HR 502 IH

To amend the Foreign Assistance Act of 1961 to establish a coordinated program to provide economic and development assistance for the countries of the Caribbean region.

February 7, 2001

Mr. GALLEGLY introduced the following bill; which was referred to the Committee on International Relations

To amend the Foreign Assistance Act of 1961 to establish a coordinated program to provide economic and development assistance for the countries of the Caribbean region.

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 `Caribbean Regional Assistance Act of 2001'.

SEC. 2. FINDINGS.

The Congress makes the following findings:

(1) The 16 countries of the Caribbean region constitute a `third border' with the United States because of the proximity and importance of countries in this region as a tourist destination.

(2) Unemployment, weak judicial systems, environmental degradation, and natural disasters in the Caribbean region directly affect the well-being of the United States and the future of the countries in this region will inevitably affect the future of the United States.

(3) The public sector in many Caribbean countries lacks appropriate training and clearly defined authority and needs to become more efficient.

(4) In the 1990's economic growth in the Caribbean region lagged seriously behind economic growth in the Latin American region. This discrepancy will produce significantly lower living standards and lower levels of tax revenues with which to address critical social needs for the Caribbean region.

(5) Highly trained labor is often unavailable in the Caribbean region and governmental red tape limits the ability of the private sector to take full advantage of opportunities in the world marketplace.

(6) Heavy reliance on relatively few exports and tourism products and the relatively high cost of transportation and telecommunications services further constrain growth in the Caribbean region.

(7) A more regional corporate strategy for business success and competition in the global marketplace needs to be developed for the Caribbean region.

(8) Many small Caribbean countries are facing severe economic and social stress due to the decline in banana production and the prospective loss or curtailment of existing European Union trade preferences.

(9) Economic displacement of small farmers and individuals employed in the supporting infrastructure of the banana industry--individuals who comprise approximately 50 percent of the workforce of some Caribbean countries--will continue and will place added pressures on the economies of these countries.

(10) In the small open economies of countries in the Caribbean region, growth can only be achieved as the policies and products of these countries, both goods and services, become increasingly competitive in the global market.

(11) Deterioration in economic, social, and political conditions in the small countries of the Caribbean region is leading to increased crime in the region and increased illegal immigration to the United States.

(12) The United States is also concerned about narcotics trafficking in the Caribbean region, particularly with respect to continuing bilateral cooperation with Caribbean governments in drug interdiction and combating money laundering.

(13) The economic and social development of the Caribbean region depends on the efficiency and fairness of the legal systems of this region. There is a widespread perception that the legal systems in the Caribbean region are inefficient and ineffective and that the administration of law and the quality of justice that is rendered needs to be improved.

(14) The ecosystems which sustain the economies of the countries of the Caribbean region, whether based on agriculture, fisheries, or tourism, are under severe and increasing stress.

(15) Environmental problems in the Caribbean region arise from inadequate and inappropriate waste management, land use practices, and coastal zone management.

(16) The Caribbean region currently has the highest HIV/AIDS prevalence rate of any region in the world other than sub-Saharan Africa. Out of the 12 countries with the highest HIV/AIDS prevalence rates in Latin America and the Caribbean region, 9 are in the Caribbean region. HIV/AIDS has spread to the general population in 5 countries in the Caribbean region, and in other Caribbean countries the epidemic is accelerating rapidly and is poised to strike the remaining general populations.

(17) The enactment in 1983 of the Caribbean Basin Economic Recovery Act represented a successful commitment by the United States to encourage the development of strong democratic governments and revitalized economies in neighboring countries in the Caribbean region.

(18) In May 1997, United States and Caribbean leaders met in Bridgetown, Barbados, and pledged to strengthen cooperation in responding to the challenges of the coming millennium.

(19) The Bridgetown Barbados Summit commits the United States and signatory Caribbean countries to a Plan of Action in the areas of trade, economic development, and justice and security.

(20) In April 1998 leaders from the Western Hemisphere nations met in Santiago, Chile, and noted in their summit declaration that `the real economic benefits in the Americas [result] from more open trade, transparency in economic regulations, sound market-based policies, as well as efforts by the private sector to increase competitiveness'.

(21) The United States is committed to completing a Free Trade Area of the Americas (FTAA) process by 2005 in order to expand markets for United States goods and services and to help ensure safe destinations for United States foreign investment.

SEC. 3. AMENDMENT TO FOREIGN ASSISTANCE ACT OF 1961.

Part I of the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.) is amended by adding at the end the following:

`CHAPTER 13--ASSISTANCE FOR THE CARIBBEAN REGION

`SEC. 499N. PURPOSE.

`The purpose of this chapter is to provide assistance for the countries of the Caribbean region to promote broad-based, sustainable, and successful economic development and growth that emphasizes small economy diversification, technical training, trade enhancement, judicial reform, environmental management, and other related goals.

`SEC. 499O. AUTHORIZATION.

`The President, acting through the Administrator of the United States Agency for International Development, is authorized to establish and carry out a coordinated program to provide assistance for the countries of the Caribbean region to support the economic and development activities described in section 499P.

`SEC. 499P. ACTIVITIES.

`Activities that may be supported by assistance under section 499O include the following:

`(1) IMPROVEMENT OF GOVERNMENTAL INSTITUTIONS- Activities to improve the quality and capacity of governmental institutions of countries of the Caribbean region, including activities--

`(A) to provide technical assistance and training for institutions that provide customs services, revenue collection, or institutions which promote investment opportunities;

`(B) to provide assistance for specialized training to judges and magistrates in order to improve efficiency and to reduce case backlogs of Caribbean court systems; and

`(C) to coordinate and consolidate administrative procedures and to expand the use of alternative dispute resolution mechanisms.

`(2) ECONOMIC DIVERSIFICATION- Activities to improve the economic diversification of countries of the Caribbean region, including activities--

`(A) to provide technical assistance and training to such countries to develop more focused regional business strategies to increase the development of new businesses and stimulate competition among businesses;

`(B) to increase lending assistance to small and micro-enterprises, to improve institutions that provide training for such enterprises, and to enhance the ability of such enterprises to market products and increase production capacity;

`(C) to promote compliance by such countries and regional organizations with the World Trade Organization (WTO) and the proposed Free Trade Area of the Americas (FTAA);

`(D) to promote the tourism industry of the Caribbean region through the development of community-based tourism, sustainable tourism, and public-private partnerships; and

`(E) to promote the diversification of the agricultural sector by improving the production and marketing of competitive, non-traditional agricultural commodities.

`(3) ENVIRONMENTAL MANAGEMENT- Activities to increase the capacity of governments of countries of the Caribbean region to provide environmental management services, including activities--

`(A) to fund programs to strengthen environmental management organizations and legal frameworks; and

`(B) to increase public awareness of and encourage public compliance with environmental regulations.

`(4) HIV/AIDS PREVENTION AND TREATMENT- Activities to reduce the rate of HIV/AIDS in countries of the Caribbean region and to provide treatment for individuals with HIV/AIDS in such region.

`SEC. 499Q. CREDIT ASSISTANCE.

`In carrying out the program authorized under section 499O, the President is encouraged to provide credit assistance to carry out the economic and development activities described in section 499P. The provisions of section 107A(d) (relating to general provisions applicable to development credit authority), as proposed to be added to this Act by section 306 of H.R. 1486 (as reported in the House of Representatives in the 105th Congress), shall apply with respect to credit assistance provided under the program.

`SEC. 499R. DEFINITIONS.

`In this chapter:

`(1) COUNTRIES OF THE CARIBBEAN REGION- The term `countries of the Caribbean region'--

`(A) means Antigua and Barbuda, the Commonwealth of the Bahamas, Barbados, Belize, the Commonwealth of Dominica, the Dominican Republic, Grenada, the Co-operative Republic of Guyana, the Republic of Haiti, Jamaica, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, the Republic of Suriname, and the Republic of Trinidad and Tobago; and

`(B) includes Montserrat.

`(2) HIV/AIDS- The term `HIV/AIDS' means infection with the human immunodeficiency virus. Such term includes the acquired immune deficiency syndrome.

`SEC. 499S. AUTHORIZATION OF APPROPRIATIONS.

`(a) IN GENERAL- In addition to amounts otherwise available for the purposes of this chapter, there are authorized to be appropriated to carry out this chapter $8,000,000 for each of the fiscal years 2002 through 2006.

`(b) AVAILABILITY- Amounts appropriated pursuant to the authorization of appropriations under subsection (a) are authorized to remain available until expended.'.

SEC. 4. USAID OFFICE FOR THE CARIBBEAN REGION.

The Administrator of the United States Agency for International Development is authorized to establish an office in Bridgetown, Barbados, or in another appropriate country in the Caribbean region, for the purpose of carrying out chapter 13 of part I of the Foreign Assistance Act of 1961, as added by section 3 of this Act.

SEC. 5. REPORT.

(a) REPORT-

(1) IN GENERAL- Not later than 90 days after the date of the enactment of this Act, the Administrator of the United States Agency for International Development shall prepare and submit to the appropriate congressional committees a report that contains a proposed plan to implement chapter 13 of part I of the Foreign Assistance Act of 1961, as added by section 3 of this Act.

(2) PLAN REQUIREMENTS- The plan referred to in paragraph (1) shall contain, at a minimum, the following:

(A) Key objectives for assistance to be provided under chapter 13 of part I of the Foreign Assistance Act of 1961 for countries in the Caribbean region.

(B) Actions required to support and achieve such objectives, including a schedule and cost estimates for implementing such actions.

(C) A description of the benchmarks to be used to measure the progress toward such objectives.

(D) A description of how such objectives relate to and affect the overall United States objectives for the Western Hemisphere and worldwide.

(b) DEFINITION- In this section, the term `appropriate congressional committees' means the Committee on International Relations of the House of Representatives and the Committee on Foreign Relations of the Senate.

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