[Congressional Record (Bound Edition), Volume 145 (1999), Part 5]
[House]
[Pages 6939-6940]
[From the U.S. Government Publishing Office, www.gpo.gov]




             SUPPORT THE AFRICAN GROWTH AND OPPORTUNITY ACT

  The SPEAKER pro tempore. Under the Speaker's announced policy of 
January 19, 1999, the gentleman from California (Mr. Royce) is 
recognized during morning hour debates for 5 minutes.
  Mr. ROYCE. Mr. Speaker, it is crucial that the United States 
encourages economically reforming African countries. One of the ways to 
do that would be to pass the African Growth and Opportunity Act, a bill 
that will really put Africa on the course of joining the world economy.
  Africa is the poorest continent today, largely because of the state-
dominated development strategy that predominated for the first three 
decades of its era of independence. It was called African socialism, 
and it did not work for Africa. It did not work for Africa any better 
than it worked in Eastern Europe.

                              {time}  1300

  Those economic policies help explain the difference today between a 
country like Ghana in West Africa and South Korea. In the early 1960s 
these two countries had similar per capita incomes. Ghana and most of 
Africa took the route of socialism, and they paid a very heavy price as 
a result.
  Now, fortunately, many African countries, including Ghana, have 
changed course ever since the Berlin Wall came down. Ever since the 
West and Third World countries began to look at what had actually 
happened in Eastern Europe and in the former Soviet Union, they began 
liberalizing their economies. They began permitting private ownership 
of assets and becoming more welcoming of foreign investment and 
implementing the rule of law.
  These reforms, which were encouraged by the United States and were 
undertaken with considerable political difficulty, have produced 
desirable results in many African countries. Many countries are seeing 
consistent economic growth of higher than 5 percent. In some, it is 10 
percent, up to 17 percent growth rates per year.
  These reforms advance America's many interests in Africa. It is very 
important when we think about this to realize that, realistically, the 
U.S. could not isolate itself from a 21st Century where Africa is 
suffering with increased war and social upheaval and environmental 
degradation or international terrorism and drug trafficking.
  Growing economic means for Africa is an antidote for this scenario, 
translating into improved educational and health services, better 
environmental

[[Page 6940]]

protections and greater social stability.
  President Museveni said that to meet all of the health and education 
needs of Uganda, they would have to build the tax base through economic 
reforms and introduce free enterprise. That is exactly what they have 
done, with very positive results.
  So recovering African economies already offer the U.S. significant 
commercial opportunities. While African countries are still in the 
early stages of economic reform, America's growing exports, exports to 
Africa already total $6 billion per year. That supports 100,000 
American jobs. American investment on the continent is increasing. 
American corporations, looking beyond the headlines of civil strife, 
are clearly recognizing opportunities in Africa.
  The African Growth and Opportunity Act would strengthen these 
positive trends by putting Africa more firmly on the trade and 
investment map. This legislation would encourage qualifying African 
countries in annual, high-level trade forums, modeled after forums the 
U.S. holds with other regions of the world, to continue along this 
route of reducing tariffs and reforming the economy. These forums would 
have symbolic value, demonstrating that the world's most powerful 
economy takes Africa's economic development seriously.
  American exporters and investors stand to benefit by the African 
Growth and Opportunity Act. Qualifying African countries would be 
reducing barriers to American goods and investment, including reducing 
tariffs and regulatory burdens and protecting private property. In 
other words, this legislation treats trade and investment as a two-way 
street.
  The African Growth and Opportunity Act has received strong support 
from American businesses, particularly those already engaged in Africa 
and aware of the opportunities. There should be a sense of urgency 
about the African Growth and Opportunity Act. There should be a sense 
of urgency about Africa itself.
  While several African countries are making encouraging economic 
progress, others are not. Africa's share of world trade and developing 
world foreign direct investment is small. Unless these trends are 
reversed, Africa runs a real risk of becoming economically irrelevant. 
I urge passage of the African Growth and Opportunity Act.
  AGOA promises to make Africa more relevant to the world economy. That 
is why it enjoys the support of virtually every African country.
  The African Growth and Opportunity Act is not a panacea for Africa's 
many challenges. But it would help.
  While modest from an American perspective, AGOA promises tangible 
benefits and a psychological boost to those African countries wishing 
to become economic partners with the U.S.
  This is the least we can do for countries fighting their best against 
the continent's economic marginalization, and worse.
  Having encouraged difficult market-opening reforms, denying greater 
market access for a modest amount of African goods disrespects our many 
interests in Africa.
  It is also indefensible policy toward the world's poorest continent 
just as it is developing some momentum.
  I urge my colleagues to vote in favor of this Act when it reaches the 
House floor.

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