[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1777 Introduced in House (IH)]
113th CONGRESS
1st Session
H. R. 1777
To create jobs in the United States by increasing United States exports
to Africa by at least 200 percent in real dollar value within 10 years,
and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 26, 2013
Mr. Smith of New Jersey (for himself, Mr. Rush, and Ms. Bass)
introduced the following bill; which was referred to the Committee on
Foreign Affairs, and in addition to the Committees on Ways and Means,
Small Business, and Financial Services, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To create jobs in the United States by increasing United States exports
to Africa by at least 200 percent in real dollar value within 10 years,
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 ``Increasing American Jobs Through
Greater Exports to Africa Act of 2013''.
SEC. 2. FINDINGS; PURPOSE.
(a) Findings.--Congress makes the following findings:
(1) Export growth helps United States businesses grow and
create American jobs. In 2011, United States exports supported
9,700,000 jobs and 97.8 percent of United States exports came
from small- and medium-sized businesses in 2010.
(2) The more than 20 Federal agencies that are involved in
export promotion and financing are not sufficiently coordinated
to adequately expand United States commercial exports to
Africa.
(3) The President has taken steps to improve how the United
States Government supports American businesses by mandating an
executive review across agencies and a new Doing Business in
Africa initiative, but a substantially greater high-level focus
on Africa is needed.
(4) Many other countries have trade promotion programs that
aggressively compete against United States exports in Africa
and around the world. For example, in 2010, medium- and long-
term official export credit general volumes from the Group of 7
countries (Canada, France, Germany, Italy, Japan, the United
Kingdom, and the United States) totaled $65,400,000,000.
Germany provided the largest level of support at
$22,500,000,000, followed by France at $17,400,000,000 and the
United States at $13,000,000,000. Official export credit
support by emerging market economies such as Brazil, China, and
India are significant as well.
(5) Between 2008 and 2010, China alone provided more than
$110,000,000,000 in loans to the developing world, and, in
2009, China surpassed the United States as the leading trade
partner of African countries. In the last 10 years, African
trade with China has increased from $11,000,000,000 to
$166,000,000,000.
(6) The Export-Import Bank of the United States
substantially increased lending to United States businesses
focused on Africa from $400,000,000 in 2009 to $1,400,000,000
in 2011, but the Export-Import Bank of China dwarfed this
effort with an estimated $12,000,000,000 worth of financing.
Overall, China is outpacing the United States in selling goods
to Africa at a rate of 3 to 1.
(7) Other countries such as India, Turkey, Russia, and
Brazil are also aggressively seeking markets in Africa using
their national export banks to provide concessional assistance.
(8) The Chinese practice of concessional financing runs
contrary to the principles of the Organization of Economic Co-
operation and Development related to open market rates,
undermines naturally competitive rates, and can allow
governments in Africa to overlook the troubling record on labor
practices, human rights, and environmental impact.
(9) As stated in a recent report entitled ``Embracing
Africa's Economic Potential'' by Senator Chris Coons,
``Economic growth in Africa has risen dramatically, but the
continent's vast economic potential has not yet been fully
realized by the U.S. Government or the American private
sector.''.
(10) The African continent is undergoing a period of rapid
growth and middle class development, as seen from major
indicators such as Internet use, clean water access, and real
income growth. In the last decade alone, the percentage of the
population with access to the Internet has doubled. Seventy-
eight percent of Africa's rural population now has access to
clean water. Over the past 10 years, real income per person in
Africa has grown by more than 30 percent.
(11) Economists have designated Africa as the ``next
frontier market'', with profitability of many African firms and
growth rates of African countries exceeding global averages in
recent years. Countries in Africa have a collective spending
power of almost $9,000,000,000 and a gross domestic product of
$1,600,000,000,000, which are projected to double in the next
10 years.
(12) In the past 10 years, Africa has been home to 6 of the
10 fastest growing economies in the world. Sub-Saharan Africa
is projected to have the fastest growing economies in the world
over the next 10 years, with 7 of the 10 fastest growing
economies located in sub-Saharan Africa.
(13) When countries such as China assist with large-scale
government projects, they also gain an upper hand in relations
with African leaders and access to valuable commodities such as
oil and copper, typically without regard to environmental,
human rights, labor, or governance standards.
(14) Unless the United States can offer competitive
financing for its firms in Africa, it will be deprived of
opportunities to participate in African efforts to close the
continent's significant infrastructure gap that amounts to an
estimated $100,000,000,000.
(b) Purpose.--The purpose of this Act is to create jobs in the
United States by expanding programs that will result in increasing
United States exports to Africa by 200 percent in real dollar value
within 10 years.
SEC. 3. DEFINITIONS.
In this Act:
(1) Africa.--The term ``Africa'' refers to the entire
continent of Africa and its 54 countries, including the
Republic of South Sudan.
(2) African diaspora.--The term ``African diaspora'' means
the people of African origin living in the United States,
irrespective of their citizenship and nationality, who are
willing to contribute to the development of Africa.
(3) AGOA.--The term ``AGOA'' means the African Growth and
Opportunity Act (19 U.S.C. 3701 et seq.).
(4) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Appropriations, the Committee
on Banking, Housing, and Urban Affairs, the Committee
on Foreign Relations, and the Committee on Finance of
the Senate; and
(B) the Committee on Appropriations, the Committee
on Energy and Commerce, the Committee on Financial
Services, the Committee on Foreign Affairs, and the
Committee on Ways and Means of the House of
Representatives.
(5) Development agencies.--The term ``development
agencies'' includes the Department of State, the United States
Agency for International Development (USAID), the Millennium
Challenge Corporation (MCC), the Overseas Private Investment
Corporation (OPIC), the United States Trade and Development
Agency (USTDA), the United States Department of Agriculture
(USDA), and relevant multilateral development banks.
(6) Trade policy staff committee.--The term ``Trade Policy
Staff Committee'' means the Trade Policy Staff Committee
established pursuant to section 2002.2 of title 15, Code of
Federal Regulations, and is composed of representatives of
Federal agencies in charge of developing and coordinating
United States positions on international trade and trade-
related investment issues.
(7) Multilateral development banks.--The term
``multilateral development banks'' has the meaning given that
term in section 1701(c)(4) of the International Financial
Institutions Act (22 U.S.C. 262r(c)(4)) and includes the
African Development Foundation.
(8) Sub-saharan region.--The term ``sub-Saharan region''
refers to the 49 countries listed in section 107 of the African
Growth and Opportunity Act (19 U.S.C. 3706) and includes the
Republic of South Sudan.
(9) Trade promotion coordinating committee.--The term
``Trade Promotion Coordinating Committee'' means the Trade
Promotion Coordinating Committee established by Executive Order
12870 (58 Fed. Reg. 51753).
(10) United states and foreign commercial service.--The
term ``United States and Foreign Commercial Service'' means the
United States and Foreign Commercial Service established by
section 2301 of the Export Enhancement Act of 1988 (15 U.S.C.
4721).
SEC. 4. STRATEGY.
(a) In General.--Not later than 180 days after the date of the
enactment of this Act, the President shall establish a comprehensive
United States strategy for public and private investment, trade, and
development in Africa.
(b) Focus of Strategy.--The strategy required by subsection (a)
shall focus on--
(1) increasing exports of United States goods and services
to Africa by 200 percent in real dollar value within 10 years
from the date of the enactment of this Act;
(2) promoting the alignment of United States commercial
interests with development priorities in Africa;
(3) developing relationships between the governments of
countries in Africa and United States businesses that have an
expertise in such issues as infrastructure development,
technology, telecommunications, energy, and agriculture;
(4) improving the competitiveness of United States
businesses in Africa, including the role the African diaspora
can play in enhancing such competitiveness;
(5) exploring ways that African diaspora remittances can
help communities in Africa tackle economic, development, and
infrastructure financing needs;
(6) promoting economic integration in Africa through
working with the subregional economic communities, supporting
efforts for deeper integration through the development of
customs unions within western and central Africa and within
eastern and southern Africa, eliminating time-consuming border
formalities into and within these areas, and supporting
regionally based infrastructure projects;
(7) encouraging a greater understanding among United States
business and financial communities of the opportunities Africa
holds for United States exports;
(8) fostering partnership opportunities between United
States and African small- and medium-sized enterprises; and
(9) monitoring--
(A) market loan rates and the availability of
capital for United States business investment in
Africa;
(B) loan rates offered by the governments of other
countries for investment in Africa; and
(C) the policies of other countries with respect to
export financing for investment in Africa that are
predatory or distort markets.
(c) Consultations.--In developing the strategy required by
subsection (a), the President shall consult with--
(1) Congress;
(2) each agency that is a member of the Trade Promotion
Coordinating Committee;
(3) the relevant multilateral development banks, in
coordination with the Secretary of the Treasury and the
respective United States Executive Directors of such banks;
(4) each agency that participates in the Trade Policy Staff
Committee;
(5) the President's National Export Council;
(6) each of the development agencies;
(7) any other Federal agencies with responsibility for
export promotion or financing and development; and
(8) the private sector, including businesses,
nongovernmental organizations, and African diaspora groups.
(d) Submission to Congress.--
(1) Strategy.--Not later than 180 days after the date of
the enactment of this Act, the President shall submit to
Congress the strategy required by subsection (a).
(2) Progress report.--Not later than 3 years after the date
of the enactment of this Act, the President shall submit to
Congress a report on the implementation of the strategy
required by subsection (a).
(3) Content of report.--The report required by paragraph
(2) shall include an assessment of the extent to which the
strategy required by subsection (a)--
(A) has been successful in developing critical
analyses of policies to increase exports to Africa;
(B) has been successful in increasing the
competitiveness of United States businesses in Africa;
(C) has been successful in creating jobs in the
United States, including the nature and sustainability
of such jobs;
(D) has provided sufficient United States
Government support to meet third country competition in
the region;
(E) has been successful in helping the African
diaspora in the United States participate in economic
growth in Africa;
(F) has been successful in promoting economic
integration in Africa; and
(G) has made a meaningful contribution to the
transformation of Africa and its full integration into
the 21st century world economy, not only as a supplier
of primary products but also as full participant in
international supply and distribution chains and as a
consumer of international goods and services.
SEC. 5. SPECIAL AFRICA STRATEGY COORDINATOR.
The President shall designate an individual to serve as Special
Africa Export Strategy Coordinator--
(1) to oversee the development and implementation of the
strategy required by section 4; and
(2) to coordinate with the Trade Promotion Coordinating
Committee, (the interagency AGOA committees), and development
agencies with respect to developing and implementing the
strategy.
SEC. 6. TRADE MISSION TO AFRICA.
It is the sense of Congress that, not later than 1 year after the
date of the enactment of this Act, the Secretary of Commerce and other
high-level officials of the United States Government with
responsibility for export promotion, financing, and development should
conduct a joint trade mission to Africa.
SEC. 7. PERSONNEL.
(a) United States and Foreign Commercial Service.--
(1) In general.--The Secretary of Commerce shall ensure
that not less than 10 total United States and Foreign
Commercial Service officers are assigned to Africa for each of
the first 5 fiscal years beginning after the date of the
enactment of this Act.
(2) Assignment.--The Secretary shall, in consultation with
the Trade Promotion Coordinating Committee and the Special
Africa Export Strategy Coordinator, assign the United States
and Foreign Commercial Service officers described in paragraph
(1) to United States embassies in Africa after conducting a
timely resource allocation analysis that represents a forward-
looking assessment of future United States trade opportunities
in Africa.
(3) Multilateral development banks.--
(A) In general.--As soon as practicable after the
date of the enactment of this Act, the Secretary of
Commerce shall, using existing staff, assign not less
than 1 full-time United States and Foreign Commercial
Service officer to the office of the United States
Executive Director at the World Bank and the African
Development Bank.
(B) Responsibilities.--Each United States and
Foreign Commercial Service officer assigned under
subparagraph (A) shall be responsible for--
(i) increasing the access of United States
businesses to procurement contracts with the
multilateral development bank to which the
officer is assigned; and
(ii) facilitating the access of United
States businesses to risk insurance, equity
investments, consulting services, and lending
provided by that bank.
(b) Export-Import Bank of the United States.--Of the amounts
collected by the Export-Import Bank that remain after paying the
expenses the Bank is authorized to pay from such amounts for
administrative expenses, the Bank shall use sufficient funds to do the
following:
(1) Increase the number of staff dedicated to expanding
business development for Africa, including increasing the
number of business development trips the Bank conducts to
Africa and the amount of time staff spends in Africa to meet
the goals set forth in section 9 and paragraph (4) of section
6(a) of the Export-Import Bank of 1945, as added by section
9(a)(2).
(2) Maintain an appropriate number of employees of the Bank
assigned to United States field offices of the Bank to be
distributed as geographically appropriate through the United
States. Such offices shall coordinate with the related export
efforts undertaken by the Small Business Administration
regional field offices.
(3) Upgrade the Bank's equipment and software to more
expeditiously, effectively, and efficiently process and track
applications for financing received by the Bank.
(c) Overseas Private Investment Corporation.--
(1) Staffing.--Of the net offsetting collections collected
by the Overseas Private Investment Corporation used for
administrative expenses, the Corporation shall use sufficient
funds to increase by not more than 5 the staff needed to
promote stable and sustainable economic growth and development
in Africa, to strengthen and expand the private sector in
Africa, and to facilitate the general economic development of
Africa, with a particular focus on helping United States
businesses expand into African markets.
(2) Report.--The Corporation shall report to the
appropriate congressional committees on whether recent
technology upgrades have resulted in more effective and
efficient processing and tracking of applications for financing
received by the Corporation.
(3) Certain costs not considered administrative expenses.--
For purposes of this subsection, systems infrastructure costs
associated with activities authorized by title IV of chapter 2
of part I of the Foreign Assistance Act of 1961 (22 U.S.C. 231
et seq.) shall not be considered administrative expenses.
(d) Rule of Construction.--Nothing in this section shall be
construed as permitting the reduction of Department of Commerce,
Department of State, Export Import Bank, or Overseas Private Investment
Corporation personnel or the alteration of planned personnel increases
in other regions, except where a personnel decrease was previously
anticipated or where decreased export opportunities justify personnel
reductions.
SEC. 8. TRAINING.
The President shall develop a plan--
(1) to standardize the training received by United States
and Foreign Commercial Service officers, economic officers of
the Department of State, and economic officers of the United
States Agency for International Development with respect to the
programs and procedures of the Export-Import Bank of the United
States, the Overseas Private Investment Corporation, the Small
Business Administration, and the United States Trade and
Development Agency; and
(2) to ensure that, not later than 1 year after the date of
the enactment of this Act--
(A) all United States and Foreign Commercial
Service officers that are stationed overseas receive
the training described in paragraph (1); and
(B) in the case of a country to which no United
States and Foreign Commercial Service officer is
assigned, any economic officer of the Department of
State stationed in that country shall receive that
training.
SEC. 9. EXPORT-IMPORT BANK FINANCING.
(a) Financing for Projects in Africa.--
(1) Sense of congress.--It is the sense of Congress that
foreign export credit agencies are providing non-OECD
arrangement compliant financing in Africa, which is trade
distorting and threatens United States jobs.
(2) In general.--Section 6(a) of the Export-Import Bank Act
of 1945 (12 U.S.C. 635e(a)) is amended by adding at the end the
following:
``(4) Percent of financing to be used for projects in
africa.--The Bank shall, to the extent that there are
acceptable final applications, increase the amount it finances
to Africa over the prior year's financing for each of the first
five fiscal years beginning after the date of the enactment of
the Increasing American Jobs Through Greater Exports to Africa
Act of 2013.''.
(3) Report.--Not later than 1 year after the date of the
enactment of this Act, and annually thereafter for 5 years, the
Export-Import Bank shall report to the Committee on Banking,
Housing, and Urban Affairs, the Committee on Foreign Relations,
and the Committee on Appropriations of the Senate and the
Committee on Financial Services, the Committee on Foreign
Affairs, and the Committee on Appropriations of the House of
Representatives if the Bank has not used at least 10 percent of
its lending capabilities for projects in Africa as described in
paragraph (4) of section 6(a) of the Export-Import Bank of
1945, as added by paragraph (2). The report shall include the
reasons why the Bank failed to reach this goal and a
description of all final applications for projects in Africa
that were deemed unworthy of Bank support.
(b) Availability of Portion of Capitalization To Compete Against
Foreign Concessional Loans.--
(1) In general.--The Bank shall make available annually
such amounts as are necessary for loans that counter trade
distorting non-OECD arrangement compliant financing or
preferential, tied aid, or other related non-market loans
offered by other nations for which United States companies are
also competing or interested in competing.
(2) Report.--Not later than 1 year after the date of the
enactment of this Act, and annually thereafter for 5 years, the
Export-Import Bank shall submit to the Committee on Banking,
Housing, and Urban Affairs, the Committee on Foreign Relations,
and the Committee on Appropriations of the Senate and the
Committee on Financial Services, the Committee on Foreign
Affairs, and the Committee on Appropriations of the House of
Representatives a report on all loans made or rejected that
were considered to counter non-OECD arrangement compliant
financing offered by other nations to its firms. The report
shall not disclose any information that is confidential or
business proprietary, or that would violate section 1905 of
title 18, United States Code (commonly referred to as the
``Trade Secrets Act''). The report shall include a description
of trade distorting non-OECD arrangement compliant financing
loans made by other countries during that fiscal year to firms
that competed against the United States firms.
SEC. 10. SMALL BUSINESS ADMINISTRATION.
Section 22(b) of the Small Business Act (15 U.S.C. 649(b)) is
amended--
(1) in the matter preceding paragraph (1), by inserting
``the Trade Promotion Coordinating Committee,'' after
``Director of the United States Trade and Development
Agency,''; and
(2) in paragraph (3), by inserting ``regional offices of
the Export-Import Bank,'' after ``Retired Executives,''.
SEC. 11. BILATERAL, SUBREGIONAL AND REGIONAL, AND MULTILATERAL
AGREEMENTS.
Where applicable, the President shall explore opportunities to
negotiate bilateral, subregional, and regional agreements that
encourage trade and eliminate nontariff barriers to trade between
countries, such as negotiating investor friendly double-taxation
treaties and investment promotion agreements. United States negotiators
in multilateral forum should take into account the objectives of this
Act. To the extent any such agreements exist between the United States
and an African country, the President shall ensure that the agreement
is being implemented in a manner that maximizes the positive effects
for United States trade, export, and labor interests as well as the
economic development of the countries in Africa.
<all>