[Congressional Record Volume 161, Number 175 (Thursday, December 3, 2015)]
[Senate]
[Pages S8371-S8372]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SUPPORTING THE COFFEE FARMERS IN THE DEMOCRATIC REPUBLIC OF THE CONGO
Mr. LEAHY. Mr. President, like many Senators, I have followed the
appalling situation facing citizens of the Eastern Congo, where armed
groups have fought for years over control of minerals and territory,
pillaging, raping, and killing civilians in the process.
The innocent people who struggle to survive in the midst of this
violence and destruction rely on subsistence agriculture, as well as
raising crops for export; yet their own government makes it doubly
difficult.
For decades, coffee was an important agricultural export from Eastern
Congo. But after years of armed conflict, official coffee exports have
reportedly decreased by over 80 percent from peak levels 30 years ago.
The majority of this coffee is produced by
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smallholder farmers, most of whom are women, and for whom coffee is a
significant source of income.
Today a consortium, including the Eastern Congo Initiative, the
Howard Buffett Foundation, and Starbucks Coffee Company, are trying to
help Congolese farmers by revitalizing the industry. Needed
infrastructure has been built, a supply chain is in place, and
America's largest coffee company has provided a reliable buyer. This is
a welcome and worthwhile effort to improve the lives of people in rural
Congolese communities that should have the support of the Congolese
Government.
Despite this collective effort, Congolese coffee farmers are being
crippled by oppressive taxes that make their coffee uncompetitive in
the global marketplace. While Congo's official export tax rate is 0.25
percent, many export officials reportedly continue to levy taxes of 7.5
percent, which is the previous rate. In addition, there are often
informal tax levies that charge another 3 to 8 percent. These excessive
taxes force exporters to pay smallholder farmers less for their coffee,
with the result that farmers smuggle their crop into neighboring
countries. The livelihoods of these farmers and the success of the
Eastern Congo Initiative-Buffett-Starbucks joint venture are put at
risk by the Congolese Government's actions.
I want to yield to Senator Graham, who has traveled to Africa and
observed the challenges facing small farmers like those I have
mentioned.
Mr. GRAHAM. I want to thank my friend from Vermont with whom I have
worked for years to help improve the lives of small farmers in Africa
and elsewhere. The situation facing coffee farmers in the Eastern Congo
should concern all Senators, as there is an opportunity, thanks to the
Eastern Congo Initiative, the Buffett Foundation, and Starbucks, to
significantly increase the income of people who have long struggled to
get out of poverty. The Congolese Government should take immediate
steps to eliminate this unofficial tax rate and other specious
financial charges that are jeopardizing the livelihoods of their own
people. The government must be part of the solution--and not the
problem--to Congo's myriad challenges.
Mr. LEAHY. I thank the Senator from South Carolina, the chairman of
the Subcommittee on State and Foreign Operations, who chaired a hearing
earlier this year when we heard compelling testimony about this
subject.
I ask my friend from Delaware, the former chairman of the
Subcommittee on Africa, who has traveled to Africa many times,
including this year with President Obama, to discuss how this situation
in the Eastern Congo relates to the requirements of the African Growth
and Opportunity Act.
Mr. COONS. I thank the Senator from Vermont for calling the Senate's
attention to the challenges facing coffee producers in the Eastern
Congo. The Congress passed the African Growth and Opportunity Act,
AGOA, to advance economic growth and political stability in sub-Saharan
Africa. AGOA furthers these objectives by offering trade benefits to
countries that meet certain requirements, including commitments to
policies that alleviate poverty and reflect market based economic
principles. Moreover, as part of this year's AGOA renewal, we included
provisions to enhance industries where African women are making strong
contributions. Since its inception, exports from AGOA countries to the
United States have grown 300 percent. Agriculture is the largest
employer in Africa, and in the years to come, farming can play a key
role in accelerating exports even further and realizing the vision of
AGOA.
To meet the standards of AGOA and gain eligibility, the Congolese
Government must do away with the excessive export and other taxes
currently being levied on its coffee farmers. Impeding the growth of
their coffee industry and lowering the standard of living of their own
farmers is inconsistent with the language, intent, and spirit of AGOA.
Lowering this tax burden should be required before the Democratic
Republic of the Congo is granted AGOA benefits.
Ms. STABENOW. I thank the senior Senator from Vermont for his
leadership on this issue. Last year, I had the privilege of leading the
first all-women Senate delegation to sub-Saharan Africa to examine
food, agriculture, and the critical role women play in local economies.
According to the Food and Agriculture Organization of the United
Nations, nearly 50 percent of all the agricultural work in the region
is done by women.
Yet, too often, women are not afforded equal opportunities to own
property, earn an education, or participate in the political process.
That is why I was eager to lead two bipartisan provisions included in
the recent AGOA renewal. The first makes clear that we expect our
African trading partners to make progress toward establishing policies
that support men and women. And the second expands existing
agricultural trade technical assistance programs at USDA and USAID and
prioritizes outreach to organizations and sectors that support women.
At its core, AGOA is about creating the building blocks of an
improved trading relationship with sub-Saharan African nations. For the
Democratic Republic of the Congo, coffee production presents a critical
export opportunity. That is why we must insist that the Congolese
Government addresses its inconsistent and burdensome export taxes on
coffee producers--most of whom are women--before regaining eligibility
for AGOA benefits. We have an opportunity to send a strong message to
our African trading partners that we expect them to recognize how vital
women are to the development of those nations' economies.
Ms. CANTWELL. I thank the senior Senator from Vermont for his
leadership on this issue. Last year, I travelled to sub-Saharan Africa
with Senator Stabenow. In Africa, we saw firsthand that empowering
women and girls as leaders in agriculture is important to promoting
economic development. When we returned, we fought to make sure
promoting economic opportunities for women was an important aspect of
renewal of the African Growth and Opportunity Act.
Investing in women produces a good return on investment. According to
the U.N. Food and Agriculture Organization, if women had the same
access to economic resources as men, this could increase agricultural
productivity by 20-30 percent.
The Congolese Government's export taxes on coffee producers have the
opposite effect. It unfairly burdens women. It should be repealed
before the Democratic Republic of the Congo receives any additional
AGOA benefits.
Mr. ISAKSON. I want to thank the Senator from South Carolina and the
Senator from Vermont for their important work in improving United
States foreign assistance. I thank Senator Leahy for bringing this
issue to our attention today. The Senator from Delaware and I have
worked for years on the Senate Foreign Relations Subcommittee on
African Affairs, and I look forward to continuing that work. Throughout
our travels on the African continent, we have seen the beneficial
effects of increased agriculture productivity and better access to
markets, facilitated by U.S. economic development and trade preference
programs.
I am proud of our work to reauthorize the African Growth and
Opportunity Act. We made it stronger, more accountable, and hopefully
more accessible to sub-Saharan African countries and their people.
Unfortunately, Congo's ineligibility makes export opportunities more
difficult for Congolese businessmen and farmers. I echo my colleagues'
call on the Congolese Government to become more transparent and
responsive to the needs of its people.
Mr. LEAHY. Mr. President, as you can see, there is bipartisan support
for these coffee farmers who face oppressive economic constraints that
limit their ability to be competitive in the marketplace and earn a
decent living. I join my colleagues who have spoken on this issue today
in urging the Congolese Government to address these concerns for the
benefit of its people.
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