THURSDAY, 12.30PM:
THE Africa Growth and Opportunity Act was passed unanimously by a key House of Representatives panel in the United States Congress on Wednesday, despite opposition from US labour interests who blocked President Clinton’s request for “fast-track” trade powers last year, and one-time anti-apartheid activist Randall Robinson, who charged that the act will give the US undue power over African socio-economic policies.
Many African nations, including South Africa, however, are keen to see the bill passed. It will increase the number of African products eligible for duty-free entry into the US, lift quotas imposed on Mauritius and Kenya, and guarantee that no quotas will be imposed on other nations. In return, African governments will need to convince the US of their commitment to building market economies, privatisation and trade liberalisation, as well as human rights.
Supporters of the legislation said supporting Africa’s economic growth is preferable to direct financial aid.
“Active participation in the global marketplace is essential to stimulating Africa’s economy,” said Representative Phil Crane of Illinois. “With a combined population of nearly 600-million people, sub-Saharan Africa should become a major export market for US goods and services.”
The passage of the bill will go some way towards making up for the likely failure of Clinton’s proposed fast-track trade negotiation legislation this year. The legislation will give him power to negotiate international trade agreements that cannot be altered by Congress. At present, the legislature can modify trade agreements that have already been negotiated. The absence of the fast-track laws will almost certainly hobble efforts to work out free-trade agreements with African countries. The House votes on the bill within the next few weeks, and it is expected to win easy support.
The bill has been strenuously opposed by the US textile industries.