[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 2215 Introduced in Senate (IS)]
112th CONGRESS
2d Session
S. 2215
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 SENATE OF THE UNITED STATES
March 21, 2012
Mr. Durbin (for himself, Mr. Boozman, and Mr. Coons) introduced the
following bill; which was read twice and referred to the Committee on
Foreign Relations
_______________________________________________________________________
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 2012''.
SEC. 2. FINDINGS; PURPOSE.
(a) Findings.--Congress makes the following findings:
(1) Export growth helps United States business grow and
create American jobs. In 2010, 60 percent of American exports
came from small- and medium-sized businesses.
(2) On January 31, 2011, the President mandated an
executive review across agencies to determine where the United
States Government could become more competitive and helpful to
business, including help with promoting exports.
(3) Several United States Government agencies are involved
in export promotion. Coordination of the efforts of these
agencies through the Trade Promotion Coordinating Committee
lacks sufficient strategic implementation and accountability.
(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. 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 an
anticipated $1,000,000,000 in 2011, but the Export-Import Bank
of China dwarfed this effort with an estimated $12,000,000,000
worth of financing.
(6) 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.
(7) 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.
(8) The African continent is undergoing a period of rapid
growth and middle class development, as seen from major
indicators such as Internet use and clean water access. In
2000, only 6.7 percent of the population of Africa had access
to the Internet. In 2009, 27.1 percent of the population had
Internet access. Seventy-eight percent of Africa's rural
population now has access to clean water.
(9) Economists have designated Africa as the ``next
frontier market'', with profitability and growth rates among
many African firms 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.
(10) Sub-Saharan Africa is projected to have the fastest
growing economies in the world over the next 5 years, with 7 of
the 10 fastest growing economies located in sub-Saharan Africa.
(11) 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.
(12) 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, and the
Committee on Foreign Relations 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, including the
United States Agency for International Development (USAID), the
Millennium Challenge Corporation (MCC), the Overseas Private
Investment Corporation (OPIC), and the United States Trade and
Development Agency (USTDA).
(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) coordinating 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 governments 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; and
(8) 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 multilateral development 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.
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.--As soon as practicable after the date of
the enactment of this Act, the Secretary of Commerce shall
ensure that not less than 14 total United States and Foreign
Commercial Service officers are assigned to Africa.
(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.
(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 assign not less than 1 full-time United
States and Foreign Commercial Service officer to the
office of the United States Executive Director at each
multilateral 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) Assign, in consultation with the Trade Promotion
Coordinating Committee and the Special Africa Export Strategy
Coordinator, not less than 3 full-time employees of the Bank to
geographically appropriate field offices in Africa.
(2) Increase the number of employees of the Bank assigned
to United States field offices of the Bank to not less than 30,
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.
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 CAPITALIZATION.
(a) In General.--Section 6(a)(2) of the Export-Import Bank Act of
1945 (12 U.S.C. 635e(a)(2)) is amended--
(1) in subparagraph (D), by striking ``and'';
(2) in subparagraph (E), by striking ``2011,'' and
inserting ``2011, $95,000,000,000;''; and
(3) by adding at the end the following:
``(F) during fiscal year 2012 and each fiscal year
thereafter through fiscal year 2016, $150,000,000,000;
and
``(G) subject to paragraph (4), during fiscal year
2017 and each fiscal year thereafter,
$175,000,000,000.''.
(b) Special Rule for Increase in Applicable Amount.--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) Special rule for increase in applicable amount.--
``(A) In general.--Beginning in fiscal year 2017,
and each fiscal year thereafter, the applicable amount
under paragraph (1) shall be $175,000,000,000, if the
Comptroller General of the United States determines
pursuant to subparagraph (B) that the increase in the
applicable amount under paragraph (1)(F) has been
effective in increasing viable loans to further United
States exports, including to Africa.
``(B) Report by gao.--The Comptroller General of
the United States shall conduct a study of the
operations of the Bank and the effectiveness of
increasing the applicable amount under this subsection.
Not later than 18 months after the date of the
enactment of this Act, the Comptroller General shall
submit a report to Congress regarding the Comptroller
General's determination on the effective use by the
Bank of the increase in the applicable amount under
this subsection.''.
(c) Percent To Be Used for Projects in Africa.--Section 6(a) of the
Export-Import Bank Act of 1945 (12 U.S.C. 635e(a)), as amended by
subsection (b), is amended by adding at the end the following:
``(5) Percent of increase to be used for projects in
africa.--Not less than 25 percent of the amount by which the
applicable amount under paragraph (1) is increased under
paragraph (2) (F) or (G) over the applicable amount for fiscal
year 2011 shall be used for loans, guarantees, and insurance
for projects in Africa.''.
(d) Availability of Portion of Capitalization To Compete Against
Foreign Concessional Loans.--Not less than $250,000,000 of the total
bank capitalization of the Export-Import Bank shall be available
annually for loans that counter below-market rate, 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.
SEC. 10. TIED AID CREDIT FUND.
(a) Sense of Congress.--It is the sense of Congress that the
Export-Import Bank should use its Tied Aid Credit Fund to aggressively
help United States companies compete for projects in which a foreign
government is using any type of below market, preferential, or tied aid
loan. The Bank shall make use of any loan products available, including
pursuant to section 9(d), to counter these foreign offerings.
(b) Report.--Not later than 1 year after the date of the enactment
of this Act, and annually thereafter, the Export-Import Bank shall
report to the appropriate congressional committees if the Bank has not
used at least $220,000,000 in tied aid credit during the preceding
fiscal year. The report shall include--
(1) a description of all requests for grants from the Tied-
Aid Credit Fund or other similar funds (established under
section 10 of the Export-Import Bank Act of 1945 (12 U.S.C.
635i-3)) received by the Bank during that fiscal year;
(2) a description of similar concessional (below market
rate) loans made by other countries during that fiscal year;
and
(3) a description of any such grant requests that were
denied and the reason for such denial.
SEC. 11. 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. 12. BILATERAL, SUBREGIONAL AND REGIONAL, AND MULTILATERAL
AGREEMENTS.
Where applicable, the United States Trade Representative and
officials of the Export-Import Bank 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 Trade Representative 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.
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