President to Focus on Expanded Trade with Africa During Trip to the Region, USTR Says
U.S. Trade Representative Mike Froman and President Obama will focus on expanded intraregional trade, bilateral investments, and reducing trade barriers in the development of Africa’s sustainable economic growth during a trip to the region. Speaking at the U.S. Global Leadership Coalition conference on June 25, Froman said there is “tremendous upside potential” for U.S.-Africa trade that could also boost exports and jobs within the United States.
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Froman said American companies are starting to invest more in Africa, and are focused “not just on taking resources out of the continent, but putting resources into the continent as well.” There is “a renewed and serious focus” on regional integration and creating a continent-wide free trade area in order to create larger markets to improve Africa’s overall global competitiveness, Froman said. He added that much of the President’s tasks during his trip would relate to how trade and investment benefits Africans while also creating jobs, export and growth within the U.S.
During the trip, the President will also collaborate with the East Africa Community (EAC) to reduce trade barriers like “red tape, roadblocks and redundant border procedures” that create “lengthy transit times which can make trade with and within Africa prohibitively expensive,” Froman said. Removing these barriers is crucial to the free flow of goods and services and improving Africa’s global competitiveness. Froman said the EAC has already decided to create a customs union that would work towards single border crossings, harmonized customs systems, and better border infrastructure.
Froman said that any discussion towards improving U.S.-Africa trade would be rooted in the future of AGOA and its role in building Africa’s economic stability. “We know that today’s gains could be lost tomorrow without adequate support and institutionalization,” he said. “We want to be on the side of those working to make the gains irreversible.”