There is strong bipartisan support in Congress for reauthorizing the African Growth and Opportunity Act trade preferences program, but that does not necessarily guarantee approval this year, Sen. Chris Coons (D-Del) said Tuesday.
The senator is a chief sponsor – along with Sen. Jim Risch (R-Idaho) of legislation to renew AGOA until 2041. The program currently is set to expire next year.
At a program sponsored by the Woodrow Wilson Center and Washington International Trade Administration, Sen. Coons said he would like to see the bill approved before the annual AGOA forum slated to be held in late July here in Washington. If not then, AGOA should be renewed before the end of this year so that there is enough time for supply chain decisions to be made.
Despite wide-spread Congressional support for AGOA renewal, Sen. Coons told the gathering that he would be hesitant to predict it will happen, because all bills face headwinds in a politically- divided Congress.
The United States should not lose this moment – when businesses are looking for new supply chain sources – to renew AGOA and strengthen ties with a fast-growing continent.
There are some contentious issues among lawmakers that will need to be resolved, including eligibility requirements. There also are some concerns about one of the major beneficiary countries – South Africa – because of its recent increased political ties with Russia and China.
Ahead of the 2025 expiration of the African Growth and Opportunity Act (AGOA) trade preference program, the Ways and Means Trade Subcommittee considered potential reforms to help US Farm exports and counter Russian and Chinese activities in the region.
Witnesses at the hearing urged the Committee to consider reforms to meet key goals, such as resuming free trade agreement negotiations with Kenya, addressing rules governing when countries become ineligible for AGOA based on per-capita income, and securing U.S. supply chains.
Trade Subcommittee Chairman Adrian Smith (R-Nebraska) highlighted the strong support that multiple members of the Ways and Means Committee, both Republicans and Democrats, have expressed for a trade agreement with Kenya.
"The end goal has always been reciprocal, high-standard trade relationships with willing partner nations. Kenya is such a nation," said Mr Smith in a statement.
"Kenya has proven it’s a willing and capable trading partner, ready to take on high standard commitments. Its exporters already enjoy broad access to the American market, while American exports face a steep 13.2 percent average tariff. American agricultural products face a higher average tariff of 20.4 percent. The Administration should use the power of trade to help break down those barriers American producers and workers are facing in selling their goods."
Daniel Runde from the Center for Strategic & International Studies testified:
"We have not updated our cassette tape on Africa. Africa suffers from a negative media coverage. There have been studies in the New York Times and others. It's all negative," testified Daniel Runde from the Center for Strategic & International Studies.
"We've failed to see Africa as an opportunity. The Chinese Communist Party sees Africa as a win-win opportunity. Unfortunately, much of our partnership with Africa to date, has been oriented around foreign assistance…That has got to be one piece of a much bigger conversation."
American Pork
Rep Michelle Fischbach sigled out the treatment of US Pork exports to South Africa, noting "U.S. pork exports only account for about 1.3 percent of the pork imported into South Africa. It’s not necessarily that they're not eating pork. It's some unscientific issues, trade barriers that are in line."
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