|
 U.S. Trade Representative Michael Froman said the African Growth
Opportunity Act, or AGOA, which expires on Sept. 30 next year had
both benefited African countries and supported 120,000 U.S. jobs.
Froman's remarks came just days before the White House is set to
host 50 African leaders at a three-day U.S.-Africa summit aimed at
strengthening relations. AGOA, which is at the heart of U.S.-Africa
trade ties, will be a key issue.
Enacted in 2000, AGOA gives about 7,000 products from sub-Saharan
African countries access to U.S. markets free of import duty. Nearly
40 African countries are eligible to take part.
"Given that Africa is home to the world's fastest growing middle
class and six out of 10 of the fastest growing economies in 2014,
it's easy to see why companies like General Electric Co, Caterpillar
Inc and Procter & Gamble Co increasingly view engaging with Africa
not as a choice, but as a necessity," Froman said.
The head of the House Ways and Means trade subcommittee, Devin
Nunes, told reporters Congress could package AGOA renewal together
with fast-track power for trade negotiations, or trade promotion
authority (TPA), and other outstanding trade issues.
"We have so many of these trade issues that are basically standing
behind TPA, we have got to get TPA first," he said.
Exports from sub-Saharan Africa to the United States under AGOA and
other trade preferences totaled $26.8 billion in 2013, according to
USTR data. Most of those exports were petroleum products; non-oil
goods accounted for just $4.9 billion.
"That is still relatively modest and we want to see that grow,"
Froman said at an event sponsored by the Brookings Institution.
The trade program has been criticized for disproportionately
benefiting certain industries and a handful of countries, including
Nigeria, South Africa and Angola.
[to top of second column] |
Some African leaders have also said their countries lack the skilled
labor and infrastructure to take advantage of it. Several African
countries, for instance, are plagued with poor roads and shortages
of electricity, which leads to power rationing that interrupts
manufacturing.
Froman said the Obama administration plans to address AGOA's
shortcomings and expand access to the program while also holding
eligible countries more accountable. His office wants Congress to
renew the program in advance.
Lawmakers will likely demand overhauls to the program, including
making it more reciprocal so the United States can enjoy open access
to African markets.
"The specific parameters of AGOA, of course, are ultimately a
prerogative of Congress, and we look forward to working with them to
put in place a program that reflects the reality of Africa's rise,"
Froman said.
(Additional reporting by Krista Hughes; Editing by Andrew Hay)
[© 2014 Thomson Reuters. All rights
reserved.] Copyright 2014 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
