[Congressional Record Volume 158, Number 159 (Tuesday, December 11, 2012)]
[Senate]
[Pages S7715-S7716]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
GREATER EXPORTS TO AFRICA
Mr. DURBIN. Mr. President, I have visited Africa many times. When I
have, I have left with an amazing impression of this great continent
and all that it contains. It really does lure one and draw you back to
the different places in Africa that offer such a rich history but also
offer great opportunity.
What I find in Africa today is that China has an increasing presence
on that continent. China has a plan when it comes to the future of
Africa. America does not. That is why I am going to offer as an
amendment to the TAG bill which is currently pending before the Senate
the American Jobs Through Greater Exports to Africa Act. My partners on
the bill are Senators Chris Coons, Ben Cardin, John Boozman, and Mary
Landrieu, as well as support in the House from Representative Chris
Smith.
At the heart of this bill is the creation of jobs in America.
Exporting more goods to Africa will help create jobs here. Every $1
billion in exports supports over 5,000 jobs. I believe we can increase
exports from the United States to Africa by 200 percent in real dollars
over the next 10 years, and we cannot wait any longer.
If there are some who say that Africa is so backward and so far
behind, what is it in the United States they can afford to buy if they
even wanted to, that is old thinking. Let me give you some new reality.
In the past 10 years, 6 of the world's fastest growing economies are in
Sub-Saharan Africa, and in the next 5 years Sub-Saharan Africa will
boast seven of the top fastest growing economies in the world. The
number of Africans with access to the Internet has increased over the
last 10 years fourfold to 27 percent. From 1998 to today, the number of
mobile phones on the continent have grown from 4 million to 500
million, and 78 percent of Africa's rural population has access to
clean water. These are signs of a growing middle class.
China sees it. We have to see it. China is insinuating itself into
the economy of major Africa nations. They are offering concessional
loans, and they are offering their contractors, their engineers, and
their investment in Africa. We are not. We are going to rue the day.
Africa is a great opportunity for us, and this bill addresses it.
I sincerely hope my colleagues in the Senate will consider supporting
this greater exports to Africa trade bill. This is something we can do
to increase jobs in America, increase trade with Africa, and really
build those countries that share our values. The difference between the
United States, China, and other countries? We come to the marketplace
with values, and we have to make certain those values are protected and
encouraged. We can only do that if we are honest traders and we are
actively engaged in expanding the markets for our goods and services.
Over the years and during my travels, I have heard from African
leaders and American businesses the same story--the U.S. has fallen
woefully behind other countries in its commercial engagement with
Africa. And our government does not have a coordinated strategy to help
match the aggressive efforts of other nations trying to invest in
Africa. In endorsing this bill, the U.S. Chamber of Commerce has
written that, ``Congress has an opportunity to reverse this decline.''
But why would U.S. businesses and groups representing them, groups
like the U.S. Chamber of Commerce and the Corporate Council on Africa,
think this effort is so important? As I have said, in the past 10
years, 6 of the world's fastest growing economies are in Sub-Saharan
Africa, and in the next 5 years Sub-Saharan Africa will boast 7 of the
top 10 fastest economies.
From 2000 to 2009, the number of Africans with access to the internet
has increased four-fold to 27 percent.
From 1998 to today, the number of mobile phones on the continent has
grown from 4 million to more than 500 million, and 78 percent of
Africa's rural population has access to clean water.
These are signs of a growing middle class and what the World Bank has
called ``the brink of an economic take-off'' for Africa. U.S.
businesses must be a part of that take-off, and our government must
provide a cohesive system of support and a coherent national strategy
to enable it. That is what this bill does, and it does so at almost no
cost. It would develop a comprehensive strategy to coordinate the work
of several U.S. government agencies that help U.S. businesses export
American products and services to Africa.
The bill creates a Special Africa Export Strategy Coordinator to
ensure that these government agencies are working together efficiently,
and in a way that businesses of all sizes can navigate easily. It is
smart, low cost,
[[Page S7716]]
and it creates enormous returns on investment in jobs, diplomatic
influence, and engagement.
Meanwhile, other countries are positioning themselves to be there for
the coming African economic boom--countries like Brazil, India, and you
guessed it, China. China has aggressively moved in. In fact, today,
China is Africa's largest trading partner. China has pumped billions of
dollars into Africa, often in the form of concessional loans--loans
below market rates that have favorable payback options. These loans are
hard to resist for developing countries, and they're hard for American
companies to compete with.
Between 2008 and 2010, China provided more financing to the
developing world than the World Bank--loans totaling more than $110
billion. This money buys China access to markets, natural resources,
consumers, and political influence. A recent story on CNN.com, entitled
``Chinese Media Make Inroads into Africa,'' shows the kind of
aggressive engagement we are up against.
This past January, state-owned Chinese Central Television opened its
first broadcast hub outside of Beijing. Where did they put it? Mumbai?
London? Rio? Try Nairobi. Another Chinese state-run news organization
has more than 20 bureaus on the African continent, part of what is
called the China Africa News Service. According to the article, it's
all part of an effort ``to win the hearts and minds of people in the
continent and create a more fertile business environment.'' And it's at
our expense. It should make us take a hard look at what the U.S.
Government is doing to promote and support our own businesses. And that
is what this bill does.
But this bill is not just good for American interests, it is also
good for Africa--something our competitors are not always concerned
with. While the Chinese may offer sweetheart deals that buyers can't
resist, the price of doing business with China is much higher than just
the cost of repaying loans.
To calculate the real price you have to add to the sum the precious
natural resources that China gobbles up for its growing economy back
home and the environmental devastation that comes from its general lack
of concern for environmental standards. You have to add the cost of
Africans losing out on work when the Chinese ship in their own labor to
build the projects they are bankrolling. And when Africans do get the
jobs you have to consider the cost of the poor labor standards and
working conditions they have to endure. And lastly you have to consider
China's indifference to democracy, corruption, and human rights
standards.
A recent New York Times article illustrated an even greater cost--a
far more deadly side of Chinese involvement in Africa. It dealt with
the resurgence of ivory poaching in Uganda and Kenya and the DRC. It is
a resurgence that has resulted in tens of thousands of elephants being
slaughtered over the past several years and, get this, it is a
resurgence fueled by Chinese demand--as much as 70 percent of the ivory
is smuggled to China. In fact, the article goes on to say that there is
growing evidence that ivory poaching actually increases in elephant-
rich areas where Chinese construction workers are building roads.
Now, I said this was a deadly consequence of Chinese involvement in
Africa, but I didn't mean just for elephants. Much of the money from
this Chinese-fueled increase in the ivory trade ends up in the hands of
international fugitive Joseph Kony and his band of murdering thugs. It
is widely believed that Kony's Lord's Resistance Army has embraced
ivory poaching to fund its reign of terror.
The U.S. Government should seek a level of engagement with our
African partners that makes American companies and American products
competitive alternatives to what China has to offer. That's what this
bill does. It would establish a minimum number of commercial Foreign
Service officers to be stationed at U.S. embassies in Africa and the
multi-lateral investment banks. It would increase the Export Import
Bank staff presence on the ground in Africa. That means better support
for U.S. businesses on the continent and better interface with African
governments. The bill would also formalize the training economic and
commercial officers receive, so they are fully aware of all the tools
available for export promotion and financing--a benefit to businesses
who want to do business in Africa, or anywhere in the world. And
finally, it would equip the U.S. government to counter the aggressive
concessional--or below market--loans that many African nations cannot
resist.
The Increasing American Jobs through Greater Exports to Africa Act
has something for everyone to support. It is good for the American
economy. It helps U.S. businesses create jobs here at home by tapping
into a burgeoning overseas market hungry for our products. It is good
U.S. foreign policy. It positions America to maintain our global
leadership in a shifting geopolitical landscape. And it is good for the
people of the African continent. Superior American products and
business practices would become more competitive and financially
accessible to them.
That is why the Senate Foreign Relations Committee unanimously
approved this common sense bill. Now the full Senate has a chance to do
the same. I urge all of my colleagues to support this critical effort.
We must commit today that the United States will not be left behind in
Africa. Every day we wait, countries such as China expand their
economic, political, and diplomatic footprint on the continent.
The ACTING PRESIDENT pro tempore. The Senator from Colorado is
recognized.
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