White House Vows to Bolster AGOA, African Trade as Leaders Convene at Summit
President Barack Obama unveiled an administration-wide strategy to optimize U.S. trade with sub-Saharan Africa in a move that coincides with the U.S.-Africa Leaders Summit launch in Washington, D.C. Obama established a Steering Committee, comprised of nearly all trade and development arms of the administration, on Aug. 4 that will report to the president within 180 days on recommendations to expand bilateral trade and investment. The committee is directed to target initiatives and programs that will bolster the African Trade and Opportunity Act (AGOA), the “cornerstone” of U.S.-Africa trade, Obama said in a memorandum (here).
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The administration officials should aim to strengthen African regional integration and supply chains, said the memo. “Such activities include regulatory reform and transparency, trade facilitation and better border operations (including implementation of the World Trade Organization Trade Facilitation Agreement) and implementation of World Trade Organization commitments (including those that relate to science-based sanitary and phytosanitary measures and other technical standards,” said the memo. U.S. Trade Representative Michael Froman on Aug. 4 praised African commitment to the WTO Trade Facilitation Agreement (TFA), despite the recent collapse of the implementation timeline (see 14080412).
U.S. officials can also help strengthen efficiency and transparency at African customs plazas, particularly those land-locked nations, said the White House in a separate fact sheet (here) . “Such reforms will increase customs efficiency and ease access to new export opportunities through measures like transparency in customs practices, on-line publishing of customs information, reduction of documentary requirements, and pre-arrival processing of documents,” the fact sheet said, mentioning the role the TFA can play in those reforms. “This translates to reduced delays for traders at the border, decreased corruption, and more trade opportunities.” The White House also urged long-term extension of AGOA, including the third country fabric provision in order to preserve investment confidence. Meanwhile, American Apparel and Footwear Association President Juanita Duggan said in a Aug. 4 letter to Obama the third country fabric rules of origin should be expanded to cover all beneficiary exports (here).