[Congressional Record Volume 143, Number 160 (Thursday, November 13, 1997)]
[Senate]
[Page S12630]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                   AFRICAN GROWTH AND OPPORTUNITY ACT

 Mr. ABRAHAM. Mr. President, I rise today to cosponsor the 
African Growth and Opportunity Act, introduced by my colleague, Senator 
Lugar. I do this because I believe greater trade and economic 
development is in the interest of sub-Saharan Africa, and in the 
interest of the United States.
  For too long, Mr. President, our policy toward the nations of sub-
Saharan Africa has been based largely on a series of bilateral donor-
recipient aid relationships. While this policy has produced some 
notable successes in terms of staving off starvation, it also has 
spawned an inappropriate vision of the United States as patron to 
literally dozens of independent nations, while fostering a debilitating 
dependence on foreign assistance. As a consequence, this policy has in 
fact stood in the way of economic growth, self-reliance and political 
stability for the vast majority of people in this region.
  The African Growth and Opportunity Act will establish a new 
relationship between the United States and the nations of sub-Saharan 
Africa. It will promote economic growth through private sector activity 
and trade incentives, fostering a mutually beneficial relationship and 
encouraging economic and political reforms in the interests of the 
peoples of sub-Saharan Africa.
  The bill directs the President to develop a plan to establish a 
United States-Sub-Saharan Africa Free-Trade Area to stimulate trade. It 
also eliminates quotas on textiles and apparel from Kenya and 
Mauritius, contingent on these countries' adopting a visa system to 
guard against transshipment.
  In addition, this legislation would establish an economic forum to 
facilitate trade discussions and work with the private sector to 
develop an investment agenda. USAID moneys would not be effected in any 
way. However, OPIC would be instructed to create a privately funded, 
$150 million equity fund and a $500 million infrastructure fund for 
Africa. Finally, the bill mandates that one member of the board of 
directors of the Export-Import Bank and OPIC have extensive private 
investment sector experience in Africa.
  Benefits from these initiatives would be available to any nation in 
the sub-Saharan region instituting serious economic and political 
reforms.
  Mr. President, the provisions of this legislation in effect would 
create a free-trade zone in sub-Saharan Africa. They would promote 
increased trade, increased privatization, increased democracy, and 
increased prosperity for the people of the region. By ending the 
current patron-client relationship, and substituting for it an equal 
partnership among independent nations, we can benefit everyone 
involved.
  I urge my colleagues to support this important, forward-looking 
legislation.

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