Africa and American Trade Policy: An Update. That was the topic for the Global Business Dialogue's first fall colloquium. It was held at the National Press Club on September 10, and
Florizelle (Florie) Liser was the first on-the-record speaker. She had been asked to talk about the results of this summer's U.S.-Africa Leaders Summit, and of course she did.
AGOA - the African Growth and Opportunity Act - is the centerpiece of U.S. trade policy toward Africa, and renewing it - the act expires in September 2015 - was very much on the minds of the African leaders who met with President Obama in early August. The "Statement by the Chair," the conference's concluding document, summed up the issue this way:
"Leaders agreed on the importance of the prompt, long-term renewal of an enhanced African Growth and Opportunity Act (AGOA), and pledged to work together to increase its utilization by African countries."
Understandably, Florie Liser talked a lot about AGOA.
It was only very briefly that she touched on the fact that America's relationship with the countries of sub-Saharan Africa exists in a larger context and the idea that America needs to consider the implications of that broader context in charting its own relationships in Africa. Those comments of hers came at the end of her opening remarks. Here is a little more of what she said:
"As I said earlier, much has changed in Africa and the global trading system since 2000 when AGOA was first passed. And as much as we are very focused on U.S.-Africa trade and helping the countries of Africa take much greater advantage of AGOA, we also have to look at what is happening in the global trading system of today and where do we want to go?
"And, as they [African countries] are sitting and negotiating economic partner agreements, for example, with the EU, as well as partnerships with other countries around the world, it would be foolish, I think, of the United States to not be thinking about where we want to go with these very dynamic countries."
Every sub-Saharan country, of course, has an array of relationships around the globe, but there are three that seemed to be on everyone's mind last Wednesday. These are the continent's relationships with the United States - the topic of the morning - those it has with the European Union, and those it has with China.
Ms. Liser spoke directly and forcefully to the issues raised by Africa's trade with the European Union. In response to a question about South Africa's restrictions on certain meat products from the United States, Ms. Liser began with a question of her own:
"... Why should the U.S. be looking at extending one-way unilateral preferences for all of these countries if these countries at the same time, are, in one way or another, preventing the U.S. and U.S. businesses from being able to export products and not just agricultural products?"
The question she was addressing was more about standards than preferences, but it was more than understandable that she should have begun her answer as she did. The European Union is in the process of concluding a number of Economic Partnership Agreements with African countries and recently signed one with 7 of the 15 members of the Southern African Development Community (SADC), namely, Angola, Botswana, Lesotho, Mozambique, Namibia, Swaziland, and South Africa. These are reciprocal agreements and have the effect of putting U.S. exporters at a relative disadvantage vis-à-vis their EU competitors. Understandably, they are receiving a lot of critical attention from U.S. business and throughout the U.S. Government. Ms. Liser was reflected that criticism.
Where China is concerned, however, the Administration's policy is not so critical. Asked about China's engagement with China, Ms. Liser said simply,
"We welcome Africa having as many partners and investors as they possibly can."
***
AGOA and a Memorandum. While Ms. Liser was clear and unwavering in her insistence on the need for a prompt and long-term renewal of AGOA, she was also realistic about its limitations.
"No matter what the duties are," she said, "[duty-free access under AGOA] alone is really not going to promote greater U.S.-Africa trade." Rather, she said, AGOA needs to be at the center of a broader, U.S. Government-wide effort on Africa.
The blue-print for such an effort is the Presidential Memorandum that President Obama signed on August 4, the first day of the Leaders Summit. In that memorandum, President Obama described the situation this way:
"Since AGOA went into effect 14 years ago, exports from Sub-Saharan African to the United States have more than doubled and non-oil and non-mineral exports in particular have increased nearly fourfold. The growth of new export industries has supported the creation of hundreds of thousands of jobs in Sub-Saharan Africa.
"However, my Administration's recent review of AGOA has revealed that, while the tariff preferences provided under AGOA are important, they alone are not sufficient to promote transformational growth in trade and investment. For beneficiary countries to be able to utilize AGOA to its fullest, this program must be linked to a comprehensive, coordinated trade and investment capacity building approach with clearly stated goals and benchmarks."
Among other things, the memo establishes a steering group, specifically, the Steering Group on Africa Trade and Investment Capacity Building. It is a group with 17 departments and agencies of the U.S. Government, including State, Treasury, Agriculture, USTR, and 13 others.