[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.
____________________