US Threatened AGOA Lapse to Force African Trade Facilitation Support, Says Peterson Institute Analyst
Obama administration officials have in recent days coerced African countries into withdrawing opposition to implementation of the World Trade Organization (WTO) Trade Facilitation Agreement by leveraging the pending renewal of the African Growth and Opportunity Act (AGOA), said Peterson Institute of International Economics Senior Fellow Gary Hufbauer in an interview July 9 at an event sponsored by Peterson and the World Economic Forum. Many African countries over recent weeks have expressed concerns over the availability of financial assistance necessary for implementation of the pact, set to enter into force later this month (see 14070322).
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AGOA is set to expire in September 2015 and U.S. firms are pushing for renewal prior to the end of this year in order to prevent a disruption to supply chains (see 14040402). The African countries also previously insisted on revisiting the WTO Doha Development Agenda (DDA) before trade facilitation implementation, said Hufbauer. “Basically the U.S. said ‘we will not renew AGOA if you don’t withdraw your objections to going forward with trade facilitation separate from the old DDA issues,’” said Hufbauer. “It was tough. It was hardball.” AGOA renewal legislation could include a number of modifications and additions to the law, as well as provisions that mandate African compliance with WTO trade facilitation implementation, said Hufbauer.
A USTR spokesman declined to comment on specific involvement in the exchange, but said the administration is insisting on full WTO partner compliance with Trade Facilitation Agreement mandates. “The United States has been clear that we support both a renewal of AGOA and the full implementation of the Trade Facilitation Agreement," said the spokesman. "We are deeply concerned that WTO members backsliding on their Bali commitments puts at risk the post-Bali agenda, including further work on the conclusion of the Doha Round.“ The White House did not comment.
The primary opposition to implementation of the pact in accordance with the timeline outlined at the WTO ministerial in December 2013 now rests with India, which is insisting on addressing other aspects of the DDA. “That’s a pretty obstructionist approach and so they’ll trash that out in Geneva,” said Hufbauer during panel comments. “The Trade Facilitation Agreement is the living part of WTO today, so if that’s crushed by this Indian obstructionism, that’s not helpful.” U.S. Ambassador to the WTO Michael Punke recently warned that derailing implementation could jeopardize a critical lifeline for countries and companies globally, while adding that food security will be addressed at a later date (see 14062718). -- Brian Dabbs