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AFRICAN GROWTH AND OPPORTUNITY ACT -- (House of Representatives - July 16, 1999)

   The main trade provision here spreads GSP to African nations, including textiles, and that is the most sensitive issue. So what are the rules of competition here? First of all, as has been mentioned, there is a provision that the President must certify that any product that is going to come in under GSP, including textiles, not be import sensitive. Secondly, there must be, I deeply believe this, labor market worker rights provisions in trade agreements. There is such in the GSP. The President has to consider in granting eligibility whether a Nation has taken steps or is taking steps to afford core worker rights, including the right to bargain collectively. Private parties can petition if GSP labor provisions are being abused, and 11 nations have had GSP treatment withdrawn from them because of that. Where competition is keener than would be true here, where labor markets are more developed than is true in sub-Saharan Africa , there should be a different standard applied, and I will fight for that.

   I urge support. In this case it is a first step, a modest step, but it looks at the rules of competition as well as Africa as a potential consumer. We should support this bill and remember as we go on to other issues, we should keep in mind the rules of competition, including core worker rights.

   Mr. ROYCE. Mr. Chairman, I yield 2 minutes to the gentleman from California (Mr. CAMPBELL) who serves on the Subcommittee on Africa .

   Mr. CAMPBELL. Mr. Chairman, I thank the gentleman for yielding me this time. I note his superb leadership in this area. I note the superb leadership of the ranking Democrat on our subcommittee as well the gentleman from New Jersey (Mr. PAYNE).

   There are two arguments against this bill, the first that it is really bad for Africa . The gentleman from Maryland was quite eloquent in making the case how wrong it is to apply such an assumption that the representatives of each African nation are selling their people short, that they do not care about worker exploitation, that somehow they do not care about environment. These are the assumptions one must be making if one says that the support of this legislation by every government in the African continent is somehow to be discounted.

   As to the second argument that it hurts the United States, the gentleman from Maryland's argument was also quite persuasive. On what assumption do we base the fear that African nations are not reliable? On what assumption do we base the prejudice that an African nation will not be able to comply with its obligations under the trade agreements not to have massive transshipments? In our trading arrangements with other nations around the world, we assume that they honor their obligations, including the prohibitions against mislabeling and transshipments. Why do we throw this assumption out when we are dealing with Africa ? It seems to me that the assumption is fair in this case, even if there were a much larger percentage of textiles than there is.

   Lastly, let me conclude by pointing out that we give less in direct aid to Africa per capita than any other part of the globe with the possible exception of India depending how it is measured. This is not an aid bill. This is a bill to open up a reciprocal relationship of trade and respect. Other countries we give more than $30 per capita. To the people of sub-Saharan Africa , we give less than 17 cents per capita. Is that right? Is that fair?

   If you wish to change it but you have constraints with the budget, at least open up trade, open up hope. That is what this bill does. I am proud to support it.

   Mr. CRANE. Mr. Chairman, I yield 2 minutes to the distinguished gentleman from Pennsylvania (Mr. ENGLISH).

   Mr. ENGLISH. Mr. Chairman, I thank the distinguished chairman of the Subcommittee on Trade for yielding me this time. It is a privilege for me to rise in support of this legislation.

   America has an enormous stake in our long-term relationship with Africa , a relationship which can and must be mutually beneficial. Many will note that our experience in Africa since the colonial period in some respects has been disappointing. Despite our well-intentioned efforts in sending billions in foreign aid to this continent, poverty had over many years increased and economies had stagnated. Yet Africa has recently seen a modest but promising return to economic growth and a growing embrace of economic reforms and market capitalism. We need to encourage this.

   By opening our markets and looking to Africa as a market for our goods, we can do more to lift Africa out of poverty and help build its economic self-sufficiency while at the same time increasing our exports and creating jobs right here in America. By passing this bill, we can buttress the economic reforms now being embraced by sub-Saharan Africa and stimulate much needed economic growth and investment.

   The notion of Africa as an export market for America's products is not an exotic one. In the period between 1993 and 1997 in my own congressional district, the city of Erie benefited from $49 million in exports to Africa and the State of Pennsylvania currently ranks in the top 10 States in exports to the region.

   Our investment in sub-Saharan Africa is a win-win situation that will promote stability in the region, increase economic prosperity and encourage development and growth. I am happy to be a cosponsor of this legislation which I believe is critical in shaping our long-term relationship with Africa .

   Mr. RANGEL. Mr. Chairman, I yield 1 minute to the gentleman from New York (Mr. OWENS).

   (Mr. OWENS asked and was given permission to revise and extend his remarks.)

   Mr. OWENS. Mr. Chairman, progress for African trade and growth can never take place unless there is first a recognition that Africa has as much promise as any other region in respect to long-term trade and commerce possibilities. Developing economies in Africa are natural markets for U.S. products and services. Recognition of Africa as a significant part of the global economy is long overdue. One of the principles advocated by the great radical organizer Saul Alinsky was that an aggrieved, neglected or oppressed group or nation must first command recognition before hope for progress can be ignited.

   

[Time: 11:30]

   For the 17 years that I have been in Congress, there has been no significant attention focused on African trade. Like many of my colleagues, I am the cosponsor of several additional measures related to Africa . Unfortunately, other than the foreign aid appropriations, this bill is probably the only African relevant bill that will reach the floor of the House in the 106th Congress.

   Let me note the fact that some have charged that this legislation is as devastating as NAFTA. Nothing could be further from the truth.

   I urge the full support for this landmark piece of legislation.

   Progress for African trade and growth can never take place unless there is first recognition that Africa has as much promise as any other region with respect to long-term trade and commerce possibilities. Developing economies in Africa are natural markets for U.S. products and services. Recognition of Africa as a significant part of the global economy is long overdue. One of the principles advocated by the great radical organizer, Saul

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Alinsky, was that an aggrieved, neglected, or oppressed group or nation must first command recognition before the hope for progress can be ignited.

   For the seventeen years that I have been in Congress there has been no significant attention focused on African trade. This long overdue bill stands alone--and despite its imperfections and incompleteness, this legislation deserves our full support. Hope for Africa begins with today's recognition of Africa as a deserving trade partner.

   Like many of my colleagues I am the co-sponsor of several additional measures related to Africa . Unfortunately, other than the foreign aid appropriations, this bill is probably the only Africa relevant bill that

   will reach the floor of the House in the 106th Congress.

   Let me also note the fact that some have charged that this legislation is as devastating as NAFTA. Nothing could be further from the truth. In the much highlighted textile industry the Sub-Saharan African countries have less than one percent. On the other hand, China has almost 10 percent of the U.S. textile market. In the seventeen years that I have served on the Education and Labor Committee no union has yet complained to me about losing textile industry jobs to China.

   Just transfer one percent of the textile trade from China to Africa and you will do nothing to hurt American jobs--you merely maintain the status quo. Why are the same people who are yelling about trade with the infant economies of Africa so wimpish or silent on trade with China.

   In the final analysis we have a problem here similar to the one faced by King Solomon when two women claiming to be the mother of one baby came before him. There are some who are proclaiming that, never mind the pleas of the African leaders, it would be better to vote this bill down and do nothing for Africa . Following the wisdom of King Solomon, it is clear that these negative opponents do not understand what is best for Africa . I urge a yes vote on this landmark legislation.

   Mr. PAYNE. Mr. Chairman, I yield 2 minutes to the gentlewoman from California (Ms. LEE).

   Ms. LEE. Mr. Chairman, I want to thank the gentleman from New Jersey (Mr. PAYNE) for yielding this time to me, for his hard work and commitment to Africa and to America.

   I rise in opposition to H.R. 434. This is one of the most difficult no votes which I again will cast today, but I have attempted to dig beneath the surface of this legislation and analyze what its true impact will be.

   I was compelled to vote against this bill when it was examined in the House Committee on International Relations. As one who has historically encouraged and worked for a comprehensive trade and development policy for Africa , this is not a vote which I cast lightly. In opposing this legislation I part company with the President I strongly support and a number of congressional colleagues for whom I have the utmost respect.

   Now very troubling to me, the African Growth and Opportunity Act fails to respect African sovereignty. It threatens the rights of African nations to determine for themselves the economic priorities that are in the best interests of their people. H.R. 434 continues to carry harsh eligibility requirements. To obtain trade benefits, countries must reorder their spending priorities to suit the preferences of foreign investors and the International Monetary Fund.

   Now, considering the mystery and the destructive nature of many of the IMF structural adjustment programs in Africa , this eligibility requirement is one which I cannot in good conscience support.

   Other provisions in this legislation require countries to reduce taxes for corporations while at the same time cut domestic spending which will inevitably lead to further reductions in vital health care and education programs which are already starved for funds.

   Africa has been neglected for too long, and as I listened to this debate, the supporters of this bill say that it is a modest first step. Well, it should be a major first step. It should not be symbolic, as many are saying. Africa deserves better.

   In our enthusiasm to promote American business opportunities and forge new relationships with countries in Africa , we must remain focused on the paramount need at hand to support a free and fair trade policy which benefits Africa and America.

   Mr. ROYCE. Mr. Chairman, I yield 2 minutes to the gentleman from Nebraska (Mr. BEREUTER), vice chairman of the Committee on International Relations.

   (Mr. BEREUTER asked and was given permission to revise and extend his remarks.)

   Mr. BEREUTER. Mr. Chairman, I rise in strong support of this legislation. As a cosponsor, I believe that the expanding trade and foreign investment in Africa is going to be a highly effective way to promote sustainable economic development on the continent. By providing African nations incentives and opportunities to compete in the global economy and by reinforcing African nations' own efforts to institute market-oriented economic reforms, this bill will help African countries provide jobs, opportunities and a future for their citizens.

   Only through dramatically improved levels of trade and investment will Africans fully develop the skills, institutions, and infrastructure to successfully participate in the global marketplace and significantly raise their standard of living.

   It is true that trade liberalization cannot remedy all of Africa's woes; however, that is why our overall strategy for sub-Saharan Africa is a combination of trade and aid working together. To those who criticize H.R. 434, charging it does not provide sufficient immediate aid to Africa's poor or for protecting Africa's environment, this Member would remind his colleagues that just 8 months ago the Congress enacted and the President signed into law the Africa Seeds of Hope legislation.

   This food security initiative, which this Member sponsored, refocuses U.S. resources on African agriculture and rural development and is aimed at helping the 76 percent of the sub-Saharan people who are small farmers. This law, along with other current U.S. aid programs such as the Development Fund for Africa are the aid components of our African development strategy. With the passage of this legislation, we will have a balanced trade and aid program.

   Frankly, I am mystified by some of the arguments against this legislation. I refer my colleagues who are opposed to reexamine the comments of the distinguished gentleman from Massachusetts (Mr. NEAL) during the debate on the rule and to listen to the gentleman from Maryland (Mr. WYNN) who spoke just a few moments ago. The gentleman from Maryland reminded us that all of the Africa nations really are supportive of this legislation.

   Mr. Chairman, now is the time to complete this strategy and approve this desperately needed complementary trade component. This is the crucial missing component. I urge my colleagues to vote aye.

   Mr. CRANE. Mr. Chairman I yield 1 1/2 minutes to our distinguished colleague, the gentelman from Florida (Mr. SHAW).

   Mr. SHAW. Mr. Chairman, I thank the gentleman for yielding me this time.

   This is a very important bill. For too long Africa has been treated as still colonies of many of our European allies. For too long their resources have been exploited by some Asians who have very little regard for the natural resources, including the magnificent rain forests and the creatures that are now endangered that walk this earth in Africa .

   With the investment, American investment, we will be exporting one of our most valuable commodities, democracy, human rights, our appreciation for the environment. This is what will be exported into Africa , and with the importation in Africa and reaching out to Africa , their economies will grow; and with their economies, the democracies will also be more firmly put in place and their appreciation for their free-market system that has served this country so well.

   These are the values that I believe we will bring to Africa , and African exports and the rich resources of Africa will be of great benefit to our country.

   I traveled to Gabon with the chairman of the Committee on Ways and Means just last year and was very much impressed with the progress that Gabon has made, President Bongo, with his reelection. We had observers on the scene during the reelection. Members of their Parliament are visiting the United States at this time and I believe are with us this morning.

   So I would urge a yes vote on this most important piece of legislation. Let us not continue to turn our back on Africa .

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   Mr. RANGEL. Mr. Chairman, I yield 1 minute to the gentleman from Louisiana (Mr. JEFFERSON), an author of the bill and member of the Committee on Ways and Means.

   (Mr. JEFFERSON asked and was given permission to revise and extend his remarks.)

   Mr. JEFFERSON. Mr. Chairman, I want to call the attention of the House to this chart. Those who say they want to help African workers and who want to deny the entry of African textiles to the American market cannot have it both ways. This shows how little Africa is involved now in importations to our country: just four-tenths of 1 percent, this big blue area and this little sliver of red. This little sliver of red is African imports to this country.

   While it does not do anything in our market, makes us a slight dent here, one we can almost not notice, in Africa it is going to mean a lot to African workers. It is going to mean thousands of jobs there on the continent of Africa . It is the one place where Africa now has existing industrial capacity. The industrial revolution passed over Africa , or it was passed over Africa , if my colleagues will, and this is a way now to build in Africa the industrial base there around the textile industry.

   If this is not done for Africa now, this bill will not mean very much in the shot term for African workers or for people that are off to the continent. So, for those who want to help African workers, let us make sure we do something about letting textiles in this country. We can do something to help the entry-level worker in Africa get a job and build the industrial base in that country.

   Mr. PAYNE. Mr. Chairman, I yield 1 minute to the gentleman from Illinois (Mr. JACKSON).

   Mr. JACKSON of Illinois. Mr. Chairman, in this Chamber just a few months ago, the President of the United States stood right here; and he said in his State of the Union address that ``trade has divided us and divided Americans outside this Chamber for too long. Somehow we have to find common ground on which business and workers and environmentalists and farmers and government can stand together.''

   President Clinton continued: ``We must ensure that ordinary citizens in all countries actually benefit from trade, and we applaud it, a trade that promotes,'' he said, ``the dignity of work and the rights of workers and protects the environment. We have got to put a human face on the global economy, and then we proposed the old face on the global economy.''

   I would love for the gentleman from New Jersey (Mr. PAYNE) or the gentleman from New York (Mr. RANGEL) or the gentleman from Illinois (Mr. CRANE) or any of the sponsors of the bill to show me specifically in H.R. 434 where that common ground is. Show me where multinationals from the United States that locate in sub-Saharan Africa and take advantage of these trade provisions, that they have to hire African workers. Show me how we have provisions in this bill to keep the Chinese from taking advantage of African workers by importing Chinese workers into sub-Saharan Africa .


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