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Note: This document is from the archive of the Africa Policy E-Journal, published
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Africa: US Trade Bill Letter
Africa: US Trade Bill Letter
Date distributed (ymd): 980421
WOA Document
+++++++++++++++++++++Document Profile+++++++++++++++++++++
Region: Continent-Wide
Issue Areas: +economy/development+ +US policy focus+
Summary Contents:
This posting contains a letter to senators from the US-Africa Trade Policy
Working Group, endorsed by the Washington Office on Africa and 23 other
organizations, concerning desired changes in the African Growth and Opportunity
Act.
+++++++++++++++++end profile++++++++++++++++++++++++++++++
US-Africa Trade Policy Working Group
Conveners: Bread for the World (301) 608-2400 Washington Office on Africa
(202) 546-7961
For more information on this letter and forthcoming action in the Senate,
as well as on Bread for the World's Seeds of Hope legislative campaign,
please contact :
Ray Almeida at Bread for the World
phone: (301) 608-2400;
e-mail: [email protected].
Additional background on earlier versions of the Africa Growth and Opportunity
Act, previous statements by the US-Africa Trade Policy Working Group and
related issues, is available on-line at http://www.africapolicy.org
and http://www.bread.org. The exact
text of the legislation is available on-line from http://thomas.loc.gov.
[Note to non-U.S. readers: This posting is provided both for your background
information and for possible forwarding to those of your U.S. contacts
you think would be interested.]
April 20, 1998
Dear Senator:
On March 11, the House of Representatives adopted the African Growth
and Opportunity Act (H.R. 1432). A companion bill, with some distinct differences,
was introduced in the Senate by Senator Richard Lugar (R-IN) as S. 778.
We appreciate that many of the sponsors of this legislation see it as
a way to demonstrate US support for Africa's economic recovery and political
renaissance. However, we believe that H.R. 1432 contains many provisions
that could jeopardize sustainable and equitable development in Africa.
Consequently, we cannot support the legislation in its current form. Instead,
we urge you to amend the bill to:
1. Articulate more flexible and appropriate eligibility requirements
The eligibility requirements contained in Section 4 constitute a rigid
and inappropriate "one-size-fits-all" prescription for economic
policy. Moreover, conditioning US assistance on compliance with these demands
contradicts a US commitment to the promotion of participatory governance
and sustainable development. The eligibility requirements should not constrain
the sovereignty of African nations by restricting their ability to regulate
business and commerce for the common good of their people.
Specifically, we ask the Senate to:
Amend Section 9 to prevent the creation of a two-tiered GSP program
where African nations would be expected to satisfy more stringent eligibility
requirements than other nations;
Remove from the list of primary and secondary eligibility requirements
delineated in section 4 at least the following items: reduction of corporate
taxes, extension of national treatment to foreign investors, and compliance
with obligations to international financial institutions; and
Introduce greater flexibility in the application of eligibility requirements
by changing "shall" to "may" in section 4(b).
2. Enhance benefits for Africa's poorest and most vulnerable people
Although the legislation acknowledges the importance of continued development
assistance programs and the urgent need for substantial debt relief, it
does not appropriate additional funding for these programs. Instead, it
emphasizes trade and investment programs, the most likely beneficiaries
of which will be the comparatively affluent not only successful individuals
within nations, but also African nations that have already recorded high
aggregate growth rates. To achieve equitable growth, the bill must give
higher priority to poverty reduction while recognizing that many African
initiatives worthy of US support may not conform to private enterprise
models. The need to reduce the debt burden of African countries in order
to stimulate economic growth was raised by every African president and
the African press during President Clinton's recent Africa trip.
Specifically, we ask the Senate to:
Reinstate "sense of the Congress" language (in section 10(b)(1)
of S. 778) calling for the extinguishment of bilateral concessional debt
as a complement to the current section 10(b);
Strengthen the bill's commitment to sustainable growth and poverty reduction
by restoring the original wording of the opening paragraph of section 2;
Add language to section 4 to clarify that the eligibility requirements
are not intended to restrict access to development assistance;
Acknowledge, in section 2(1) and similar passages that follow, the importance
of informal and cooperative sector initiatives, especially highlighting
women's important food-producing and entrepreneurial roles in rural African
communities; and
Include the provisions of the Africa: Seeds of Hope Act of 1998, recently
introduced in the House of Representatives as H.R. 3636 by Rep. Bereuter
(R-NE) and Rep. Hamilton (D-IN) (see note below).
3. Require US programs to model broad consultation by giving African
civil society groups a meaningful voice in policy planning and implementation
African church, labor, human rights, and community groups are often
best placed to articulate the needs, interests, and aspirations of ordinary
citizens. It is essential that such groups be given a formal and continuing
role in all of the key structures responsible for implementing the legislation.
Specifically, we ask the Senate to:
Direct the President to appoint representatives of each of the Executive
agencies participating in the US-Africa Economic Forum to act as liaisons
to any parallel meetings of nongovernmental organizations (as envisioned
in section 6(c)(2)(A)) and to report to the main forum; and
Amend sections 12(a)(2)(A) and 12(b)(2)(A) to ensure that the nongovernmental/voluntary
sectors are represented on boards advising OPIC and the Ex-Im Bank.
4. Promote respect for labor rights and the environment
African workers need to be assured that the bill will substantially
increase employment opportunities which provide a livable wage and humane
working conditions. At the same time, labor rights and environmental protection
need to be held up as core policy values that will be applied consistently
in US relationships with Africa, as well as with the rest of the world.
Specifically, we ask the Senate to:
Ensure that goods imported from Africa under tariff and quota reduction
programs have significant value added in Africa; and
Require that such goods be manufactured or processed by Africans under
conditions that are consistent with core labor standards.
In the final analysis, the African Growth and Opportunity Act must be
judged on the basis of its capacity to effect sustained improvements in
the lives of ordinary Africans. An economically vigorous and politically
stable Africa can meet our nation's interests in regional stability while
offering new sources of social, cultural, and scientific collaboration
and exchange. We urge you to amend this legislation so that it may realize
these objectives.
Sincerely,
Pearl-Alice Marsh, Africa Policy Information Center; Ezekiel Pajibo,
Africa Faith and Justice Network; James Matlack, American Friends Service
Committee; David Beckmann, Bread for the World; Ken Hackett, Catholic Relief
Services; Rodney Page, Church World Service; Heather Nolan, Church of the
Brethren Mark Brown, Evangelical Lutheran Church of America Lutheran Office
for Government Affairs; Edward (Ned) W. Stowe, Friends Committee on National
Legislation; Kathryn F. Wolford, Lutheran World Relief; Rev. Michael J.
Snyder, MM, Maryknoll Fathers and Brothers; Marie Dennis, Maryknoll Office
for Global Concerns; James Skenk, Terrance Sawatsky, Mennonite Central
Committee; Bill Moroney, Missionaries of Africa; Kathy Thorton, RSM, NETWORK
National Catholic Social Justice Lobby Lucy Nichols, OXFAM America; Rev.
Jon T. Chapman, Presbyterian Church (USA) Worldwide Ministries Division;
Rev. Elenora Giddings, Ivory Presbyterian Church (USA); Stephen G. Price,
Society of Africa Missions Office of Justice and Peace; Nico Gourdet, UCC/Christian
Church (Disciples of Christ); Africa Office; Jaydee R. Hanson, United Methodist
Church General Board of Church and Society; Rev. Jay Lintner, United Church
of Christ Office of Church and Society; Douglas Tilton, Washington Office
on Africa; Prema Mathis-Davis, Y.M.C.A. of the USA
Note: The Seeds of Hope initiative seeks to promote policies that "address
the needs of African women, small farmers, small entrepreneurs, rural workers
and communities; support participation in decision making by affected people,
and strengthen Africans' abilities to plan, implement and 'own' programs."
The focus of the initiative is on rural finance, agricultural research
and extension and other food security issues.
This material is produced and distributed by the Washington Office
on Africa (WOA), a not-for-profit church, trade union and civil rights
group supported organization that works with Congress on Africa-related
legislation. WOA's educational affiliate is the Africa Policy Information
Center (APIC).
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