As noted previously, the Trade Subcommittee of the House Committee on Ways and Means held a hearing on trade with Africa and AGAO - the African Growth and Opportunity Act - on July 29. Representative
Vern Buchanan, a Republican from Florida, is a member of the Trade Subcommittee, and today's quote was part of the prelude to his exchange with the three witnesses. Agreed to by both sides of the aisle, those three were
Ben Leo from the Center for Global Development,
William McRaith of PVH Corporation, and
Whitney Schniedman of Brookings.
Congressman Buchanan's exchange with Mr. McGrath was especially compelling, and we will quote it at some length. First, though, a touch more background.
William McRaith is the chief supply chain officer for PVH corporation. The company began in 1881 "mending and selling shirts for local coal miners in Pennsylvania" and is now an $8 billion enterprise with such brands as Calvin Klein, Tommy Hilfiger, Van Heusen, Arrow, Izod and others. Recently, Mr. McRaith and executives from other apparel firms undertook an investment study mission to Africa. He talked about that trip in his written testimony, where he said that
"every one of the other companies we had cajoled to join us on the trip agreed that Africa is ready for significant investment."Congressman Buchanan told the witnesses that he had visited some ten African countries during the course of the last few years. There is "not a lot of enthusiasm" for AGOA on their side, he said. "And frankly," he added, "there's not a lot of enthusiasm on our side." And so he asked, "What are a couple of things that you would recommend we might do going forward to make the difference?"
With that background, here is an excerpt from Rep. Buchanan's exchange with Mr. McRaith (our transcript):
Partial Transcript
MR. McRAITH: We are at a moment in time today that is different to where we were 15 years ago. ... You could say AGOA failed. I'm not sure what the appropriate terminology is.
If you look at my industry, the apparel industry, we refer to $24 billion of AGOA driven trade, only $900 million of which is from the apparel sector.
A labor-intensive, in fact generally the first mover, [apparel is the] most labor-intensive industry in the world, and it's typically led the way into most developing countries. The time is now. It wasn't right 15 years ago; it's right today. So it will be the private sector that actually drives most of this. And we need the on-the-ground ambassadors, who in Ethiopia were incredibly supportive of the work that we did there on a recent trip. [As they were] in Kenya, [and] similarly in Uganda.
So, I think that we've got to help the nations shake off the old AGOA. Because I think they languish in it. It didn't work. There is no energy around it. You go to Africa, China is present everywhere.
REP. BUCHANAN: Everywhere.
MR. McRAITH: Europe is present everywhere. America is MIA at this point. We're missing in action.
BUCHANAN: That's my point.
MR. McRAITH: But renew AGOA, because everyone is looking. Everyone is ready to go. However, don't think of September 2015 as the renewal date. The renewal date is today, because it takes us a year to figure out what we are doing there. We're ready to go. We're ready to move, and this is sitting right in front of us.
And quite frankly, if we do not renew AGOA, it's not about the timing of entry. It's about the exit.
End of Partial Transcript