[Congressional Record Volume 164, Number 11 (Thursday, January 18, 2018)]
[Extensions of Remarks]
[Page E61]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




    AFRICAN GROWTH AND OPPORTUNITY ACT AND MILLENNIUM CHALLENGE ACT 
                           MODERNIZATION ACT

                                 ______
                                 

                               speech of

                        HON. SHEILA JACKSON LEE

                                of texas

                    in the house of representatives

                      Wednesday, January 17, 2018

  Ms. JACKSON LEE. Mr. Speaker, I rise in strong support of H.R. 3445, 
African Growth and Opportunity Act and Millennium Challenge Act (``AGOA 
and MCA Modernization Act''), because it provides assistance to certain 
sub-Saharan African countries to improve their economies and foster 
trade with the U.S.
  I have long supported trade ties between the United States and sub-
Saharan Africa, as I believe this trade relationship would be mutually 
advantageous for both parties involved.
  In 2016, 39 of the 48 countries in sub-Saharan Africa were designated 
as AGOA-eligible, according to the House Foreign Affairs Committee's 
report on the bill.
  Top imports to the U.S. under AGOA include energy products, 
transportation equipment, and textiles, according to the International 
Trade Administration.
  The Millennium Challenge Corporation (MCC) is a foreign aid agency 
that provides grants to lower-income countries for specific projects to 
promote economic growth.
  It invests in countries through compacts--which have ranged from $66 
million in Cape Verde to almost $700 million in Morocco and Tanzania--
as well as smaller ``threshold agreements'' that help countries become 
eligible for a compact, according to the committee report.
  It has distributed $10.8 billion through compacts and $583.6 million 
through threshold agreements.
  With Africa's consumer spending expected to reach one trillion 
dollars, now is the time to accelerate this important trade 
relationship.
  The AGOA program and the MCC would have new responsibilities and 
reporting requirements under an amended version of H.R. 3445.
  Under H.R. 3445, the president would have to establish a website for 
AGOA that includes information about technical assistance provided by 
the U.S. Agency for International Development's regional trade hubs and 
links to U.S. embassies in AGOA countries.
  After each U.S.-Sub-Saharan Africa Trade and Economic Cooperation 
Forum, H.R. 3445 would require the president to publish the outcomes 
and an assessment of progress made by members and the private sector 
toward meeting previous commitments.
  Under H.R. 3445, the State Department would have to direct U.S. 
embassies in sub-Saharan Africa to promote AGOA and link to the AGOA 
website on their websites.
  The president would be directed to:
  Develop policies and encourage the provision of technical assistance 
to facilitate trade cooperation among AGOA countries;
  Train businesses and government officials on how to access AGOA 
benefits; and
  Provide capacity building for African entrepreneurs and trade 
associations.
  H.R. 3445 would set new requirements for AGOA's website and outreach 
work.
  H.R. 3445 would modify country eligibility criteria for MCC compacts 
and allow countries to enter into concurrent compacts.
  According to a committee summary, H.R. 3445 would redefine and 
stabilize movement between the low income and lower middle income 
candidate country pools, consistent with authorizing language that has 
been carried in annual appropriations bills since FY 2012.
  According to the committee report, countries would be eligible for 
assistance if their per capita income does not exceed the lower middle 
income country threshold established by the World Bank's International 
Bank for Reconstruction and Development, which is $4,035.
  Countries would be eligible for low income assistance if their per 
capita income is among the 75 lowest countries.
  Otherwise, they would still be eligible for lower middle income 
assistance.
  The formula under current law is not based on an income ranking.
  If changes in a country's income caused it to move between 
categories, its assistance level would change after two subsequent 
fiscal years.
  H.R. 3445 would also require countries to demonstrate a commitment to 
supporting civil society to be eligible for participation.
  Before being selected for participation, the MCC would have to report 
to its governing board on the country's treatment of civil society and 
any laws it has that regulate the freedom of expression, peaceful 
assembly, and internet use.
  The reports would be required before the board approved compacts for 
the next seven years.
  A country's improvement on criteria that were relevant to its initial 
compact would be considered when determining eligibility for a 
subsequent, non-concurrent compact.
  We should support the efforts of the AGOA program as it provides 
assistance to sub-Saharan African countries, improves these countries' 
economies, and helps to facilitate trade between these countries and 
the U.S.
  I ask my colleagues to join me in supporting H.R. 3445.

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