[Congressional Record (Bound Edition), Volume 153 (2007), Part 13]
[Extensions of Remarks]
[Page 18976]
[From the U.S. Government Publishing Office, www.gpo.gov]




         AFRICA GROWTH AND OPPORTUNITY ACT'S BENEFITS TO AFRICA

                                 ______
                                 

                       HON. CHRISTOPHER H. SMITH

                             of new jersey

                    in the house of representatives

                        Thursday, July 12, 2007

  Mr. SMITH of New Jersey. Madam Speaker, this morning the Subcommittee 
on Africa and Global Health held a hearing on the African Growth and 
Opportunity Act. This law provides duty-free and quota-free access to 
the U.S. market for certain goods from designated countries in sub-
Saharan Africa. It was based on the congressional finding that it is in 
the mutual interest of the United States and the countries of sub-
Saharan Africa to promote stable and sustainable economic growth and 
development on the continent. The criteria for beneficiary countries 
includes evidence of progress toward a market-based economy, rule of 
law, economic policies to reduce poverty and promote economic growth, a 
system to combat corruption and bribery, and protection of 
internationally recognized worker and human rights.
  The recent report from the U.S. Trade Representative to Congress 
contains some impressive information about AGOA's impact. Since it was 
enacted in 2000, trade between the United States and sub-Saharan Africa 
has increased 143 percent, and AGOA has played an important role in 
this increase. In 2006, over 98 percent of U.S. imports from AGOA-
eligible countries entered the United States duty-free. U.S. imports 
from AGOA countries totaled $44.2 billion in 2006, which was an 
increase of 16 percent over the previous year.
  It is disappointing, however, that most of this increase in 2006 was 
due to oil, and non-oil trade increased by only 7 percent after having 
declined a precipitous 16 percent in 2005. Non-oil AGOA trade 
constituted only $3.2 billion of the total. These latter statistics 
indicate a need for greater attention to the non-oil potential on the 
continent.
  The Subcommittee on Africa, Global Human Rights and International 
Operations that I chaired held a hearing on a five-year assessment of 
the act in October 2005, which included two witnesses who we heard from 
again today: Ms. Florizelle Liser and Mr. Steve Hayes. One of the 
issues that I raised at the prior hearing was the protection of labor 
and other human rights in AGOA-eligible countries. Ms. Liser testified 
at the time that AGOA was having a positive impact on worker and human 
rights, and she provided examples of reforms that had been undertaken 
by beneficiary countries which included the prevention of child 
trafficking and addressed the worst forms of child labor.
  It is important that this issue be examined, particularly in light of 
the 2007 Trafficking in Persons Report that was released by the State 
Department last month. It contains a ``Tier 2 Watch List'' of countries 
that have a serious trafficking problem and that do not fully comply 
with minimum standards to eliminate trafficking. These countries will 
be the subject of particular scrutiny by the State Department's 
Trafficking Office during the coming year to ascertain whether they are 
making sufficient efforts to bring themselves into compliance with 
those standards.
  It is disturbing that eight countries on the Tier 2 Watch List are 
AGOA beneficiaries, and that each of these countries are cited in the 
TIP report for child and/or forced labor concerns. Sexual exploitation, 
particularly of children, as cited in some of these reports would also 
be relevant in the AGOA context as gross violations of international 
human rights standards. In addition to the other human rights 
assessments that are legislatively mandated as part of the AGOA 
eligibility process, one would expect the tier placement for 
trafficking in persons to be a critical consideration. I would strongly 
encourage the U.S. Trade Representative to collaborate with the State 
Department Trafficking in Persons office on this issue.
  While questions may be raised concerning the relation between AGOA 
and improvement in human rights, it does seem that the act together 
with the Millennium Challenge Account is providing an impetus for other 
advances. The World Bank is reporting that corruption in Africa is 
declining, stating that even some of the poorest countries have made 
``significant progress'' in improving governance and fighting 
corruption over the past decade. This trend is certainly attributable 
to a significant extent to the eligibility requirements for both of 
these U.S. initiatives.
  AGOA and the MCA are also addressing infrastructure and technical 
capacity that are essential for long-term development, but which are 
arguably not receiving sufficient emphasis from other assistance 
sources. As I indicated earlier and in the subcommittee's recent 
hearing on the MCA, Congress needs to look at ways to improve and 
strengthen these benefits in both pieces of legislation.
  And finally, one should not minimize the good will and positive 
bilateral relationships in Africa that are being reinforced through 
AGOA and the MCA, together with the President's Emergency Plan for AIDS 
Relief. This latter consideration, though intangible, is critical if 
the United States is to maintain and strengthen its presence in this 
region of the world that is becoming increasingly important for our own 
national security and global peace and prosperity.

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