today I introduce legislation 
that will improve the single family home foreclosure process. As we all 
know, bankruptcies have reached an all time high. It has also recently 
been reported that a record number of homeowners are shifting debt from 
credit cards to their homes. According to some estimates, there are 
500,000 foreclosures taking place annually.
  I am greatly concerned that sometime in the future we may see a 
greater number of foreclosures on single family homes. I hope this will 
not be true, but if it is, I am introducing legislation to greatly 
improve the process for the homeowner.
  Currently, a common practice in most States is causing tens of 
thousands of consumers to be treated unfairly when their homes are sold 
following foreclosure proceedings.
  In all but three States, when a home is sold in a foreclosure sale, a 
lawyer normally advertises the event in an obscure local publication 
and in terms that the average person would have a hard time 
understanding. And the sales are typically held at times and places 
that are not designed to encourage bidding on the home. The sale may 
take place on the courthouse steps or in the backroom of law firm's 
office.
  Because the general public is rarely aware of these sales, it is not 
uncommon for the lending institution and the lawyer to be the only 
people present.
  In the long run, it is the homeowner who is the double loser. First, 
the homeowner has lost his home because of an inability to meet the 
mortgage payments. Second, the foreclosure sale usually does not result 
in the home bringing fair market value and this results in the now 
former homeowner facing a deficiency judgment that might not have 
occurred if the home had been sold in a public manner by auction.
  I think this process needs to be improved. Today, I am introducing a 
bill that would allow the homeowner to choose to have his or her 
foreclosure conducted by auction, in a manner that maximizes 
competitive bidding, and most importantly, is open and convenient to 
the general public.
  Under this process, in my view, both the homeowner and the lender 
will benefit greatly, because the property, when sold, will generate a 
true fair market value. There will most likely be no deficiency 
judgement against homeowners, and lenders will not have to collect 
their losses from insolvent homeowners.
  Mr. President, my legislation has already undergone testing in three 
States, Maine, New Hampshire and Massachusetts. The first two States 
require a true auction, not a lawyer's secret sale, under State law, 
while Massachusetts uses the real auction procedures based on a court 
order. In all three States, the program has worked with great results 
and both homeowners and lenders gain from its usage.
  Nothing in this legislation will affect State law regarding any other 
provision of foreclosures, except that the homeowner has the right to 
select an auction sale. Further, my legislation provides an exemption 
for State laws that are substantially similar in nature.
  Mr. President, I think this is a good bill that will help consumers 
when they are in a dire financial condition. Consumers can take comfort 
in the fact that they will have the option to a full, fair, open and 
public sale of their home should it come to foreclosure.
                                 ______
                                 
      By Mr. DeWINE (for himself, Mr. Sarbanes, Mr. Johnson, Mrs. 
        Murray, Mr. Moynihan, Mr. Abraham, Ms. Snowe, and Mr. Levin):
  S. 2283. A bill to support sustainable and broad-based agricultural 
and rural development in sub-Saharan Africa, and for other purposes; to 
the Committee on Foreign Relations.


                       AFRICA: SEEDS OF HOPE ACT

  Mr. DeWINE. Mr. President, I rise today, along with my colleague from 
Maryland, Senator Sarbanes, Senator Moynihan, Senator Murray, and 
Senator Johnson, to introduce the ``Africa: Seeds of Hope Act''--
legislation to promote small-scale agricultural and rural development 
in Africa. The bill also would recognize the important benefits such 
overseas agriculture advances could hold for our own farmers here in 
the United States.
  Mr. President, according to the Food and Agriculture Organization, 
around 215 million people are undernourished in sub-Saharan Africa. 
This number is expected to increase dramatically in the next century. 
Similarly, the number of Africans who are unable to produce the 
provisions they need to lead healthy, productive lives is rising.
  Food is the most basic necessity of life. Yet, millions of Africans 
lead lives of needless suffering because they don't have the skills and 
tools necessary to provide for themselves and others. As a result, many 
African countries are dependent on the outside world for humanitarian 
assistance and basic nutrition. Africa's food imports are projected to 
rise from less than 8,000,000 metric tons in 1990 to more than 
25,000,000 metric tons by the year 2020.
  Mr. President, I believe that the most effective way to improve 
conditions for Africa's poor is to increase the productivity of their 
agricultural sector. Whenever I travel to developing countries, I try 
to spend time looking at the countries' agriculture. I have seen 
firsthand that rural areas can succeed through innovative agricultural 
development. It does in fact work.
  Mr. President, about 70 percent of Africa's poor lives in rural 
areas. That's where the major problem is, and that's where this bill 
can make a difference.
  This legislation has an important link with another bipartisan trade 
bill--the African Trade Growth and Opportunities Act, which I 
cosponsored and hope the Senate will pass sometime in the near future. 
That legislation is also an important step in aiding a continent in 
need of strong economic leadership.
  Before we can have effective trade, however, there needs to be a 
reciprocal market--a springboard from which we can foster substantive 
trade relations. This is why this bill we are introducing today is so 
critical to American interests in that region.

  Mr. President, let me outline a few highlights of this bill:
  First, it would encourage Federal agencies and international 
organizations to make rural development issues a priority--by teaching 
effective farming methods to small-scale sub-Saharan African farmers 
and entrepreneurs;
  Second, it would provide African small farmers and entrepreneurs with 
improved access to credit and other resources necessary to stimulate 
production and micro-enterprise;
  Third, it would mobilize new investments in African agriculture and 
rural development through the US Overseas Private Investment 
Corporation; and
  Fourth, it would facilitate the coordination of national and 
international agricultural research and extension efforts aimed at 
developing the skills of African researchers, extension agents, 
farmers, and agribusiness people--in fact, the bill would allow 
American universities to play a pivotal role in this effort.
  Mr. President, African nations are in dire need of agricultural 
development. This bill can help them gain the knowledge they need to 
succeed. At the same time, as a Senator from a State with a rich 
agricultural tradition, I believe we must be sensitive to the needs of 
our own American farmers. I believe the United States and our farmers 
could benefit from the passage of the bill.
  This bill could open new export opportunities for American 
farmers, especially those who produce value-added goods. As the 
economies in sub-Saharan Africa develop, the overall standard of living 
will increase. In turn, the people of Africa will be in a better 
position to purchase a variety of goods, including American 
agricultural commodities and equipment. This is where our export 
markets can flourish.

  Another significant point to consider is that food stability is a 
critical factor in preventing civil strife within nations. Our 
investment in international agriculture and rural development will help 
reduce demands for U.S. disaster and famine relief.
  Also, the most rapidly increasing markets for U.S. products are in 
developing countries. Hence, helping these

[[Page S7883]]

economies grow through their agricultural sector will in the end help 
our own economy.
  Mr. President, international agricultural development assistance has 
decreased over time. In fact, in the past decade alone, U.S. AID money 
for this program has dropped by 70 percent. We should re-focus our 
efforts in this important program and this bill will do that.
  I want to commend my House colleagues, Doug Bereuter and Lee 
Hamilton, for their work on the companion bill, H.R. 3636. Through 
their vision and leadership, they are building bipartisan support for 
this initiative as well.
  Mr. President, this legislation has the ability to make a real 
difference in the lives of millions of people. Doing so serves our 
humanitarian and economic interests. This bill would help these 
countries make important progress in meeting basic human needs. I 
encourage and urge my colleagues to support this important and timely 
measure.
  Mr. SARBANES. Mr. President, I am pleased to join today in 
introducing the ``Africa: Seeds of Hope Act of 1998.'' This legislation 
will support sustainable and broad-based economic growth in sub-Saharan 
Africa by directing bilateral aid and investment programs toward small-
scale farming and rural development. At the same time, by fostering 
research and extension activities and helping to build local markets, 
this initiative will provide important opportunities for mutual 
cooperation between U.S. and African farmers, educators, scientists and 
entrepreneurs.
  Recognizing the high rates of malnutrition, poverty and hunger in 
many African countries, this bill is designed to promote food security 
and agricultural productivity by expanding access to credit and 
technology, improving information and farming techniques, and creating 
more efficient market mechanisms. The legislation would accomplish this 
in several ways. First, it ensures that the United States Agency for 
International Development (USAID) will devote adequate funding to 
programs and projects that improve food security and meet the needs of 
the rural poor. It requires the participation of affected communities 
in all phases of project planning and development, and strengthens 
coordination with non-governmental organizations, cooperatives, land-
grant and other appropriate universities, and local marketing 
associations that have relevant expertise.
  Second, the bill highlights the role of microcredit assistance in the 
overall strategy against rural poverty. Lack of access to credit, 
particularly among women, has restricted the growth of small-scale 
agriculture, the availability and use of appropriate technology, and 
the establishment of an adequate and reliable food supply.
  Third, this legislation mobilizes new resources for investment in 
African agriculture and rural development through the Overseas Private 
Investment Corporation (OPIC), working with small businesses and other 
U.S. entities to develop the capacities of small-scale farmers and 
rural entrepreneurs.
  A fourth way in which the bill promotes food security and 
agricultural productivity is by directing USAID and the Department of 
Agriculture to develop a comprehensive plan to coordinate and build on 
the research and extension activities of U.S. land-grant universities, 
international agricultural research centers, and national agricultural 
research and extension centers. In this way, the initiative encourages 
the latest agricultural methods and most successful business practices, 
while ensuring they are appropriate to local conditions and adapted to 
specific climates.
  Finally, this legislation establishes the Bill Emerson Humanitarian 
Trust, which is intended to serve as a reliable mechanism for providing 
emergency food aid overseas. Using unexpended balances in existing 
accounts, this bill converts the Food Security Commodity Reserve into a 
trust account that will allow for more timely and cost-effective 
responses to humanitarian crises.
  Mr. President, as funding for international affairs has been reduced, 
it is programs like these, which address the needs of the world's 
poorest, that have been hit hardest. This bill draws attention to the 
importance of sustainable agriculture and targets U.S. assistance 
programs in Africa toward building food security and self-sufficiency. 
I am pleased to join with my distinguished colleague from Ohio, Mr. 
DeWine, in introducing this legislation, and I look forward to working 
with him, the other cosponsors, and the Administration in moving it 
toward enactment.
                                 ______
                                 
      By Mr. DeWINE (for himself, Mr. Hollings, Mr. Ford, Mr. Dodd, Mr. 
        Byrd, and Mr. Rockefeller):
  S. 2281. A bill to amend the Tariff Act of 1930 to eliminate 
disincentives to fair trade conditions; to the Committee on Finance.


         continued dumping or subsidization offset act of 1998

  Mr. DeWINE. Mr. President, today I am introducing the Continued 
Dumping or Subsidy Offset bill. I am pleased that Senators Hollings, 
Ford, Dodd, Byrd, and Rockefeller have joined me as original cosponsors 
of this legislation. My friend and colleague from Ohio, Congressman 
Ralph Regula already has introduced similar legislation in the House. 
This bill represents a strong step towards creating a more level 
playing field for domestic producers. It strengthens the Tariff Act of 
1930, which currently imposes duties and fines for dumping and 
subsidization.
  This new bill takes the 1930 Act a step further, by transferring the 
duties and fines to injured U.S. companies to compensate for damages. 
This approach is designed to discourage foreign companies from dumping 
and subsidization, since it would actually assist U.S. competitors at 
their expense. In order to counter the adverse effects of foreign 
dumping and subsidization on U.S. industries, the Senate should pass 
this bill.
  Current law has simply not been strong enough to stop harmful trading 
practices. It is an unfortunate truth that foreign producers have 
continued to engage in dumping to increase or maintain unfair market 
shares. This dumping occurs in the face of existing U.S. trade laws and 
international agreements within the WTO.
  Specifically, the problem with the law is that foreign producers are 
willing to pay current U.S. antidumping and countervailing duties out 
of the profits of dumping. In other words, there is no real 
disincentive to stop dumping. It's still good business for foreign 
companies. Furthermore, since some foreign producers receive continued 
subsidization, this enables them to maintain market share that 
unsubsidized prices would not sustain. As a result, U.S. companies are 
continually injured by the actions of these foreign producers.
  The law also does not contain a mechanism to help injured U.S. 
industries recover from the harmful effects of foreign dumping and 
subsidization. The foreign practices have reduced the ability of our 
injured domestic industries to reinvest in plan, equipment, people, 
R&D, technology or to maintain or restore health care and pension 
benefits. The end result is this: continued dumping or subsidization 
jeopardizes renewed investment and prevents additional reinvestment 
from being made. Unless we act, domestic firms will face continued 
price depression. This is an unfair and unacceptable trading practice 
by foreign firms.
  Under current law, any fines and duties imposed on foreign traders 
for illegal dumping practices go directly into U.S. Treasury coffers. 
It is important to note that U.S. trade laws are not intended to raise 
revenue for the Treasury. Rather, such laws are intended to see that 
U.S. companies face conditions of fair trade in the market. The bill I 
am introducing today would further that good by helping create a more 
level playing field and two ways mentioned earlier:
  First, the legislation would award duties and fines to injured 
domestic companies, and provide businesses relief from adverse effects 
of foreign dumping and subsidization.
  Second, this transfer of funds from foreign companies to their U.S. 
competitors may provide the disincentive to dump, which is a 
fundamental problem with current law. This would reduce the economic 
benefits of dumping and subsidizing.
  Many companies and workers are currently not being given the level 
playing field intended by our trade laws and international trade 
agreements. The Continued Dumping or Subsidy Offset bill is the first 
strong step

[[Page S7884]]

to correct his real problem by assisting domestic companies and further 
discouraging unfair trading practices by foreign traders.

                          ____________________