b. Export-Import Bank and Tied Aid Credit Amendments

Partial text of Title III of Public Law 100-418 [Omnibus Trade and Competitiveness Act of 1988; H. R. 4848], 102 Stat. 1107, approved August 23, 1988 AN ACT To enhance the competitiveness of American industry, and for other purposes.

TITLE III-INTERNATIONAL FINANCIAL POLICY

SUBTITLE D-EXPORT-IMPORT BANK AND TIED AID CREDIT
AMENDMENTS

SEC. 3301. SHORT TITLE.

This subtitle may be cited as the "Export-Import Bank and Tied Aid Credit Amendments of 1988".

SEC. 3302. PROVISIONS RELATING TO TIED AID CREDIT.

(a) FINDINGS.-The Congress finds that

(b)

(1) negotiations have led to an international agreement to increase the grant element required in tied aid credit offers;

(2) concern continues to exist that countries party to the agreement may continue to offer tied aid credits that deviate from the agreement;

(3) in such cases, the United States could continue to lose export sales in connection with the aggressive, and in some cases, unfair, tied aid practices of such countries; and

(4) in such cases, the Export-Import Bank of the United States should continue to use the Tied Aid Credit Fund established by section 15(c) of the Export-Import Bank Act of 1945 to discourage the use of such predatory financing practices.

(c) REPORT.—

(1) IN GENERAL.-On or before December 31, 1988, the President and Chairman of the Export-Import Bank of the United States, in cooperation with other appropriate government agencies, shall submit to the Speaker of the House of Representatives and the President pro tempore of the Senate a written report identifying and analyzing the tied aid credit practices of other countries and shall make recommendations for dealing with such practices.

(2) CONSULTATION.-In preparing the report described in paragraph (1), the Export-Import Bank shall consult with appropriate international organizations such as the International Bank for Reconstruction and Development, the International Monetary Fund, and the Development Assistance Committee of

the Organization for Economic Cooperation and Development, and with the countries which are party to the Arrangement on Guidelines for Officially Supported Export Credits adopted by the Organization for Economic Cooperation and Development in November 1987.

SEC. 3303. REPORT ON UNITED STATES EXPORTS TO DEVELOPING COUNTRIES.

Within 90 days after the date of the enactment of this Act, the President and Chairman of the Export-Import Bank of the United States shall submit to the Committee on Banking, Finance and Urban Affairs of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate a written report which contains

(1) an assessment of the effectiveness of recent program changes in increasing United States exports to developing countries; and

(2) an identification of additional specific policy and program changes which

(A) would enable the Bank to increase the financing of United States exports to developing countries; and

(B) would encourage greater private sector participation in such financing efforts.

c. Trade and Development Enhancement Act of 1983

Partial text of Public Law 98–181 [Supplemental Appropriations Act, 1984; H.R. 3959], 97 Stat. 1153 at 1263, approved November 30, 1983, as amended by Public Law 100-418 [Omnibus Trade and Competitiveness Act of 1988; H.R. 4848), 102 Stat. 1107, approved August 23, 1988

AN ACT Making supplemental appropriations for the fiscal year ending September 30, 1984, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the following sums are appropriated, out of any money in the Treasury not otherwise appropriated, to provide supplemental appropriations for the fiscal year ending September 30, 1984, and for other purposes, namely:

TITLE VI-EXPORT-IMPORT BANK ACT AMENDMENTS OF

1983

SHORT TITLE

SEC. 601. This title may be cited as the "Export-Import Bank Act Amendments of 1983".

PART C-TIED AID CREDIT EXPORT SUBSIDIES

SHORT TITLE

SEC. 641. This part may be referred to as the "Trade and Development Enhancement Act of 1983".

STATEMENT OF PURPOSE

SEC. 642.1 The purpose of this part is—

(1) to expand employment and economic growth in the United States by expanding United States exports to the markets of the developing world;

(2) to stimulate the economic development of countries in the developing world by improving their access to credit for the importation of United States products and services for developmental purposes;

(3) to neutralize the predatory financing engaged in by many nations whose exports compete with United States exports, and thereby restore export competition to a market basis; and

1 12 U.S.C. 6350.

(4) to encourage foreign governments to enter into effective and comprehensive agreements with the United States to end the use of tied aid credits for exports, and to limit and govern the use of export credit subsidies generally.

NEGOTIATING MANDATE

SEC. 643.2 The President shall vigorously pursue negotiations to limit and set rules for the use of tied aid for exports. The negotiating objectives of the United States should include reaching agreements

(1) to define the various forms of tied aid credit, particularly mixed credits under the Arrangement on Guidelines for Officially Supported Export Credits established through the Organization for Economic Cooperation and Development (hereinafter in this part referred to as the "Arrangement");

(2) to phase out the use of government-mixed credits by a date certain;

(3) to set rules governing the use of public-private cofinancing, or other forms of mixed financing, which may have the same result as government-mixed credits of drawing on concessional development assistance to produce subsidized export financing;

(4) to raise the threshold for notification of the use of tied aid credit to a 50 per centum level of concessionality;

(5) to improve notification procedures so that advance notification must be given on all uses of tied aid credit; and

(6) to prohibit the use of tied aid credit for production facilities for goods which are in structural over supply in the world. ESTABLISHMENT OF A TIED AID CREDIT PROGRAM IN THE UNITED STATES EXPORT-IMPORT BANK

SEC. 644.3 (a)(1) The Chairman of the Export-Import Bank of the United States shall establish, within the Export-Import Bank of the United States, a program of tied aid credits for United States exports.

4

(2) The program shall be carried out in co-operation with the Trade and Development Program and with private financial institutions or entities, as appropriate.

(3) The program may include

(A) the combined use of the credits, loans, or guarantees offered by the Export-Import Bank of the United States with concessional financing or grants made available under section 645(d) of this Act, by methods including the blending of the financing of, or parallel financing by, the Bank and the Trade and Development Program; 4 and

212 U.S.C. 635p.

12 U.S.C. 635q.

4

Sec. 644 was amended by sec. 2204(c)(1) of Public Law 100-418 (Omnibus Trade and Competitiveness Act of 1988; 102 Stat. 1330) which inserted "Trade and Development Program" in lieu of "Agency for International Development" in subsec. (a); struck out "offered by the Agency for International Development" and inserted "made available under section 645(d) of this Act" in subsecs. (a) and (d); and inserted the reference to section 645(c) in lieu of "subsections (c) and (d) of section 645" in subsec. (d).

(B) the combined use of credits, loans, or guarantees offered by the Bank, with financing offered by private financial institutions or entities, by methods including the blending of the financing of, or parallel financing by, the Bank and private institutions or entities.

(b) The purpose of the tied aid credit program under this section is to offer or arrange for financing for the export of United States goods and services which is substantially as concessional as foreign financing for which there is reasonable proof that such foreign financing is being offered to, or arranged for, a bona fide foreign competitor for a United States export sale.

(c) The Chairman of the Bank is authorized to establish a fund, as necessary, for carrying out the tied aid credit program described in this section.

(d) Concessional financing or grants made available under section 645(d) of this Act for the purposes of the mixed financing program established under this section shall be made available in accordance with the provisions of section 645(c) of this Act.

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ESTABLISHMENT OF A TIED AID CREDIT PROGRAM ADMINISTERED BY THE 5 TRADE AND DEVELOPMENT PROGRAM

SEC. 645. (a) The Director of the Trade and Development Program shall carry out 5 a program of tied aid credits for United

Sec. 645 was amended by sec. 2204(c)(1)(B) of Public Law 100-418 (102 Stat. 1330) which inserted "ADMINISTERED BY THE TRADE AND DEVELOPMENT PROGRAM" in the section heading, and substituted "Director of the Trade and Development Program shall carry out" in lieu of "Administrator of the Agency for International Development shall establish within the Agency". Additionally, sec. 2204(d) of that Act contained the following provisions: "(d) ADMINIStrative ProvISIONS.

"(1)

"(2) TRANSITION PROVISIONS.-(A) The Administrator of the Agency for International De velopment shall transfer to the Director of the Trade and Development Program all records, contracts, applications, and any other documents or information in connection with the functions transferred by virtue of the amendments made by subsection (c)(1). "(B) All determinations, regulations, and contracts

"(i) which have been issued, made, granted, or allowed to become effective by the President, the Agency for International Development, or by a court of competent jurisdiction, in the performance of the functions transferred by virtue of the amendments made by subsection (c)(1), and

"(ii) which are in effect at the time this section takes effect,

shall continue in effect according to their terms until modified, terminated, superseded, set aside, or revoked in accordance with the law by the President, the Director of the Trade and Development Program, or other authorized official, by a court of competent jurisdiction, or by operation of law.

"(CXi) The amendments made by subsection (c)(1) shall not affect any proceedings, including notices of proposed rulemaking, or any application for any financial assistance, which is pending on the effective date of this section before the Agency for International Development in the exercise of functions transferred by virtue of the amendments made by subsection (c)(1). Such proceedings and applications, to the extent that they relate to functions so transferred, shall be continued.

"(ii) Orders shall be issued in such proceedings, appeals shall be taken therefrom, and payments shall be made pursuant to such orders, as if this section had not been enacted. Orders issued in any such proceedings shall continue in effect until modified, terminated, superseded, or revoked by the Director of the Trade and Development Program or other authorized official, by a court of competent jurisdiction, or by operation of law.

"(iii) Nothing in this subparagraph shall be deemed to prohibit the discontinuance or modification of any such proceeding under the same terms and conditions and to the same extent that such proceeding could have been discontinued or modified if this section had not been enacted.

"(iv) The Director of the Trade and Development Program is authorized to issue regulations providing for the orderly transfer to the Trade and Development Program of proceedings continued under this subparagraph.

Continued