Out of Africa

U.S. could help itself while helping others

As the 21st Century approaches, business leaders are bracing themselves for change - from a national economy to a global economy. In order to succeed in this new economic environment, business leaders are pressuring all levels of government to expand U.S. markets abroad. These efforts have led to the creation of free trade agreements like the North American Free Trade Agreement, international trade organizations, like the World Trade Organization, and preferential trade status for various nations. An area of the world that has long been overlooked and considered a member of the third world is Africa, especially the sub-Saharan African countries. This isolation of the African continent from the global economy will no longer continue if the U.S. House of Representatives passes the African Growth and Opportunity Act.

The benefits of this legislation for the United States and African nations are tremendous. With the elimination of trade tariffs on apparel and textiles - two major products exported from the region - there will be greater incentive for U.S. garment companies to expand their businesses in those countries. This increased development will provide much-needed jobs and income to a region stricken with poverty. The United Nations classifies 33 African countries as the world's least-developed nations. The potential for improvement, through the elimination of these trade tariffs, is limitless.

In addition, the bill would encourage President Clinton to formulate beneficial trade agreements with those countries that promise to adopt political and economic reforms such as the stabilization of government and the reduction of political interference in the economy. Through this aspect of the bill U.S. businesses would have a guarantee that their money is invested in stable countries. These trade agreements will also provide incentive for participating African nations to hasten improvements in these areas of concern, ultimately improving the quality of life for the people living in those countries.

The U.S. government would also guarantee partial insurance for a company's investment in that region. This will help minimize the risk associated with large investments. In addition, the U.S. government will provide funds for much-needed infrastructure development in the African nations that choose to participate and make the necessary economic and political reforms. The only possible outcome of this provision is positive. People who may not have access to clean running water, electricity or efficient transportation will see a great increase in their standard of living. In addition, U.S. companies will be more likely to invest in a foreign country that utilizes modern technology.

One area of concern is the possible exploitation of African countries - once they are granted preferential trade status - for the illegal shipment of goods to circumvent U.S. tariffs. Before the bill is voted on, this issue of illegal shipping must be addressed. A possible solution would be the inclusion of international inspection of the goods' origin before they are shipped to the United States.

The African Growth and Opportunity Act will be vital in adding to the development of the African continent. Problems that have overwhelmed this region - like hunger, poverty, unstable governments, tribal warfare and a lack of health care - can only be improved by the passage of this bill. This proposed legislation has received bipartisan support nationwide and has crossed over racial boundaries. This bill can only benefit both parties involved and should be passed by the House.

03-13-98