[House Report 106-325]
[From the U.S. Government Publishing Office]



                                                                       
106th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    106-325

======================================================================



 
                     EXPORT ENHANCEMENT ACT OF 1999

                                _______
                                

 September 17, 1999.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______


 Mr. Gilman, from the Committee on International Relations, submitted 
                             the following

                              R E P O R T

                        [To accompany H.R. 1993]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on International Relations, to whom was 
referred the bill (H.R. 1993) to reauthorize the Overseas 
Private Investment Corporation and the Trade and Development 
Agency, and for other purposes, having considered the same, 
report favorably thereon with amendments and recommend that the 
bill as amended do pass.
  The amendments (stated in terms of the page and line numbers 
of the introduced bill) are as follows:
  Page 8, line 10, insert ``and 1 full-time Commercial Service 
employee is stationed in the Baltic states,'' after 
``countries''.
  Page 7, strike lines 4 and 5 and insert the following: 
succeeds in project implementation.''.
  Page 8, line 17, strike ``Assistant'' and all that follows 
through ``Service'' on line 19 and insert ``Secretary of 
Commerce, acting through the Under Secretary of Commerce for 
the International Trade Administration,''.
  Page 12, line 24, strike ``September 30, 1999,'' and insert 
``March 30, 2000, and annually thereafter,''.
  Page 4, insert the following after line 17:
          (13) The Congress is encouraged by the success of the 
        Market Access and Compliance Unit of the ITA and 
        supports the Unit's efforts to develop mobile teams to 
        resolve market access problems and ensure compliance by 
        United States trading partners with trade agreements 
        and commitments.
          (14) The Congress acknowledges the demands upon the 
        Market Access and Compliance Unit of the ITA and 
        recommends that priority be given to funding for this 
        unit to ensure that adequate resources are available 
        for it to fully implement its mission.
  Page 9, insert the following after line 17 and redesignate 
succeeding subsections accordingly:
  (d) Reporting on Violations of Trade Agreements.--The ITA 
should--
          (1) identify countries and entities, as practicable, 
        that violate commitments under trade agreements with 
        the United States and the impact of these violations on 
        specific sectors of the United States economy;
          (2) identify steps taken by the ITA on behalf of 
        United States companies affected by these violations; 
        and
          (3) publicize, on an annual basis, the information 
        gathered under paragraphs (1) and (2).
  Page 10, insert the following after line 2 and redesignate 
the succeeding subsection accordingly:
  (f) Standards Attaches.--Subject to the availability of 
appropriations, the International Trade Administration shall 
take the necessary steps to increase the number of standards 
attaches in the European Union and in developing countries.
  (g) Expansion of Programs to Assist Small Businesses.--The 
International Trade Administration shall expand its efforts to 
assist small businesses in exporting their products and 
services abroad by using electronic commerce technology and 
other electronic means--
          (1) to communicate with significantly larger numbers 
        of small businesses about the assistance offered by the 
        ITA to small businesses in exporting their products and 
        services abroad; and
          (2) to provide such assistance.
  Page 13, Add the following after line 3:

SEC. 10. TIMING OF TPCC REPORTS.

  Section 2312(f) of the Export Enhancement Act of 1988 (15 
U.S.C. 4727(f)) is amended by striking ``September 30, 1995, 
and annually thereafter,'' and inserting ``March 30 of each 
year,''.

                            Committee Action


               INTRODUCTION AND CONSIDERATION OF THE BILL

    H.R. 1993, the Export Enhancement Act of 1999, was 
introduced by Rep. Manzullo on May 27, 1999, and referred to 
the Committee on International Relations.
    On April 14, 1999, the Subcommittee on International 
Economic Policy and Trade held a hearing on reauthorizing OPIC. 
Testimony was received from the following witnesses: Mr. George 
Munoz, President, Overseas Private Investment Corporation; Mr. 
John Hardy, Vice President of Project Finance, Enron 
International; Mr. Willard A. Workman, Vice President, 
International Division, U.S. Chamber of Commerce; Jim Sheehan, 
Director of International Environmental Policy, Competitive 
Enterprise Institute; and Scott Fischer, Vice President, North 
American Trade Division, Citicorp.

                           MARKUP OF THE BILL

    On June 28, 1999, the bill was referred to the Subcommittee 
on International Economic Policy and Trade, which subsequently 
waived consideration of the measure.
    The Full Committee marked up the bill, pursuant to notice, 
in open session, on July 1, 1999. Two amendments were adopted, 
a Gilman en bloc, and a Gejdenson en bloc.
    With a quorum being present, the Committee, by a recorded 
vote of 27 ayes to eight nays, with one voting ``present'', 
ordered the bill, as amended, reported to the House, with the 
recommendation that the bill, as amended, do pass.

                             ROLLCALL VOTES

    Clause (3)(b) of rule XIII of the Rules of the House of 
Representatives requires that the results of each record vote 
on an amendment or motion to report, together with the names of 
those voting for or against, be printed in the committee 
report.

Description of amendment, motion, order, or other proposition (votes 
        during markup of H.R. 1993-July 1, 1999)

    Vote No. 1--Bereuter motion to favorably report H.R. 1993, 
as amended:
    Voting yes: Gilman, Bereuter, Ros-Lehtinen, Ballenger, 
Manzullo, Houghton, McHugh, Radanovich, Cooksey, Gejdenson, 
Ackerman, Faleomavaega, Martinez, Menendez, Brown, Hastings, 
Danner, Hilliard, Sherman, Rothman, Davis, Pomeroy, Delahunt, 
Meeks, Lee, Crowley, Hoeffel.
    Voting no: Rohrabacher, Royce, Chabot, Sanford, Salmon, 
Campbell, Tancredo, McKinney.
    Voting ``present'': Burr.
    Totals: Voting Aye, 27; voting No, 8; voting ``Present'', 
1.

                             Other Matters


                      Committee Oversight Findings

    In compliance with clause 3(c)(1) of rule XIII of the Rules 
of the House of Representatives, the Committee reports the 
findings and recommendations of the Committee, based on 
oversight activities under clause 2(b)(1) of rule X of the 
Rules of the House of Representatives, are incorporated in the 
descriptive portions of this report.

                Committee on Government Reform Findings

    Clause 3(c)(4) of rule XIII of the Rules of the House of 
Representatives requires each committee report to contain a 
summary of the oversight findings and recommendations made by 
the Government Reform Committee pursuant to clause (4)(c)(2) of 
rule X of those Rules. The Committee on International Relations 
has received no such findings or recommendations from the 
Committee on Government Reform.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                Applicability to the Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

                   Constitutional Authority Statement

    In compliance with clause 3(d)(1) of rule XIII of the Rules 
of the House of Representatives, the Committee cites the 
following specific powers granted to the Congress in 
theConstitution as authority for enactment of H.R. 1993 as reported by 
the Committee: Article I, section 8, clause 1 (relating to providing 
for the common defense and general welfare of the United States); 
Article I, section 8, clause 3 (relating to the regulation of commerce 
with foreign nations); and Article I, section 8, clause 18 (relating to 
making all laws necessary and proper for carrying into execution powers 
vested by the Constitution in the government of the United States).

                        preemption clarification

    Section 423 of the Congressional Budget Act of 1974 
requires the report of any committee on a bill or joint 
resolution to include a committee statement on the extent to 
which the bill or joint resolution is intended to preempt state 
or local law. The Committee states that H.R. 1993 is not 
intended to preempt any state or local law.

new budget authority and tax expenditures, congressional budget office 
             cost estimate, and federal mandates statements

    Clause 3(c)(2) of rule XIII of the Rules of the House of 
Representatives requires each committee report that accompanies 
a measure providing new budget authority, new spending 
authority, or new credit authority or changing revenues or tax 
expenditures to contain a cost estimate, as required by section 
308(a)(1) of the Congressional Budget Act of 1974, as amended, 
and, when practicable with respect to estimates of new budget 
authority, a comparison of the estimated funding level for the 
relevant program (or programs) to the appropriate levels under 
current law.
    Clause 3(d) of rule XIII of the Rules of the House of 
Representatives requires committees to include their own cost 
estimates in certain committee reports, which include, when 
practicable, a comparison of the total estimated funding level 
for the relevant program (or programs) with the appropriate 
levels under current law.
    Clause 3(c)(3) of rule XIII of the Rules of the House of 
Representatives requires the report of any committee on a 
measure which has been approved by the Committee to include a 
cost estimate prepared by the Director of the Congressional 
Budget Office, pursuant to section 403 of the Congressional 
Budget Act of 1974, if the cost estimate is timely submitted.
    Section 423 of the Congressional Budget Act requires the 
report of any committee on a bill or joint resolution that 
includes any Federal mandate to include specific information 
about such mandates. The Committee states that H.R. 1993 does 
not include any Federal mandate.
    The Committee adopts the cost estimate of the Congressional 
Budget Office as its own submission of any new required 
information with respect to H.R. 1993 on new budget authority, 
new spending authority, new credit authority, or an increase or 
decrease in the national debt. It also adopts the estimate of 
Federal mandates prepared by the Director of the Congressional 
Budget Office pursuant to section 423 of the Unfunded Mandates 
Reform Act. The estimate and report which has been received is 
set out below.

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, July 16, 1999.
Hon. Benjamin A. Gilman,
Chairman, Committee on International Relations,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office (CBO) 
has prepared the enclosed cost estimate for H.R. 1993, the 
Export Enhancement Act of 1999.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Joseph C. 
Whitehill and Mark Hadley.
            Sincerely,
                                          Barry B. Anderson
                                    (For Dan L. Crippen, Director).
    Enclosure.

H.R. 1993--Export Enhancement Act of 1999

            Summary
    H.R. 1993 would authorize the Overseas Private Investment 
Corporation (OPIC) to issue new investment insurance and 
provide investment financing through 2003. In addition, the 
bill would authorize appropriations for the Trade and 
Development Agency (TDA) and for the International Trade 
Administration (ITA) of the Department of Commerce.
    OPIC's new insurance would generate offsetting collections 
from premiums, but its new financing activities would require 
advance appropriation for the cost of any loan or guarantee to 
be extended. Assuming funding through 2003 at the 1999 level 
adjusted for inflation, CBO estimates that funding OPIC would 
lower discretionary outlays by $12 million over the next five 
years. (If funding were maintained at the 1999 level, the 
reduction in discretionary outlays would be $30 million over 
the five-year period.)
    The bill would authorize the appropriation of $48 million 
for the TDA and $294 million for the ITA in 2000 and such sums 
as may be necessary thereafter. Assuming funding after 2000 
would be adjusted for inflation, CBO estimates spending for 
these programs would total $1.6 billion over the next five 
years. (If funding were maintained at the level authorized for 
2000, spending would be $1.5 billion over the five-year 
period.)
    The bill would require the TDA to seek reimbursement of the 
cost of feasibility studies and other services from 
corporations that benefit from those services. CBO estimates 
that these collections, which would affect direct spending, 
would not be significant. Because the bill would affect direct 
spending, pay-as-you-go procedures would apply.
    The bill contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would not affect the budgets of state, local, or tribal 
governments.
            Estimated cost to the Federal Government
    The estimated budgetary impact of the bill is shown in the 
following table. The costs of this legislation fall within 
budget functions 150 (international affairs) and 370 (commerce 
and housing credit).

----------------------------------------------------------------------------------------------------------------
                                                               By fiscal year, in millions of dollars--
                                                     -----------------------------------------------------------
                                                        1999      2000      2001      2002      2003      2004
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

Spending Under Current Law:
    Estimated Authorization Level \1\ \2\...........       132      -261      -251      -267      -260      -250
    Estimated Outlays...............................        43       -96      -174      -239      -246      -245
Proposed Changes:
    Estimated Authorization Level \3\...............         0       385       386       389       396       351
    Estimated Outlays...............................         0       212       295       344       362       380
Spending Under the Bill:
    Estimated Authorization Level \1\ \2\ \3\.......       132       124       135       122       136       101
    Estimated Outlays...............................        43       116       121       105       117      135
----------------------------------------------------------------------------------------------------------------
\1\ Budget authority and outlays for OPIC's insurance program are generally negative because of offsetting
  collections from fee income and interest on investments.
\2\ The 1999 level is the amount appropriate for that year.
\3\ These figures include funding for OPIC's administrative expenses and subsidy costs at the 1999 funding level
  with adjustments for inflation. If spending for these purposes were projected at the 1999 level,
  authorizations and outlays would be $25 million and $18 million less, respectively, over the five-year period.
  The figures for the TDA and ITA assume funding after 2000 at the authorized 2000 level with adjustments for
  inflation. If spending for the TDA and ITA were maintained at the 2000 level, authorizations and outlays would
  be $103 million and $85 million less, respectively, over the five-year period.

            Basis of estimate
    The estimate assumes enactment of the bill and funding of 
the authorized programs in subsequent appropriation acts. CBO 
used historical spending rates to estimate outlays.
    Overseas Private Investment Corporation. OPIC insures U.S. 
investors in developing countries and emerging markets against 
losses due to expropriation, currency inconvertibility, and 
damage due to political violence. In addition, OPIC provides 
loans and guarantees to finance such investment. The bill would 
authorize OPIC to issue new insurance and to provide investment 
credits through 2003 to such extent as may be provided in 
annual appropriation acts. The estimate assumes funding of 
OPIC's programs over the next four years at the 1999 level, 
adjusted for inflation.
    Insurance Program. CBO estimates that, under the bill, OPIC 
would issue $5 billion to $6 billion in new insurance each year 
through 2003. We estimate that the new insurance would generate 
net collections of $169 million over the next five years, 
assuming20 percent of the policies are not renewed each year 
and premium income of 0.33 percent on the amount of outstanding 
insurance.
    Credit Subsidy. CBO estimates that funding OPIC's credit 
program at the 1999 level ($50 million) adjusted for inflation 
for the next four years would increase outlays by $107 million 
over the 2000-2004 period. If appropriations of 450 million a 
year were provided, additional outlays would be $103 million 
over the five-year period.
    Administrative Expenses. The estimate assumes that under 
current law OPIC's administrative expenses would be gradually 
reduced by 50 percent in real terms to a level sufficient to 
service its outstanding insurance and finance portfolios. Under 
the bill, the estimate assumes that administrative expenses 
would be funded at the 1999 level adjusted for inflation except 
for the $2 million in emergency appropriations. Thus, CBO 
estimates an increase in spending of 451 million over current 
law. (If funding were maintained at the 1999 level, additional 
spending for administrative expenses would total $37 million 
over the 2000-2004 period.)

----------------------------------------------------------------------------------------------------------------
                                                               By fiscal year, in millions of dollars--
                                                     -----------------------------------------------------------
                                                        1999      2000      2001      2002      2003      2004
----------------------------------------------------------------------------------------------------------------
                                             INSURANCE PROGRAMS \1\

Spending Under Current Law:
    Estimated Authorization Level...................      -282      -294      -280      -291      -280      -270
    Estimated Outlays...............................      -282      -294      -280      -291      -280      -270
Proposed Changes: \1\
    Estimated Authorization Level...................         0        -9       -24       -38       -49       -49
    Estimated Outlays...............................         0        -9       -24       -38       -49       -49
Spending Under the Bill:
    Estimated Authorization Level...................      -282      -303      -304      -329      -329      -319
    Estimated Outlays...............................      -282      -303      -304      -329      -329      -319

                                                 CREDIT SUBSIDY

Spending Under Current Law:
    Budget Authority \2\............................        50         0         0         0         0         0
    Estimated Outlays...............................        37        42        32        19        12         5
Proposed Changes:
    Estimated Authorization Level...................         0        51        52        53        54         0
    Estimated Outlays...............................         0         2        10        24        33        38
Spending Under the Bill:
    Estimated Authorization Level \2\...............        50        51        52        53        54         0
    Estimated Outlays...............................        37        43        42        43        44        43

                                             ADMINISTRATIVE EXPENSES

Spending Under Current Law:
    Estimated Authorization Level \2\...............        35        33        29        24        20        20
    Estimated Outlays...............................        34        33        30        25        20        20
Proposed Changes:
    Estimated Authorization Level...................         0         1         6        12        18        17
    Estimated Outlays...............................         0         1         5        11        17        17
Spending Under the Bill:
    Estimated Authorization Level \2\...............        35        34        35        36        38        37
    Estimated Outlays...............................        34        34        35        36        37        37

                                     TOTAL SPENDING SUBJECT TO APPROPRIATION

Spending Under Current Law:
    Estimated Authorization Level \1\ \2\...........      -197      -261      -251      -267      -260      -250
    Estimated Outlays...............................      -211      -220      -218      -247      -249      -245
Proposed Changes:
    Estimated Authorization Level...................         0        43        34        27        23       -32
    Estimated Outlays...............................         0        -7        -9        -3         1         6
Spending Under the Bill: \3\
    Estimated Authorization Level \1\ \2\...........      -197      -218      -217      -240      -237      -282
    Estimated Outlays...............................      -211      -226      -227      -250      -248     -239
----------------------------------------------------------------------------------------------------------------
\1\ Budget authority and outlays for OPIC's insurance program are generally negative because of income from
  offsetting collections.
\2\ The 1999 level is the amount appropriated for that year.
\3\ These figures include funding for administrative expenses and subsidy costs with adjustments for inflation.
  If spending for these purposes were projected at the 1999 level, authorizations and outlays would be $25
  million and $18 million less, respectively, over the five-year period.

    Trade and Development Agency. H.R. 1993 would authorize the 
appropriation of $48 million for the TDA in 2000 and such sums 
as may be necessary for each fiscal year thereafter. The 
estimate assumes that the appropriations for the TDA after 2000 
would be adjusted for inflation.

----------------------------------------------------------------------------------------------------------------
                                                               By fiscal year, in millions of dollars--
                                                     -----------------------------------------------------------
                                                        1999      2000      2001      2002      2003      2004
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

TDA Spending Under Current Law:
    Budget Authority \1\............................        44         0         0         0         0         0
    Estimated Outlays...............................        54        42        18         8         3         0
Proposed Changes:
    Estimated Authorization Level \2\...............         0        48        49        50        51        52
    Estimated Outlays...............................         0        13        33        42        47        49
TDA Spending Under the Bill:
    Estimated Authorization Level \1\ \2\...........        44        48        49        50        51        52
    Estimated Outlays...............................        54        55        51        50        50        49
----------------------------------------------------------------------------------------------------------------
\1\ The 1999 level is the amount appropriated for that year.
\2\ These figures assume funding after 2000 at the authorized level with adjustments for inflation. If spending
  for the TDA were maintained at the 2000 level, authorizations and outlays would be $11 million and $8 million
  less, respectively, over the five-year period.

    The bill would require the TDA to seek reimbursement for 
the cost of its feasibility studies and project planning 
services from corporations and other entities that benefit from 
those services. Annual appropriation acts have provided similar 
authority since 1996, and TDA has collected less than $200,000 
for its services in the last four years. CBO estimates that the 
collections generated by this permanent authority would not be 
significant.
    International Trade Administration. For fiscal year 2000, 
H.R. 1993 would authorize the following appropriations for the 
International Trade Administration: $24 million for market 
access and compliance programs, $68 million for trade 
development programs, and $202 million for commercial service 
programs. The bill would authorize the appropriation of such 
sums as may be necessary for each fiscal year thereafter. As 
shown in the following table, the estimate assumes that the 
appropriations for the ITA after 2000 would be adjusted for 
inflation. Based on the historical spending pattern of the 
agency, CBO estimates this provision would increase spending by 
$1.4 billion over the 2000-2004 period.

----------------------------------------------------------------------------------------------------------------
                                                               By fiscal year, in millions of dollars--
                                                     -----------------------------------------------------------
                                                        1999      2000      2001      2002      2003      2004
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

TDA Spending Under Current Law:
    Budget Authority \1\............................       285         0         0         0         0         0
    Estimated Outlays...............................       200        82        26         0         0         0
Proposed Changes:
    Estimated Authorization Level \2\...............         0       294       303       312       322       331
    Estimated Outlays...............................         0       206       271       305       315       324
ITA Spending Under the Bill:
    Estimated Authorization Level \1\ \2\...........       285       294       303       312       322       331
    Estimated Outlays...............................       200       288       297       305       315       324
----------------------------------------------------------------------------------------------------------------
\1\ The 1999 level is the amount appropriated for that year.
\2\ These figures include funding at the authorized 2000 level with adjustments for inflation. If spending for
  the ITA were projected at the 2000 level, authorizations and outlays would be $92 million and $77 million
  less, respectively, over the five-year period.

            Pay-as-you-go considerations
    The Balanced Budget and Emergency Deficit Control Act sets 
up pay-as-you-go procedures for legislation affecting direct 
spending or receipts. H.R. 1993 would require the TDA to seek 
reimbursement of the cost of feasibility studies and other 
services from corporations that benefit from those studies and 
services. Thus, enacting the bill would affect direct spending 
but CBO estimates that new collections under the bill would not 
be significant.
            Intergovernmental and private-sector impact
    The bill contains no intergovernmental or private-sector 
mandates as defined in UMRA and would not affect the budgets of 
the state, local, or tribal governments.
    Estimate prepared by: Impact on the Federal Budget--
International Trade Administration: Mark P. Hadley; all other 
provisions: Joseph C. Whitehill. Impact on state, local, and 
tribal governments: Leo Lex; impact on the private sector: 
Keith Mattrick.
    Estimate approved by: Robert A. Sunshine, Deputy Assistant 
Director for Budget Analysis.

                      Section-by-Section Analysis


Section 1. Short title

    This section states that the Act may be cited as the 
``Export Enhancement Act of 1999''.

Section 2. Findings

    This section makes a number of findings concerning the 
Overseas Private Investment Corporation (OPIC); the Trade and 
Development Agency (TDA); and the programs of the International 
Trade Administration (ITA).
    Regarding OPIC, it notes that the Corporation has sold 
investment services and mobilized private sector resources to 
assist developing countries and emerging democracies. While 
reinforcing these foreign policy goals, it has generated over 
$58 billion in U.S. exports and created more than 237,000 jobs. 
While operating on a self-sustaining basis, it has maintained a 
claims recovery rate of 95 percent since its inception in 1971, 
settling over 250 claims for $541 million and recovering all 
but $20 million of that amount.
    Regarding TDA, it finds that this agency effectively 
promotes U.S. business involvement in infrastructure projects 
in developing and middle-income countries, and that it has 
generated more than $12 billion in U.S. exports. For every $1 
in spending for its projects, it generates $32 of sales of U.S. 
goods and services.
    It notes the important role that the ITA plays in our 
overall export promotion programs, including the Rural Export 
Initiative. And it points to the contribution of the ITA's 
United States and Foreign Commercial Service in helping U.S. 
businesses identify export opportunities by developing reliable 
sources of information on commercial opportunities in foreign 
countries.
    Finally, it points to the strong Congressional support for 
the ITA's Market Access and Compliance (MAC). This trade unit 
helps to resolve market access problems and to ensure 
compliance by our trading partners with existing trade 
agreements and obligations.

Section 3. Policy recommendations

    This section notes that OPIC should continue its current 
policies of prudent fiscal management including charging 
appropriate user fees and maintaining a conservative ratio of 
reserves to liabilities. It should also continue to apply a 
risk-mitigation approach in areas of instability and economic 
turmoil and to submit all of its programs and projects, 
including its investment funds, to outside independent audits. 
The Committee believes that OPIC should continue to increase 
financial management and oversight over its current portfolio 
of 26 investment funds and should ensure that it has the 
resources and capabilities of providing for a systematic and 
careful review of all subproject applications considered by 
these funds. The Committee expects to be briefed on a periodic 
basis regarding the creation of any new funds and the 
commitment of additional guaranty exposure in regard to its 
existing funds.
    The Committee commends the recent efforts of OPIC to 
outreach to small business. Because of the nature of the narrow 
mission of OPIC, many small businesses are not aware of the 
resources available to help them access overseas markets. It is 
important that OPIC maintain and expand this outreach because 
more and more small businesses are entering the international 
trade arena. As recently as 1987, only about one in 10 
manufacturers with fewer than 100 workers exported. Now, about 
one in every four small manufacturers export. As these small 
firms grow more comfortable with selling and expanding their 
presence overseas, they will wish to insure against political 
risk any foreign investment they may have acquired.
    The Committee notes that OPIC's sister agency, the Export-
Import Bank of the United States, takes great pride in the fact 
that they have dramatically increased small business 
participation to the point where small firms now account for 81 
percent of the actual transactions and account for 21 percent 
of the total dollar value of their activities. This represents 
a 60 percent increase over the past seven years for small 
business export financing for this agency.
    The Committee would like to see a similar effort by OPIC 
which reported that in 1996 small business directly 
participated in 18 percent of all OPIC-assisted projects and 
small business received 6.3 percent of the dollar value of 
OPIC's insurance and financing programs. Over the next four 
years, the Committee expects that the ongoing small business 
initiative at OPIC will result in a doubling of these 
percentages whereby small business will participate in 36 
percent of all OPIC-assisted projects and will receive at least 
12 percent of the dollar value of OPIC's insurance and 
financing programs by the year 2003.
    The Committee will use its oversight function to monitor 
OPIC's performance and progress towards achieving this goal.
    This section also directs the ITA to give priority to 
insuring compliance with existing international trade treaties 
and increasing outreach of its export promotion programs to 
urban areas.

Section 4. OPIC issuing authority

    This section reauthorizes OPIC through the year 2003, for 
four years, consistent with the length of the mandate for the 
U.S. Export-Import Bank. It makes no changes in the 
Corporation's program ceiling.
    OPIC offers two basic products that support financially 
sound, American-owned private ventures in new markets: 
political risk insurance and financing in the form of loans, 
loanguaranties and direct equity investment funds. OPIC was 
established by Congress as an independent agency in 1971 and is 
authorized to operate in 140 foreign countries. It supports U.S. 
investors doing business overseas in countries and regions of strategic 
importance to the U.S. and only gets involved in projects when private 
financing and insurance are insufficient.

Section 5. Trade and Development Agency

    This section authorizes the President's request of $48 
million for FY 2000 for the Trade and Development Agency, a $4 
million increase over the current funding level of $44 million. 
The Committee believes that this proposed program funding 
increase is warranted in light of the growing demand for TDA 
programs, particularly in Latin America and Africa.
    TDA's core activity is the funding of feasibility studies 
on major infrastructure projects in developing and middle 
income countries. The record tends to show that when a U.S. 
company conducts a feasibility study, written to U.S. standards 
and specifications, its chances to win the follow-on 
implementation contracts are greatly enhanced.
    The Committee believes that TDA should continue to find 
creative ways of stretching its limited budget whereby the U.S. 
Government can enter into risk sharing partnerships with U.S. 
companies doing business overseas. Toward this goal, this 
section codifies TDA's policies on cost sharing and success 
fees. And the Committee would urge TDA to continue to expand 
the percentage of its feasibility studies including success fee 
agreements and to ensure that it fully shares the risk of doing 
business in difficult economic environments with the private 
sector.

Section 6. Programs of the International Trade Administration

    Section 6(a) authorizes funding for FY 2000 and 2001 for 
the International Trade Administration. In FY 2000, $24,000,000 
is authorized for the Market Access and Compliance Programs; 
$68,000,000 for the Trade Development programs; and 
$202,000,000 for the U.S. and Foreign Commercial Service. Such 
sums as necessary are authorized for Fiscal Year 2001.
    The Committee would note that after five years of 
decreasing appropriations, Market Access and Compliance needs 
to rebuild its base of country and trade compliance specialists 
to combat the growing number of trade barriers facing U.S. 
exporters. For example, since 1995 its regional staffing has 
been cut by more than 100 positions in key markets such as 
China, Japan and Western Europe.
    Section 6(b) requires the Secretary of Commerce, subject to 
appropriations, to increase the presence of the Foreign 
Commercial Service in Africa and Latin America by ensuring that 
there are no fewer than 10 employees stationed in sub-Saharan 
Africa, that there is at least one full-time employee in each 
country in South and Central America and that there are 
sufficient foreign commercial service officers in the Caribbean 
to ensure that U.S. businesses are made aware of existing 
market opportunities in that region.
    The Committee is concerned that current staffing levels do 
not meet the needs of U.S. businesses. In many instances, 
commercial service officers in the field have to balance 
multiple duties and responsibilities and are unable to provide 
adequate representation to all the actual and potential U.S. 
businesses in country. Moreover, there is an increasing need 
for personnel who have extensive private sector experience and 
training.
    Section 6(c) requires the Secretary of Commerce to make a 
special effort to identify: (1) goods and services of American 
companies which are not being exported to Latin America and 
sub-Saharan Africa but which are being exported to countries in 
those regions by our trading competitors, and (2) trade 
barriers and non-competitive actions, including violations of 
intellectual property rights, that are adversely affecting U.S. 
companies in those regions. The Secretary is also required to 
publish this information and bring it to the attention of the 
appropriate authorities in all the countries of Latin America 
and sub-Saharan Africa and to report to Congress on efforts 
being made to increase exports to those regions.
    Section 6(d) authorizes the Global Diversity and Urban 
Export Initiative to help increase exports from minority-owned 
businesses in urban areas. The Committee recognizes that 
minority-owned business are growing rapidly both in numbers of 
new firms and in total sales. However, many of these firms have 
not made comparable progress in accessing the global 
marketplace and, in particular, in exporting their goods and 
services. The intent of the Initiative is for the U.S. 
Commercial Service to work with minority-owned businesses in 
urban and under-served areas to increase exports from these 
firms.
    Section 6(e) authorizes the ITA to advertise its export 
promotion services in the media.

Section 7. Board of directors

    This section removes the current requirement that the 
Administrator of the Agency for International Development must 
serve as the Chairman of the Board of OPIC and the United 
States Trade Representative or her or his deputy must serve as 
the Vice Chairman of the Board of OPIC. It thereby gives the 
President the discretion to choose the most qualified person 
among the OPIC Board members who could devote the required time 
and attention needed to serve in these important capacities.

Section 8. Strategic Export Plan

    This section asks the Administration to develop a Strategic 
Export Plan to expand export promotion services to small and 
medium-sized enterprises; particularly to urgeadoption of the 
Export-Trade Assistance Partnership (E-TAP) program of the Small 
Business Administration (SBA) throughout the U.S. Export Assistance 
Center (USEAC) network to encourage more small firms to become export 
ready. It also seeks to promote U.S. exports in key emerging markets in 
the Middle East, Africa and Latin America; and to integrate more fully 
the export promotion activities of AID.
    The Committee notes that various reports over the past 
several years from the Inspector General (IG) of the Department 
of Commerce and the General Accounting Office (GAO) maintain 
that while progress has been made in coordinating and improving 
export promotion services, there is still room for improvement. 
ITA should make every effort to make sure that it is offering 
the most up-to-date and user-friendly export promotion 
information and services, particularly using the Internet.
    In addition, these same audits reveal that there could be 
further improvements within the agencies of Department of 
Commerce for export promotion coordination, particularly with 
the Economic Development Agency (EDA), the Minority Business 
Development Agency (MBDA), the National Telecommunications and 
Information Administration (NTIA), and the National Institutes 
of Standards and Technology (NIST). Each agency has a special 
expertise and clientele.
    The Committee believes that, while the ITA should continue 
to be the lead agency for trade promotion within the Commerce 
Department, it should also utilize the strengths of these other 
Commerce Department agencies when developing export promotion 
initiatives, particularly in the area of increasing the number 
of minority exporters, telecommunications initiatives, and 
helping developing countries shape their industry standards.

Section 9. Implementation of primary objectives

    This section requires the Trade Policy Coordinating 
Committee to report on the actions taken to eliminate areas of 
overlap and duplication among the 19 federal export promotion 
agencies.
    It also requires the TPCC to coordinate trade show 
activities by these same agencies. The Committee has heard 
reports from the business community that some TPCC agencies are 
not aware that other agencies are holding nearly identical 
trade shows or fairs. In addition, many of these agencies do 
not share similar databases or client lists so that a company 
used to dealing with one federal export promotion agency is not 
informed that another TPCC agency is sponsoring or promoting a 
trade show or fair that may be of benefit to them.
    In order to avoid potential missed export opportunities, 
the Committee recommends that the TPCC should coordinate 
efforts to sponsor or promote trade shows or fairs. This 
provision is not meant to prevent any TPCC agency from 
sponsoring or hosting a trade show. This is mainly an 
informational sharing provision. Each agency within the TPCC 
should know what the other is doing in terms of trade shows and 
fairs so at least they can alert their clientele to the 
possibility of participating in these sales opportunities.
    The TPCC should also work with State and national 
organizations, such as the National Governor's Association, on 
export promotion projects; promote better coordination among 
State, Federal and private sector export promotion activities; 
and report to Congress no later than March 30, 2000 on progress 
made in these areas.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

                     FOREIGN ASSISTANCE ACT OF 1961


                                PART I

           *       *       *       *       *       *       *



                      Chapter 2--Other Programs

           *       *       *       *       *       *       *



          Title IV--Overseas Private Investment Corporation

           *       *       *       *       *       *       *


  Sec. 233. Organization and Management.--(a)  * * *
  (b) Board of Directors.--All powers of the Corporation shall 
vest in and be exercised by or under the authority of its Board 
of Directors (``the Board'') which shall consist of fifteen 
Directors, including the Chairman, with eight Directors  
constituting a quorum for the transaction of business. [The 
Administrator of the Agency for International Development shall 
be the Chairman of the Board, ex officio. The United States 
Trade Representative shall be the Vice Chairman of the Board, 
ex officio, except that the United States Trade Representative 
may designate the Deputy United States Trade Representative to 
serve as Vice Chairman of the Board in place of the United 
States Trade Representative.] Eight Directors [(other than the 
President of the Corporation, appointed pursuant to subsection 
(c) who shall serve as a Director, ex officio)] shall be 
appointed by the President of the United States, by and with 
the advice and consent of the Senate, and shall not be 
officials or employees of the Government of the United States. 
At least two of the eight Directors  appointed under the 
preceding sentence shall be experienced in small business, one 
in organized labor, and one in cooperatives. Each such Director 
shall be appointed for a term of no more than three years. The 
terms of no more than three such Directors  shall expire in any 
one year. Such Directors shall serve until their successors are 
appointed and qualified and may be reappointed.
  The other Directors shall be officials of the Government of 
the United States, including the President of the Corporation, 
the Administrator of the Agency for International Development, 
the United States Trade Representative, and an official of the 
Department of Labor, designated by and serving at the pleasure 
of the President of the United States. The United States Trade 
Representative may designate a Deputy United States Trade 
Representative to serve on the Board in place of the United 
States Trade Representative.
  There shall be a Chairman and a Vice Chairman of the Board, 
both of whom shall be designated by the President of the United 
States from among the Directors of the Board other than those 
appointed under the second sentence of the first paragraph of 
this subsection.
  All Directors who are not officers of the Corporation or 
officials of the Government of the United States shall be 
compensated at a rate equivalent to that of level IV of the 
Executive Schedule (5 U.S.C. 5315)  when actually engaged in 
the business of the Corporation and may be paid per diem in 
lieu of subsistence at the applicable rate prescribed in the 
standardized Government travel regulations, as amended, from 
time to time, while away from their homes or usual places of 
business.

           *       *       *       *       *       *       *

  Sec. 235. Issuing Authority, Direct Investment Authority and 
Reserves.--
  (a)  Issuing Authority.--
          (1)  * * *
          (2) Termination of authority.--The authority of 
        subsections (a), (b), and (c) of section 234 shall 
        continue until September 30, [1999] 2003.

           *       *       *       *       *       *       *


                               PART III

           *       *       *       *       *       *       *



                 Chapter 3--Miscellaneous Provisions

           *       *       *       *       *       *       *



SEC. 661. TRADE AND DEVELOPMENT AGENCY.

  (a) Purpose.--The Trade and Development Agency shall be an 
agency of the United States under the foreign policy guidance 
of the Secretary of State. The purpose of the Trade and 
Development Agency is to promote United States private sector 
participation in development projects in developing and middle-
income countries, with special emphasis on economic sectors 
with significant United States export potential, such as 
energy, transportation, telecommunications, and environment.
  (b) Authority To Provide Assistance.--
          (1)  * * *

           *       *       *       *       *       *       *

          (5) Contributions to costs.--The Trade and 
        Development Agency shall, to the maximum extent 
        practicable, require corporations and other entities 
        to--
                  (A) share the costs of feasibility studies 
                and other project planning services funded 
                under this section; and
                  (B) reimburse the Trade and Development 
                Agency those funds provided under this section, 
                if the corporation or entity concerned succeeds 
                in project implementation.

           *       *       *       *       *       *       *

  (f) Funding.--
          (1) Authorization.--(A) There are authorized to be 
        appropriated for purposes of this section, in addition 
        to funds otherwise available for such purposes, 
        [$77,000,000 for fiscal year 1995 and such sums as are 
        necessary for fiscal year 1996] $48,000,000 for fiscal 
        year 2000 and such sums as may be necessary for each 
        fiscal year thereafter.

           *       *       *       *       *       *       *

          (2) Funding for technical assistance grants by 
        multilateral development banks.--(A) The Trade and 
        Development Agency should, [in fiscal years 1993 and 
        1994, substantially increase the amount of funds it 
        provides] in carrying out its program, provide, as 
        appropriate, funds to multilateral development banks 
        for technical assistance grants.
                              ----------                              


           SECTION 2312 OF THE EXPORT ENHANCEMENT ACT OF 1988


SEC. 2312. TRADE PROMOTION COORDINATING COMMITTEE.

  (a)  * * *

           *       *       *       *       *       *       *

  (c) Strategic Plan.--To carry out subsection (b), the TPCC 
shall develop and implement a governmentwide strategic plan for 
Federal trade promotion efforts. Such plan shall--
          (1)  * * *

           *       *       *       *       *       *       *

          (5) review efforts by the States (as defined in 
        section 2301(i)) to promote United States exports and 
        propose means of developing cooperation between State 
        and Federal efforts, including co-location, cost-
        sharing between Federal and State export promotion 
        programs, and sharing of market research data; [and]
          (6) reflect the recommendations of the United States 
        National Tourism Organization to the degree considered 
        appropriate by the TPCC[.];
          (7) ensure that all export promotion activities of 
        the Agency for International Development are fully 
        coordinated and consistent with those of other 
        agencies;
          (8) identify means for providing more coordinated and 
        comprehensive export promotion services to, and on 
        behalf of, small and medium-sized businesses; and
          (9) establish a set of priorities to promote United 
        States exports to, and free market reforms in, the 
        Middle East, Africa, Latin America, and other emerging 
        markets, that are designed to stimulate job growth both 
        in the United States and those regions and emerging 
        markets.

           *       *       *       *       *       *       *

  (f) Report to the Congress.--The chairperson of the TPCC 
shall prepare and submit to the Committee on Banking, Housing, 
and Urban Affairs of the Senate, and the Committee on 
International Relations of the House of Representatives, not 
later than [September 30, 1995, and annually thereafter,] March 
30 of each year, a report describing--
          (1)  * * *

           *       *       *       *       *       *       *


                                  
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