Aid for Trade Act of 2019

I 116TH CONGRESS 1ST SESSION H. R. 2067 To improve the coordination of programs to provide trade capacity building assistance, and for other purposes. IN THE HOUSE OF REPRESENTATIVES APRIL 3, 2019 Mr. GUEST introduced the following bill; which was referred to the Committee on Foreign Affairs A BILL To improve the coordination of programs to provide trade capacity building assistance, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Aid for Trade Act of 4 2019’’. 5 SEC. 2. FINDINGS. 6 Congress makes the following findings: 7 (1) Productive international trading relation- 8 ships are vital to the economic growth and national 9 security of the United States. 10 VerDate Sep 11 2014 23:49 Apr 16, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2067.IH H2067 kjohnson on DSK79L0C42 with BILLS 2 •HR 2067 IH (2) According to the United States Agency for 1 International Development, 11 of America’s top 15 2 trading partners were once recipients of United 3 States foreign assistance, and some of the fastest 4 growing markets are former recipients of United 5 States foreign assistance. 6 (3) Stable trading relationships promote secu- 7 rity and prosperity, and leadership by the United 8 States in international trade fosters the expansion of 9 open markets and can help level the playing field for 10 United States businesses, workers, and consumers in 11 the global marketplace. 12 (4) Programs to provide trade capacity building 13 assistance strengthen good governance, advance rule 14 of law, combat corruption, promote human rights, 15 reduce poverty, and spur economic opportunity. 16 (5) Private-sector-led trade and investment are 17 fundamental components of inclusive growth and de- 18 velopment. Programs to provide trade capacity build- 19 ing assistance help developing countries to reduce 20 and eliminate nontariff trade barriers that inhibit 21 the ability of such countries to implement trade 22 agreements, participate in the global economy, cre- 23 ate jobs and economic opportunity, and reduce pov- 24 erty. 25 VerDate Sep 11 2014 23:49 Apr 16, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2067.IH H2067 kjohnson on DSK79L0C42 with BILLS 3 •HR 2067 IH (6) Reducing trade transaction costs through 1 trade capacity improvements and trade facilitation 2 reforms will assist United States exporters and small 3 and medium-size enterprises reach new customers in 4 developing countries. Reducing these costs through 5 trade facilitation reforms will assist developing coun- 6 try businesses to trade and invest with each other 7 and take advantage of global supply and value 8 chains. 9 (7) According to the United States Trade Rep- 10 resentative, ‘‘the United States is one of the largest 11 single-country providers of trade-related assistance’’ 12 (also called trade capacity building assistance or 13 ‘‘Aid for Trade’’). 14 (8) At the 9th Ministerial of the World Trade 15 Organization in Bali, Indonesia, in December 2013, 16 the 159 members of the World Trade Organization 17 (WTO) concluded the Trade Facilitation Agreement 18 (TFA), the first global WTO trade agreement in 20 19 years. WTO members amended the WTO agree- 20 ments to include the TFA on November 27, 2014, 21 and opened it for acceptance by WTO members. The 22 TFA entered into force on February 22, 2017, after 23 ratification by two-thirds of the WTO membership. 24 VerDate Sep 11 2014 23:49 Apr 16, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2067.IH H2067 kjohnson on DSK79L0C42 with BILLS 4 •HR 2067 IH (9) The TFA includes measures and obligations 1 designed to streamline customs procedures, increase 2 customs transparency, and speed the flow of goods 3 across borders. 4 (10) According to the Organization for Eco- 5 nomic Cooperation and Development (OECD), full 6 implementation of the TFA could reduce trade costs 7 by as much as an estimated 16.5 percent of low in- 8 come countries, 17 percent for lower-middle income 9 countries, 14.6 percent for upper-middle income 10 countries, and 11.8 percent for OECD countries. 11 (11) The OECD has noted that trade barriers 12 created by ineffective policies and burdensome rules 13 and procedures can incentivize corrupt business 14 practices, and therefore all relevant stakeholders 15 have an interest in supporting efforts to streamline 16 trade regulation and reduce non-tariff barriers. 17 (12) The TFA requires developing countries to 18 identify impediments to trade facilitation and com- 19 mits developed countries to assist developing coun- 20 tries’ efforts to come into compliance with the obli- 21 gations of the TFA. 22 (13) The United States is the largest provider 23 of trade capacity building assistance in the world, 24 according to the United States Agency for Inter- 25 VerDate Sep 11 2014 23:49 Apr 16, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2067.IH H2067 kjohnson on DSK79L0C42 with BILLS 5 •HR 2067 IH national Development. In 2017, the United States 1 Government obligated nearly $1,100,000,000 in 2 trade capacity building efforts in over 130 countries, 3 which were implemented by more than a dozen 4 United States Government departments and agen- 5 cies. 6 (14) There is no single coordinating agency for 7 trade capacity building activities in the United 8 States Government. Each agency has its own proc- 9 esses for ensuring proper and effective programming 10 of its appropriated funds. 11 (15) A clear, whole-of-government strategy is 12 needed to leverage and coordinate limited trade ca- 13 pacity funds to implement the TFA, advance pro- 14 ductive international trading relationships for United 15 States businesses, workers, consumers, foreign trad- 16 ing partners, and promote inclusive economic growth 17 and opportunity in developing countries. 18 SEC. 3. DEFINITIONS. 19 In this Act: 20 (1) APPROPRIATE CONGRESSIONAL COMMIT- 21 TEES.—The term ‘‘appropriate congressional com- 22 mittees’’ means— 23 (A) the Committee on Foreign Affairs, the 24 Committee on Ways and Means, and the Com- 25 VerDate Sep 11 2014 23:49 Apr 16, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H2067.IH H2067 kjohnson on DSK79L0C42 with BILLS 6 •HR 2067 IH mittee on Appropriations of the House of Rep- 1 resentatives; and 2 (B) the Committee on Foreign Relations, 3 the Committee on Finance, and the Committee 4 on Appropriations of the Senate. 5 (2) PRIVATE SECTOR.—The term ‘‘private sec- 6 tor’’ means for-profit United States businesses and 7 not-for-profit entities. 8 (3) TRADE CAPACITY BUILDING ASSISTANCE.— 9 The term ‘‘trade capacity building assistance’’ 10 means United States bilateral, regional, or multilat- 11 eral assistance, the primary purpose of which is to 12 support the following activities for developing coun- 13 tries: 14 (A) Technical assistance to assist in acced- 15 ing, implementing, and adhering to inter- 16 national trade agreements, including trade pol- 17 icy development, trade negotiations assistance, 18 administrative management of trade obliga- 19 tions, regulatory reform related to trade agree- 20 ments, and trade-related education. 21 (B) Technical assistance to improve gov- 22 ernance and transparency with respect to im- 23 ports, exports, and international investment, in- 24 VerDate Sep 11 2014 23:49 Apr 16, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H2067.IH H2067 kjohnson on DSK79L0C42 with BILLS 7 •HR 2067 IH cluding improvement of the investment climate 1 and investor protections. 2 (C) Technical assistance to enable micro-, 3 small-, and medium-size enterprises to trade 4 and access markets more efficiently. 5 (D) Technical assistance to establish and 6 implement internationally recognized standards. 7 (E) Assistance to reduce nontariff barriers 8 to trade at national borders, including technical 9 assistance to reform and modernize customs op- 10 erations and procedures and to expedite the 11 movement, release, and clearance of goods, in- 12 cluding goods in transit. 13 (F) Assistance that will contribute directly 14 and substantially to facilitating trade flows. 15 (4) RELEVANT EXECUTIVE BRANCH AGEN- 16 CIES.—The term ‘‘relevant executive branch agen- 17 cies’’ means any Federal department or agency that 18 the President determines to be substantially involved 19 in programs to provide trade capacity building as- 20 sistance. 21 SEC. 4. STATEMENT OF POLICY. 22 It is the policy of the United States to— 23 VerDate Sep 11 2014 23:49 Apr 16, 2019 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H2067.IH H2067 kjohnson on DSK79L0C42 with BILLS 8 •HR 2067 IH (1) set strategic priorities for the efficient use 1 of programs to provide trade capacity building as- 2 sistance; 3 (2) build self-sustaining institutional capacity in 4 developing countries for expanding international 5 trade to accelerate inclusive, broad-based economic 6 growth, poverty reduction, and development, con- 7 sistent with international obligations and commit- 8 ments; and 9 (3) further the national interests of the United 10 States by— 11 (A) expanding prosperity through the 12 elimination of barriers to trade and investment 13 in developing countries; 14 (B) assisting developing country trading 15 partners to identify and reduce barriers to the 16 movement of goods in international commerce 17 and to investment; 18 (C) assisting developing country trading 19 partners in undertaking reforms that will en- 20 courage economic growth and development; and 21 (D) supporting businesses in developing 22 countries to engage in reform efforts to increase 23 trade and investment, and integrate into global 24 supply chains. 25 VerDate Sep 11 2014 23:49 Apr 16, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H2067.IH H2067 kjohnson on DSK79L0C42 with BILLS 9 •HR 2067 IH SEC. 5. COORDINATION AND SUPERVISION OF PROGRAMS 1 TO PROVIDE TRADE CAPACITY BUILDING AS- 2 SISTANCE. 3 (a) IN GENERAL.—Notwithstanding any other provi- 4 sion of law, the Secretary of State, in consultation with 5 the Administrator of the United States Agency for Inter- 6 national Development and the United States Trade Rep- 7 resentative, shall— 8 (1) have primary responsibility for overseeing 9 and carrying out programs to provide trade capacity 10 building assistance; 11 (2) give priority to programs to provide such 12 assistance for any developing country that— 13 (A) has demonstrated progress in, and a 14 commitment to, implementing the commitments 15 under the World Trade Organization’s Trade 16 Facilitation Agreement, including the establish- 17 ment and maintenance of a national committee 18 on trade facilitation and other relevant trade 19 obligations and commitments, taking into ac- 20 counts the country’s capacity building assist- 21 ance needs; 22 (B) has demonstrated consistent support 23 for economic policies that promote the develop- 24 ment of private enterprise; 25 VerDate Sep 11 2014 23:49 Apr 16, 2019 Jkt 089200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H2067.IH H2067 kjohnson on DSK79L0C42 with BILLS 10 •HR 2067 IH (C) has expressed an interest in entering 1 into a free trade agreement with the United 2 States; 3 (D) is designated by the President— 4 (i) as an eligible sub-Saharan African 5 country under the African Growth and Op- 6 portunity Act (19 U.S.C. 3703); or 7 (ii) as a beneficiary developing coun- 8 try under section 502 or 506A of the 9 Trade Act of 1974 (19 U.S.C. 2462 or 10 2466a); or 11 (E) has the potential to benefit the private 12 sector and United States economy if such as- 13 sistance is provided to the developing country; 14 and 15 (3) ensure that programs to provide trade ca- 16 pacity building assistance by relevant executive 17 branch agencies are coordinate and not duplicated. 18 (b) INTERAGENCY TASK FORCE ON TRADE CAPACITY 19 BUILDING.— 20 (1) ESTABLISHMENT.—Not later than 60 days 21 after the date of enactment of this Act, the Presi- 22 dent shall establish an interagency task force to im- 23 prove the effectiveness and efficiency of programs to 24 provide trade capacity building assistance. 25 VerDate Sep 11 2014 23:49 Apr 16, 2019 Jkt 089200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H2067.IH H2067 kjohnson on DSK79L0C42 with BILLS 11 •HR 2067 IH (2) CHAIRPERSON; VICE CHAIRPERSON.—The 1 Secretary of State, or the Secretary’s designee, shall 2 serve as chairperson of the interagency task force. 3 The Administrator of the United States Agency for 4 International Development, or the Administrator’s 5 designee, and the United States Trade Representa- 6 tive, or the Trade Representative’s designee, and 7 shall serve as vice chairpersons of the interagency 8 task force. 9 (3) MEMBERSHIP.—The President shall appoint 10 to the interagency task force senior officials of— 11 (A) the Department of Commerce; 12 (B) the Department of Agriculture; 13 (C) the Department of the Treasury; 14 (D) the Department of Homeland Security, 15 including at least one such senior official of 16 U.S. Customs and Border Protection; 17 (E) the Millennium Challenge Corporation; 18 (F) the United States Trade and Develop- 19 ment Agency; and 20 (G) other relevant executive branch agen- 21 cies. 22 (4) BUDGET REVIEW AND RECOMMENDATION 23 AUTHORITY.—The interagency task force, in coordi- 24 VerDate Sep 11 2014 23:49 Apr 16, 2019 Jkt 089200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H2067.IH H2067 kjohnson on DSK79L0C42 with BILLS 12 •HR 2067 IH nation with the Director of the Office of Manage- 1 ment and Budget, shall— 2 (A) review the expenditures of each of rel- 3 evant executive branch agency with respect to 4 programs to provide trade capacity building as- 5 sistance; and 6 (B) report and make recommendations to 7 the President on appropriate budget allocations 8 to each such relevant executive branch agency 9 with respect to programs to provide trade ca- 10 pacity building assistance. 11 (5) JOINT STRATEGIC PLAN.—The interagency 12 task force, in consultation with relevant chiefs of 13 mission and representatives of the private sector, 14 shall develop a biennial joint strategic plan for pro- 15 grams to provide trade capacity building assistance 16 that establishes detailed and clear objectives, com- 17 mon metrics, and specific goals for the efficient de- 18 livery of such assistance, including— 19 (A) improving the effectiveness and effi- 20 ciency of such assistance by improving coordi- 21 nation among— 22 (i) relevant executive branch agencies, 23 including diplomatic missions of the United 24 States; and 25 VerDate Sep 11 2014 23:49 Apr 16 [Text truncated for display. 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