[Congressional Bills 106th Congress] [From the U.S. Government Publishing Office] [S. 1636 Introduced in Senate (IS)] 106th CONGRESS 1st Session S. 1636 To authorize a new trade, investment, and development policy for sub- Saharan Africa. _______________________________________________________________________ IN THE SENATE OF THE UNITED STATES September 24, 1999 Mr. Feingold introduced the following bill; which was read twice and referred to the Committee on Finance _______________________________________________________________________ A BILL To authorize a new trade, investment, and development policy for sub- Saharan Africa. 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 ``HOPE for Africa Act of 1999''. SEC. 2. TABLE OF CONTENTS. The table of contents for this Act is as follows: Sec. 1. Short title. Sec. 2. Table of contents. Sec. 3. Findings. Sec. 4. Declarations of policy. Sec. 5. Sense of Congress. Sec. 6. Sub-Saharan Africa defined. TITLE I--CANCELLATION OF DEBT OWED BY SUB-SAHARAN AFRICAN COUNTRIES Sec. 101. Cancellation of debt owed to the United States Government by sub-Saharan African countries. Sec. 102. Advocacy of cancellation of debt owed to foreign governments by sub-Saharan African countries. Sec. 103. Report to Congress on plan of advocacy for the cancellation of debt owed to the International Monetary Fund and the International Bank for Reconstruction and development by sub- Saharan African countries. Sec. 104. Report on the cancellation of debt owed to United States lenders by sub-Saharan African countries. Sec. 105. Study on repayment of debt in local currencies by sub-Saharan African countries. Sec. 106. Sense of Congress relating to the allocation of savings from debt relief of sub-Saharan African countries for basic services. Sec. 107. Sense of Congress relating to level of interim debt payments prior to full debt cancellation by sub- Saharan African countries. TITLE II--TRADE PROVISIONS RELATING TO SUB-SAHARAN AFRICA Sec. 201. Encouraging mutually beneficial trade and investment. Sec. 202. Generalized system of preferences. Sec. 203. Additional enforcement. TITLE III--DEVELOPMENT ASSISTANCE FOR SUB-SAHARAN AFRICAN COUNTRIES Sec. 301. Findings. Sec. 302. Private and voluntary organizations. Sec. 303. Types of assistance. Sec. 304. Critical sectoral priorities. Sec. 305. Reporting requirements. Sec. 306. Separate account for Development Fund for Africa. TITLE IV--SUB-SAHARAN AFRICA EQUITY AND INFRASTRUCTURE FUNDS Sec. 401. Sub-Saharan Africa equity and infrastructure funds. TITLE V--OVERSEAS PRIVATE INVESTMENT CORPORATION AND EXPORT-IMPORT BANK INITIATIVES Sec. 501. Overseas private investment corporation initiatives. Sec. 502. Export-Import Bank initiative. TITLE VI--MISCELLANEOUS PROVISIONS Sec. 601. Anticorruption efforts. Sec. 602. Requirements relating to sub-Saharan African intellectual property and competition law. Sec. 603. Expansion of the United States and foreign commercial service in sub-Saharan Africa. TITLE VII--OFFSET Sec. 701. Private sector funding for research and development by NASA relating to aircraft performance. SEC. 3. FINDINGS. Congress finds the following: (1) It is in the mutual interest of the United States and the countries of sub-Saharan Africa to promote broad-based economic development and equitable trade and investment policies in sub-Saharan Africa. (2) Many sub-Saharan African countries have made notable progress toward democratization in recent years. (3) Despite the enormous political and economic potential in Africa, Africa has the largest number of the poorest countries in the world, with an average per capita income of less than $500 annually. Thirty-three of the 41 highly indebted poor countries (HIPC) are located in sub-Saharan Africa. (4) A plan for sustainable, equitable development for, and trade with, Africa must recognize the different levels of development that exist between countries and among different sectors within each country. (5) Sub-Saharan Africa is inordinately burdened by $230,000,000,000 in bilateral and multilateral debt whose service requirements-- (A) now take over 20 percent of the export earnings of the sub-Saharan African region, excluding South Africa; and (B) constitute a serious impediment to the development of stable democratic political structures, broad-based economic growth, poverty eradication, and food security. (6) The United Nations Declaration of Human Rights guarantees the right to food, shelter, health care, education, and a sustainable livelihood, as well as rights to political freedoms. (7)(A) The key principles guiding any United States economic policy toward sub-Saharan Africa should include those repeatedly identified by African governments, including the priorities laid out in the ``Lagos Plan'' developed by the finance ministers of the sub-Saharan African countries in coordination with the Organization for African Unity. (B) The overriding priority expressed in the ``Lagos Plan'' is freedom for each African country to self-determine the economic policies that-- (i) suit the needs and development of their people; (ii) help achieve food self-sufficiency and security; and (iii) provide broad access to potable water, shelter, primary health care, education, and affordable transport. (8) Fair trade and mutually beneficial investment can be important tools for broad-based economic development. SEC. 4. DECLARATIONS OF POLICY. Congress makes the following declarations: (1) Economic relations between sub-Saharan Africa and the United States must be oriented toward benefiting the majority of the people of sub-Saharan Africa and of the United States. (2) Congress endorses the goals stated in the Lagos Plan developed by sub-Saharan African Finance Ministers in cooperation with the Organization for African Unity. (3) In developing new economic relations with sub-Saharan Africa, the United States should pursue the following: (A) Strengthening and diversifying the economic production capacity of sub-Saharan Africa. (B) Improving the level of people's incomes and the pattern of distribution in sub-Saharan Africa. (C) Adjusting the pattern of public expenditures to satisfy people's essential needs in sub-Saharan Africa. (D) Providing institutional support for transition to functioning market economies in sub-Saharan Africa through debt relief. (E) Supporting environmentally sustainable development in sub-Saharan Africa. (F) Promoting democracy, human rights, and the strength of civil society in sub-Saharan Africa. (G) Assisting sub-Saharan African countries in efforts to make safe and efficacious pharmaceuticals and medical technologies as widely available to their populations as possible. SEC. 5. SENSE OF CONGRESS. It is the sense of Congress that-- (1) for the majority of people in sub-Saharan Africa to be able to benefit from new trade, investment, and other economic opportunities provided by this Act, and the amendments made by this Act, the pre-existing burden of external debt of sub- Saharan African countries must be eliminated; and (2) only significant debt relief will allow operation of local credit markets and eliminate distortions currently hindering development in sub-Saharan Africa. SEC. 6. SUB-SAHARAN AFRICA DEFINED. In this Act, the terms ``sub-Saharan Africa'', ``sub-Saharan African country'', ``country in sub-Saharan Africa'', ``sub-Saharan African countries'', and ``countries in sub-Saharan Africa'' refer to the following: Republic of Angola (Angola) Republic of Benin (Benin) Republic of Botswana (Botswana) Burkina Faso (Burkina) Republic of Burundi (Burundi) Republic of Cameroon (Cameroon) Republic of Cape Verde (Cape Verde) Central African Republic Republic of Chad (Chad) Federal Islamic Republic of the Comorors (Comoros) Democratic Republic of Congo (DROC) Republic of the Congo (Congo) Republic of Cote d'Ivoire (Cote d'Ivoire) Republic of Djibouti (Djibouti) Republic of Equatorial Guinea (Equatorial Guinea) Ethiopia State of Eritrea (Eritrea) Gabonese Republic (Gabon) Republic of the Gambia (Gambia) Republic of Ghana (Ghana) Republic of Guinea (Guinea) Republic of Guinea-Bissau (Guinea-Bissau) Republic of Kenya (Kenya) Kingdom of Lesotho (Lesotho) Republic of Liberia (Liberia) Republic of Madagascar (Madagascar) Republic of Malawi (Malawi) Republic of Mali (Mali) Islamic Republic of Mauritania (Mauritania) Republic of Mauritius (Mauritius) Republic of Mozambique (Mozambique) Republic of Namibia (Namibia) Republic of Niger (Niger) Federal Republic of Nigeria (Nigeria) Republic of Rwanda (Rwanda) Democratic Republic of Sao Tome and Principe (Sao Tome and Principe) Republic of Senegal (Senegal) Repulbic of Seychelles (Seychelles) Republic of Sierra Leone (Sierra Leone) Somalia Republic of South Africa (South Africa) Republic of Sudan (Sudan) Kingdom of Swaziland (Swaziland) United Republic of Tanzania (Tanzania) Republic of Togo (Togo) Republic of Uganda (Uganda) Republic of Zambia (Zambia) Republic of Zimbabwe (Zimbabwe) TITLE I--CANCELLATION OF DEBT OWED BY SUB-SAHARAN AFRICAN COUNTRIES SEC. 101. CANCELLATION OF DEBT OWED TO THE UNITED STATES GOVERNMENT BY SUB-SAHARAN AFRICAN COUNTRIES. The Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.) is amended by adding at the end the following: ``PART VI--CANCELLATION OF DEBT OWED TO THE UNITED STATES BY SUB- SAHARAN AFRICAN COUNTRIES ``SEC. 901. CANCELLATION OF DEBT. ``(a) In General.-- ``(1) In general.--Except as provided in paragraph (2), the President shall cancel all amounts owed to the United States (or any agency of the United States) by sub-Saharan African countries defined in section 6 of HOPE for Africa Act of 1999 resulting from-- ``(A) concessional loans made or credits extended under any provision of law, including the provisions of law described in subsection (b)(1); and ``(B) nonconcessional loans made, guarantees issued, or credits extended under any provision of law, including the provisions of law described in subsection (b)(2). ``(2) Exception.--The provisions of paragraph (1) relating to cancellation of debt shall not apply to any sub-Saharan country if the government of the country-- ``(A) (including its military or other security forces) engages in a pattern of significant violations of internationally recognized human rights; ``(B) has an excessive level of military expenditures; ``(C) has repeatedly provided support for acts of international terrorism, as determined by the Secretary of State under section 6(j)(1) of the Export Administration Act of 1979 (50 U.S.C. app. 2405(j)(1)) or section 620A(a) of the Foreign Assistance Act of 1961 (22 U.S.C. 2371(a)); or ``(D) is failing to cooperate on international narcotics control matters. ``(3) Certification by president.--The President shall certify to Congress that any country with respect to which debt is canceled under this subsection is not engaged in an activity described in paragraph (2). ``(b) Provisions of Law.-- ``(1) Concessional provisions of law.--The provisions of law described in this paragraph are the following: ``(A) Part I of this Act, chapter 4 of part II of this Act, or predecessor foreign economic assistance legislation. ``(B) Title I of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1701 et seq.). ``(2) Nonconcessional provisions of law.--The provisions of law described in this paragraph are the following: ``(A) Sections 221 and 222 of this Act. ``(B) The Arms Export Control Act (22 U.S.C. 2751 et seq.). ``(C) Section 5(f) of the Commodity Credit Corporation Charter Act. ``(D) Sections 201 and 202 of the Agricultural Trade Act of 1978 (7 U.S.C. 5621 and 5622). ``(E) The Export-Import Bank Act of 1945 (12 U.S.C. 635 et seq.). ``(c) Termination of Authority.--The authority to cancel debt under this section shall terminate on September 30, 2002. ``SEC. 902. ADDITIONAL REQUIREMENTS. ``(a) Reduction of Debt Not Considered to be Assistance.--A reduction of debt under section 901 shall not be considered to be assistance for purposes of any provision of law limiting assistance to a country. ``(b) Inapplicability of Certain Prohibitions Relating to Reduction of Debt.--The authority to provide for reduction of debt under section 901 may be exercised notwithstanding section 620(r) of this Act. ``SEC. 903. REPORTS TO CONGRESS. ``(a) In General.--Not later than December 31, 1999, and December 31 of each of the next 3 years, the President shall prepare and transmit to the appropriate congressional committees an annual report concerning the cancellation of debt under section 901 for the prior fiscal year. ``(b) Definition.--In this section, the term `appropriate congressional committees' means-- ``(1) the Committee on Banking and Financial Services and the Committee on International Relations of the House of Representatives; and ``(2) the Committee on Foreign Relations and the Committee on Banking, Housing, and Urban Affairs of the Senate. ``SEC. 904. AUTHORIZATION OF APPROPRIATIONS. ``For the cost (as defined in section 502(5) of the Federal Credit Reform Act of 1990) for the cancellation of debt under section 901, there are authorized to be appropriated to the President such sums as may be necessary for each of the fiscal years 2000 through 2002.''. SEC. 102. ADVOCACY OF CANCELLATION OF DEBT OWED TO FOREIGN GOVERNMENTS BY SUB-SAHARAN AFRICAN COUNTRIES. (a) Advocacy of Cancellation of Debt.--The Secretary of State shall provide written notification to each foreign government that has outstanding loans, guarantees, or credits to the government of a sub- Saharan African country (qualifying under section 901(a) of the Foreign Assistance Act of 1961, as added by this Act) that it is the policy of the United States to fully and unconditionally cancel all debts owed by each such sub-Saharan African country to the United States. In addition, the Secretary shall urge in writing each such foreign government to follow the example of the United States and fully and unconditionally cancel all debts owed by sub-Saharan African countries to each such foreign government. (b) Report.--Not later than 9 months after the date of enactment of this Act, the Secretary of State shall prepare and submit to Congress a report containing-- (1) a description of each written notification provided to a foreign government under subsection (a); (2) a description of the response of each foreign government to the notification; and (3) a description of the amount (if any) owed to the United States by any foreign government opposing the United States policy advocated pursuant to subsection (a). SEC. 103. REPORT TO CONGRESS ON PLAN OF ADVOCACY FOR THE CANCELLATION OF DEBT OWED TO THE INTERNATIONAL MONETARY FUND AND THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT BY SUB-SAHARAN AFRICAN COUNTRIES. (a) In General.--Not later than January 1, 2000, the Secretary of the Treasury shall submit to Congress a plan to advocate the cancellation of debt owed to the International Monetary Fund and the International Bank for Reconstruction and Development by sub-Saharan African countries and report on its implementation. The plan shall include proposed instructions to the United States Executive Directors of the International Monetary Fund and the International Bank for Reconstruction and Development to use the voice, vote, and influence of the United States to advocate that their respective institutions-- (1) fully and unconditionally cancel all debts owed by any country in sub-Saharan Africa to such institution; (2) encourage each country that benefits from such debt cancellation to allocate 20 percent of the national budget of the country, including savings from such debt cancellation, to basic services, as the country has committed to do under the United Nations 20/20 Initiative, with appropriate input from civil society in developing basic service plans; and (3) provide that until all debts owed to such institution have been fully and unconditionally canceled, such institution not be party to, and that no future loan from such institution be used to finance in whole or part the implementation of, any agreement which requires the government of any such country, during any 12-month period beginning on the date of enactment of this section to pay an amount exceeding 5 percent of the annual export earnings of the country toward the servicing of foreign loans. (b) Directions to Executive Directors.--The Executive Directors of the International Monetary Fund and the International Bank for Reconstruction and Development shall carry out the instructions described in subsection (a) by all appropriate means, including sending written notice to the governing bodies of members, and by requesting formal votes on the matters described in subsection (a). SEC. 104. REPORT ON THE CANCELLATION OF DEBT OWED TO UNITED STATES LENDERS BY SUB-SAHARAN AFRICAN COUNTRIES. Not later than January 1, 2000, the Secretary of the Treasury shall submit to the Congress a report on the amount of debt owed to any United States person by any country in sub-Saharan Africa. The report shall specify the amount owed to each such person by each country, the face value and market value of the debt, and the amount of interest paid to date on the debt. The report shall also include a plan to acquire each debt obligation owed to any United States person by any country in sub-Saharan Africa at the market value of the debt obligation as of January 1, 1999. SEC. 105. STUDY ON REPAYMENT OF DEBT IN LOCAL CURRENCIES BY SUB-SAHARAN AFRICAN COUNTRIES. Section 603 of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1999 (as contained in section 101(d) of division A of the Omnibus Consolidated and Emergency Supplemental Appropriations Act, 1999) is amended-- (1) in subsection (e)-- (A) by striking ``and'' at the end of paragraph (3); (B) by redesignating paragraph (4) as paragraph (5); and (C) by inserting after paragraph (3) the following: ``(4) the viability and desirability of having each indebted country in sub-Saharan Africa (as defined in section 6 of the HOPE for Africa Act of 1999) repay foreign loans made to the country (whether made bilaterally, multilaterally, or privately) in the currency of the indebted country; and''; and (2) in subsection (g), by adding at the end the following: ``(6) The matters described in subsection (e)(4).''. SEC. 106. SENSE OF CONGRESS RELATING TO THE ALLOCATION OF SAVINGS FROM DEBT RELIEF OF SUB-SAHARAN AFRICAN COUNTRIES FOR BASIC SERVICES. It is the sense of Congress that the government of each sub-Saharan African country should allocate 20 percent of its national budget, including the savings from the cancellation of debt owed by the country to-- (1) the United States (pursuant to part VI of the Foreign Assistance Act of 1961, as added by section 101 of this Act); (2) other foreign countries (pursuant to section 103 of this Act); (3) the International Monetary Fund and the International Bank for Reconstruction and Development (pursuant to section 104 of this Act); and (4) United States persons (pursuant to section 106 of this Act); for the provision of basic services to individuals in each such country, as provided for in the United Nations 20/20 Initiative. In providing such basic services, each government should seek input from appropriate nongovernmental organizations. SEC. 107. SENSE OF CONGRESS RELATING TO LEVEL OF INTERIM DEBT PAYMENTS PRIOR TO FULL DEBT CANCELLATION BY SUB-SAHARAN AFRICAN COUNTRIES. It is the sense of Congress that, prior to the full and unconditional cancellation of all debts owed by sub-Saharan African countries to the United States (pursuant to part VI of the Foreign Assistance Act of 1961, as added by section 101 of this Act), to other foreign countries, and to United States persons, each sub-Saharan African country should not, in making debt payments described in this title, pay in any calendar year an aggregate amount greater than an amount equal to 5 percent of the export earnings of the country for the preceding calendar year. TITLE II--TRADE PROVISIONS RELATING TO SUB-SAHARAN AFRICA SEC. 201. ENCOURAGING MUTUALLY BENEFICIAL TRADE AND INVESTMENT. (a) Findings.--Congress makes the following findings: (1) A mutually beneficial United States Sub-Saharan Africa trade policy will grant new access to the United States market for a broad range of goods produced in Africa, by Africans, and include safeguards to ensure that the corporations manufacturing these goods (or the product or manufacture of the oil or mineral extraction industry) respect the rights of their employees and the local environment. Such trade opportunities will promote equitable economic development and thus increase demand in African countries for United States goods and service exports. (2) Recognizing that the global system of textile and apparel quotas under the MultiFiber Arrangement will be phased out under the Uruguay Round Agreements over the next 5 years with the total termination of the quota system in 2005, the grant of additional access to the United States market in these sectors is a short-lived benefit. (b) Treatment of Quotas.-- (1) Kenya and mauritius.--Pursuant to the Agreement on Textiles and Clothing, the United States shall eliminate the existing quotas on textile and apparel imports to the United States from Kenya and Mauritius, respectively, not later than 30 days after each country demonstrates the following: (A) The country is not ineligible for benefits under section 502(b)(2) of the Trade Act of 1974 (19 U.S.C. 2462(b)(2)). (B) The country does not engage in significant violations of internationally recognized human rights and the Secretary of State agrees with this determination. (C)(i) The country is providing for effective enforcement of internationally recognized worker rights throughout the country (including in export processing zones) as determined under paragraph (5), including the core labor standards enumerated in the appropriate treaties of the International Labor Organization, and including-- (I) the right of association; (II) the right to organize and bargain collectively; (III) a prohibition on the use of any form of coerced or compulsory labor; (IV) the international minimum age for the employment of children (age 15); and (V) acceptable conditions of work with respect to minimum wages, hours of work, and occupational safety and health. (ii) The government of the country ensures that the Secretary of Labor, the head of the national labor agency of the government of that country, and the head of the International Confederation of Free Trade Unions-Africa Region Office (ICFTU-AFRO) each has access to all appropriate records and other information of all business enterprises in the country. (D) The country is taking adequate measures to prevent illegal transshipment of goods that is carried out by rerouting, false declaration concerning country of origin or place of origin, falsification of official documents, evasion of United States rules of origin for textile and apparel goods, or any other means, in accordance with the requirements of subsection (d). (E) The country is taking adequate measures to prevent being used as a transit point for the shipment of goods in violation of the Agreement on Textiles and Clothing or any other applicable textile agreement. (F) The cost or value of the textile or apparel product produced in the country, or by companies in any 2 or more sub-Saharan African countries, plus the direct costs of processing operations performed in the country or such countries, is not less than 60 percent of the appraised value of the product at the time it is entered into the customs territory of the United States. (G) Not less than 90 percent of employees in business enterprises producing the textile and apparel goods are citizens of that country, or any 2 or more sub-Saharan African countries. (2) Other sub-saharan countries.--The President shall continue the existing no quota policy for each other country in sub-Saharan Africa if the country is in compliance with the requirements applicable to Kenya and Mauritius under subparagraphs (A) through (G) of paragraph (1). (3) Technical assistance.--The Customs Service shall provide the necessary technical assistance to sub-Saharan African countries in the development and implementation of adequate measures against the illegal transshipment of goods. (4) Offsetting reduction of chinese quota.--When the quota for textile and apparel products imported from Kenya or Mauritius is eliminated, the quota for textile and apparel products from the People's Republic of China for each calendar year in each product category shall be reduced by the amount equal to the volume of all textile and apparel products in that product category imported from all sub-Saharan African countries into the United States in the preceding calendar year, plus 5 percent of that amount. (5) Determination of compliance with internationally recognized worker rights.-- (A) Determination.-- (i) In general.--For purposes of carrying out paragraph (1)(C), the Secretary of Labor, in consultation with the individuals described in clause (ii) and pursuant to the procedures described in clause (iii), shall determine whether or not each sub-Saharan African country is providing for effective enforcement of internationally recognized worker rights throughout the country (including in export processing zones). (ii) Individuals described.--The individuals described in this clause are the head of the national labor agency of the government of the sub-Saharan African country in question and the head of the International Confederation of Free Trade Unions-Africa Region Office (ICFTU-AFRO). (iii) Public comment.--Not later than 90 days before the Secretary of Labor makes a determination that a country is in compliance with the requirements of paragraph (1)(C), the Secretary shall publish notice in the Federal Register and an opportunity for public comment. The Secretary shall take into consideration the comments received in making a determination under such paragraph (1)(C). (B) Continuing compliance.--In the case of a country for which the Secretary of Labor has made an initial determination under subparagraph (A) that the country is in compliance with the requirements of paragraph (1)(C), the Secretary, in consultation with the individuals described in subparagraph (A), shall, not less than once every 3 years thereafter, conduct a review and make a determination with respect to that country to ensure continuing compliance with the requirements of paragraph (1)(C). The Secretary shall submit the determination to Congress. (C) Report.--Not later than 6 months after the date of enactment of this Act, and on an annual basis thereafter, the Secretary of Labor shall prepare and submit to Congress a report containing-- (i) a description of each determination made under this paragraph during the preceding year; (ii) a description of the position taken by each of the individuals described in subparagraph (A)(ii) with respect to each such determination; and (iii) a report on the public comments received pursuant to subparagraph (A)(iii). (6) Report.--Not later than March 31 of each year, the President shall publish in the Federal Register and submit to Congress a report on the growth in textiles and apparel imported into the United States from countries in sub-Saharan Africa in order to inform United States consumers, workers, and textile manufacturers about the effects of the no quota policy. (c) Treatment of Tariffs.--The President shall provide an additional benefit of a 50 percent tariff reduction for any textile and apparel product of a sub-Saharan African country that meets the requirements of subparagraphs (A) through (G) of subsections (b)(1) and (d) and that is imported directly into the United States from such sub- Saharan African country if the business enterprise, or a subcontractor of the enterprise, producing the product is in compliance with the following: (1) Citizens of 1 or more sub-Saharan African countries own not less than 51 percent of the business enterprise. (2) If the business enterprise involves a joint-venture arrangement with, or related to as a subsidiary, trust, or subcontractor, a business enterprise organized under the laws of the United States, the European Union, Japan, or any other developed country (or group of developed countries), or operating in such countries, the business enterprise complies with the environmental standards that would apply to a similar operation in the United States, the European Union, Japan, or any other developed country (or group of developed countries), as the case may be. (d) Customs Procedures and Enforcement.-- (1) Obligations of importers and parties on whose behalf apparel and textiles are imported.-- (A) In general.--Notwithstanding any other provision of law, all imports to the United States of textile and apparel goods pursuant to this Act shall be accompanied by-- (i)(I) the name and address of the manufacturer or producer of the goods, and any other information with respect to the manufacturer or producer that the Customs Service may require; and (II) if there is more than one manufacturer or producer, or if there is a contractor or subcontractor of the manufacturer or producer with respect to the manufacture or production of the goods, the information required under subclause (I) with respect to each such manufacturer, producer, contractor, or subcontractor, including a description of the process performed by each such entity; (ii) a certification by the importer of record that the importer has exercised reasonable care to ascertain the true country of origin of the textile and apparel goods and the accuracy of all other information provided on the documentation accompanying the imported goods, as well as a certification of the specific action taken by the importer to ensure reasonable care for purposes of this paragraph; and (iii) a certification by the importer that the goods being entered do not violate applicable trademark, copyright, and patent laws. (B) Liability.--The importer of record and the final retail seller of the merchandise shall be jointly liable for any material false statement, act, or omission made with the intention or effect of-- (i) circumventing any quota that applies to the merchandise; or (ii) avoiding any duty that would otherwise be applicable to the merchandise. (2) Obligations of countries to take action against transshipment and circumvention.--The President shall ensure that any country in sub-Saharan Africa that intends to import textile and apparel goods into the United States-- (A) has in place adequate measures to guard against unlawful transshipment of textile and apparel goods and the use of counterfeit documents; and (B) will cooperate fully with the United States to address and take action necessary to prevent circumvention of any provision of this section or of any agreement regulating trade in apparel and textiles between that country and the United States. (3) Standards of proof.-- (A) For importers and retailers.-- (i) In general.--The United States Customs Service (in this Act referred to as the ``Customs Service'') shall seek imposition of a penalty against an importer or retailer for a violation of any provision of this section if the Customs Service determines, after appropriate investigation, that there is a substantial likelihood that the violation occurred. (ii) Use of best available information.--If an importer or retailer fails to cooperate with the Customs Service in an investigation to determine if there has been a violation of any provision of this section, the Customs Service shall base its determination on the best available information. (B) For countries.-- (i) In general.--The President may determine that a country is not taking adequate measures to prevent illegal transshipment of goods or to prevent being used as a transit point for the shipment of goods in violation of this section if the Customs Service determines, after consultations with the country concerned, that there is a substantial likelihood that a violation of this section occurred. (ii) Use of best available information.-- (I) In general.--If a country fails to cooperate with the Customs Service in an investigation to determine if an illegal transshipment has occurred, the Customs Service shall base its determination on the best available information. (II) Examples.--Actions indicating failure of a country to cooperate under subclause (I) include-- (aa) denying or unreasonably delaying entry of officials of the Customs Service to investigate violations of, or promote compliance with, this section or any textile agreement; (bb) providing appropriate United States officials with inaccurate or incomplete information, including information required under the provisions of this section; and (cc) denying appropriate United States officials access to information or documentation relating to production capacity of, and outward processing done by, manufacturers, producers, contractors, or subcontractors within the country. (4) Penalties.-- (A) For importers and retailers.--The penalty for a violation of any provision of this section by an importer or retailer of textile and apparel goods-- (i) for a first offense (except as provided in clause (iii)), shall be a civil penalty in an amount equal to 200 percent of the declared value of the merchandise, plus forfeiture of the merchandise; (ii) for a second offense (except as provided in clause (iii)), shall be a civil penalty in an amount equal to 400 percent of the declared value of the merchandise, plus forfeiture of the merchandise, and, shall be punishable by a fine of not more than $100,000, imprisonment for not more than 1 year, or both; and (iii) for a third or subsequent offense, or for a first or second offense if the violation of the provision of this section is committed knowingly and willingly, shall be punishable by a fine of not more than $1,000,000, imprisonment for not more than 5 years, or both, and, in addition, shall result in forfeiture of the merchandise. (B) For countries.--If a country fails to undertake the measures or fails to cooperate as required by this section, the President shall impose a quota on textile and apparel goods imported from the country, based on the volume of such goods imported during the first 12 of the preceding 24 months, or shall impose a duty on the apparel or textile goods of the country, at a level designed to secure future cooperation. (5) Applicability of united states laws and procedures.-- All provisions of the laws, regulations, and procedures of the United States relating to the denial of entry of articles or penalties against individuals or entities for engaging in illegal transshipment, fraud, or other violations of the customs laws, shall apply to imports of textiles and apparel from sub-Saharan African countries, in addition to the specific provisions of this section. (6) Monitoring and reports to congress.--Not later than March 31 of each year, the Customs Service shall monitor and the Commissioner of Customs shall submit to Congress a report on the measures taken by each country in sub-Saharan Africa that imports textiles or apparel goods into the United States-- (A) to prevent transshipment; and (B) to prevent circumvention of this section or of any agreement regulating trade in textiles and apparel between that country and the United States. (e) Definition.--In this section, the term ``Agreement on Textiles and Clothing'' means the Agreement on Textiles and Clothing referred to in section 101(d)(4) of the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(4)). SEC. 202. GENERALIZED SYSTEM OF PREFERENCES. (a) Preferential Tariff Treatment for Certain Articles.--Section 503(a)(1) of the Trade Act of 1974 (19 U.S.C. 2463(a)(1)) is amended-- (1) by redesignating subparagraph (C) as subparagraph (D); and (2) by inserting after subparagraph (B) the following: ``(C) Eligible countries in sub-saharan africa.-- ``(i) In general.--(I) Subject to clause (ii), the President may provide duty-free treatment for any article described in subclause (II) that is imported directly into the United States from a sub-Saharan African country. ``(II) Article described.-- ``(aa) In general.--An article described in this subclause is an article set forth in the most current Lome Treaty product list, that is the growth, product, or manufacture of a sub-Saharan African country that is a beneficiary developing country and that is in compliance with the requirements of subsections (b) and (d) of section 201 of the HOPE for Africa Act of 1999, with respect to such article, if, after receiving the advice of the International Trade Commission in accordance with subsection (e), the President determines that such article is not import-sensitive in the context of all articles imported from United States Trading partners. This subparagraph shall not affect the designation of eligible articles under subparagraph (B). ``(bb) Other requirements.--In addition to meeting the requirements of division (aa), in the case of an article that is the product or manufacture of the oil or mineral extraction industry, and the business enterprise that produces or manufactures the article is involved in a joint-venture arrangement with, or related to as a subsidiary, trust, or subcontractor, a business enterprise organized under the laws of the United States, the European Union, Japan, or any other developed country (or group of developed countries), or operating in such countries, the business enterprise complies with the environmental standards that would apply to a similar operation in the United States, the European Union, Japan, or any other developed country (or group of developed countries), as the case may be. ``(ii) Rule of construction.--For purposes of clause (i), in applying subparagraphs (A) through (G) of section 201(b)(1) and section 201(d) of the Hope for Africa Act of 1999, any reference to textile and apparel goods or products shall be deemed to refer to the article provided duty-free treatment under clause (i).''. (b) Termination.--Title V of the Trade Act of 1974 is amended by inserting after section 505 the following new section: ``SEC. 505A. TERMINATION OF BENEFITS FOR SUB-SAHARAN AFRICAN COUNTRIES. ``No duty-free treatment provided under this title shall remain in effect after September 30, 2006 in the case of a beneficiary developing country that is a sub-Saharan African country.''. (d) Definitions.--Section 507 of the Trade Act of 1974 (19 U.S.C. 2467) is amended by adding at the end the following: ``(6) Sub-saharan african country.--The terms `sub-Saharan African country' and `sub-Saharan African countries' mean a country or countries in sub-Saharan Africa, as defined in section 6 of the HOPE For Africa Act of 1999. ``(7) Lome treaty product list.--The term `Lome Treaty product list' means the list of products that may be granted duty-free access into the European Union according to the provisions of the fourth iteration of the Lome Covention between the European Union and the African-Caribbean and Pacific States (commonly referred to as `Lome IV') signed on November 4, 1995.''. (e) Clerical Amendment.--The table of contents for title V of the Trade Act of 1974 is amended by inserting after the item relating to section 505 the following new item: ``505A. Termination of benefits for sub-Saharan African countries.''. (f) Effective Date.--The amendments made by this section take effect on the date that is 30 days after the date enactment of this Act. SEC. 203. ADDITIONAL ENFORCEMENT. A citizen of the United States shall have a cause of action in the United States district court in the district in which the citizen resides or in any other appropriate district to seek compliance with the standards set forth under subparagraphs (A) through (G) of section 201(b)(1), section 201(c), and section 201(d) of this Act with respect to any sub-Saharan African country, including a cause of action in an appropriate United States district court for other appropriate equitable relief. In addition to any other relief sought in such an action, a citizen may seek three times the value of any damages caused by the failure of a country or company to comply. The amount of damages described in the preceding sentence shall be paid by the business enterprise (or business enterprises) the operations or conduct of which is responsible for the failure to meet the standards set forth under subparagraphs (A) through (G) of section 201(b)(1), section 201(c), and section 201(d) of this Act. TITLE III--DEVELOPMENT ASSISTANCE FOR SUB-SAHARAN AFRICAN COUNTRIES SEC. 301. FINDINGS. (a) In General.--Congress makes the following findings: (1) In addition to drought and famine, the HIV/AIDS epidemic has caused countless deaths and untold suffering among the people of sub-Saharan Africa. (2) The Food and Agricultural Organization estimates that 543,000,000 people, representing nearly 40 percent of the population of sub-Saharan Africa, are chronically undernourished. (b) Amendment to Foreign Assistance Act of 1961.--Section 496(a)(1) of the Foreign Assistance Act of 1961 (22 U.S.C. 2293(a)(1)) is amended by striking ``drought and famine'' and inserting ``drought, famine, and the HIV/AIDS epidemic''. SEC. 302. PRIVATE AND VOLUNTARY ORGANIZATIONS. Section 496(e) of the Foreign Assistance Act of 1961 (22 U.S.C. 2293(e)) is amended-- (1) by redesignating paragraph (2) as paragraph (3); and (2) by inserting after paragraph (1) the following: ``(2) Capacity building.--In addition to assistance provided under subsection (h), the United States Agency for International Development shall provide capacity building assistance through participatory planning to private and voluntary organizations that are involved in providing assistance for sub-Saharan Africa under this chapter.''. SEC. 303. TYPES OF ASSISTANCE. Section 496(h) of the Foreign Assistance Act of 1961 (22 U.S.C. 2293(h)) is amended by adding at the end the following: ``(4) Prohibition on military assistance.--Assistance under this section-- ``(A) may not include military training or weapons; and ``(B) may not be obligated or expended for military training or the procurement of weapons.''. SEC. 304. CRITICAL SECTORAL PRIORITIES. (a) Agriculture, Food Security and Natural Resources.--Section 496(i)(1) of the Foreign Assistance Act of 1961 (22 U.S.C. 2293(i)(1)) is amended-- (1) in the heading, to read as follows: ``(1) Agriculture, food security and natural resources.-- ''; (2) in subparagraph (A)-- (A) in the heading, to read as follows: ``(A) Agriculture and food security.--''; (B) in the first sentence-- (i) by striking ``agricultural production in ways'' and inserting ``food security by promoting agriculture policies''; and (ii) by striking ``, especially food production,''; and (3) in subparagraph (B), in the matter preceding clause (i), by striking ``agricultural production'' and inserting ``food security and sustainable resource use''. (b) Health.--Section 496(i)(2) of the Foreign Assistance Act of 1961 (22 U.S.C. 2293(i)(2)) is amended by striking ``(including displaced children)'' and inserting ``(including displaced children and improving HIV/AIDS prevention and treatment programs)''. (c) Voluntary Family Planning Services.--Section 496(i)(3) of the Foreign Assistance Act of 1961 (22 U.S.C. 2293(i)(3)) is amended by adding at the end before the period the following: ``and access to prenatal healthcare''. (d) Education.--Section 496(i)(4) of the Foreign Assistance Act of 1961 (22 U.S.C. 2293(i)(4)) is amended by adding at the end before the period the following: ``and vocational education, with particular emphasis on primary education and vocational education for women''. (e) Income-Generating Opportunities.--Section 496(i)(5) of the Foreign Assistance Act of 1961 (22 U.S.C. 2293(i)(5)) is amended-- (1) by striking ``labor-intensive''; and (2) by adding at the end before the period the following: ``, including development of manufacturing and processing industries and microcredit projects''. SEC. 305. REPORTING REQUIREMENTS. Section 496 of the Foreign Assistance Act of 1961 (22 U.S.C. 2293) is amended by adding at the end the following: ``(p) Reporting Requirements.--The Administrator of the United States Agency for International Development shall, on a semiannual basis, prepare and submit to Congress a report containing-- ``(1) a description of how, and the extent to which, the Agency has consulted with nongovernmental organizations in sub- Saharan Africa regarding the use of amounts made available for sub-Saharan African countries under this chapter; ``(2) the extent to which the provision of such amounts has been successful in increasing food security and access to health and education services among the people of sub-Saharan Africa; ``(3) the extent to which the provision of such amounts has been successful in capacity building among local nongovernmental organizations; and ``(4) a description of how, and the extent to which, the provision of such amounts has furthered the goals of sustainable economic and agricultural development, gender equity, environmental protection, and respect for workers' rights in sub-Saharan Africa.''. SEC. 306. SEPARATE ACCOUNT FOR DEVELOPMENT FUND FOR AFRICA. Amounts appropriated to the Development Fund for Africa shall be appropriated to a separate account under the heading ``Development Fund for Africa'' and not to the account under the heading ``Development Assistance''. TITLE IV--SUB-SAHARAN AFRICA EQUITY AND INFRASTRUCTURE FUNDS SEC. 401. SUB-SAHARAN AFRICA EQUITY AND INFRASTRUCTURE FUNDS. (a) Initiation of Funds.--Not later than 12 months after the date of enactment of this Act, the Overseas Private Investment Corporation shall exercise the authorities it has to initiate 1 or more equity funds in support of projects in the countries in sub-Saharan Africa, in addition to any existing equity fund for sub-Saharan Africa established by the Corporation before the date of enactment of this Act. (b) Structure and Types of Funds.-- (1) Structure.--Each fund initiated under subsection (a) shall be structured as a partnership managed by professional private sector fund managers and monitored on a continuing basis by the Corporation. (2) Capitalization.--Each fund shall be capitalized with a combination of private equity capital, which is not guaranteed by the Corporation, and debt for which the Corporation provides guaranties. (3) Types of funds.--One or more of the funds, with combined assets of up to $500,000,000, shall be used in support of infrastructure projects in countries of sub-Saharan Africa, including basic health services (including AIDS prevention and treatment), hospitals, potable water, sanitation, schools, electrification of rural areas, and publicly-accessible transportation in sub-Saharan African countries. (c) Additional Requirements.--The Corporation shall ensure that-- (1) not less than 70 percent of trade financing and investment insurance provided through the equity funds established under subsection (a), and through any existing equity fund for sub-Saharan Africa established by the Corporation before the date of enactment of this Act, are allocated to small, women- and minority-owned businesses-- (A) of which not less than 60 percent of the ownership is comprised of citizens of sub-Saharan African countries and 40 percent of the ownership is comprised of citizens of the United States; and (B) that have assets of not more than $1,000,000; and (2) not less than 50 percent of the funds allocated to energy projects are used for renewal or alternative energy projects. TITLE V--OVERSEAS PRIVATE INVESTMENT CORPORATION AND EXPORT-IMPORT BANK INITIATIVES SEC. 501. OVERSEAS PRIVATE INVESTMENT CORPORATION INITIATIVES. Section 233 of the Foreign Assistance Act of 1961 (22 U.S.C. 2193) is amended by adding at the end the following: ``(e) Advisory Committee.-- ``(1) Establishment.--The President shall establish an advisory committee to work with and assist the Board in developing and implementing policies, programs, and financial instruments with respect to sub-Saharan Africa, including with respect to equity and infrastructure funds established under title IV of the HOPE for Africa Act of 1999. ``(2) Membership.-- ``(A) In general.--The advisory committee established under paragraph (1) shall consist of 15 members appointed by the President, of which 7 members shall be employees of the United States Government and 8 members shall be representatives of the private sector, including a representative from-- ``(i) a not-for-profit public interest organization; ``(ii) an organization with expertise in development issues; ``(iii) an organization with expertise in human rights issues; ``(iv) an organization with expertise in environmental issues; and ``(v) an organization with expertise in international labor rights. ``(B) Terms.--Each member of the advisory committee shall be appointed for a term of 2 years. ``(C) Compensation of members.-- ``(i) Private sector.--Members of the advisory committee who are representatives of the private sector shall not receive compensation by reason of their service on the advisory committee. ``(ii) Officers and employees of government.--Members of the advisory committee who are officers or employees of the Federal Government may not receive additional pay, allowances, or benefits by reason of their service on the advisory committee. ``(3) Meetings.-- ``(A) Open to public.--Meetings of the advisory committee shall be open to the public. ``(B) Advance notice.--The advisory committee shall provide advance notice in the Federal Register of any meeting of the committee, shall provide notice of all proposals or projects to be considered by the committee at the meeting, and shall solicit written comments from the public relating to such proposals or projects. ``(C) Decisions.--Any decision of the advisory committee relating to a proposal or project shall be published in the Federal Register with an explanation of the extent to which the committee considered public comments received with respect to the proposal or project, if any. ``(4) Environmental impact assessments.--The Corporation shall complete and release to the public the environmental impact assessments in compliance with the National Environmental Policy Act with respect to any proposal or project not later than 120 days before the advisory committee, or the Board, considers such proposal or project, whichever occurs earlier.''. SEC. 502. EXPORT-IMPORT BANK INITIATIVE. Section 2(b)(9) of the Export-Import Bank Act of 1945 (12 U.S.C. 635(b)(9)) is amended to read as follows: ``(9) For purposes of the funds allocated by the Bank for projects in countries in sub-Saharan Africa (as defined in section 6 of the HOPE for Africa Act of 1999): ``(A) The President shall establish an advisory committee to work with and assist the Board in developing and implementing policies, programs, and financial instruments with respect to such countries. ``(B) The advisory committee established under subparagraph (A) shall consist of 15 members, appointed by the President, of which 7 members shall be employees of the United States Government and 8 members shall be representatives of the private sector, including a representative from-- ``(i) a not-for-profit public interest organization; ``(ii) an organization with expertise in development issues; ``(iii) an organization with expertise in human rights; ``(iv) an organization with expertise in environmental issues; and ``(v) an organization with expertise in international labor rights. ``(C) Each member of the advisory committee shall serve for a term of 2 years. ``(D)(i) Members of the advisory committee who are representatives of the private sector shall not receive compensation by reason of their service on the advisory committee. ``(ii) Members of the advisory committee who are officers or employees of the Federal Government may not receive additional pay, allowances, or benefits by reason of their service on the advisory committee. ``(E) Meetings of the advisory committee shall be open to the public. ``(F) The advisory committee shall give timely advance notice of each meeting of the advisory committee, including a description of any matters to be considered at the meeting, shall establish a public docket, shall solicit written comments in advance on each proposal, and shall make each decision in writing with an explanation of disposition of the public comments. ``(G) The Bank shall complete and release to the public an environmental impact assessment in compliance with the National Environmental Policy Act with respect to a proposal or project with potential environmental effects, not later than 120 days before the advisory committee, or the Board, considers the proposal or project, whichever occurs earlier. ``(H) Section 14(a)(2) of the Federal Advisory Committee Act shall not apply to the advisory committee.''. TITLE VI--MISCELLANEOUS PROVISIONS SEC. 601. ANTICORRUPTION EFFORTS. (a) Findings.--Congress makes the following findings: (1) Corruption and bribery of public officials is a major problem in many African countries and represents a serious threat to the development of a functioning domestic private sector, to United States business and trade interests, and to prospects for democracy and good governance in African countries. (2) Of the 17 countries in sub-Saharan Africa rated by the international watchdog group, Transparency International, as part of the 1998 Corruption Perception Index, 13 ranked in the bottom half. (3) The Organization for Economic Cooperation and Development (OECD) Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, which has been signed by all 29 members of the OECD plus Argentina, Brazil, Bulgaria, Chile, and the Slovak Republic and which entered into force on February 15, 1999, represents a significant step in the elimination of bribery and corruption in international commerce. (4) As a party to the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, the United States should encourage the highest standards possible with respect to bribery and corruption. (b) Sense of Congress.--It is the sense of Congress that the United States should encourage at every opportunity the accession of sub- Saharan African countries, as defined in section 6, to the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions. SEC. 602. REQUIREMENTS RELATING TO SUB-SAHARAN AFRICAN INTELLECTUAL PROPERTY AND COMPETITION LAW. (a) Findings.--Congress finds that-- (1) since the onset of the worldwide HIV/AIDS epidemic, approximately 34,000,000 people living in sub-Saharan Africa have been infected with the disease; (2) of those infected, approximately 11,500,000 have died; and (3) the deaths represent 83 percent of the total HIV/AIDS- related deaths worldwide. (b) Sense of Congress.--It is the sense of Congress that-- (1) it is in the interest of the United States to take all necessary steps to prevent further spread of infectious disease, particularly HIV/AIDS; and (2) individual countries should have the ability to determine the availability of pharmaceuticals and health care for their citizens in general, and particularly with respect to the HIV/AIDS epidemic. (c) Limitations on Funding.--Funds appropriated or otherwise made available to any department or agency of the United States may not be obligated or expended to seek, through negotiation or otherwise, the revocation or revisions of any sub-Saharan African intellectual property or competition law or policy that is designed to promote access to pharmaceuticals or other medical technologies if the law or policy, as the case may be, complies with the Agreement on Trade- Related Aspects of Intellectual Property Rights referred to in section 101(d)(15) of the Uruguay Round Agreements Act. SEC. 603. EXPANSION OF THE UNITED STATES AND FOREIGN COMMERCIAL SERVICE IN SUB-SAHARAN AFRICA. (a) Findings.--Congress makes the following findings: (1) The United States and Foreign Commercial Service (in this section referred to as the ``Commercial Service'') plays an important role in helping United States businesses identify export opportunities and develop reliable sources of information on commercial prospects in foreign countries. (2) During the 1980's, the presence of the Commercial Service in sub-Saharan Africa consisted of 14 professionals providing services in 8 countries. By early 1997, that presence had been reduced by one-half to 7, in only 4 countries. (3) Since 1997, the Department of Commerce has slowly begun to increase the presence of the Commercial Service in sub- Saharan Africa, adding 5 full-time officers to established posts. (4) Although the Commercial Service Officers in these countries have regional responsibilities, this kind of coverage does not adequately service the needs of United States businesses attempting to do business in sub-Saharan Africa. (5) Because market information is not widely available in many sub-Saharan African countries, the presence of additional Commercial Service Officers and resources can play a significant role in assisting United States businesses in markets in those countries. (b) Appointments.--Subject to the availability of appropriations, by not later than December 31, 2000, the Secretary of Commerce, acting through the Assistant Secretary of Commerce and Director General of the United States and Foreign Commercial Service, shall take steps to ensure that-- (1) at least 20 full-time Commercial Service employees are stationed in sub-Saharan Africa; and (2) full-time Commercial Service employees are stationed in not less than 10 different sub-Saharan African countries. (c) Reports to Congress.--Not later than 1 year after the date of enactment of this Act, and each year thereafter for 5 years, the Secretary of Commerce, in consultation with the Secretary of State, shall report to Congress on actions taken to carry out subsection (b). Each report shall specify-- (1) in what countries full-time Commercial Service Officers are stationed, and the number of such officers placed in each such country; and (2) the effectiveness of the presence of the additional Commercial Service Officers in increasing United States exports to sub-Saharan African countries. TITLE VII--OFFSET SEC. 701. PRIVATE SECTOR FUNDING FOR RESEARCH AND DEVELOPMENT BY NASA RELATING TO AIRCRAFT PERFORMANCE. The Administrator of the National Aeronautics and Space Administration may not carry out research and development activities relating to the performance of aircraft (including supersonic aircraft and subsonic aircraft) unless the Administrator receives payment in full for such activities from the private sector. <all>