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108th CONGRESS
2d Session
S. 2529
To extend and modify the trade benefits under the African Growth and
Opportunity Act.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 16, 2004
Mr. Grassley (for himself, Mr. Baucus, Mr. Frist, Mr. Daschle, Mr.
Lugar, Mr. Lieberman, Mr. Santorum, Mrs. Murray, Mr. McCain, Mr.
Sununu, Mr. Fitzgerald, Mr. DeWine, Mr. Lautenberg, Ms. Cantwell, Mr.
Inhofe, and Mr. Corzine) introduced the following bill; which was read
twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To extend and modify the trade benefits under the African Growth and
Opportunity Act.
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 ``AGOA Acceleration Act of 2004''.
SEC. 2. FINDINGS.
The Congress finds the following:
(1) The African Growth and Opportunity Act (in this section
and section 3 referred to as ``the Act'') has helped to spur
economic growth and bolster economic reforms in the countries
of sub-Saharan Africa and has fostered stronger economic ties
between the countries of sub-Saharan Africa and the United
States; as a result, exports from the United States to sub-
Saharan Africa reached record levels after the enactment of the
Act, while exports from sub-Saharan Africa to the United States
have increased considerably.
(2) The Act's eligibility requirements have reinforced
democratic values and the rule of law, and have strengthened
adherence to internationally recognized worker rights in
eligible sub-Saharan African countries.
(3) The Act has helped to bring about substantial increases
in foreign investment in sub-Saharan Africa, especially in the
textile and apparel sectors, where tens of thousands of new
jobs have been created.
(4) As a result of the Agreement on Textiles and Apparel of
the World Trade Organization, under which quotas maintained by
WTO member countries on textile and apparel products end on
January 1, 2005, sub-Saharan Africa's textile and apparel
industry will be severely challenged by countries whose
industries are more developed and have greater capacity,
economies of scale, and better infrastructure.
(5) The underdeveloped physical and financial
infrastructure in sub-Saharan Africa continues to discourage
investment in the region.
(6) Regional integration establishes a foundation on which
sub-Saharan African countries can coordinate and pursue
policies grounded in African interests and history to achieve
sustainable development.
(7) Expanded trade because of the Act has improved
fundamental economic conditions within sub-Saharan Africa. The
Act has helped to create jobs in the poorest region of the
world, and most sub-Saharan African countries have sought to
take advantage of the opportunities provided by the Act.
(8) Agricultural biotechnology holds promise for helping
solve global food security and human health crises in Africa
and, according to recent studies, has made contributions to the
protection of the environment by reducing the application of
pesticides, reducing soil erosion, and creating an environment
more hospitable to wildlife.
(9) (A) One of the greatest challenges facing African
countries continues to be the HIV/AIDS epidemic, which has
infected as many as one out of every four people in some
countries, creating tremendous social, political, and economic
costs. African countries need continued United States financial
and technical assistance to combat this epidemic.
(B) More awareness and involvement by governments are
necessary. Countries like Uganda, recognizing the threat of
HIV/AIDS, have boldly attacked it through a combination of
education, public awareness, enhanced medical infrastructure
and resources, and greater access to medical treatment. An
effective HIV/AIDS prevention and treatment strategy involves
all of these steps.
(10) African countries continue to need trade capacity
assistance to establish viable economic capacity, a well-
grounded rule of law, and efficient government practices.
SEC. 3. STATEMENT OF POLICY.
The Congress supports--
(1) a continued commitment to increase trade between the
United States and sub-Saharan Africa and increase investment in
sub-Saharan Africa to the benefit of workers, businesses, and
farmers in the United States and in sub-Saharan Africa,
including by developing innovative approaches to encourage
development and investment in sub-Saharan Africa;
(2) a reduction of tariff and nontariff barriers and other
obstacles to trade between the countries of sub-Saharan Africa
and the United States, with particular emphasis on reducing
barriers to trade in emerging sectors of the economy that have
the greatest potential for development;
(3) development of sub-Saharan Africa's physical and
financial infrastructure;
(4) international efforts to fight HIV/AIDS, malaria,
tuberculosis, other infectious diseases, and serious public
health problems;
(5) many of the aims of the New Partnership for African
Development (NEPAD), which include--
(A) reducing poverty and increasing economic
growth;
(B) promoting peace, democracy, security, and human
rights;
(C) promoting African integration by deepening
linkages between African countries and by accelerating
Africa's economic and political integration into the
rest of the world;
(D) attracting investment, debt relief, and
development assistance;
(E) promoting trade and economic diversification;
(F) broadening global market access for United
States and African exports;
(G) improving transparency, good governance, and
political accountability;
(H) expanding access to social services, education,
and health services with a high priority given to
addressing HIV/AIDS, malaria, tuberculosis, other
infectious diseases, and other public health problems;
(I) promoting the role of women in social and
economic development by reinforcing education and
training and by assuring their participation in
political and economic arenas; and
(J) building the capacity of governments in sub-
Saharan Africa to set and enforce a legal framework, as
well as to enforce the rule of law;
(6) negotiation of reciprocal trade agreements between the
United States and sub-Saharan African countries, with the
overall goal of expanding trade across all of sub-Saharan
Africa;
(7) the President seeking to negotiate, with interested
eligible sub-Saharan African countries, bilateral trade
agreements that provide investment opportunities, in accordance
with section 2102(b)(3) of the Trade Act of 2002 (19 U.S.C.
3802(b)(3));
(8) efforts by the President to negotiate with the member
countries of the Southern African Customs Union in order to
provide the opportunity to deepen and make permanent the
benefits of the Act while giving the United States access to
the markets of these African countries for United States goods
and services, by reducing tariffs and non-tariff barriers,
strengthening intellectual property protection, improving
transparency, establishing general dispute settlement
mechanisms, and investor-state and state-to-state dispute
settlement mechanisms in investment;
(9) a comprehensive and ambitious trade agreement with the
Southern African Customs Union, covering all products and
sectors, in order to mature the economic relationship between
sub-Saharan African countries and the United States and because
such an agreement would deepen United States economic and
political ties to the region, lend momentum to United States
development efforts, encourage greater United States
investment, and promote regional integration and economic
growth;
(10) regional integration among sub-Saharan African
countries and business partnerships between United States and
African firms; and
(11) economic diversification in sub-Saharan African
countries and expansion of trade beyond textiles and apparel.
SEC. 4. SENSE OF CONGRESS ON RECIPROCITY AND REGIONAL ECONOMIC
INTEGRATION.
It is the sense of the Congress that--
(1) the preferential market access opportunities for
eligible sub-Saharan African countries will be complemented and
enhanced if those countries are implementing actively and
fully, consistent with any remaining applicable phase-in
periods, their obligations under the World Trade Organization,
including obligations under the Agreement on Trade-Related
Aspects of Intellectual Property, the Agreement on the
Application of Sanitary and Phytosanitary Measures, and the
Agreement on Trade-Related Investment Measures, as well as the
other agreements described in section 101(d) of the Uruguay
Round Agreements Act (19 U.S.C. 3511(d));
(2) eligible sub-Saharan African countries should
participate in and support mutual trade liberalization in
ongoing negotiations under the auspices of the World Trade
Organization, including by making reciprocal commitments with
respect to improving market access for industrial and
agricultural goods, and for services, recognizing that such
commitments may need to reflect special and differential treatment for
developing countries;
(3) some of the most pernicious trade barriers against
exports by developing countries are the trade barriers
maintained by other developing countries; therefore, eligible
sub-Saharan African countries will benefit from the reduction
of trade barriers in other developing countries, especially in
developing countries that represent some of the greatest
potential markets for African goods and services; and
(4) all countries should make sanitary and phytosanitary
decisions on the basis of sound science.
SEC. 5. SENSE OF CONGRESS ON INTERPRETATION OF TEXTILE AND APPAREL
PROVISIONS OF AGOA.
It is the sense of the Congress that the executive branch,
particularly the Committee for the Implementation of Textile Agreements
(CITA), the Bureau of Customs and Border Protection of the Department
of Homeland Security, and the Department of Commerce, should interpret,
implement, and enforce the provisions of section 112 of the African
Growth and Opportunity Act, relating to preferential treatment of
textile and apparel articles, broadly in order to expand trade by
maximizing opportunities for imports of such articles from eligible
sub-Saharan African countries.
SEC. 6. DEFINITION.
In this Act, the term ``eligible sub-Saharan African country''
means an eligible sub-Saharan African country under the African Growth
and Opportunity Act.
SEC. 7. EXTENSION OF AFRICAN GROWTH AND OPPORTUNITY ACT.
(a) Generalized System of Preferences.--
(1) Extension of program.--Section 506B of the Trade Act of
1974 (19 U.S.C. 2466b) is amended by striking ``2008'' and
inserting ``2015''.
(2) Inputs from former beneficiary countries.--Section 506A
of the Trade Act of 1974 (19 U.S.C. 2466a) is amended--
(A) in subsection (b)(2)(B), by inserting ``or
former beneficiary sub-Saharan African countries''
after ``countries''; and
(B) in subsection (c)--
(i) by striking ``title, the terms'' and
inserting ``title--
``(1) the terms''; and
(ii) by adding at the end the following:
``(2) the term `former beneficiary sub-Saharan African
country' means a country that, after being designated as a
beneficiary sub-Saharan African country under the African
Growth and Opportunity Act, ceased to be designated as such a
country by reason of its entering into a free trade agreement
with the United States.''.
(b) Apparel Articles.--(1) Section 112(b)(1) of the African Growth
and Opportunity Act (19 U.S.C. 3721(b)(1)) is amended by striking
``(including'' and inserting ``or both (including''.
(2) Section 112(b)(3) of the African Growth and Opportunity Act (19
U.S.C. 3721 (b)(3)) is amended--
(A) in the matter preceding subparagraph (A)--
(i) by striking ``either in the United States or
one or more beneficiary sub-Saharan African countries''
each place it appears and inserting ``in the United
States or one or more beneficiary sub-Saharan African
countries or former beneficiary sub-Saharan African
countries, or both''; and
(ii) by striking ``subject to the following:'' and
inserting ``whether or not the apparel articles are
also made from any of the fabrics, fabric components
formed, or components knit-to-shape described in
paragraph (1) or (2) (unless the apparel articles are
made exclusively from any of the fabrics, fabric
components formed, or components knit-to-shape
described in paragraph (1) or (2)), subject to the
following:''; and
(B) by striking subparagraphs (A) and (B) and inserting the
following:
``(A) Limitations on benefits.--
``(i) In general.--Preferential treatment
under this paragraph shall be extended in the
1-year period beginning October 1, 2003, and in
each of the 11 succeeding 1-year periods, to
imports of apparel articles in an amount not to
exceed the applicable percentage of the
aggregate square meter equivalents of all
apparel articles imported into the United
States in the preceding 12-month period for
which data are available.
``(ii) Applicable percentage.--For purposes
of this subparagraph, the term `applicable
percentage' means--
``(I) 4.747 percent for the 1-year
period beginning October 1, 2003,
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