[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 5154 Introduced in Senate (IS)]
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117th CONGRESS
2d Session
S. 5154
To promote the African Continental Free Trade Area, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
November 30 (legislative day, November 29), 2022
Mr. Van Hollen introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To promote the African Continental Free Trade Area, 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 ``Strengthening the African
Continental Free Trade Area Act of 2022'' or the ``Strengthening the
AfCFTA Act of 2022''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) By 2035, the gross domestic product of African
countries is projected to increase by $450,000,000,000 with the
implementation of the AfCFTA and lift 30,000,000 Africans out
of extreme poverty while boosting the wages of African women
and unskilled workers in particular, according to World Bank
estimates.
(2) According to the World Bank, the total intracontinental
exports from African countries would increase by 81 percent
under the AfCFTA. By economic sector, the AfCFTA is expected to
be especially important for expanding manufacturing, by
increasing intracontinental manufacturing exports by 110
percent, which will diversify African economies and decrease
the reliance of such economies upon extracting natural
resources.
(3) The AfCFTA will also increase African manufacturing
exports to the rest of the world by 46 percent. As a result of
the AfCFTA creating new commercial opportunities and
diversifying global supply chains, the rest of the world's
gross domestic product is expected to increase by
$76,000,000,000.
SEC. 3. STATEMENT OF POLICY.
It is the policy of the United States to--
(1) support the African Union's Agenda 2063 efforts to
promote regional economic development, diversification, and
integration by stimulating greater trade and investment among
African countries and between Africa and the global trade
partners of Africa, notably including greater collaboration
with the United States;
(2) partner with the African Union Commission, African
Union entities such as the African Continental Free Trade Area
Secretariat, regional economic communities, and other
intergovernmental African organizations to bolster trade and
investment at the regional, intracontinental, and international
levels;
(3) increase opportunities for trade and investment between
African countries and United States businesses, including those
owned by members of the African diaspora, thereby contributing
to potential United States economic growth; and
(4) promote the goals of the African Continental Free Trade
Area (AfCFTA), formed by the Agreement Establishing the African
Continental Free Trade Area, done at Kigali, Rwanda on March
21, 2018, to simplify and expedite trade and investment among
African countries and expand commercial opportunities for
underserved groups, women, and youth entrepreneurs.
SEC. 4. STRATEGY TO PROMOTE THE AFRICAN CONTINENTAL FREE TRADE AREA.
(a) Development of Strategy.--
(1) United states trade representative.--The President
shall, using existing interagency trade policy development and
coordination authority and mechanisms, direct the United States
Trade Representative to develop a 10-year Federal strategy to
promote the AfCFTA to achieve the following goals:
(A) Improving the efficacy, efficiency, and
coordination of development aid and technical
assistance from the United States focusing on trade
capacity building that is provided to African
countries, regional communities, and intergovernmental
or multinational entities, including to the AfCFTA
Secretariat.
(B) Implementing trade policy priorities of the
AfCFTA developed in coordination with continental,
regional, and country partners in Africa.
(2) Elements.--The strategy developed pursuant to paragraph
(1) shall include policy or program plans to accomplish the
following:
(A) Increasing the volume and velocity of goods and
services trade between African countries by improving
customs operations, which may include--
(i) providing support for increased
automation or online processing of customs and
cross-border trade-related tasks; and
(ii) supporting efforts--
(I) to ensure adequate access to
reliable electrical power supplies and
internet access to foster
digitalization where necessary; and
(II) to provide paper-based or
other applicable technical alternatives
at border crossings where electricity
or internet access is unreliable or
unavailable, including in coordination
with the Power Africa initiative of the
United States where applicable.
(B) Expanding trade capacities and supporting
trade-related infrastructure development, prioritizing
major intra-African trade corridors.
(C) Supporting the implementation and success of
the AfCFTA and its goals as identified in consultation
with African counterparts at the continental, regional,
and country level, including by--
(i) advancing African regional and
intracontinental alignment of trade-related
legal and administrative procedures;
(ii) strengthening the technical capacity
of the AfCFTA Secretariat; and
(iii) promoting the development and
expansion of African regional economic
communities as they pertain to fostering trade,
including through direct consultation and
partnership with the AfCFTA Secretariat.
(D) Improving the efficacy of trade capacity
building by the United States to support the
implementation of the AfCFTA, as appropriate, by
preventing duplication of or incompatibility between
the assistance activities of other major donors (such
as nongovernmental organizations, other countries, and
intergovernmental organizations) and the policies and
projects included in the strategy.
(E) Enabling more effective and inclusive
participation of stakeholders, including those
representing workers, environmental sustainability,
women, youth, or marginalized or underrepresented
groups, in the negotiation and implementation of the
AfCFTA.
(F) Increasing trade and investment by the United
States to expand African regional value chains,
especially as it relates to increasing manufacturing
and production in Africa in industries expected to grow
with the implementation of the AfCFTA.
(G) Evaluating the industries in which the United
States has a comparative advantage in Africa relative
to other countries and promoting trade and investment
within those industries, especially in industries
expected to grow with the implementation of the AfCFTA.
(3) Biennial updates.--The strategy required under
paragraph (1) shall be updated biennially.
(4) Prior approval.--The strategy required under paragraph
(1) and any update to that strategy under paragraph (3) may
only be developed through prior consultation with, and
submitted with the approval of, the Trade Policy Staff
Committee.
(5) Consultation.--In developing the strategy required
under paragraph (1) and any update to that strategy under
paragraph (3), the United States Trade Representative shall, as
appropriate and practicable, consult with--
(A) stakeholders in the United States and in Africa
from the private sector, civil society, and African
diaspora;
(B) relevant African Union entities such as the
AfCFTA Secretariat;
(C) State, local, and Tribal governments; and
(D) development agencies and entities of the United
States not represented on the Trade Policy Staff
Committee, such as the Prosper Africa Initiative, the
Millennium Challenge Corporation, and the United States
International Development Finance Corporation.
(b) Initial Report.--Not later than 270 days after the date of the
enactment of this Act, the President shall (subject to the prior
approval required under subsection (a)(4)) submit to the relevant
congressional committees an initial report that includes the strategy
required under subsection (a) and an implementation plan for that
strategy that includes each of the following:
(1) The rationale, objectives, and anticipated manner of
implementation of the strategy.
(2) The anticipated role of each agency represented in the
Trade Policy Staff Committee in the implementation of the
strategy.
(3) A summary of the current trade capacity-building
programs, projects, and activities of the United States in
support of the AfCFTA as of the date of the submission of the
report, and the relationships between such programs, projects,
and activities and the objectives of the strategy.
(4) Any gaps, inefficiencies, or unmet needs identified in
the course of preparing the summary described in paragraph (3).
(5) Qualitative and quantitative goals and metrics for the
implementation of the strategy, including the criteria to be
used in monitoring and evaluating progress towards the
objectives of the strategy.
(6) Recommendations, in consultation with the Director of
the Office of Management and Budget, relating to programmatic
or appropriations measures that could potentially enhance the
implementation of the strategy, including legislative or
executive policy changes for such enhanced implementation.
(c) Biennial Report.--
(1) In general.--Not later than each of 2, 4, 6, and 8
years after the date of the submission of the initial report
required by subsection (b), the President shall submit to the
relevant congressional committees a report containing revisions
and updates to the strategy required under subsection (a) and
an assessment of the progress made in implementing the strategy
as described in such initial report.
(2) Elements.--Each report required by paragraph (1) shall
include each of the following:
(A) A description of the obligation and expenditure
of all amounts made available to carry out the strategy
required under subsection (a) during the preceding 2
fiscal years, disaggregated by fiscal year, account,
and activity.
(B) Notable successes and challenges relating to
the implementation of the strategy.
(C) An evaluation of the progress toward achieving
the qualitative and quantitative goals and metrics
included in the initial report required by subsection
(b) pursuant to paragraph (5) of that subsection.
(D) Any updates and revisions made to the criteria
described in subsection (b)(5) and included in the
initial report.
(E) Updated recommendations as described in
subsection (b)(6).
(d) Final Report.--
(1) In general.--Not later than 10 years after the date of
the submission of the initial report required by subsection
(b), the President shall submit to the relevant congressional
committees a report that assesses progress of the strategy
required by subsection (a) during the 10-year period preceding
the date of the report.
(2) Elements.--The report required by paragraph (1) shall
include each of the following:
(A) An assessment of the progress made in the
implementation of the strategy required by subsection
(a) during the 10-year period preceding the date of the
report with respect to each of the goals described in
subsection (a)(1), including with respect to the
qualitative and quantitative goals and metrics included
in the initial report pursuant to subsection (b)(5) and
using the criteria described in such subsection (b)(5).
(B) An assessment of the successes, challenges, and
effectiveness of the strategy.
(C) Recommended legislative or administrative
policy changes relevant to addressing any gaps, policy
or program shortcomings, or other outstanding
challenges relating to the goals of the strategy, along
with descriptions of prospective follow-up activities
necessary to address those challenges.
(D) Recommendations relating to fostering further
synergies between implementation of activities, as
relevant and appropriate, relating to the African
Growth and Opportunity Act (19 U.S.C. 3701 et seq.),
the AfCFTA, and any other trade policy initiatives of
the United States towards Africa, including types of
activities and expected outcomes based on the
implementation of the strategy.
(E) A detailed description of the expenditure of
all amounts authorized to implement the strategy
throughout the 10-year period, including amounts
appropriated pursuant to the authorization under
section 5(c), disaggregated by fiscal year, account,
and activity.
(e) Publication.--Each report required by this section shall be
submitted in unclassified form and may include a classified annex. The
unclassified portion of each such report shall be posted on publicly
available websites of the Office of the United States Trade
Representative.
SEC. 5. AFCFTA TRADE CAPACITY BUILDING PROGRAM.
(a) Trade Capacity Building Implementation.--The Administrator of
the United States Agency for International Development shall establish
an AfCFTA Trade Capacity Building Program (in this section referred to
as the ``Program'') to support the implementation of the strategy
required by section 4(a) through existing authorities granted by the
Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.), in
collaboration with continental, regional, and country partners in
Africa.
(b) Matters To Be Included.--In carrying out the Program, the
Administrator--
(1) may designate the Prosper Africa Initiative to
administer the Program;
(2) may support multi-year and renewable activities with
the Program;
(3) shall consult with the United States Trade
Representative in making programmatic decisions; and
(4) shall receive approval from the Trade Policy Staff
Committee for all activities for which funds are planned to be
made available (including any transfers to other Federal
departments, agencies, or entities) in a fiscal year from the
Program before the start of such fiscal year.
(c) Authorization of Appropriations.--There is authorized to be
appropriated $200,000,000 for each of fiscal years 2025 through 2034
for the United States Agency for International Development to carry out
the Program. Amounts so authorized--
(1) shall be in addition to amounts otherwise authorized
for existing projects, programs, and activities that support
the goals of the Program;
(2) may also be made available for consulting or technical
services, equipment, new personnel, or other project-related
administrative expenses associated with the development,
implementation, and reporting requirements of the strategy
required by section 4(a); and
(3) are authorized to be transferred from the United States
Agency for International Development to other appropriate
Federal departments or agencies to the extent provided in
advance by appropriations Acts.
SEC. 6. RULE OF CONSTRUCTION.
Nothing in this Act may be construed to--
(1) limit any authority or responsibility of the United
States Trade Representative relating to the establishment or
implementation of the trade policies of the United States
(including under section 141 of the Trade Act of 1974 (19
U.S.C. 2171)); or
(2) transfer any such authority or responsibility to the
Administrator of the United States Agency for International
Development.
SEC. 7. DEFINITIONS.
In this Act:
(1) AfCFTA.--The term ``AfCFTA'' means the African
Continental Free Trade Area authorized to be created under the
Agreement Establishing the African Continental Free Trade Area,
adopted by its African Union signatories in Kigali, Rwanda, on
March 21, 2018.
(2) Relevant congressional committees.--The term ``relevant
congressional committees'' means the following:
(A) The Committee on Foreign Relations, the
Committee on Finance, and the Committee on
Appropriations of the Senate.
(B) The Committee on Foreign Affairs, the Committee
on Ways and Means, and the Committee on Appropriations
of the House of Representatives.
(3) Trade policy staff committee.--The term ``Trade Policy
Staff Committee'' means the interagency organization
established under section 242(a) of the Trade Expansion Act of
1962 (19 U.S.C. 1872(a)).
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