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                                                       Calendar No. 181
113th Congress                                                   Report
                                 SENATE
 1st Session                                                    113-103

======================================================================



 
 INCREASING AMERICAN JOBS THROUGH GREATER EXPORTS TO AFRICA ACT OF 2013

                                _______
                                

               September 10, 2013.--Ordered to be printed

         Mr. Menendez, from the Committee on Foreign Relations,
                        submitted the following

                              R E P O R T

                         [To accompany S. 718]

    The Committee on Foreign Relations, to which was referred 
the bill S. 718, 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, reports favorably thereon which an amendment and 
recommends that the bill, as amended, do pass.

                                CONTENTS

                                                                   Page

  I. Purpose..........................................................1
 II. Committee Action.................................................2
III. Discussion.......................................................2
 IV. Cost Estimate....................................................4
  V. Evaluation of Regulatory Impact..................................7
 VI. Changes in Existing Law..........................................7

                               I. Purpose

    The purpose of S. 718 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.'' S. 718 directs the President to 
establish, implement, and submit to Congress a comprehensive 
strategy for public and private investment, trade, and 
development in Africa. It requires the President to designate a 
Special Africa Export Strategy Coordinator and directs the 
Department of Commerce, the Department of State, the Export-
Import Bank of the United States, and the Overseas Private 
Investment Corporation to improve staffing in support of trade 
with Africa. To achieve this objective, S. 718 also directs the 
Export-Import Bank to expand financing for projects in Africa 
and ensure adequate funding to counter foreign export credit 
finance that is noncompliant with agreements of the 
Organisation for Economic Co-operation and Development (OECD).

                          II. Committee Action

    S. 718 was introduced on April 11, 2013, by Senator Durbin 
and co-sponsored by Senators Boozman, Coons, Landrieu, and 
Cardin. On June 25, 2013, the committee considered S. 718 and 
ordered it reported favorably, with amendments.

                            III. Discussion

    A section-by-section discussion of the legislation follows.
    Section 2 includes the findings and explains the purpose of 
the bill, calling for a substantially greater high-level focus 
on trade with Africa. Improved coordination among the Federal 
agencies involved in export promotion and financing, and a 
greater focus on and expansion of efforts and programs of 
Federal agencies to support United States exports to Africa, 
are necessary to ensure United States competitiveness in 
Africa. Export growth helps United States business grow and 
create American jobs. This section highlights the economic 
potential of the African continent, identifies Africa as a 
potential growth market for United States exports, and outlines 
the strong competition created by other countries' trade 
promotion programs and the activities of their export credit 
agencies in Africa.
    Section 3 defines the terms used in the bill.
    Section 4 requires the President to establish, within 180 
days of the enactment of the Act, a comprehensive strategy for 
public and private investment, trade, and development in 
Africa. The strategy would focus on the objective of achieving 
a 200% real increase in exports of goods and services to 
Africa. The strategy shall focus on: aligning United States 
commercial interests with African development priorities; 
developing relationships between African governments and United 
States businesses; improving the competitiveness of United 
States businesses in Africa; exploring the role the African 
diaspora can play; promoting economic integration in Africa; 
and other objectives. Section 4 requires the President, in 
developing the strategy, to consult with Congress, the Trade 
Promotion Coordinating Committee, relevant multilateral 
development banks, the Trade Policy Staff Committee, the 
President's National Export Council, United States development 
agencies, Federal agencies responsible for export promotion or 
financing, and the private sector, including businesses, non-
governmental organizations, and African diaspora groups.
    Section 4 requires the President to submit the strategy to 
Congress no later than 180 days after the date of the enactment 
of the Act, and to submit a progress report within three years 
of enactment. The progress report would include an accounting 
of all United States Government programs to promote exports and 
trade with Africa and to assist United States businesses 
competing in the African market, as well as an assessment of 
the extent to which the strategy has succeeded in achieving its 
objectives, including: (1) development of critical analyses of 
policies to increase exports to Africa; (2) increased 
competitiveness of United States businesses; (3) creation of 
jobs in the United States; (4) provision of sufficient support 
to meet third country competition in the region; (5) assistance 
to the African diaspora to participate in economic growth in 
Africa; (6) promotion of economic integration in Africa; (7) 
encouragement of African policies and programs that provide a 
stable, safe, and transparent business environment; and (8) 
contribution to transforming and integrating Africa into the 
21st Century world economy.
    Section 5 of the bill requires the President to designate a 
Special Africa Export Strategy Coordinator to: (1) oversee 
development and implementation of the strategy required by 
section 4; and (2) coordinate with the Trade Promotion 
Coordinating Committee and development agencies on developing 
and implementing the strategy. The purpose of this section is 
to improve the coordination of United States Government 
agencies involved in the promotion of exports and investment 
abroad.
    Section 6 states the sense of the Congress that the 
Secretary of Commerce and other high-level United States 
Government officials responsible for export promotion, 
financing, and development, should conduct a joint trade 
mission to Africa no later than one year after the enactment of 
the Act.
    Section 7 directs specific Federal agencies to allocate 
adequate personnel and ensure adequate information technology 
systems, in order to successfully implement the strategy 
required by section 4. The Secretary of Commerce is directed to 
assign at least 10 United States and Foreign Commercial Service 
officers to United States Embassies in Africa for each of the 
first five fiscal years after the enactment of the Act, with 
their location based on an assessment of future trade 
opportunities. The Secretary of Commerce is also directed to 
use existing staff to assign at least one full-time United 
States and Foreign Commercial Officer to the office of the 
United States Executive Director at the World Bank and African 
Development Bank. Section 7 directs the Export-Import Bank to 
increase staff dedicated to expanding business development for 
Africa, increase the number of business development trips to 
Africa and the amount of time staff spends in Africa, maintain 
an appropriate number of Bank employees assigned to field 
offices in the United States, and upgrade equipment and 
software in order to improve processing and tracking of 
applications for financing. Section 7 directs the Overseas 
Private Investment Corporation to use sufficient funds to 
increase the staff needed to promote economic growth and 
development in Africa and strengthen and expand the private 
sector in Africa, with a focus on helping United States 
businesses expand into African markets. Finally, section 7 
includes a Rule of Construction, which clarifies that nothing 
in section 7 of the Act permits the Department of Commerce, 
Department of State, Export-Import Bank, and Overseas Private 
Investment Corporation to reduce personnel or alter planned 
personnel increases in other regions, except where previously 
anticipated or justified by decreased export opportunities.
    Section 8 directs the President to develop a plan to: (1) 
standardize the training for relevant Department of Commerce, 
Department of State, and United States Agency for International 
Development officers on the programs and procedures of the 
Export-Import Bank, Overseas Private Investment Corporation, 
Small Business Administration, and Trade and Development 
Agency; and (2) ensure that, no later than one year after 
enactment, all United States and Foreign Commercial Service 
Officers stationed overseas, as well as economic officers of 
the Department of State in posts where there no such officer is 
assigned, receive the training.
    Section 9 amends section 6(a) of the Export-Import Bank Act 
of 1945 (12 U.S.C. 635e(a)) to increase, to the extent there 
are acceptable final applications, the amount it finances to 
Africa over the prior year's financing for each of the first 
five fiscal years following enactment, and an attendant 
periodic report to the relevant Senate and House committees. It 
requires the Export-Import Bank to make financing available to 
counter trade distorting non-OECD arrangement compliant 
financing or preferential, tied aid, or other related non-
market loans offered by other nations in cases where United 
States companies are competing or interested in competing, as 
well as an attendant periodic report to the relevant Senate and 
House committees. During the business meeting Senators Corker 
and Durbin discussed their agreement that certain changes 
related to section 9 would be made prior to the bill going to 
the Senate floor. Section 9 makes clear that this report shall 
not disclose information that would violate section 1905 of 
title 18, United States Code (``Trade Secrets Act''), and shall 
describe trade distorting non-OECD arrangement compliant 
financing loans made by other countries to firms competing with 
United States firms.
    Section 10 makes technical and conforming amendments to 
section 22(b) of the Small Business Act (15 U.S.C. 649(b)).
    Finally, section 11 states that, where applicable, the 
President shall explore opportunities to negotiate bilateral, 
subregional, and regional agreements that encourage trade and 
eliminate nontariff barriers to trade with African countries. 
It also directs the President to ensure implementation of 
existing agreements between the United States and African 
countries, in a manner that maximizes the positive effects for 
the United States trade, export, and labor interests as well as 
the economic development of African countries.

                           IV. Cost Estimate

    In accordance with Rule XXVI, paragraph 11(a) of the 
Standing Rules of the Senate, the committee provides this 
estimate of the costs of this legislation prepared by the 
Congressional Budget Office.


                            United States Congress,
                               Congressional Budget Office,
                                     Washington, DC, July 22, 2013.

Hon. Robert Menendez,
Chairman, Committee on Foreign Relations,
U.S. Senate, Washington, DC.

    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 718, the Increasing 
American Jobs Through Greater Exports to Africa Act of 2013.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Sunita 
D'Monte.
          Sincerely,
                                       Douglas W. Elmendorf
    Enclosure.


S. 718, the Increasing American Jobs Through Greater Exports to Africa 
        Act of 2013

    Summary: S. 718 would expand federal programs and 
initiatives to promote exports to Africa. CBO estimates that 
implementing the bill would have discretionary costs of $15 
million over the 2014-2018 period, assuming appropriation of 
the necessary amounts.
    Pay-as-you-go procedures do not apply to this legislation 
because it would not affect direct spending or revenues.
    S. 718 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would not affect the budgets of state, local, or tribal 
governments.
    Estimated Cost to the Federal Government: The estimated 
budgetary impact of S. 718 is shown in the following table. The 
costs of this legislation fall within budget functions 150 
(international affairs) and 370 (commerce and housing credit).

                                        Changes in Spending Due to S. 718
                                     By Fiscal Year, in Millions of Dollars
----------------------------------------------------------------------------------------------------------------
                                                            2014     2015     2016     2017     2018   2014-2018
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Trade Financing Agencies
  Estimated Authorization Level.........................       2        2        3        3        3        13
  Estimated Outlays.....................................       2        2        2        2        3        11
International Trade Administration
  Estimated Authorization Level.........................       1        *        *        *        *         2
  Estimated Outlays.....................................       1        *        *        *        *         2
Trade Promotion Strategy
  Estimated Authorization Level.........................       *        *        *        *        *         2
  Estimated Outlays.....................................       *        *        *        *        *         2
Total Changes
  Estimated Authorization Level.........................       3        3        4        4        4        17
  Estimated Outlays.....................................       3        3        3        3        4        15
----------------------------------------------------------------------------------------------------------------
Notes: Components may not sum to totals because of rounding.
* = less than $500,000.

    Basis of Estimate: For this estimate, CBO assumes that S. 
718 will be enacted early in fiscal year 2014, that the 
necessary amounts will be appropriated each year, and that 
outlays will follow historical spending patterns for existing 
programs.
    Trade Financing Agencies: Section 7 of the bill would 
require the Export-Import Bank of the United States (Ex-Im) and 
the Overseas Private Investment Corporation (OPIC) to increase 
their staffing levels to promote trade and investment in 
Africa. Based on information from those agencies, CBO estimates 
that Ex-Im would hire three additional employees to serve 
overseas at an annual cost of about $350,000 per person and two 
additional employees to serve in the United States at an annual 
cost of about $200,000 per person, and that OPIC would require 
five additional employees at an annual cost of about $200,000 
per person. In total, those additional personnel would require 
annual appropriations of $2 million to 
$3 million a year, and would cost $11 million over the 2014-
2018 period, assuming appropriation of the necessary amounts.
    Section 9 would require Ex-Im to increase its activity in 
Africa or to report annually to the Congress if it cannot 
provide at least 10 percent of its financing to that region. 
Ex-Im currently provides about 5.5 percent of its financing to 
Africa. Because the bill would not increase the overall cap on 
Ex-Im's financing, implementing that provision would require 
the bank to reduce its financing to other regions of the world. 
New financing provided to Africa could be more or less risky 
than financing in other regions and could therefore increase or 
decrease the appropriations needed to cover Ex-Im's subsidy 
costs; however, CBO has no basis for estimating the net effect 
of such changes in the bank's financing.
    Finally, section 9 would require Ex-Im to report on its 
activity to counter tied aid or other concessional lending by 
foreign governments. Tied aid is a form of concessional lending 
that requires the recipient to buy goods or services from the 
donor. CBO estimates that those annual reporting requirements 
would cost less than $500,000 over the 2014-2018 period, 
assuming the availability of appropriated funds.
    International Trade Administration: Sections 7 and 8 would 
increase costs to the International Trade Administration (ITA) 
by requiring a commercial service officer to be placed at the 
African Development Bank and requiring the agency to develop a 
training program for foreign commercial service and economic 
officers with respect to programs of the Ex-Im, OPIC, the Small 
Business Administration, and the United States Trade and 
Development Agency.
    Based on information from the ITA, CBO estimates that the 
agency would spend about $400,000 per year for salaries and 
administrative costs incurred elsewhere in the agency to 
reassign an officer to serve at the African Development Bank. 
In addition, CBO estimates that providing training for foreign 
commercial service and economic officers would cost about 
$400,000 to develop the curriculum and to cover the costs 
incurred by attendees to travel to a central location to 
receive the training. Taken together, CBO estimates that 
implementing those provisions would cost $2 million over the 
2014-2018 period, assuming appropriation of the necessary 
amounts.
    Trade Promotion Strategy: Section 4 would require the 
President to develop and implement a strategy to promote 
exports to Africa and section 5 would require him to designate 
a special coordinator to oversee those efforts. Based on 
information from the ITA, CBO estimates that implementing those 
provisions would cost less than $500,000 a year over the 2014-
2018 period, assuming the availability of appropriated funds.
    Pay-as-You-Go Considerations: None.
    Intergovernmental and Private-Sector Impact: S. 718 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would not affect the budgets of state, 
local, or tribal governments.
    Estimate Prepared By:  Federal Costs: Sunita D'Monte and 
Susan Willie; Impact on State, Local, and Tribal Governments: 
J'nell L. Blanco; Impact on the Private Sector: Marin Burnett
    Estimate Approved By: Theresa Gullo, Deputy Assistant 
Director for Budget Analysis

                   V. Evaluation of Regulatory Impact

    Pursuant to Rule XXVI, paragraph 11(b) of the Standing 
Rules of the Senate, the committee has determined that there is 
no regulatory impact as a result of this legislation.

                      VI. Changes in Existing Law

    In compliance with Rule XXVI, paragraph 12 of the Standing 
Rules of the Senate, changes in existing law made by the bill, 
as reported, are shown as follows (existing law proposed to be 
omitted is enclosed in black brackets, new matter is printed in 
italic, existing law in which no change is proposed is shown in 
roman).

TITLE 12 USC--BANKS AND BANKING

           *       *       *       *       *       *       *



Chapter 6A--Export-Import Bank Act of 1945

           *       *       *       *       *       *       *



 Sec. 635E. AGGREGATE LOAN, GUARANTEE, AND INSURANCE AUTHORITY

    (a) Limitation on Outstanding Amounts.--
          (1) In general.--The Export-Import Bank of the United 
        States shall not have outstanding at any one time 
        loans, guarantees, and insurance in an aggregate amount 
        in excess of the applicable amount.
          (2) Applicable amount.--In paragraph (1), the term 
        ``applicable amount'' means--
                  (A) during fiscal year 2002, $80,000,000,000;
                  (B) during fiscal year 2003, $85,000,000,000;
                  (C) during fiscal year 2004, $90,000,000,000;
                  (D) during fiscal year 2005, $95,000,000,000;
                  (E) during fiscal year 2006, and each fiscal 
                year thereafter through fiscal year 2011; 1 and
                  (F) during fiscal year 2012 and each 
                succeeding fiscal year, $120,000,000,000, 
                except that--
                          (i) the applicable amount for each of 
                        fiscal years 2013 and 2014 shall be 
                        $130,000,000,000 if--
                                  (I) the Bank has submitted a 
                                report as required by section 
                                4(a) of the Export-Import Bank 
                                Reauthorization Act of 2012; 
                                and
                                  (II) the rate calculated 
                                under section 635g(g)(1) of 
                                this title is less than 2 
                                percent for the quarter ending 
                                with the beginning of the 
                                fiscal year, or for any quarter 
                                in the fiscal year; and
                          (ii) notwithstanding clause (i), the 
                        applicable amount for fiscal year 2014 
                        shall be $140,000,000,000 if--
                                  (I) the rate calculated under 
                                section 635g(g)(1) of this 
                                title is less than 2 percent 
                                for the quarter ending with the 
                                beginning of the fiscal year, 
                                or for any quarter in the 
                                fiscal year;
                                  (II) the Bank has submitted a 
                                report as required by 
                                subsection (b) of section 5 of 
                                the Export-Import Bank 
                                Reauthorization Act of 2012, 
                                except that the preceding 
                                provisions of this subclause 
                                shall not apply if the 
                                Comptroller General has not 
                                submitted the report required 
                                by subsection (a) of such 
                                section 5 on or before July 1, 
                                2013; and
                                  (III) the Secretary of the 
                                Treasury has submitted the 
                                reports required by section 
                                635a-5(b) of this title.
          (3) Subject to appropriations.--All spending and 
        credit authority provided under this subchapter shall 
        be effective for any fiscal year only to such extent or 
        in such amounts as are provided in appropriation Acts.
          (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.

           *       *       *       *       *       *       *


SMALL BUSINESS ACT

           *       *       *       *       *       *       *



 Sec. 649.--OFFICE OF INTERNATIONAL TRADE

           *       *       *       *       *       *       *


    (b) Trade Distribution Network.--The Associate 
Administrator, working in close cooperation with the Secretary 
of Commerce, the United States Trade Representative, the 
Secretary of Agriculture, the Secretary of State, the President 
of the Export-Import Bank of the United States, the President 
of the Overseas Private Investment Corporation, Director of the 
United States Trade and Development Agency, the Trade Promotion 
Coordinating Committee, and other relevant Federal agencies, 
small business development centers engaged in export promotion 
efforts, Export Assistance Centers, regional and district 
offices of the Administration, the small business community, 
and relevant State and local export promotion programs, shall-
          (1) maintain a distribution network, using regional 
        and district offices of the Administration, the small 
        business development center network, networks of 
        women's business centers, the Service Corps of Retired 
        Executives authorized by section 637(b)(1) of this 
        title, and Export Assistance Centers, for programs 
        relating to--
                  (A) trade promotion;
                  (B) trade finance;
                  (C) trade adjustment assistance;
                  (D) trade remedy assistance; and
                  (E) trade data collection;
          (2) aggressively market the programs described in 
        paragraph (1) and disseminate information, including 
        computerized marketing data, to small business concerns 
        on exporting trends, market-specific growth, industry 
        trends, and international prospects for exports;
          (3) promote export assistance programs through the 
        district and regional offices of the Administration, 
        the small business development center network, Export 
        Assistance Centers, the network of women's business 
        centers, chapters of the Service Corps of Retired 
        Executives, regional offices of the Export-Import Bank, 
        State and local export promotion programs, and partners 
        in the private sector; and
          (4) give preference in hiring or approving the 
        transfer of any employee into the Office or to a 
        position described in subsection (c)(9) to otherwise 
        qualified applicants who are fluent in a language in 
        addition to English, to--
                  (A) accompany small business concerns on 
                foreign trade missions; and
                  (B) translate documents, interpret 
                conversations, and facilitate multilingual 
                transactions, including by providing referral 
                lists for translation services, if required.