01 October 2001

U.S. Officials Say AGOA Is on Track Despite Tragedy

Washington -- Despite the disastrous economic effects of the recent terrorist attacks on New York City and the Pentagon, U.S.-Africa trade relations are on track, thanks to the African Growth and Opportunity Act (AGOA), U.S. officials told a gathering of African-American legislators September 28.

Assistant U.S. Trade Representative for Africa Rosa Whitaker and the director of public diplomacy for Africa at the U.S. State Department, Robin Sanders, spoke at the annual Congressional Black Caucus Legislative Conference at Washington's Convention Center. They focused on AGOA as the "main vehicle for economic trade and development in Africa," in Sanders' words.

Results of the trade act, passed by Congress in May 2000, "have been unparalleled in our history," said Whitaker. "It has been only a year since the act was initiated, and many countries are just impressed and so pleasantly surprised by the phenomenal and early results from AGOA."

The act has resulted in $4,000 million of trade and investment in the region, which has far exceeded the expectations of U.S. trade officials and economists, Whitaker said.

For example, she said, statistics show that "AGOA is transforming the economic landscape of Lesotho. Lesotho has received $122 million in investments as a result of AGOA. The investments alone quadruple all aid received in foreign assistance within the country, resulting in thousands of jobs that pay five to 10 times the average wage."

South Africa, another country in which AGOA has been effective, has seen hundreds of millions of dollars in new trade and investment, exporting under 18 different sectors, Whitaker said.

In Malawi, 600 new jobs have been created as a result of AGOA. A factory received an order to produce uniform T-shirts for Subway sandwich shops. The factory was able to expand as a result of investment from the United States, and a possible thousand more jobs are expected, according to Whitaker.

In Kenya, an estimated 50,000 new jobs will be created, but 200,000 are eventually expected as a result of AGOA, Whitaker said.

"Our exports to sub-Saharan Africa as a result of AGOA are up," said Whitaker. She noted that the U.S. economy is dependent upon trade -- trade increases consumption of U.S. exports, resulting in the creation of new jobs within the United States.

The State Department's Sanders reviewed the main issues discussed during the forum: linkages, building bridges, networks, and partnerships.

Linkages between Africans and Americans, African-Americans and Africans, and the United States and Africa have to be created in order to build bridges, she said, adding that building bridges and creating networks can happen once communication is established.

"A constituency for Africa is important," Sanders said. "We are a constituency and each voice is vital."