[Congressional Record Volume 164, Number 10 (Wednesday, January 17, 2018)]
[House]
[Pages H430-H435]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




    AFRICAN GROWTH AND OPPORTUNITY ACT AND MILLENNIUM CHALLENGE ACT 
                           MODERNIZATION ACT

  Mr. ROYCE of California. Mr. Speaker, I move to suspend the rules and 
pass the bill (H.R. 3445) to enhance the transparency and accelerate 
the impact of programs under the African Growth and Opportunity Act and 
the Millennium Challenge Corporation, and for other purposes, as 
amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 3445

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

[[Page H431]]

  


     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``African Growth and 
     Opportunity Act and Millennium Challenge Act Modernization 
     Act'' or the ``AGOA and MCA Modernization Act''.

     SEC. 2. TABLE OF CONTENTS.

       The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.

     TITLE I--ENHANCEMENT OF THE AFRICAN GROWTH AND OPPORTUNITY ACT

Sec. 101. Statement of policy.
Sec. 102. Definitions.
Sec. 103. Activities in support of transparency.
Sec. 104. Activities in support of trade capacity building.

    TITLE II--MODERNIZATION OF THE MILLENNIUM CHALLENGE CORPORATION

Sec. 201. Candidacy status.
Sec. 202. Carryover authority for private-sector members of board of 
              directors.
Sec. 203. Additional reporting to the board on the treatment of civil 
              society in an eligible country.
Sec. 204. Concurrent compacts under the Millennium Challenge Act of 
              2003.
Sec. 205. Public notification of entering into a compact.
Sec. 206. Disclosure.
Sec. 207. Restriction on the use of assistance under section 616.
Sec. 208. Study on subnational compacts.

     TITLE I--ENHANCEMENT OF THE AFRICAN GROWTH AND OPPORTUNITY ACT

     SEC. 101. STATEMENT OF POLICY.

       It is the policy of the United States to support efforts 
     to--
       (1) improve the rule of law, promote free and fair 
     elections, strengthen and expand the private sector, and 
     fight corruption in sub-Saharan Africa; and
       (2) promote the role of women in social, political, and 
     economic development in sub-Saharan Africa.

     SEC. 102. DEFINITIONS.

       In this title--
       (1) Agoa website.--The term ``AGOA Website'' means the 
     website established pursuant to section 103(a).
       (2) Eligible sub-saharan african country.--The term 
     ``eligible sub-Saharan African country'' means a country that 
     the President has determined meets the eligibility 
     requirements set forth in section 104 of the African Growth 
     and Opportunity Act (19 U.S.C. 3703).

     SEC. 103. ACTIVITIES IN SUPPORT OF TRANSPARENCY.

       (a) AGOA Website.--
       (1) In general.--The President shall establish a publicly 
     available website for the collection and dissemination of 
     information regarding the African Growth and Opportunity Act 
     (19 U.S.C. 3701 et seq.).
       (2) Contents.--The President shall publish on the AGOA 
     Website the information described in paragraph (1), 
     including--
       (A) information and technical assistance provided at United 
     States Agency for International Development regional trade 
     hubs; and
       (B) a link to the websites of United States embassies 
     located in eligible sub-Saharan African countries.
       (3) Actions by united states embassies.--The Secretary of 
     State should direct United States embassies located in 
     eligible sub-Saharan African countries to--
       (A) encourage individuals and businesses in such countries 
     to use the benefits available under the African Growth and 
     Opportunity Act; and
       (B) include a link to the AGOA Website on the websites of 
     such diplomatic missions.
       (b) AGOA Forum.--After each meeting of the United States-
     Sub-Saharan Africa Trade and Economic Cooperation Forum, the 
     President should publish on the AGOA Website the following:
       (1) The outcomes of the meeting of the Forum, including any 
     commitments made by member countries and the private sector.
       (2) An assessment of progress made with respect to any 
     commitments made by member countries and the private sector 
     from the previous meeting of the Forum.
       (c) Other Information.--The President should disseminate 
     the information required under this section in a digital 
     format to the public and publish such information on the AGOA 
     Website.

     SEC. 104. ACTIVITIES IN SUPPORT OF TRADE CAPACITY BUILDING.

       The President should--
       (1) develop and implement policies that--
       (A) encourage and facilitate cross-boundary cooperation 
     among eligible sub-Saharan African countries in order to 
     facilitate trade; and
       (B) encourage the provision of technical assistance to 
     eligible sub-Saharan African countries to establish and 
     sustain adequate trade capacity development;
       (2) provide specific training for businesses in eligible 
     sub-Saharan African countries and government trade officials 
     of such countries on accessing the benefits under the African 
     Growth and Opportunity Act and other trade preference 
     programs;
       (3) provide capacity building for African entrepreneurs and 
     trade associations on production strategies, quality 
     standards, formation of cooperatives, market research, and 
     market development;
       (4) provide capacity building training to promote 
     diversification of African products and value-added 
     processing; and
       (5) provide capacity building and technical assistance 
     funding for African businesses and institutions to help such 
     businesses and institutions comply with United States 
     counterterrorism initiatives and policies.

    TITLE II--MODERNIZATION OF THE MILLENNIUM CHALLENGE CORPORATION

     SEC. 201. CANDIDACY STATUS.

       (a) Low Income Countries.--Section 606(a) of the Millennium 
     Challenge Act of 2003 (22 U.S.C. 7705(a)) is amended--
       (1) in paragraph (1)(B), by striking ``(3)'' and inserting 
     ``(4)'';
       (2) in paragraph (2)--
       (A) by amending the paragraph heading to read as follows: 
     ``Fiscal years 2005 through 2012''; and
       (B) by striking ``fiscal year 2005 or a subsequent fiscal 
     year'' and inserting ``each of fiscal years 2005 through 
     2012'';
       (3) by redesignating paragraph (3) as paragraph (4); and
       (4) by inserting after paragraph (2) the following:
       ``(3) Fiscal year 2013 and subsequent fiscal years.--A 
     country shall be a candidate country for purposes of 
     eligibility for assistance for fiscal year 2013 or a 
     subsequent fiscal year if the country--
       ``(A) has a per capita income not greater than the lower 
     middle income country threshold established by the 
     International Bank for Reconstruction and Development for 
     such fiscal year;
       ``(B) is among the 75 countries identified by the 
     International Bank for Reconstruction and Development as 
     having the lowest per capita income; and
       ``(C) meets the requirements under paragraph (1)(B).''.
       (b) Lower Middle Income Countries.--Section 606(b) of the 
     Millennium Challenge Act of 2003 (22 U.S.C. 7705(b)) is 
     amended--
       (1) in paragraph (1)--
       (A) by amending the paragraph heading to read as follows: 
     ``Fiscal years 2006 through 2012''; and
       (B) in the matter preceding subparagraph (A), by striking 
     ``fiscal year 2006 or a subsequent fiscal year'' and 
     inserting ``fiscal years 2006 through 2012'';
       (2) by redesignating paragraph (2) as paragraph (3); and
       (3) by inserting after paragraph (1) the following:
       ``(2) Fiscal year 2013 and subsequent fiscal years.--In 
     addition to the countries described in subsection (a), a 
     country shall be a candidate country for purposes of 
     eligibility for assistance for fiscal year 2013 or a 
     subsequent fiscal year if the country--
       ``(A) has a per capita income not greater than the lower 
     middle income country threshold established by the 
     International Bank for Reconstruction and Development for the 
     fiscal year;
       ``(B) is not among the 75 countries identified by the 
     International Bank for Reconstruction and Development as 
     having the lowest per capita income; and
       ``(C) meets the requirements under subsection (a)(1)(B).''.
       (c) Reclassification.--Section 606 of the Millennium 
     Challenge Act of 2003 (22 U.S.C. 7705) is amended--
       (1) by redesignating subsection (c) as subsection (d); and
       (2) by inserting after subsection (b) the following:
       ``(c) Treatment of Countries With Per Capita Income 
     Changes.--A country qualifying for candidate status under 
     this section with a per capita income that changes during the 
     fiscal year such that the country would be reclassified from 
     a low income country to a lower middle income country or from 
     a lower middle income country to a low income country shall 
     retain its candidacy status in its former income 
     classification for such fiscal year and the two subsequent 
     fiscal years.''.

     SEC. 202. CARRYOVER AUTHORITY FOR PRIVATE-SECTOR MEMBERS OF 
                   BOARD OF DIRECTORS.

       Section 604(c)(4)(B) of the Millennium Challenge Act of 
     2003 (22 U.S.C. 7703(c)(4)(B)) is amended to read as follows:
       ``(B) Other members.--Each member of the Board described in 
     paragraph (3)(B)--
       ``(i) shall be appointed for a term of 3 years;
       ``(ii) may be reappointed for a term of an additional 2 
     years; and
       ``(iii) may continue to serve in each such appointment 
     until the earlier of--

       ``(I) the date on which his or her successor is appointed; 
     or
       ``(II) the date that is one year after the expiration of 
     his or her appointment or reappointment, as the case may 
     be.''.

     SEC. 203. ADDITIONAL REPORTING TO THE BOARD ON THE TREATMENT 
                   OF CIVIL SOCIETY IN AN ELIGIBLE COUNTRY.

       Section 607 of the Millennium Challenge Act of 2003 (22 
     U.S.C. 7706) is amended--
       (1) in subsection (a), by adding at the end the following: 
     ``A determination whether a country is eligible for a 
     subsequent, non-concurrent Millennium Challenge Compact shall 
     also be based, to the extent practicable, on significantly 
     improved performance across the criteria in subsection (b) 
     that, at a minimum, are relevant to the preceding Compact, 
     compared to the country's performance with respect to such 
     criteria when selected for such preceding Compact.''
       (2) in subsection (b)(1)--
       (A) in subparagraph (D), by striking ``and'' at the end;
       (B) in subparagraph (E), by adding ``and'' at the end; and

[[Page H432]]

       (C) by adding at the end the following:
       ``(F) the quality of the civil society enabling 
     environment;'';
       (3) by redesignating subsections (d) and (e) as subsections 
     (e) and (f), respectively; and
       (4) by inserting after subsection (c) the following:
       ``(d) Reporting on Treatment of Civil Society.--For the 7-
     year period beginning on the date of the enactment of this 
     subsection, before the Board selects an eligible country for 
     a Compact under subsection (c), the Corporation shall provide 
     information to the Board regarding the country's treatment of 
     civil society, including classified information, as 
     appropriate. The information shall include an assessment and 
     analysis of factors including--
       ``(1) any relevant laws governing the formation or 
     establishment of a civil society organization, particularly 
     laws intended to curb the activities of foreign civil society 
     organizations;
       ``(2) any relevant laws governing the operations of a civil 
     society organization, particularly those laws seeking to 
     define or otherwise regulate the actions of foreign civil 
     society organizations;
       ``(3) laws relating to the legal status of civil society 
     organizations, including laws which effectively discriminate 
     against foreign civil society organizations as compared to 
     similarly situated domestic organizations;
       ``(4) laws regulating the freedom of expression and 
     peaceful assembly; and
       ``(5) laws regulating the usage of the Internet, 
     particularly by foreign civil society organizations.''.

     SEC. 204. CONCURRENT COMPACTS UNDER THE MILLENNIUM CHALLENGE 
                   ACT OF 2003.

       (a) In General.--Section 609 of the Millennium Challenge 
     Act of 2003 (22 U.S.C. 7708) is amended--
       (1) by striking the first sentence of subsection (k);
       (2) by redesignating subsection (k) (as so amended) as 
     subsection (l); and
       (3) by inserting after subsection (j) the following:
       ``(k) Concurrent Compacts.--An eligible country that has 
     entered into and has in effect a Compact under this section 
     may enter into and have in effect at the same time not more 
     than one additional Compact in accordance with the 
     requirements of this title if--
       ``(1) one or both of the Compacts are or will be for 
     purposes of regional economic integration, increased regional 
     trade, or cross-border collaborations; and
       ``(2) the Board determines that the country is making 
     considerable and demonstrable progress in implementing the 
     terms of the existing Compact and supplementary agreements 
     thereto.''.
       (b) Conforming Amendment.--Section 613(b)(2)(A) of such Act 
     (22 U.S.C. 7712(b)(2)(A)) is amended by striking ``the'' 
     before ``Compact'' and inserting ``any''.
       (c) Applicability.--The amendments made by this section 
     apply with respect to Compacts entered into between the 
     United States and an eligible country under the Millennium 
     Challenge Act of 2003 before, on, or after the date of the 
     enactment of this Act.

     SEC. 205. PUBLIC NOTIFICATION OF ENTERING INTO A COMPACT.

       Section 610 of the Millennium Challenge Act of 2003 (22 
     U.S.C. 7709) is amended to read as follows:

     ``SEC. 610. CONGRESSIONAL AND PUBLIC NOTIFICATION.

       ``(a) Congressional Consultations and Notifications.--
       ``(1) In general.--The Board, acting through the Chief 
     Executive Officer, shall consult with and notify the 
     appropriate congressional committees not later than 15 days 
     before taking any of the actions described in paragraph (2).
       ``(2) Actions described.--The actions described in this 
     paragraph are--
       ``(A) providing assistance for an eligible country under 
     section 609(g);
       ``(B) commencing negotiations with an eligible country to 
     provide assistance for--
       ``(i) a Compact under section 605; or
       ``(ii) an agreement under section 616;
       ``(C) signing such a Compact or agreement; and
       ``(D) terminating assistance under such a Compact or 
     agreement.
       ``(3) Economic justification.--Any notification relating to 
     the intent to negotiate or sign a Compact shall include a 
     report describing the projected economic justification for 
     the Compact, including, as applicable--
       ``(A) the expected economic rate of return of the Compact;
       ``(B) a cost-benefit analysis of the Compact;
       ``(C) a description of the impact on beneficiary 
     populations;
       ``(D) the likelihood that the investment will catalyze 
     private sector investments; and
       ``(E) any other applicable economic factors that justify 
     each project to be funded under such a Compact to the extent 
     practicable and appropriate.
       ``(4) Risk management plan.--Not later than 60 days before 
     signing each concurrent Compact, as authorized under section 
     609, the Board, acting through the Chief Executive Officer, 
     shall consult with and provide to the appropriate 
     congressional committees--
       ``(A) an assessment and, as appropriate, the identification 
     of potential measures to mitigate risks, of--
       ``(i) the countries' commitment to regional integration and 
     cross-border cooperation and capacity to carry out 
     commitments;
       ``(ii) political and policy risks, including risks that 
     could affect country eligibility;
       ``(iii) risks associated with realizing economic returns;
       ``(iv) time and completion risks; and
       ``(v) cost and financial risks; and
       ``(B) an assessment of measures to be taken to mitigate any 
     identified risks, including--
       ``(i) securing other potential donors to finance projects 
     or parts of projects as needed; and
       ``(ii) partnering with regional organizations to support 
     and oversee effective cross-border cooperation.
       ``(b) Congressional and Public Notification After Entering 
     Into a Compact.--Not later than 10 days after entering into a 
     Compact with an eligible country, the Board, acting through 
     the Chief Executive Officer, shall--
       ``(1) publish the text of the Compact on the website of the 
     Corporation;
       ``(2) provide the appropriate congressional committees with 
     a detailed summary of the Compact and, upon request, the text 
     of the Compact; and
       ``(3) publish in the Federal Register a detailed summary of 
     the Compact and a notice of availability of the text of the 
     Compact on the website of the Corporation.''.

     SEC. 206. DISCLOSURE.

       (a) Requirement for Timely Disclosure.--Section 612(a) of 
     the Millennium Challenge Act of 2003 (22 U.S.C. 7711(a)) is 
     amended--
       (1) in the subsection heading, by inserting ``Timely'' 
     before ``Disclosure''; and
       (2) in the matter preceding paragraph (1)--
       (A) by striking ``The Corporation'' and inserting ``Not 
     later than 90 days after the last day of each fiscal quarter, 
     the Corporation''; and
       (B) by striking ``on at least a quarterly basis,''.
       (b) Dissemination.--Section 612(b) of the Millennium 
     Challenge Act of 2003 (22 U.S.C. 7711(b)) is amended to read 
     as follows:
       ``(b) Dissemination.--The Board, acting through the Chief 
     Executive Officer, shall make the information required to be 
     disclosed under subsection (a) available to the public--
       ``(1) by publishing it on the website of the Corporation;
       ``(2) by providing notice of the availability of such 
     information in the Federal Register; and
       ``(3) by any other methods that the Board determines to be 
     appropriate.''.

     SEC. 207. RESTRICTION ON THE USE OF ASSISTANCE UNDER SECTION 
                   616.

       Section 616(d) of the Millennium Challenge Act of 2003 (22 
     U.S.C. 7715(d)) is amended to read as follows:
       ``(d) Funding.--
       ``(1) Limitation.--Not more than 10 percent of the amounts 
     made available to carry out this Act for a fiscal year may be 
     made available to carry out this section.
       ``(2) Restriction relating to assistance.--None of the 
     funds authorized to carry out the purposes of this Act shall 
     be available for assistance under this section to a country 
     that does not qualify as a candidate country under section 
     606 for the fiscal year during which such assistance is 
     provided.''.

     SEC. 208. STUDY ON SUBNATIONAL COMPACTS.

       (a) In General.--Not later than 180 days after the date of 
     the enactment of this Act, the Board of the Millennium 
     Challenge Corporation, acting through the Chief Executive 
     Officer, shall submit a study to the appropriate 
     congressional committees that assesses the feasibility and 
     desirability of developing partnerships at the subnational 
     level within candidate countries that would be complementary 
     to, and, as applicable, concurrent with, any Millennium 
     Challenge Corporation national-level or regional investments.
       (b) Content.--The study required under subsection (a) shall 
     examine--
       (1) the extent to which targeting investments at the 
     subnational level might provide new opportunities for 
     reducing poverty through economic growth;
       (2) the extent to which traditional approaches to defining 
     poverty may not adequately capture the nature of poverty 
     within a country;
       (3) the types of subnational entities that might be 
     appropriate partners for subnational Millennium Challenge 
     Corporation compacts;
       (4) how candidates for subnational partners might best be 
     identified; and
       (5) what role each national government should play in 
     creating or implementing a subnational partnership.
       (c) Appropriate Congressional Committees.--In this 
     subsection, the term ``appropriate congressional committees'' 
     means--
       (1) the Committee on Foreign Relations of the Senate;
       (2) the Committee on Appropriations of the Senate;
       (3) the Committee on Foreign Affairs of the House of 
     Representatives; and
       (4) the Committee on Appropriations of the House of 
     Representatives.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
California (Mr. Royce) and the gentleman from New Jersey (Mr. Sires) 
each will control 20 minutes.
  The Chair recognizes the gentleman from California.

[[Page H433]]

  



                             General Leave

  Mr. ROYCE of California. Mr. Speaker, I ask unanimous consent that 
all Members may have 5 legislative days within which to revise and 
extend their remarks and include extraneous materials in the Record.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from California?
  There was no objection.

                              {time}  1400

  Mr. ROYCE of California. Mr. Speaker, I yield myself such time as I 
may consume.
  Mr. Speaker, I have been honored to serve as chairman of the House 
Foreign Affairs Committee for the past 5 years. Over this period, there 
has been no shortage of threats to our national security. But I must 
share with you, there have also been great opportunities--opportunities 
to make America safer, to make this country more prosperous through 
strategic investments in diplomacy, and also investments in 
development.
  This bill before us today is one example. The African Growth and 
Opportunity Act and Millennium Challenge Act Modernization Act seeks to 
facilitate trade and private sector growth in poor but relatively well-
governed countries. This is particularly true in sub-Saharan Africa.
  Mr. Speaker, I would share with my colleagues the goal here is so 
that they can grow their own way out of poverty. What this legislation 
does is it seeks to help countries graduate from the need for foreign 
aid, while simultaneously opening doors for American businesses to 
break into the most promising emerging markets. For those of you who 
have followed this, you have watched trade double and then triple with 
sub-Saharan Africa.
  Through AGOA--as we call this African Growth and Opportunity Act--
goods produced in eligible African countries enter the United States on 
a duty-free basis. But to be eligible, countries must be committed to 
the rule of law, to eliminating barriers to U.S. trade and investment, 
to combating corruption, and to supporting counterterrorism activities.
  So AGOA, as you can see, advances U.S. interests on so many different 
levels. I am proud to be a member of the AGOA coalition from the 
beginning. I was one of the original authors of the bill and I have 
witnessed its transformative impact.
  So despite its benefits, AGOA does remain underutilized in too many 
countries. Prior to its reauthorization in 2015, I set out to learn 
why, and I traveled to many countries in southern and eastern Africa, 
where I met with U.S. and African trade officials, business leaders, 
and entrepreneurs. I visited garment factories and power stations. We 
saw trade hubs.
  I heard a lot about poor infrastructure. I heard a lot about 
competition with China and burdensome U.S. regulations that are 
difficult to understand.
  Then I walked into an artisan shop in Addis Ababa, and it was run by 
a remarkable woman. Her name was Sara Abera. I learned that she, in 
fact, had benefited from technical assistance through the U.S.-East 
Africa Trade and Investment Hub. She was now exporting to the United 
States through AGOA. I learned that she was, though, an exception to 
the rule. She is not the rule.
  Other than Sara, there were very few businesses and very few business 
leaders and entrepreneurs that seemed to have the knowledge of how to 
access AGOA. To fix this, the bill before us today would make 
information about AGOA available to an easily accessible public 
website. This bill also urges U.S. Embassies in eligible countries to 
more consistently promote AGOA and trade hubs, and it seeks to bring 
greater transparency to commitments made at annual AGOA forums to 
followup on these commitments.
  So this bill strengthens the Millennium Challenge Corporation, which 
is already one of our most effective tools for incentivizing policy 
reform and unlocking market-based growth in developing countries. It 
increases the MCC's flexibility to promote regional trade, 
collaboration, economic integration. It does this by allowing up to two 
simultaneous compacts with an eligible country. It also improves 
transparency and accountability. It does that by streamlining and 
strengthening congressional oversight.
  Trade and free-market principles, frankly, if we think about it, have 
helped lift more than 1 billion people out of poverty over the last 
decade. But it is not just this humanitarian goal that leads us to 
invest in communities abroad. It is clear that investments targeted 
towards greater health, towards growing a healthier society, and 
towards growing a more sustainable society also helps advance U.S. 
security and economic interests.
  It is, therefore, vital that we ensure that two of our most impactful 
development and trade facilitation tools--that is the African Growth 
and Opportunity Act, and our Millennium Challenge Corporation--are 
efficient, effective, and fully utilized. This bill will do exactly 
that.
  Mr. Speaker, I urge Members to support this important measure, and I 
reserve the balance of my time.

                                     Committee on Foreign Affairs,


                                     House of Representatives,

                                 Washington, DC, December 8, 2017.
     Hon. Kevin Brady,
     Chairman, Committee on Ways and Means,
     Washington, DC.
       Dear Chairman Brady: Thank you for consulting with the 
     Foreign Affairs Committee and agreeing to forgo a sequential 
     referral request on H.R. 3445, the AGOA and MCA Modernization 
     Act, so that the bill may proceed expeditiously to the House 
     floor.
       I agree that your forgoing further action on this measure 
     does not in any way diminish or alter the jurisdiction of 
     your committee, or prejudice its jurisdictional prerogatives 
     on this resolution or similar legislation in the future.
       I will seek to place our letters on H.R. 3445 into the 
     Congressional Record during floor consideration. I appreciate 
     your cooperation regarding this legislation and look forward 
     to continuing to work together as this measure moves through 
     the legislative process.
           Sincerely,
                                                  Edward R. Royce,
     Chairman.
                                  ____

                                     Committee on Foreign Affairs,


                                     House of Representatives,

                                Washington, DC, December 14, 2017.
     Hon. Christopher H. Smith,
     Chairman, Subcommittee on Africa, Global Health, Global Human 
         Rights, and International Organizations, Washington, DC.
       Dear Chairman Smith: I am writing regarding H.R. 3445, the 
     African Growth and Opportunity Act and Millennium Challenge 
     Act Modernization Act, which the Committee on Foreign Affairs 
     marked up on September 28, 2017.
       As the author of H.R. 3445, the Chairman of the Committee 
     on Foreign Affairs, and a legislator committed to the 
     protection of life, I have confirmed that nothing in H.R. 
     3445, including the amendments made by this bill, alters 
     existing statutory or policy prohibitions against the 
     performance or promotion of abortion under section 104 of the 
     Foreign Assistance Act of 1961 (22 U.S.C. 2151b) or any other 
     provision of law, which categorically prohibits the 
     Millennium Challenge Corporation from utilizing U.S. foreign 
     assistance dollars--including funds reserved for 
     administrative expenses--to support the performance or 
     promotion of abortion overseas. This includes longstanding 
     prohibitions on the use of funds ``to lobby for or against 
     abortion,'' most recently enacted in Title III of Division J 
     of the Consolidated Appropriations Act, 2017 (P.L. 115-31), 
     which preclude U.S. foreign assistance agencies, including 
     MCC, from using their activities to promote changes in the 
     abortion laws of foreign countries.
       I will place this letter into the Congressional Record 
     during Floor consideration of H.R. 3445, and thank you for 
     your cosponsorship and support for this important 
     legislation.
           Sincerely,
                                                  Edward R. Royce,
     Chairman.
                                  ____

                                      Committee on Ways and Means,


                                     House of Representatives,

                                  Washington, DC, January 3, 2018.
     Hon. Edward R. Royce,
     Chairman, Committee on Foreign Affairs,
     Washington, DC.
       Dear Chairman Royce: I am writing with respect to H.R. 
     3445, the ``AGOA and MCA Modernization Act.'' As a result of 
     your having consulted with us on this legislation, I agree 
     not to request a sequential referral on this bill so that it 
     may proceed expeditiously to the House floor.
       The Committee on Ways and Means takes this action with the 
     mutual understanding that by forgoing formal consideration of 
     H.R. 3445, we do not waive any jurisdiction over the subject 
     matter contained in this or similar legislation, and the 
     Committee will be appropriately consulted and involved as the 
     bill or similar legislation moves forward so that we may 
     address any remaining issues that fall within our Rule X 
     jurisdiction. The Committee also reserves the right to seek 
     appointment of an appropriate number of conferees to any 
     House-Senate conference involving this or similar 
     legislation, and requests your support for such request.
       Finally, I would appreciate your response to this letter 
     confirming this understanding, and would ask that a copy of 
     our exchange of letters on this matter be included in the

[[Page H434]]

     Congressional Record during floor consideration thereof.
           Sincerely,
                                                      Kevin Brady,
                                                         Chairman.

  Mr. SIRES. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise in support of this measure.
  I would like to begin by thanking the chairman of the Foreign Affairs 
Committee, Ed Royce; and the ranking member of the Africa, Global 
Health, Global Human Rights, and International Organizations 
Subcommittee, Karen Bass, for their hard work on this legislation.
  The Africa Growth and Opportunity Act, AGOA, first passed by Congress 
in the year 2000, has helped to foster a more robust trade relationship 
between the United States and the nations of sub-Saharan Africa. AGOA 
has helped to create economic opportunities for thousands of people in 
Africa, while also benefiting U.S. farmers, manufacturers, and small 
businesses by providing new markets for their goods.
  The bill before us today will make AGOA even more effective. It 
requires the creation of a website to make information about AGOA 
benefits more readily available to both sub-Saharan partners and the 
American people, and it provides much-needed technical assistance to 
help eligible partners fully utilize the available trade benefits.
  The legislation also provides new authorities for the Millennium 
Challenge Corporation, an independent agency that is charged with 
promoting economic growth, reducing poverty, and strengthening 
institutions in eligible countries. Specifically, it will give MCC the 
ability to enter into regional compacts by simultaneously engaging 
several countries to fund investments that could benefit all of them.
  We know economies fail if they are isolated. Coordinated investments 
across the region will have an enormous beneficial impact on trade, 
development, regional stability, and international investment.
  There are several good opportunities for regional compacts. In west 
Africa, MCC currently partners with 10 countries. In southern Africa, 
MCC partners with three countries.
  Mr. Speaker, I urge my colleagues to support this bipartisan measure. 
The Africa Growth and Opportunity Act is a critical piece of 
legislation that increases ties and helps foster deeper relationships 
with partners throughout Africa.
  Mr. Speaker, I urge my colleagues to support this measure, and I 
reserve the balance of my time.
  Mr. ROYCE of California. Mr. Speaker, I reserve the balance of my 
time.
  Mr. SIRES. Mr. Speaker, I yield 5 minutes to the gentlewoman from 
California (Ms. Bass), the lead cosponsor of this legislation and the 
ranking member of the Foreign Affairs' Subcommittee on Africa, Global 
Health, Global Human Rights, and International Organizations.
  Ms. BASS. Mr. Speaker, I rise today in strong support of H.R. 3445, 
AGOA and MCA Modernization Act.
  The African Growth and Opportunity Act and the Millennium Challenge 
Corporation have proven track records of spurring economic development. 
Expanding these programs advances our position as international 
leaders, strengthens our domestic job market and economy, while 
protecting our national security interests.
  Trade and development go hand in hand. U.S. investments around the 
world increases trade opportunities and opens new markets for U.S. 
goods and services. Africa's consumer spending is expected to reach $1 
trillion.
  We must act now in order to solidify this important trade 
relationship. If we fail to act, rest assured that other nations are 
ready, willing, and able to fill our void. We have the opportunity 
through AGOA and MCA to advance stability, security, and business 
growth on the continent and here at home.
  This is in our best interest. That is why I joined my colleagues, 
Chairman Royce, Ranking Member Engel, and Representative Smith, to 
introduce H.R. 3445, the AGOA and MCA Modernization Act earlier this 
year.
  Moving developing countries away from foreign aid and towards trade 
also helps U.S. manufacturers, farmers, and small businesses. We are 
building long-term trading partners for our goods and services. By 
using trade, we can also address the root causes of violent extremism 
and terrorism. This legislation strengthens the AGOA and the MCA--key 
laws in the effort to promote U.S.-Africa trade.
  For example, AGOA and MCA gives MCC greater flexibility to promote 
trade, collaboration, and economic integration by allowing up to two 
simultaneous compacts with an eligible country. This is important 
because, as most of us know, African countries are still grappling with 
the legacy of colonialism.

  For example, only a few hundred miles separate Lagos, Nigeria, from 
Accra, Ghana. In the United States, traveling this distance would take 
a few hours. For traders on the continent, the same trip can take up to 
a full day. They have to contend with inadequate roads, arduous border 
checks, or high tariffs.
  MCC recently signed a compact with Cote d'Ivoire, an economic and 
cultural hub in west Africa and a longtime strategic and economic 
partner of the U.S. This compact will diversify the nation's economy by 
targeting two constraints to growth: access to a skilled workforce and 
the mobility of goods and people in the nation's capital, Abidjan, Cote 
d'Ivoire's commercial capital.
  The Transport Project will focus on rehabilitating key roads in the 
capital to enable people and goods to move freely throughout the busy 
city and its strategic port. With 20 percent of the nation's population 
living in the capital, unlocking congestion will create opportunities 
to buy and sell products, expand businesses, improve access to key 
services, and open up greater trade. This compact is expected to 
benefit more than 11 million people. In a country where more than half 
of the population is under the age of 24, it will help to shape a 
strong, stable future for Cote d'Ivoire.
  This compact is all about creating opportunities and stabilities for 
citizens and businesses in Cote d'Ivoire, west Africa, and in the U.S. 
By making coordinated investments across countries, MCC could help 
these nations work together to grow regional markets and facilitate 
trade. Passage of this bill in the House is an important step toward 
increasing regional integration across Africa, advancing stability and 
security and opening new markets for trade.
  I believe strongly that it is in our economic and political interest 
to expand our economic relationships with the nations of Africa. I have 
said this before and I will continue to reiterate this point. I also 
believe that the African Growth and Opportunity Act is the key to 
development of stronger, mutually beneficial economic relations between 
this country and African nations.
  Mr. ROYCE of California. Mr. Speaker, I would like to close if the 
gentleman has no other speakers. I reserve the balance of my time.

                              {time}  1415

  Mr. SIRES. Mr. Speaker, I yield 3 minutes to the gentlewoman from 
Texas (Ms. Jackson Lee).
  Ms. JACKSON LEE. Mr. Speaker, I thank the gentleman from New Jersey 
for his leadership, and I thank Mr. Royce, Mr. Engel, Mr. Smith, and 
Ms. Bass for establishing a real, viable African policy, a policy that 
I have had the privilege of being part of for all of the years that I 
have served in the United States Congress.
  I remember making the first inaugural trip to do the research and to 
meet with heads of state in Africa on the question of the African 
Growth and Opportunity Act.
  Over the years, we worked with the Bush administration on the 
Millennium Challenge Corporation. So I am delighted that we have a bill 
that improves the benefits.
  It is even more important, in this time, to make sure that the 
policies of the United States toward Africa and the African countries 
are clear and precise. They are strong allies and a very viable trade 
partner.
  This, of course, Mr. Speaker, is crucial in the backdrop of very 
vulgar statements that, unfortunately, have come from the Commander in 
Chief. Therefore, this is the policy that is real, an ongoing 
partnership, the fact that Africa represents a growing population of 1 
billion people. When we last traveled with a President of the United 
States--which then was President

[[Page H435]]

Barack Obama--and visited a number of African countries, in particular 
Kenya, we were there to look at the rising population of small- and 
medium-sized entrepreneurs, young millennials, and others who were 
eager to engage in business.
  The African Growth and Opportunity Act will be a pathway for sub-
Saharan African countries in that area that will create the pathway for 
trade for the goods of those produced on the continent.
  Peace and the economy go together. If we have an economic engine 
partnership with the United States, looking at good quality investment, 
and if we have the work of the Millennium Challenge to challenge 
countries to become more democratic, to open the doors of opportunity, 
to have a better fiscal system, and to be a real partner in these 
improvements, that is a real African policy.
  So I rise to support the underlying bill, H.R. 3445. I rise to 
support it because it is an advancement to the work that has been done 
over the years by the United States Congress and the many partners that 
we have had.
  I am a student of Africa, having gone to school in Accra and Kumasi 
in Ghana and, of course, in Lagos and Ibadan in Nigeria. I have 
traveled often, and I understand the ingenuity, the eagerness, and the 
commitment to democratic principles and, of course, the opportunities 
for their young generation.
  So I rise today to support the bill. I thank the sponsors for this 
very excellent legislation. It is good work.
  Mr. Speaker, I don't know if it is appropriate, but I ask unanimous 
consent to cosponsor the legislation at this time.
  The SPEAKER pro tempore. The gentlewoman's request to be added as a 
cosponsor cannot be entertained at this point on this bill.
  Mr. SIRES. Mr. Speaker, I yield back the balance of my time.
  Mr. ROYCE of California. Mr. Speaker, I yield myself such time as I 
may consume.
  Mr. Speaker, I will sum up here. What this bill does is unlock a 
greater potential for AGOA, for the African Growth and Opportunity Act, 
so communities in Africa can strengthen their own economies and become 
U.S. trade partners rather than aid recipients. It also enhances the 
impact of MCC by accelerating regional economic integration trade.
  It is good for American taxpayers. It is certainly good for job 
creators in the United States. It is good for our national security. It 
is good for Africa--for the people of Africa.
  I think this legislation is the product of more than 2 years of 
negotiations. It enjoys very broad support. As I say, it doesn't cost 
the taxpayers anything.
  I really want to thank some of the Members who worked hard on this. I 
thank Representative Karen Bass for her good work, Congresswoman Sheila 
Jackson Lee, Ranking Member Engel, and Representative Chris Smith; 
Senators Corker, Cardin, Isakson, and Coons. I thank them for their 
help on my measure here today and for their continued commitment to 
reducing poverty through market-based economic growth.
  Mr. Speaker, I yield back the balance of my time.
  Mr. SMITH of New Jersey. Mr. Speaker, I rise today in support of H.R. 
3445, the African Growth and Opportunity Act and Millennium Challenge 
Act Modernization Act.
  I am an original cosponsor of H.R. 3445, and as Chairman of the House 
Foreign Affairs Africa subcommittee, I want to applaud Chairman Royce, 
Ranking Member Elliot Engel, and the Ranking Member of my subcommittee, 
Karen Bass, for their commitment to Africa and to enhancing trade, and 
all the benefits in terms of closer relationships that flow from trade, 
between the people of the United States and the people of Africa.
  The original AGOA Act of 2000 has been called a ``cornerstone'' of 
our trade policy toward the continent, and it has served us well. Over 
the years, however, our subcommittee has had numerous hearings--not to 
mention meetings with African heads of state and ambassadors--on AGOA, 
increasing exports to Africa, and on cultivating the-rule-of-law 
reforms necessary to attract business and investment to Africa. In past 
Congresses I introduced the Increasing American Jobs Through Greater 
Exports to Africa Act. It has become apparent that, as well as AGOA has 
served us, there is room for improvement and innovation.
  H.R. 3445 marks a step toward that, by emphasizing capacity building 
and training and encouraging entrepreneurship in Africa. Importantly, 
it acknowledges that the world has changed since 2000, and that Africa 
has been targeted by radical extremists such as Boko Haram and al-
Shabaab. Recognizing that we now live in a post-2001 world, H.R. 3445 
fosters compliance with our counterterrorism initiatives by African 
businesses and institutions.
  Africa, and much of the developing world, has also benefitted from 
the Millennium Challenge Corporation since passage of the Millennium 
Challenge Act of 2003. MCC is a critical partner, for example, in our 
Global Food Security strategy, which fosters agriculture-led economic 
development.
  Though MCC has played a key role, there are also room for 
improvements. Sometimes during the country selection process, 
narratives about a country become set, and there is not a fresh 
appraisal of evidence regarding improvements, or backsliding, in the 
conditions of that country.
  I'd like to thank Chairman Royce for working to ensure that MCC 
remains a vehicle focused on assisting countries with development, and 
does not become diverted from its original mission.
  I urge my colleagues to join me in support of H.R. 3445, the African 
Growth and Opportunity Act and Millennium Challenge Act Modernization 
Act.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from California (Mr. Royce) that the House suspend the rules 
and pass the bill, H.R. 3445, as amended.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

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