[Congressional Record (Bound Edition), Volume 150 (2004), Part 9]
[House]
[Pages 11988-11995]
[From the U.S. Government Publishing Office, www.gpo.gov]




                     AGOA ACCELERATION ACT OF 2004

  Mr. THOMAS. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 4103) to extend and modify the trade benefits under the 
African Growth and Opportunity Act, as amended.
  The Clerk read as follows:

                               H.R. 4103

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``AGOA Acceleration Act of 
     2004''.

     SEC. 2. FINDINGS.

       The Congress finds the following:
       (1) The African Growth and Opportunity Act (in this section 
     and section 3 referred to as ``the Act'') has helped to spur 
     economic growth and bolster economic reforms in the countries 
     of sub-Saharan Africa and has fostered stronger economic ties 
     between the countries of sub-Saharan Africa and the United 
     States; as a result, exports from the United States to sub-
     Saharan Africa reached record levels after the enactment of 
     the Act, while exports from sub-Saharan Africa to the United 
     States have increased considerably.
       (2) The Act's eligibility requirements have reinforced 
     democratic values and the rule of law, and have strengthened 
     adherence to internationally recognized worker rights in 
     eligible sub-Saharan African countries.
       (3) The Act has helped to bring about substantial increases 
     in foreign investment in sub-Saharan Africa, especially in 
     the textile and apparel sectors, where tens of thousands of 
     new jobs have been created.
       (4) As a result of the Agreement on Textiles and Apparel of 
     the World Trade Organization, under which quotas maintained 
     by WTO member countries on textile and apparel products end 
     on January 1, 2005, sub-Saharan Africa's textile and apparel 
     industry will be severely challenged by countries whose 
     industries are more developed and have greater capacity, 
     economies of scale, and better infrastructure.
       (5) The underdeveloped physical and financial 
     infrastructure in sub-Saharan Africa continues to discourage 
     investment in the region.
       (6) Regional integration establishes a foundation on which 
     sub-Saharan African countries can coordinate and pursue 
     policies grounded in African interests and history to achieve 
     sustainable development.
       (7) Expanded trade because of the Act has improved 
     fundamental economic conditions within sub-Saharan Africa. 
     The Act has helped to create jobs in the poorest region of 
     the world, and most sub-Saharan African countries have sought 
     to take advantage of the opportunities provided by the Act.
       (8) Agricultural biotechnology holds promise for helping 
     solve global food security and human health crises in Africa 
     and, according to recent studies, has made contributions to 
     the protection of the environment by reducing the application 
     of pesticides, reducing soil erosion, and creating an 
     environment more hospitable to wildlife.
       (9)(A) One of the greatest challenges facing African 
     countries continues to be the HIV/AIDS epidemic, which has 
     infected as many as one out of every four people in some 
     countries, creating tremendous social, political, and 
     economic costs. African countries need continued United 
     States financial and technical assistance to combat this 
     epidemic.
       (B) More awareness and involvement by governments are 
     necessary. Countries like Uganda, recognizing the threat of 
     HIV/AIDS, have boldly attacked it through a combination of 
     education, public awareness, enhanced medical infrastructure 
     and resources, and greater access to medical treatment. An 
     effective HIV/AIDS prevention and treatment strategy involves 
     all of these steps.
       (10) African countries continue to need trade capacity 
     assistance to establish viable economic capacity, a well-
     grounded rule of law, and efficient government practices.

     SEC. 3. STATEMENT OF POLICY.

       The Congress supports--
       (1) a continued commitment to increase trade between the 
     United States and sub-Saharan Africa and increase investment 
     in sub-Saharan Africa to the benefit of workers, businesses, 
     and farmers in the United States and in sub-Saharan Africa, 
     including by developing innovative approaches to encourage 
     development and investment in sub-Saharan Africa;
       (2) a reduction of tariff and nontariff barriers and other 
     obstacles to trade between the countries of sub-Saharan 
     Africa and the United States, with particular emphasis on 
     reducing barriers to trade in emerging sectors of the economy 
     that have the greatest potential for development;
       (3) development of sub-Saharan Africa's physical and 
     financial infrastructure;
       (4) international efforts to fight HIV/AIDS, malaria, 
     tuberculosis, other infectious diseases, and serious public 
     health problems;
       (5) many of the aims of the New Partnership for African 
     Development (NEPAD), which include--
       (A) reducing poverty and increasing economic growth;
       (B) promoting peace, democracy, security, and human rights;
       (C) promoting African integration by deepening linkages 
     between African countries and

[[Page 11989]]

     by accelerating Africa's economic and political integration 
     into the rest of the world;
       (D) attracting investment, debt relief, and development 
     assistance;
       (E) promoting trade and economic diversification;
       (F) broadening global market access for United States and 
     African exports;
       (G) improving transparency, good governance, and political 
     accountability;
       (H) expanding access to social services, education, and 
     health services with a high priority given to addressing HIV/
     AIDS, malaria, tuberculosis, other infectious diseases, and 
     other public health problems;
       (I) promoting the role of women in social and economic 
     development by reinforcing education and training and by 
     assuring their participation in political and economic 
     arenas; and
       (J) building the capacity of governments in sub-Saharan 
     Africa to set and enforce a legal framework, as well as to 
     enforce the rule of law;
       (6) negotiation of reciprocal trade agreements between the 
     United States and sub-Saharan African countries, with the 
     overall goal of expanding trade across all of sub-Saharan 
     Africa;
       (7) the President seeking to negotiate, with interested 
     eligible sub-Saharan African countries, bilateral trade 
     agreements that provide investment opportunities, in 
     accordance with section 2102(b)(3) of the Trade Act of 2002 
     (19 U.S.C. 3802(b)(3));
       (8) efforts by the President to negotiate with the member 
     countries of the Southern African Customs Union in order to 
     provide the opportunity to deepen and make permanent the 
     benefits of the Act while giving the United States access to 
     the markets of these African countries for United States 
     goods and services, by reducing tariffs and non-tariff 
     barriers, strengthening intellectual property protection, 
     improving transparency, establishing general dispute 
     settlement mechanisms, and investor-state and state-to-state 
     dispute settlement mechanisms in investment;
       (9) a comprehensive and ambitious trade agreement with the 
     Southern African Customs Union, covering all products and 
     sectors, in order to mature the economic relationship between 
     sub-Saharan African countries and the United States and 
     because such an agreement would deepen United States economic 
     and political ties to the region, lend momentum to United 
     States development efforts, encourage greater United States 
     investment, and promote regional integration and economic 
     growth;
       (10) regional integration among sub-Saharan African 
     countries and business partnerships between United States and 
     African firms; and
       (11) economic diversification in sub-Saharan African 
     countries and expansion of trade beyond textiles and apparel.

     SEC. 4. SENSE OF CONGRESS ON RECIPROCITY AND REGIONAL 
                   ECONOMIC INTEGRATION.

       It is the sense of the Congress that--
       (1) the preferential market access opportunities for 
     eligible sub-Saharan African countries will be complemented 
     and enhanced if those countries are implementing actively and 
     fully, consistent with any remaining applicable phase-in 
     periods, their obligations under the World Trade 
     Organization, including obligations under the Agreement on 
     Trade-Related Aspects of Intellectual Property, the Agreement 
     on the Application of Sanitary and Phytosanitary Measures, 
     and the Agreement on Trade-Related Investment Measures, as 
     well as the other agreements described in section 101(d) of 
     the Uruguay Round Agreements Act (19 U.S.C. 3511(d));
       (2) eligible sub-Saharan African countries should 
     participate in and support mutual trade liberalization in 
     ongoing negotiations under the auspices of the World Trade 
     Organization, including by making reciprocal commitments with 
     respect to improving market access for industrial and 
     agricultural goods, and for services, recognizing that such 
     commitments may need to reflect special and differential 
     treatment for developing countries;
       (3) some of the most pernicious trade barriers against 
     exports by developing countries are the trade barriers 
     maintained by other developing countries; therefore, eligible 
     sub-Saharan African countries will benefit from the reduction 
     of trade barriers in other developing countries, especially 
     in developing countries that represent some of the greatest 
     potential markets for African goods and services; and
       (4) all countries should make sanitary and phytosanitary 
     decisions on the basis of sound science.

     SEC. 5. SENSE OF CONGRESS ON INTERPRETATION OF TEXTILE AND 
                   APPAREL PROVISIONS OF AGOA.

       It is the sense of the Congress that the executive branch, 
     particularly the Committee for the Implementation of Textile 
     Agreements (CITA), the Bureau of Customs and Border 
     Protection of the Department of Homeland Security, and the 
     Department of Commerce, should interpret, implement, and 
     enforce the provisions of section 112 of the African Growth 
     and Opportunity Act, relating to preferential treatment of 
     textile and apparel articles, broadly in order to expand 
     trade by maximizing opportunities for imports of such 
     articles from eligible sub-Saharan African countries.

     SEC. 6. DEFINITION.

       In this Act, the term ``eligible sub-Saharan African 
     country'' means an eligible sub-Saharan African country under 
     the African Growth and Opportunity Act.

     SEC. 7. EXTENSION OF AFRICAN GROWTH AND OPPORTUNITY ACT.

       (a) Generalized System of Preferences.--
       (1) Extension of program.--Section 506B of the Trade Act of 
     1974 (19 U.S.C. 2466b) is amended by striking ``2008'' and 
     inserting ``2015''.
       (2) Inputs from former beneficiary countries.--Section 506A 
     of the Trade Act of 1974 (19 U.S.C. 2466a) is amended--
       (A) in subsection (b)(2)(B), by inserting ``or former 
     beneficiary sub-Saharan African countries'' after 
     ``countries''; and
       (B) in subsection (c)--
       (i) by striking ``title, the terms'' and inserting 
     ``title--
       ``(1) the terms''; and
       (ii) by adding at the end the following:
       ``(2) the term `former beneficiary sub-Saharan African 
     country' means a country that, after being designated as a 
     beneficiary sub-Saharan African country under the African 
     Growth and Opportunity Act, ceased to be designated as such a 
     country by reason of its entering into a free trade agreement 
     with the United States.''.
       (b) Apparel Articles.--(1) Section 112(b)(1) of the African 
     Growth and Opportunity Act (19 U.S.C. 3721(b)(1)) is amended 
     by striking ``(including'' and inserting ``or both 
     (including''.
       (2) Section 112(b)(3) of the African Growth and Opportunity 
     Act (19 U.S.C. 3721 (b)(3)) is amended--
       (A) in the matter preceding subparagraph (A)--
       (i) by striking ``either in the United States or one or 
     more beneficiary sub-Saharan African countries'' each place 
     it appears and inserting ``in the United States or one or 
     more beneficiary sub-Saharan African countries or former 
     beneficiary sub-Saharan African countries, or both''; and
       (ii) by striking ``subject to the following:'' and 
     inserting ``whether or not the apparel articles are also made 
     from any of the fabrics, fabric components formed, or 
     components knit-to-shape described in paragraph (1) or (2) 
     (unless the apparel articles are made exclusively from any of 
     the fabrics, fabric components formed, or components knit-to-
     shape described in paragraph (1) or (2)), subject to the 
     following:''; and
       (B) by striking subparagraphs (A) and (B) and inserting the 
     following:
       ``(A) Limitations on benefits.--
       ``(i) In general.--Preferential treatment under this 
     paragraph shall be extended in the 1-year period beginning 
     October 1, 2003, and in each of the 11 succeeding 1-year 
     periods, to imports of apparel articles in an amount not to 
     exceed the applicable percentage of the aggregate square 
     meter equivalents of all apparel articles imported into the 
     United States in the preceding 12-month period for which data 
     are available.
       ``(ii) Applicable percentage.--For purposes of this 
     subparagraph, the term `applicable percentage' means--

       ``(I) 4.747 percent for the 1-year period beginning October 
     1, 2003, increased in each of the 5 succeeding 1-year periods 
     by equal increments, so that for the 1-year period beginning 
     October 1, 2007, the applicable percentage does not exceed 7 
     percent; and
       ``(II) for each succeeding 1-year period until September 
     30, 2015, not to exceed 7 percent.

       ``(B) Special rule for lesser developed countries.--
       ``(i) In general.--Preferential treatment under this 
     paragraph shall be extended though September 30, 2007, for 
     apparel articles wholly assembled, or knit-to-shape and 
     wholly assembled, or both, in one or more lesser developed 
     beneficiary sub-Saharan African countries, regardless of the 
     country of origin of the fabric or the yarn used to make such 
     articles, in an amount not to exceed the applicable 
     percentage of the aggregate square meter equivalents of all 
     apparel articles imported into the United States in the 
     preceding 12-month period for which data are available.
       ``(ii) Applicable percentage.--For purposes of the 
     subparagraph, the term `applicable percentage' means--

       ``(I) 2.3571 percent for the 1-year period beginning 
     October 1, 2003;
       ``(II) 2.6428 percent for the 1-year period beginning 
     October 1, 2004;
       ``(III) 2.9285 percent for the 1-year period beginning 
     October 1, 2005; and
       ``(IV) 1.6071 percent for the 1-year period beginning 
     October 1, 2006.

       ``(iii) Lesser developed beneficiary sub-saharan african 
     country.--For purposes of this subparagraph, the term `lesser 
     developed beneficiary sub-Saharan African country' means--

       ``(I) a beneficiary sub-Saharan African country that had a 
     per capita gross national product of less than $1,500 in 
     1998, as measured by the International Bank for 
     Reconstruction and Development;
       ``(II) Botswana; and
       ``(III) Namibia.''.

       (3) Section 112(b)(5)(A) of the African Growth and 
     Opportunity Act (19 U.S.C. 3721(b)(5)(A)) is amended to read 
     as follows:
       ``(A) In general.--Apparel articles that are both cut (or 
     knit-to-shape) and sewn or otherwise assembled in one or more 
     beneficiary sub-Saharan African countries, to the extent that 
     apparel articles of such fabrics or yarns would be eligible 
     for preferential treatment, without regard to the source of 
     the fabrics or yarns, under Annex 401 to the NAFTA.''.
       (c) Handloomed, Handmade, Folklore Articles and Ethnic 
     Printed Fabrics.--Section 112(b)(6) of the African Growth and 
     Opportunity Act (19 U.S.C. 3721(b)(6)) is amended to read as 
     follows:
       ``(6) Handloomed, handmade, folklore articles and ethnic 
     printed fabrics.--
       ``(A) In general.--A handloomed, handmade, folklore article 
     or an ethnic printed fabric of a

[[Page 11990]]

     beneficiary sub-Saharan African country or countries that is 
     certified as such by the competent authority of such 
     beneficiary country or countries. For purposes of this 
     section, the President, after consultation with the 
     beneficiary sub-Saharan African country or countries 
     concerned, shall determine which, if any, particular textile 
     and apparel goods of the country (or countries) shall be 
     treated as being handloomed, handmade, or folklore articles 
     or an ethnic printed fabric.
       ``(B) Requirements for ethnic printed fabric.--Ethnic 
     printed fabrics qualified under this paragraph are--
       ``(i) fabrics containing a selvedge on both edges, having a 
     width of less than 50 inches, classifiable under subheading 
     5208.52.30 or 5208.52.40 of the Harmonized Tariff Schedule of 
     the United States;
       ``(ii) of the type that contains designs, symbols, and 
     other characteristics of African prints--

       ``(I) normally produced for and sold on the indigenous 
     African market; and
       ``(II) normally sold in Africa by the piece as opposed to 
     being tailored into garments before being sold in indigenous 
     African markets;

       ``(iii) printed, including waxed, in one or more eligible 
     beneficiary sub-Saharan countries; and
       ``(iv) fabrics formed in the United States, from yarns 
     formed in the United States, or from fabric formed in one or 
     more beneficiary sub-Saharan African country from yarn 
     originating in either the United States or one or more 
     beneficiary sub-Saharan African countries.''.
       (d) Regional and U.S. Sources.--Section 112(b)(7) of the 
     African Growth and Opportunity Act (19 U.S.C. 3721(b)(7)) is 
     amended by inserting ``or former beneficiary sub-Saharan 
     African countries'' after ``and one or more beneficiary sub-
     Saharan African countries'' each place it appears.
       (e) Special Rules.--
       (1) Certain components.--Section 112(d) of the African 
     Growth and Opportunity Act (19 U.S.C. 3721(d)) is amended by 
     adding at the end the following:
       ``(3) Certain components.--An article otherwise eligible 
     for preferential treatment under this section will not be 
     ineligible for such treatment because the article contains--
       ``(A) any collars or cuffs (cut or knit-to-shape),
       ``(B) drawstrings,
       ``(C) shoulder pads or other padding,
       ``(D) waistbands,
       ``(E) belt attached to the article,
       ``(F) straps containing elastic, or
       ``(G) elbow patches,
     that do not meet the requirements set forth in subsection 
     (b), regardless of the country of origin of the item referred 
     to in the applicable subparagraph of this paragraph.''.
       (2) De minimis rule.--Section 112(d)(2) of the African 
     Growth and Opportunity Act (19 U.S.C. 3721(d)(2)) is 
     amended--
       (A) by inserting ``or former beneficiary sub-Saharan 
     African countries'' after ``countries''; and
       (B) by striking ``7 percent'' and inserting ``10 percent''.
       (f) Definitions.--Section 112(e) of the African Growth and 
     Opportunity Act (19 U.S.C. 3721(e)) is amended by adding at 
     the end the following:
       ``(4) Former sub-saharan african country.--The term `former 
     sub-Saharan African country' means a country that, after 
     being designated as a beneficiary sub-Saharan African country 
     under this Act, ceased to be designated as such a beneficiary 
     sub-Saharan country by reason of its entering into a free 
     trade agreement with the United States.''.

     SEC. 8. ENTRIES OF CERTAIN APPAREL ARTICLES PURSUANT TO THE 
                   AFRICAN GROWTH AND OPPORTUNITY ACT.

       (a) In General.--Notwithstanding section 514 of the Tariff 
     Act of 1930 (19 U.S.C. 1514) or any other provision of law, 
     the Secretary of the Treasury shall liquidate or reliquidate 
     as free of duty and free of any quantitative restrictions, 
     limitations, or consultation levels entries of articles 
     described in subsection (d) made on or after October 1, 2000, 
     and before the date of the enactment of this Act.
       (b) Requests.--Liquidation or reliquidation may be made 
     under subsection (a) with respect to an entry described in 
     subsection (d) only if a request therefor is filed with the 
     Secretary of the Treasury within 90 days after the date of 
     the enactment of this Act and the request contains sufficient 
     information to enable the Secretary to locate the entry or 
     reconstruct the entry if it cannot be located.
       (c) Payment of Amounts Owed.--Any amounts owed by the 
     United States pursuant to the liquidation or reliquidation of 
     any entry under subsection (a) shall be paid not later than 
     180 days after the date of such liquidation or reliquidation.
       (d) Entries.--The entries referred to in subsection (a) are 
     entries of apparel articles that meet the requirements of 
     section 112(b) of the African Growth and Opportunity Act, as 
     amended by section 3108 of the Trade Act of 2002 and this 
     Act.

     SEC. 9. DEVELOPMENT STUDY AND CAPACITY BUILDING.

       (a) Reports.--The President shall, by not later than 1 year 
     after the date of the enactment of this Act, conduct a study 
     on each eligible sub-Saharan African country, that--
       (1) identifies sectors of the economy of that country with 
     the greatest potential for growth, including through export 
     sales;
       (2) identifies barriers, both domestically and 
     internationally, that are impeding growth in such sectors; 
     and
       (3) makes recommendations on how the United States 
     Government and the private sector can provide technical 
     assistance to that country to assist in dismantling such 
     barriers and in promoting investment in such sectors.
       (b) Dissemination of Information.--The President shall 
     disseminate information in each study conducted under 
     subsection (a) to the appropriate United States agencies for 
     the purpose of implementing recommendations on the provision 
     of technical assistance and in identifying opportunities for 
     United States investors, businesses, and farmers.

     SEC. 10. ACTIVITIES IN SUPPORT OF INFRASTRUCTURE TO SUPPORT 
                   INCREASING TRADE CAPACITY AND ECOTOURISM.

       (a) Findings.--The Congress finds the following:
       (1) Ecotourism, which consists of--
       (A) responsible and sustainable travel and visitation to 
     relatively undisturbed natural areas in order to enjoy and 
     appreciate nature (and any accompanying cultural features, 
     both past and present) and animals, including species that 
     are rare or endangered,
       (B) promotion of conservation and provision for beneficial 
     involvement of local populations, and
       (C) visitation designed to have low negative impact upon 
     the environment,

     is expected to expand 30 percent globally over the next 
     decade.
       (2) Ecotourism will increase trade capacity by sustaining 
     otherwise unsustainable infrastructure, such as road, port, 
     water, energy, and telecommunication development.
       (3) According to the United States Department of State and 
     the United Nations Environment Programme, sustainable 
     tourism, such as ecotourism, can be an important part of the 
     economic development of a region, especially a region with 
     natural and cultural protected areas.
       (4) Sub-Saharan Africa enjoys an international comparative 
     advantage in ecotourism because it features extensive 
     protected areas that host a variety of ecosystems and 
     traditional cultures that are major attractions for nature-
     oriented tourism.
       (5) National parks and reserves in sub-Saharan Africa 
     should be considered a basis for regional development, 
     involving communities living within and adjacent to them and, 
     given their strong international recognition, provide an 
     advantage in ecotourism marketing and promotion.
       (6) Desert areas in sub-Saharan Africa represent complex 
     ecotourism attractions, showcasing natural, geological, and 
     archaeological features, and nomad and other cultures and 
     traditions.
       (7) Many natural zones in sub-Saharan Africa cross the 
     political borders of several countries; therefore, 
     transboundary cooperation is fundamental for all types of 
     ecotourism development.
       (8) The commercial viability of ecotourism is enhanced when 
     small and medium enterprises, particularly microenterprises, 
     successfully engage with the tourism industry in sub-Saharan 
     Africa.
       (9) Adequate capacity building is an essential component of 
     ecotourism development if local communities are to be real 
     stakeholders that can sustain an equitable approach to 
     ecotourism management.
       (10) Ecotourism needs to generate local community benefits 
     by utilizing sub-Saharan Africa's natural heritage, parks, 
     wildlife reserves, and other protected areas that can play a 
     significant role in encouraging local economic development by 
     sourcing food and other locally produced resources.
       (b) Action by the President.--The President shall develop 
     and implement policies to--
       (1) encourage the development of infrastructure projects 
     that will help to increase trade capacity and a sustainable 
     ecotourism industry in eligible sub-Saharan African 
     countries;
       (2) encourage and facilitate transboundary cooperation 
     among sub-Saharan African countries in order to facilitate 
     trade;
       (3) encourage the provision of technical assistance to 
     eligible sub-Saharan African countries to establish and 
     sustain adequate trade capacity development; and
       (4) encourage micro-, small-, and medium-sized enterprises 
     in eligible sub-Saharan African countries to participate in 
     the ecotourism industry.

     SEC. 11. ACTIVITIES IN SUPPORT OF TRANSPORTATION, ENERGY, 
                   AGRICULTURE, AND TELECOMMUNICATIONS 
                   INFRASTRUCTURE.

       (a) Findings.--The Congress finds the following:
       (1) In order to increase exports from, and trade among, 
     eligible sub-Saharan African countries, transportation 
     systems in those countries must be improved to increase 
     transport efficiencies and lower transport costs.
       (2) Vibrant economic growth requires a developed 
     telecommunication and energy infrastructure.
       (3) Sub-Saharan Africa is rich in exportable agricultural 
     goods, but development of this industry remains stymied 
     because of an underdeveloped infrastructure.
       (b) Action by the President.--In order to enhance trade 
     with Africa and to bring the benefits of trade to African 
     countries, the President shall develop and implement policies 
     to encourage investment in eligible sub-Saharan African 
     countries, particularly with respect to the following:
       (1) Infrastructure projects that support, in particular, 
     development of land transport road and railroad networks and 
     ports, and the continued upgrading and liberalization of the 
     energy and telecommunications sectors.

[[Page 11991]]

       (2) The establishment and expansion of modern information 
     and communication technologies and practices to improve the 
     ability of citizens to research and disseminate information 
     relating to, among other things, the economy, education, 
     trade, health, agriculture, the environment, and the media.
       (3) Agriculture, particularly in processing and capacity 
     enhancement.

     SEC. 12. FACILITATION OF TRANSPORTATION.

       In order to facilitate and increase trade flows between 
     eligible sub-Saharan African countries and the United States, 
     the President shall foster improved port-to-port and airport-
     to-airport relationships. These relationships should 
     facilitate--
       (1) increased coordination between customs services at 
     ports and airports in the United States and such countries in 
     order to reduce time in transit;
       (2) interaction between customs and technical staff from 
     ports and airports in the United States and such countries in 
     order to increase efficiency and safety procedures and 
     protocols relating to trade;
       (3) coordination between chambers of commerce, freight 
     forwarders, customs brokers, and others involved in 
     consolidating and moving freight; and
       (4) trade through air service between airports in the 
     United States and such countries by increasing frequency and 
     capacity.

     SEC. 13. AGRICULTURAL TECHNICAL ASSISTANCE.

       (a) Identification of Countries.--The President shall 
     identify not fewer than 10 eligible sub-Saharan African 
     countries as having the greatest potential to increase 
     marketable exports of agricultural products to the United 
     States and the greatest need for technical assistance, 
     particularly with respect to pest risk assessments and 
     complying with sanitary and phytosanitary rules of the United 
     States.
       (b) Personnel.--The President shall assign at least 20 
     full-time personnel for the purpose of providing assistance 
     to the countries identified under subsection (a) to ensure 
     that exports of agricultural products from those countries 
     meet the requirements of United States law.

     SEC. 14. TRADE ADVISORY COMMITTEE ON AFRICA.

       The President shall convene the trade advisory committee on 
     Africa established by Executive Order 11846 of March 27, 
     1975, under section 135(c) of the Trade Act of 1974, in order 
     to facilitate the goals and objectives of the African Growth 
     and Opportunity Act and this Act, and to maintain ongoing 
     discussions with African trade and agriculture ministries and 
     private sector organizations on issues of mutual concern, 
     including regional and international trade concerns and World 
     Trade Organization issues.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
California (Mr. Thomas) and the gentleman from Michigan (Mr. Levin) 
each will control 20 minutes.
  The Chair recognizes the gentleman from California (Mr. Thomas).
  Mr. THOMAS. Mr. Speaker, I yield myself such time as I may consume.
  H.R. 4103, the AGOA Acceleration Act, was ordered favorably reported 
by the Committee on Ways and Means and was amended by a voice vote on 
May 5. Once again this bill provides the means for African countries to 
develop a more prosperous economic environment, a well-grounded rule of 
law, and efficient and acceptable government practices. I am very 
pleased that, as in the past, this bill has garnered broad support. 
Especially I would like to reference the ranking member of the 
committee, the gentleman from New York (Mr. Rangel); the chairman, 
Subcommittee on Trade, the gentleman from Illinois (Mr. Crane); the 
ranking member, the gentleman from Michigan (Mr. Levin); and the 
gentleman from Washington (Mr. McDermott), who has been one of the 
Committee on Ways and Means' leading advocates for additional 
assistance and trade to Africa.

                              {time}  1430

  I am also pleased to thank the gentleman from California (Mr. Royce) 
of the Committee on International Relations and the gentleman from 
Illinois (Chairman Hyde) of that committee for the courtesies they 
extended to us in getting this bill to the floor. The Committee on 
International Relations indicated there were two provisions in this 
bill that were under the jurisdiction of the committee. In working with 
the gentleman from Illinois (Chairman Hyde), I am pleased to indicate 
that in expediting consideration of the bill, the chairman graciously 
agreed to forego consideration by that committee, notwithstanding the 
jurisdiction of that committee, and to exchange letters. And I would 
include the letters in the Record.
  Mr. Speaker, there is an urgent need for this bill. A provision 
allowing the poorest African countries to use third-country fabric and 
apparel production will expire at the end of September if we do 
nothing. My plea, I guess, is to a certain extent hopefully heard on 
the other side of the Capitol by the other body. This bill would extend 
the provision subject to a cap for 3 years and phase it out in the 
final year, a pragmatic approach that balances the needs of the African 
countries while assuring the U.S. industry is not threatened and can 
even be helped through the development of partnerships, especially in 
the area of raw materials.
  Our bill does not merely extend these benefits. It accelerates 
Africa's utilization of the original AGOA benefits by expanding African 
capacity and infrastructure to attract investment in regional fabric 
production so that Africa can hope to compete in a post-quota world.
  One of the best ways the Africans can make themselves competitive is 
to work with us to achieve trade liberalization in the World Trade 
Organization. Such liberalization will benefit Africa enormously by 
reducing the duties it must pay and by facilitating trade. In addition, 
as long as they are comprehensive, I support ongoing free trade 
negotiations with the Southern African Customs Union, which will help 
to deepen and make permanent existing AGOA benefits for Africans in 
Africa. At the same time, we expect meaningful access to the markets of 
these African countries for U.S. goods and services in an open trading 
arrangement.
  I believe helping Africa through trade will contribute to more 
fundamental improvements in governance and of course the overall 
quality of life in Africa. Critical benefits for our African partners 
will expire soon if Congress does not take immediate action.
  Mr. Speaker, this was delayed a week because of the circumstances 
surrounding last week. We need to move forward with this legislation. 
My fervent hope is that with the House acting today in the manner in 
which I believe we will act, that is, overwhelming bipartisan support, 
that we can focus the attention of the other body that this is a 
measure that needs to move expeditiously through both bodies so that we 
can provide this kind of accelerated help to Sub-Saharan Africa, and I 
strongly urge my colleagues to support H.R. 4103.

                                         House of Representatives,


                                  Committee on Ways and Means,

                                     Washington, DC, May 19, 2004.
     Hon. Henry J. Hyde, 
     Chairman, Committee on International Relations, Washington, 
         DC.
       Dear Chairman Hyde: Thank you for your letter regarding 
     H.R. 4103, the ``AGOA Acceleration Act of 2004.''
       As you have noted, the Committee on Ways and Means ordered 
     favorably reported, as amended, H.R. 4103, the ``AGOA 
     Acceleration Act of 2004,'' on Wednesday, May 5, 2004. I 
     appreciate your agreement to expedite the passage of this 
     legislation although it contains two provisions within your 
     Committee's jurisdiction. I acknowledge your decision to 
     forego further action on the bill is based on the 
     understanding that it will not prejudice the Committee on 
     International Relations with respect to its jurisdictional 
     prerogatives or the appointment of conferees on this or 
     similar legislation.
       Our committees have long collaborated on this important 
     initiative, and I am very pleased we are continuing that 
     cooperation. Your leadership on African issues is critical to 
     the success of this bill and the AGOA program. I appreciate 
     your helping us to move this legislation quickly to the 
     floor.
       Finally, I will include the Congressional Record a copy of 
     our exchange of letters on this matter. Thank you for your 
     assistance and cooperation. We look forward to working with 
     you in the future.
           Best regards,
                                                      Bill Thomas,
     Chairman.
                                  ____

         House of Representatives, Committee on International 
           Relations, Washington, DC, May 19, 2004.
     Hon. William M. Thomas, 
     Chairman, Committee on Ways and Means, Washington, DC.
       Dear Chairman Thomas: I am writing concerning H.R. 4103, 
     the ``AGOA Acceleration Act of 2004,'' which was ordered 
     favorably reported, as amended, by the Committee on Ways and 
     Means on Wednesday, May 5, 2004.
       As you know, the Committee on International Relations has 
     jurisdiction over matters concerning relations of the United 
     States with foreign nations generally. Sections 10 and 13 of 
     the bill involve U.S. efforts

[[Page 11992]]

     to provide assistance to certain African nations and thus 
     fall within the jurisdiction of the Committee on 
     International Relations. However, in order to expedite this 
     legislation for floor consideration, the Committee will forgo 
     action on this bill. This is being done with the 
     understanding that it does not in any way prejudice the 
     Committee with respect to the appointment of conferees or its 
     jurisdictional prerogatives on this or similar legislation.
       I would appreciate your response to this letter, confirming 
     this understanding with respect to H.R. 4103, and would ask 
     that a copy of our exchange of letters on this matter be 
     included in the Congressional Record during floor 
     consideration.
       With best wishes, I remain
           Sincerely,
                                                    Henry J. Hyde,
                                                         Chairman.

  Mr. Speaker, I reserve the balance of my time.
  Mr. LEVIN. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise in support of this legislation. I regret that the 
gentleman from New York (Mr. Rangel), who has been a lead sponsor for 
many years, and the gentleman from Washington (Mr. McDermott) cannot be 
here, that there was not able to be worked out accommodations so that 
they and others who have worked together on a bipartisan bill could be 
present.
  When I talk about the efforts of these gentlemen on a bipartisan 
basis, I really mean it. The bill was signed originally into law in 
2000. It was after years of work and years when it was not at all clear 
that there could be an agreement regarding trade with African nations. 
So let me proceed, if I might; and my hope remains that others will 
still be able to make it. I think under the circumstances, it is going 
to be exceedingly difficult for them to participate, and I want to 
express again my regret.
  The history of this bill, as I mentioned, is one of effort over the 
years. And if one looks at what has happened since then, I think one 
will come to this conclusion: that this has been a useful endeavor, 
that we needed to open up our relationships with African nations; that 
we needed to do so on many bases, economic trade being one but an 
important one, and that there had been for a long time an ignoring of 
the importance of our relationship with African nations.
  I think the last few years have shown that this was an important 
idea. In terms of our economic relationships, there has been an 
improvement. There has been a greater flow back and forth. And in trade 
issues it is important to look at the flow both ways, and in this case 
there has been an increased amount of activity both from here to Africa 
and from African nations back to the United States in the billions of 
dollars.
  So this has not been a cure-all, and no one would pretend that it has 
been or really could be. This has not brought an absolutely new day 
within African nations or in our relationship. But it has helped; and 
as a result, a number of countries in Africa have found their exports 
to the U.S. increasing, and I think that has fortified activities 
within those countries. And I think there has been mutual benefit. No 
one should think in trade it is always win-win on all sides. There are 
impacts both positive and negative; but I think if we look over the 
general trend, AGOA has been an important step in the right direction.
  If we do not pass this legislation, what would happen is that all of 
a sudden this experiment, this endeavor, this step forward in our 
relationship would cease. It would mean in the important area of 
apparel and textiles that African nations would be at a more serious 
disadvantage with other countries than they might otherwise be. And I 
think when we look at the overall picture, that would be bad for 
Africa; and that would be bad for the United States. The quotas come 
off on apparel and textiles at the end of this year. We need to get 
ready for that event. I think it is important that we continue this 
relationship with African countries.
  So I urge support for this. It is not wise or prudent for us in this 
country after these years of AGOA to say that it should end. It is not 
wise after these years of increasing relationships economically that we 
say essentially we are turning our back. Again, this is only one factor 
in relationship to Africa and to African countries. It is only one 
factor in building up the ties between our two continents that are so 
important now and for the future. But it has on balance been, I think, 
an important building block, and I do not think it is wise at all to 
remove it at this point, and that is what is threatened here.
  So I urge support for this. I do so on behalf of the gentleman from 
New York (Mr. Rangel). I do so on behalf of the gentleman from 
Washington (Mr. McDermott), who also could not be here quite yet, and 
on behalf of the gentleman from Louisiana (Mr. Jefferson). And while I 
do not speak for those on the other side, I do want to say to the 
gentleman from California (Mr. Royce) and others who have worked so 
hard on this that I think it is important that we continue this effort.
  Mr. Speaker, I reserve the balance of my time.
  Mr. THOMAS. Mr. Speaker, I yield such time as he may consume to the 
gentleman from California (Mr. Royce), the chairman of the Africa 
Subcommittee of the Committee on International Relations.
  Mr. ROYCE. Mr. Speaker, as an original sponsor of this legislation, I 
have welcomed working with the gentleman from California (Chairman 
Thomas) and the gentleman from New York (Mr. Rangel), ranking member; 
the gentleman from Washington (Mr. McDermott); the gentleman from 
Louisiana (Mr. Jefferson); the gentleman from Illinois (Mr. Crane); the 
gentleman from New Jersey (Mr. Payne), and other Members from both 
sides of the aisle who have been advancing the AGOA program for years 
now.
  Since becoming chairman of the Africa Subcommittee 7 years ago, one 
of our top priorities has been working to see that Africa does not fall 
off the edge of the world's economic map; and, frankly, Africa is 
teetering on that edge. Fortunately, though, AGOA has been a lifeline 
for Africa to the global economy.
  Today, 3 years into the AGOA program, we know that it has worked. 
Many of us that have worked on this legislation, of course, wish that 
more African countries and more African industries were taking 
advantage of AGOA, and we wish they particularly would take advantage 
of AGOA in agriculture. That is why this legislation includes trade 
capacity-building provisions, but in a few short years AGOA has managed 
to draw hundreds of millions of dollars of foreign investment to the 
continent, creating hundreds of thousands of desperately needed jobs. 
This makes AGOA the most effective of our development programs for 
Africa that I am aware of.
  Several Members, in fact, have had the opportunity to visit these 
apparel plants as we have traveled to Africa to see this encouraging 
development firsthand. Africans are meeting world-class standards for 
manufactured goods. This makes AGOA a big morale boost for many African 
countries. AGOA has also encouraged difficult economic reforms as 
African countries have strived to maintain their eligibility for AGOA.
  AGOA has also bolstered our political relations with many African 
governments. Few African officials that I have met with have not 
expressed their support and appreciation for AGOA. They almost always 
begin the meeting by explaining how it has brought economic reform to 
their country and increased trade with the United States. This is 
important diplomatic capital that our country has gained through AGOA.
  The African continent, frankly, is at a crossroads. The vision many 
of us have is of an Africa that joins the world economy, the vision 
that we have had of working for an increasingly stable and democratic 
Africa that is combating HIV/AIDS and exporting and importing more 
goods and services, including from America. That is the vision that we 
share, I think, on this floor.
  The other very different path Africa could get stuck on leads to even 
greater poverty and greater hunger and conflict and, frankly, greater 
disease and

[[Page 11993]]

environmental degradation. It is unclear which way Africa is headed. 
Challenges on the continent are immense. But what is quite clear is 
that our growing security and economic interests on the continent would 
suffer greatly should Africa find itself on the downward path.

                              {time}  1445

  If the U.S. Congress fails to pass this AGOA legislation before the 
third country fabric provisions expire in September, as we have heard 
today, if we fail to extend it for 3 years, we will be undoing much of 
the good that AGOA has done. Greater competition from China and other 
countries is coming soon, as apparel trading rules are set to change. 
Unless we act, this competition will surely wipe out much of Africa's 
young apparel industry and many African jobs that AGOA has created, 
and, frankly, it will wipe out much African hope. Already apparel 
orders for Africa are being canceled because of the uncertainty over 
Congress' action. We must act. Our credibility as a Nation that takes 
an interest in the world's poorest countries is on the line. Let us act 
and do our part to direct Africa away from a path of despair.
  Mr. Speaker, I urge my colleagues to support H.R. 4103. I thank the 
gentleman from Michigan (Mr. Levin) and the other Members that have 
worked with the gentleman from California (Chairman Thomas) to support 
this legislation.
  Mr. LEVIN. Mr. Speaker, it is my pleasure to yield 5 minutes to the 
distinguished gentleman from Illinois (Mr. Jackson).
  Mr. JACKSON of Illinois. Mr. Speaker, I thank the gentleman from 
Michigan for his kindness of yielding me this time.
  Mr. Speaker, regretfully, I rise to oppose H.R. 4103, the Africa 
Growth and Opportunity Acceleration Act of 2004. I am deeply concerned 
by the fact that this bill only deepens the discriminatory U.S. trade 
policies towards sub-Saharan African nations created by the original 
2000 act, Public Law 106-200. It is indefensible, Mr. Speaker, that the 
Africa Growth and Opportunity Act has been and remains the only U.S. 
trade program under which countries must be annually certified as 
meeting an extensive list of unilateral, and, frankly, 
counterproductive conditions before being granted benefits.
  Other U.S. preferential trade programs with Andean countries, 
Caribbean and Central American nations contain a more limited set of 
conditions and nations are considered eligible throughout the term of 
the program unless action is taken to petition them out. The Africa 
Growth and Opportunity Act sets a double standard for Africa.
  Some of the most outrageous conditional adversities of H.R. 4103 
include, first, sub-Saharan African countries must pursue policies that 
are deemed to be in line with U.S. national security and foreign policy 
interests, even if those interests run contrary to U.S. national 
security or foreign policy interests in the interest of domestic 
security within their own nations. It does not mean that they are 
against U.S. national security interests, it simply means they have 
their own national security interests that must be concerned and 
paramount for their governments.
  Second, a further undermining of sovereignty by insisting on 
liberalization and privatization policies, such as water privatization. 
Now, imagine that; the privatization of water in sub-Saharan Africa, 
where increasingly there are a number of droughts. Who would come up 
with the idea that privatization policies, such as water privatization, 
should be a priority in H.R. 4103? But it is in this legislation. The 
removal of state controls on foreign investments, price controls and 
subsidies.
  Third, the unilateral requirement that U.S. investors doing business 
in African Growth and Opportunity countries must be granted national 
investor status.
  Fourth, countries must provide full legal protection and enforcement 
for intellectual property rights, including the private ownership of 
African seeds and animal genetic materials.
  H.R. 4103 ignores the most serious existing problems of the Africa 
Growth and Opportunity Act, which I opposed in 2000. I might add, Mr. 
Speaker, I was one of a handful of members of the Congressional Black 
Caucus that opposed the Africa Growth and Opportunity Act for these 
reasons. I might add that an overwhelming number of members of the 
Congressional Black Caucus, including the gentleman from New York (Mr. 
Rangel) and the gentleman from Louisiana (Mr. Jefferson) and others, 
are supportive of AGOA.
  This bill, however, continues to impose upon African nations a set of 
policies that have been proven to undermine development, but benefit 
U.S. multinational corporations and foreign investors, in exchange for 
meager market access benefits.
  This bill in 2000 was sold to the American people as trade, not aid; 
a helping hand, but not a handout. But by eliminating these 
conditionalities and the annual review, I am convinced this is the only 
way to ensure equal treatment for our African trading partners, as we 
have sought to create equal treatment for Andean, Caribbean and Central 
American nations as well. Why the double standard for Africa? Why the 
annual recertification of African partners, if in fact we believe that 
these African nations are our genuine and honest partners?
  If we are to attach any conditions to the Africa Growth and 
Opportunity Act Program, our interests, from my perspective, would far 
better be served by an insistence on better treatment for factory 
workers and stronger legal protections for union activities in these 
countries. If we genuinely expect trade to help lift people out of 
poverty, we cannot continue to burden these countries with rules and 
requirements that undermine development and leave workers powerless to 
fight the exploitation and abuse that is an integral part of the 
corporate race to the bottom.
  For these reasons, Mr. Speaker, I respectfully cannot support H.R. 
4103.
  Mr. LEVIN. Mr. Speaker, I yield 3 minutes to the gentleman from Ohio 
(Mr. Brown).
  Mr. BROWN of Ohio. Mr. Speaker, I thank my friend from Michigan for 
his leadership on trade issues, and I want to echo the words of the 
gentleman from Illinois (Mr. Jackson) in his opposition to H.R. 4103.
  H.R. 4103 represents another lost opportunity in terms of 
international trade, in terms of our dealings with Africa. We have 
failed Africa in this body on aid issues, we have failed Africa in this 
body on trade issues. This lost opportunity of H.R. 4103 is embodied in 
the fact that we could have lifted up standards for African workers and 
for American workers and for our trade agreements and trade relations. 
But what is embodied in H.R. 4103 runs through our entire trade policy.
  The gentleman from Illinois (Mr. Jackson) talked about loss of 
sovereignty in the developing world; that we have through various kinds 
of programs for all kinds of trade adjustments, all kinds of other 
issues, what has run through our programs is loss of sovereignty, the 
push to privatization in these countries. He mentioned privatization of 
their water system, that we have come in through structural adjustment 
and other programs, forcing cutting of health benefits, cutting of 
education benefits. We have lost opportunity in H.R. 4103 to allow and 
encourage and push in allowing unionization, allowing the ability to 
bargain collectively and to organize in the developing world.
  Instead, we are, as the gentleman said, engaging in a corporate race 
to the bottom. We have done that with the North American Free Trade 
Agreement, we have done it with our trade agreements with Singapore and 
Chile. We did it 4 years ago with the first round of AGOA. We are doing 
it again today.
  Instead, the gentleman from Illinois (Mr. Jackson) introduced 4 years 
ago what would be a prototype on trade agreements, to lift up 
standards, to encourage unionization, to have international labor 
organization standards, to have environmental standards, to

[[Page 11994]]

have food safety standards, to guarantee sovereignty, to move away from 
the kinds of privatization and undercutting sovereignty that we have 
too often done through structural adjustment and other methods in the 
developing world.
  This H.R. 4103, the acceleration of AGOA, only hurts the developing 
world, only hurts U.S. workers. Ultimately it helps in the corporate 
race to the bottom, it helps add to corporate coffers, corporate 
profits. It does nothing for workers in Africa or in the United States.
  Mr. THOMAS. Mr. Speaker, I yield such time as he may consume to the 
gentleman from California (Mr. Royce).
  Mr. ROYCE. Mr. Speaker, I thank the gentleman for yielding me time.
  I was going to make the point that under AGOA, and there are 37 
countries that have qualified for the African Growth and Opportunity 
Act, this act is supported in fact by all the governments of Africa. We 
have heard from their diplomatic corps. We have heard that increased 
trade from Africa as a result of this act, drastically increased trade, 
has been a win for Africa and has been a win for the United States.
  But I did want to clarify one point. There have been no countries 
that have been dropped from this list because of water issues or 
questions about privatization of water, and there certainly have been 
no countries dropped because of intellectual property rights issues.
  The one case of a country that was dropped from eligibility for AGOA 
is the case of Eritrea. In this particular instance, it goes to the 
issue of human rights, and human rights, because this is a unilateral 
trade preference granted these governments, there is an expectation 
that they will conform to worldwide, accepted practices.
  Now, this is not just an issue with the United States; this is an 
issue worldwide. I would just take, for example, the case of Aster 
Yohannes, who was studying here in the United States. She went back to 
see her children in Eritrea and was arrested at the airport. Before 
making that trip, she checked with the ambassador from Eritrea, she was 
given assurances she could safely go back to her country. She checked 
with me and I talked with the ambassador, and in writing I was given 
this assurance. This is not just, as I say, an issue with the United 
States, these human rights abuses. They are worldwide, because the 
entire press corps has been arrested in Eritrea, the political 
opposition has been arrested.
  So under these particular circumstances, it is not just the U.S., but 
the world community, that has launched a campaign to try to have some 
reform in Eritrea, and this is why it is not on the list. I thought it 
would be good to take a moment to explain that, and also explain that 
it does not go to the issue of national security inside Eritrea, it 
goes to human rights.
  The last point I just wanted to make is that many of these apparel 
jobs in Africa will otherwise go to China if we do not follow forward 
and extend AGOA, the provision for third country fabric in AGOA. I 
think all of the Members here understand how important this particular 
program of AGOA has been to the continent, and would like to move 
forward. So I urge passage of this legislation.
  Mr. LEVIN. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, very briefly, I am glad the gentleman from California 
(Mr. Royce) described the general structure of AGOA. I think that is 
sometimes lost. It operates within essentially the GSP system. So there 
are provisions and there are safeguards, as mentioned, relating to 
human rights, and the same is true if our country pursues them relating 
to core labor standards.
  Mr. Speaker, I yield back the balance of my time.
  Mr. THOMAS. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I will place in the record a statement of administration 
policy. It starts, ``The administration strongly supports House passage 
of H.R. 4103.''
  I would say to my colleague from Illinois and my colleague from Ohio, 
that I do not see on the floor, that this broad-based, bipartisan 
coalition is always open to having pointed out our inability to be as 
responsive to Africa as perhaps many would want. One of my responses 
back would be, notwithstanding all of the things that need to be done, 
this was a piece of legislation that languished for a long time.
  To the degree that we can do better, we always want to focus on doing 
better. But with the underlying provisions expiring in September, what 
we need is momentum now, with an understanding that far more needs to 
be done. This is the start of a positive, cooperative, mutually 
beneficial relationship with a portion of Africa, here sub-Saharan 
Africa. It ought not to be the only legislation that we ever consider 
and that we need to work together to move forward.

                              {time}  1500

  But it is the only legislation available within the time frame prior 
to the expiration of the current legislation.
  So I would tell my friend, the gentleman from Illinois, that I look 
forward to working with him on additional pieces of legislation, with 
the understanding that our goal is to be bipartisan and make law. What 
we cannot do in dealing with Africa is to be partisan and make 
statements. That has gone on far too long.
  Ms. JACKSON-LEE of Texas. Mr. Speaker, I rise in support of the 
African Growth and Opportunity Act, H.R. 4103 and am a co-sponsor of 
the legislation. The African Growth and Opportunity Act (AGOA) 
authorizes the President to provide duty-free treatment under the U.S. 
Generalized System of Preferences (GSP) for any article when imported 
from African countries if the United States Trade Representative (USTR) 
and the United States International Trade Commission (USITC) have 
determined that the article is not import sensitive with respect to 
imports from sub-Saharan African (SSA) countries.
  On December 21, 2000, the President extended duty free treatment 
under GSP to AGOA-eligible countries for more than 1,800 tariff line 
items in addition to the standard GSP list of approximately 4,600 items 
available to non-AGOA GSP beneficiary countries. The duty-free 
treatment for the additional 1,800 products available to AGOA countries 
only, implemented after an extensive process of public comment and 
review, include such previously GSP-excluded items as footwear, 
luggage, handbags, watches, and flatware.
  Currently, only a small number of countries receive substantial 
benefits, and Least Developed Countries (LDCs) that do not receive 
preferences for clothing have yet to see an impact of AGOA on their 
overall exports.
  However, the benefits from exporting clothing under AGOA appear 
fragile in the face of the removal of quotas in the United States on 
major suppliers, such as China, at the end of 2004, and the planned 
removal of the liberal rules of origin that allow for the global 
sourcing of fabrics from least-cost locations.
  While the general business climate has improved since the passage of 
AGOA, the steady growth in the petroleum and mining sectors probably 
would have occurred due to other market factors. Also, growth in these 
sectors produces relatively low direct benefits to Africa's poor. 
Currently, one third of Africa's population is undernourished and 
nearly half live on less than $1 a day. Most of the poor live in rural 
areas and depend largely on agriculture, which accounts for 35 percent 
of sub-Saharan Africa's gross domestic product, 40 percent of its 
exports, and 70 percent of its employment. Expanding AGOA's application 
to African agriculture would have a significant impact on reducing 
hunger and poverty, and therefore on improving overall conditions in 
sub-Saharan Africa. The International Food Policy Research Institute 
estimated that a 1 percent increase in agricultural productivity would 
raise the income of six million African people above $1 per day. A $1 
increase in agricultural production generates about $2.32 in economic 
growth. Thus, expanding market access and lowering trade barriers for 
African agricultural products through AGOA will have the greatest 
impact, not only on the poorest people in SSA but also on national 
economies.
  AGOA has laid a strong foundation for dialogue and partnership 
between U.S. and African governments and businesses. It fosters an 
environment that is stimulating new development and investments in SSA. 
The annual U.S.-Sub-Saharan Africa Trade and Economic Cooperation 
Forum, along with the parallel events sponsored by business and civil 
society groups, facilitate contacts and strengthen relationships. There 
is also an increased understanding within Africa of the complexities,

[[Page 11995]]

challenges and opportunities of economic and political reform, which 
will enable African business to be more competitive in the global 
economy. Yet all of these accomplishments remain only the first steps 
toward what many hope will be a much fuller and more mutually 
beneficial trade and investment engagement between Africa and the 
United States.
  Inclusion of textile products with appropriate labor and U.S. 
industry input, and a number of high-duty agricultural products would 
also help to broaden the range of opportunities for African exporters 
in the U.S. market.
  Mr. Speaker, for the reasons above, I support the passage of this 
bill and urge my colleagues to do the same.
  Mr. McDERMOTT. Mr. Speaker, Africa stands taller and prouder today. 
From Lesotho, to Nigeria, to Uganda, Sub-Saharan African nations joined 
together and spoke as one. Their voice was eloquent and urgent, and 
America listened.
  Today, 400 million Africans live on less than a dollar a day. But 
there is great promise for the future. Today, HIV/AIDS claims millions 
of lives in Sub-Saharan Africa. But there is hope for the future.
  Today, Sub-Saharan Africa looks inward to make the social, political 
and economic changes that will rekindle its pre-eminence on a great 
continent.
  All that Africa is, all that Africa represents, has inspired and 
united the political parties in the House of Representatives.
  Africa bridged America's political divide with a profound affirmation 
of its past and a persuasive optimism about its future.
  For the first time in a long time, Democrats and Republicans in the 
People's House did not cross swords.
  Instead, we locked arms and reached for something bigger than any one 
political leader or party.
  Today, America spoke as one people-extending our hands, our hearts, 
ourselves, to the nations of Sub-Saharan Africa.
  The winds of change are blowing across the Serengeti, and America has 
joined the voices of Africa's leaders.
  By overwhelming passing AGOA, the House of Representatives has 
affirmed that Africa's Destiny is within Africa's reach.
  The Trade opportunities AGOA provides will continue Sub-Sahara 
Africa's economic development.
  Every new step taken to develop these economies is another stride 
toward self-sufficiency.
  AGOA is a stride toward a better life for millions of African people.
  AGOA is a blow to the spread of HIV/AIDS, a pandemic that threatens 
to rob Africa of its brightest promise--its people.
  AGOA will expand trade which in turn will attract new capital and 
encourage the development of new infrastructure.
  Roads bring goods to market and roads will bring visitors to Eco-
tourism parks.
  The majesty of a lion roaming free in Africa's great nature parks 
will be Africa's symbol of a great continent awakening.
  The nobility, grace and dignity of a great nation distant land is 
closer to us today.
  We should all be proud that the People's House reached across the 
ocean in friendship and joined Africa on its journey to reach its 
deserved destiny.
  Mr. THOMAS. Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Petri). The question is on the motion 
offered by the gentleman from California (Mr. Thomas) that the House 
suspend the rules and pass the bill, H.R. 4103, as amended.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

                          ____________________