Froman Urges Review of AGOA Textile Liberalization, Eligibility Framework
The U.S. and sub-Saharan African countries should partner in the months prior to the September 2015 expiration of the African Growth and Opportunity Act (AGOA) to consider tariff liberalization on excluded beneficiary exports, specifically textile and agricultural products, said U.S. Trade Representative Michael Froman at the Aug. 4 outset of a U.S.-sub-Saharan African trade ministerial summit in Washington, D.C. Froman’s call for liberalization echoes similar statements delivered to the Senate Finance Committee on July 30 (see 14073119).
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The AGOA program would also benefit from updates to eligibility criteria and the processes for beneficiary removal or addition. “The criteria can be strengthened to better promote open trade and broad-based economic growth -- for example, by resolving SPS barriers to trade and promoting fundamental worker rights,” said Froman. “The review processes can also be updated to allow more effective enforcement -- for example, by allowing partial and more timely withdrawal rather than all-or-nothing withdrawal that goes into effect the year following the decision.” Sen. Mike Johanns, R-Neb., urged a tiered approach to the eligibility evaluation processes, one that allows a terminated country like Swaziland to edge back into the program incrementally. President Barack Obama removed Swaziland in June due to alleged poor treatment of workers (see 14062706).
Froman also encouraged African countries to lead the fight to add the World Trade Organization Trade Facilitation Agreement (TFA) into WTO legal framework. That effort collapsed on July 31, due in large part to Indian resistance (see 14080115). Multiple African countries, such as the Republic of Congo, Cote d'Ivoire, Morocco and Mauritius, submitted their TFA implementation plans in timely fashion before the July 31 deadline, said Froman. “I hope that Africans will help lead the effort to ensure that our hard work at Bali does not go to waste, that the potential of both TFA and the new Trade Facilitation Agreement Facility are not squandered,” said Froman.