[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2067 Introduced in House (IH)]
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116th CONGRESS
1st Session
H. R. 2067
To improve the coordination of programs to provide trade capacity
building assistance, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 3, 2019
Mr. Guest introduced the following bill; which was referred to the
Committee on Foreign Affairs
_______________________________________________________________________
A BILL
To improve the coordination of programs to provide trade capacity
building assistance, and for other purposes.
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 ``Aid for Trade Act of 2019''.
SEC. 2. FINDINGS.
Congress makes the following findings:
(1) Productive international trading relationships are
vital to the economic growth and national security of the
United States.
(2) According to the United States Agency for International
Development, 11 of America's top 15 trading partners were once
recipients of United States foreign assistance, and some of the
fastest growing markets are former recipients of United States
foreign assistance.
(3) Stable trading relationships promote security and
prosperity, and leadership by the United States in
international trade fosters the expansion of open markets and
can help level the playing field for United States businesses,
workers, and consumers in the global marketplace.
(4) Programs to provide trade capacity building assistance
strengthen good governance, advance rule of law, combat
corruption, promote human rights, reduce poverty, and spur
economic opportunity.
(5) Private-sector-led trade and investment are fundamental
components of inclusive growth and development. Programs to
provide trade capacity building assistance help developing
countries to reduce and eliminate nontariff trade barriers that
inhibit the ability of such countries to implement trade
agreements, participate in the global economy, create jobs and
economic opportunity, and reduce poverty.
(6) Reducing trade transaction costs through trade capacity
improvements and trade facilitation reforms will assist United
States exporters and small and medium-size enterprises reach
new customers in developing countries. Reducing these costs
through trade facilitation reforms will assist developing
country businesses to trade and invest with each other and take
advantage of global supply and value chains.
(7) According to the United States Trade Representative,
``the United States is one of the largest single-country
providers of trade-related assistance'' (also called trade
capacity building assistance or ``Aid for Trade'').
(8) At the 9th Ministerial of the World Trade Organization
in Bali, Indonesia, in December 2013, the 159 members of the
World Trade Organization (WTO) concluded the Trade Facilitation
Agreement (TFA), the first global WTO trade agreement in 20
years. WTO members amended the WTO agreements to include the
TFA on November 27, 2014, and opened it for acceptance by WTO
members. The TFA entered into force on February 22, 2017, after
ratification by two-thirds of the WTO membership.
(9) The TFA includes measures and obligations designed to
streamline customs procedures, increase customs transparency,
and speed the flow of goods across borders.
(10) According to the Organization for Economic Cooperation
and Development (OECD), full implementation of the TFA could
reduce trade costs by as much as an estimated 16.5 percent of
low income countries, 17 percent for lower-middle income
countries, 14.6 percent for upper-middle income countries, and
11.8 percent for OECD countries.
(11) The OECD has noted that trade barriers created by
ineffective policies and burdensome rules and procedures can
incentivize corrupt business practices, and therefore all
relevant stakeholders have an interest in supporting efforts to
streamline trade regulation and reduce non-tariff barriers.
(12) The TFA requires developing countries to identify
impediments to trade facilitation and commits developed
countries to assist developing countries' efforts to come into
compliance with the obligations of the TFA.
(13) The United States is the largest provider of trade
capacity building assistance in the world, according to the
United States Agency for International Development. In 2017,
the United States Government obligated nearly $1,100,000,000 in
trade capacity building efforts in over 130 countries, which
were implemented by more than a dozen United States Government
departments and agencies.
(14) There is no single coordinating agency for trade
capacity building activities in the United States Government.
Each agency has its own processes for ensuring proper and
effective programming of its appropriated funds.
(15) A clear, whole-of-government strategy is needed to
leverage and coordinate limited trade capacity funds to
implement the TFA, advance productive international trading
relationships for United States businesses, workers, consumers,
foreign trading partners, and promote inclusive economic growth
and opportunity in developing countries.
SEC. 3. DEFINITIONS.
In this Act:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Foreign Affairs, the Committee
on Ways and Means, and the Committee on Appropriations
of the House of Representatives; and
(B) the Committee on Foreign Relations, the
Committee on Finance, and the Committee on
Appropriations of the Senate.
(2) Private sector.--The term ``private sector'' means for-
profit United States businesses and not-for-profit entities.
(3) Trade capacity building assistance.--The term ``trade
capacity building assistance'' means United States bilateral,
regional, or multilateral assistance, the primary purpose of
which is to support the following activities for developing
countries:
(A) Technical assistance to assist in acceding,
implementing, and adhering to international trade
agreements, including trade policy development, trade
negotiations assistance, administrative management of
trade obligations, regulatory reform related to trade
agreements, and trade-related education.
(B) Technical assistance to improve governance and
transparency with respect to imports, exports, and
international investment, including improvement of the
investment climate and investor protections.
(C) Technical assistance to enable micro-, small-,
and medium-size enterprises to trade and access markets
more efficiently.
(D) Technical assistance to establish and implement
internationally recognized standards.
(E) Assistance to reduce nontariff barriers to
trade at national borders, including technical
assistance to reform and modernize customs operations
and procedures and to expedite the movement, release,
and clearance of goods, including goods in transit.
(F) Assistance that will contribute directly and
substantially to facilitating trade flows.
(4) Relevant executive branch agencies.--The term
``relevant executive branch agencies'' means any Federal
department or agency that the President determines to be
substantially involved in programs to provide trade capacity
building assistance.
SEC. 4. STATEMENT OF POLICY.
It is the policy of the United States to--
(1) set strategic priorities for the efficient use of
programs to provide trade capacity building assistance;
(2) build self-sustaining institutional capacity in
developing countries for expanding international trade to
accelerate inclusive, broad-based economic growth, poverty
reduction, and development, consistent with international
obligations and commitments; and
(3) further the national interests of the United States
by--
(A) expanding prosperity through the elimination of
barriers to trade and investment in developing
countries;
(B) assisting developing country trading partners
to identify and reduce barriers to the movement of
goods in international commerce and to investment;
(C) assisting developing country trading partners
in undertaking reforms that will encourage economic
growth and development; and
(D) supporting businesses in developing countries
to engage in reform efforts to increase trade and
investment, and integrate into global supply chains.
SEC. 5. COORDINATION AND SUPERVISION OF PROGRAMS TO PROVIDE TRADE
CAPACITY BUILDING ASSISTANCE.
(a) In General.--Notwithstanding any other provision of law, the
Secretary of State, in consultation with the Administrator of the
United States Agency for International Development and the United
States Trade Representative, shall--
(1) have primary responsibility for overseeing and carrying
out programs to provide trade capacity building assistance;
(2) give priority to programs to provide such assistance
for any developing country that--
(A) has demonstrated progress in, and a commitment
to, implementing the commitments under the World Trade
Organization's Trade Facilitation Agreement, including
the establishment and maintenance of a national
committee on trade facilitation and other relevant
trade obligations and commitments, taking into accounts
the country's capacity building assistance needs;
(B) has demonstrated consistent support for
economic policies that promote the development of
private enterprise;
(C) has expressed an interest in entering into a
free trade agreement with the United States;
(D) is designated by the President--
(i) as an eligible sub-Saharan African
country under the African Growth and
Opportunity Act (19 U.S.C. 3703); or
(ii) as a beneficiary developing country
under section 502 or 506A of the Trade Act of
1974 (19 U.S.C. 2462 or 2466a); or
(E) has the potential to benefit the private sector
and United States economy if such assistance is
provided to the developing country; and
(3) ensure that programs to provide trade capacity building
assistance by relevant executive branch agencies are coordinate
and not duplicated.
(b) Interagency Task Force on Trade Capacity Building.--
(1) Establishment.--Not later than 60 days after the date
of enactment of this Act, the President shall establish an
interagency task force to improve the effectiveness and
efficiency of programs to provide trade capacity building
assistance.
(2) Chairperson; vice chairperson.--The Secretary of State,
or the Secretary's designee, shall serve as chairperson of the
interagency task force. The Administrator of the United States
Agency for International Development, or the Administrator's
designee, and the United States Trade Representative, or the
Trade Representative's designee, and shall serve as vice
chairpersons of the interagency task force.
(3) Membership.--The President shall appoint to the
interagency task force senior officials of--
(A) the Department of Commerce;
(B) the Department of Agriculture;
(C) the Department of the Treasury;
(D) the Department of Homeland Security, including
at least one such senior official of U.S. Customs and
Border Protection;
(E) the Millennium Challenge Corporation;
(F) the United States Trade and Development Agency;
and
(G) other relevant executive branch agencies.
(4) Budget review and recommendation authority.--The
interagency task force, in coordination with the Director of
the Office of Management and Budget, shall--
(A) review the expenditures of each of relevant
executive branch agency with respect to programs to
provide trade capacity building assistance; and
(B) report and make recommendations to the
President on appropriate budget allocations to each
such relevant executive branch agency with respect to
programs to provide trade capacity building assistance.
(5) Joint strategic plan.--The interagency task force, in
consultation with relevant chiefs of mission and
representatives of the private sector, shall develop a biennial
joint strategic plan for programs to provide trade capacity
building assistance that establishes detailed and clear
objectives, common metrics, and specific goals for the
efficient delivery of such assistance, including--
(A) improving the effectiveness and efficiency of
such assistance by improving coordination among--
(i) relevant executive branch agencies,
including diplomatic missions of the United
States; and
(ii) international trade capacity building
and technical assistance donors, including
efforts to promote the best use of resources
and avoid duplication, to share best practices,
and to pursue regional solutions and common
approaches, as appropriate;
(B) improving consultation with the private sector
to incorporate its operational expertise and experience
with respect to the full range of trade barriers in
developing countries and setting priorities and target
particular barriers for reform;
(C) identifying and addressing structural
weaknesses, systemic flaws, or other impediments to the
effectiveness of such assistance across the relevant
executive branch agencies with actionable
recommendations to address such weaknesses, flaws, or
other impediments;
(D) setting priorities for such assistance to focus
resources on developing countries in which such
assistance can deliver the best value in identifying
and eliminating barriers to trade and investment in
such developing countries, including by fostering
adherence to international trade obligations;
(E) developing appropriate performance measures and
establishing yearly targets to monitor and assess
progress toward such targets, including measures to
terminate unsuccessful programs; and
(F) providing estimates of the resources necessary
to fulfill the priorities identified by the interagency
committee.
(6) Report.--Not later than one year after the date of the
enactment of this Act, and biennially thereafter until the
termination of the interagency task force under subsection (d),
the task force shall submit to the President and the
appropriate congressional committees a report that contains--
(A) the joint strategic plan required under
paragraph (5); and
(B) as appropriate, recommendations for changes to
programs to provide trade capacity building assistance,
including with respect to priorities for funding of
such assistance.
(c) Consistency With Other Trade Obligations.--The interagency task
force shall ensure that the joint strategic plan required under
subsection (b)(5) is consistent with the international trade
obligations of the United States.
(d) Termination.--The President may terminate the interagency task
force shall after the submission of the second report required under
subsection (b)(6).
SEC. 6. MISSION RESPONSIBILITIES.
Section 207 of the Foreign Service Act of 1980 (22 U.S.C. 3927) is
amended by adding at the end the following new subsection:
``(d) Trade Capacity Building Assistance.--
``(1) In general.--Each chief of mission to a developing
country shall, working with the private sector and government
of such country, as appropriate--
``(A) identify local country barriers to
international trade and investment;
``(B) advise the Secretary of State on the best use
of trade capacity building assistance in such country;
and
``(C) coordinate and supervise programs to provide
trade capacity building assistance by relevant
executive branch agencies present in such country
(except for assistance under the control of a United
States area military commander).
``(2) Definitions.--In this subsection, the terms `trade
capacity building assistance' and `relevant executive branch
agencies' have the meaning given such terms in section 3 of the
Aid for Trade Act of 2019.''.
SEC. 7. LIMITATIONS AND CONFORMING MEASURES.
(a) Rule of Construction.--This Act, and the amendments made by
this Act, shall be implemented in a manner consistent with the duties
and responsibilities of the Office of the United States Trade
Representative as the agency with primary responsibility for
developing, and for coordinating the implementation of, United States
international trade policy under section 141 of the Trade Act of 1974
(19 U.S.C. 2171).
(b) Exception, Qualification.--Section 660(b) of the Foreign
Assistance Act of 1961 (22 U.S.C. 2420(b)) is amended--
(1) in paragraph (4), by striking ``or'' at the end;
(2) by moving the margin of paragraph (7) two ems to the
left;
(3) in paragraph (7), as so amended, by striking the period
at the end and inserting ``; or''; and
(4) by inserting after paragraph (7), as so amended, the
following new paragraph:
``(8) with respect to programs to provide trade capacity
building assistance (as such term is defined in section 3 of
the Aid for Trade Act of 2019), including training and
technical assistance, provided to customs and transportation
authorities and personnel in developing countries.''.
SEC. 8. REPORT BY THE COMPTROLLER GENERAL OF THE UNITED STATES.
(a) In General.--Not later than 2 years and 4 years after the date
of the enactment of this Act, the Comptroller General of the United
States shall submit to the appropriate committees a report on programs
to provide trade capacity building assistance.
(b) Matters To Be Included.--The report required under subsection
(a) shall include the following:
(1) A review of the implementation of the joint strategic
plan required under section 5(b)(5).
(2) A description of interagency efforts to improve
coordination and effectiveness of programs to provide trade
capacity building assistance, including collaboration with the
private sector, sharing of best practices, the development of
common performance metrics, and efforts to reduce duplication.
(3) What is known about the impact of trade capacity
assistance in supporting developing countries' efforts to
implement the World Trade Organization's Trade Facilitation
Agreement and advance the policy described in section 4.
(4) What is known about progress made in working with donor
countries to coordinate trade capacity building donor
activities to ensure the effectiveness and reduce duplication
of trade capacity building assistance activities.
(5) Recommendations to improve programs to provide trade
capacity building assistance.
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