The Washington Post on the expiration of the African Growth and Opportunity Act
One of the United States’ most successful regional trade pacts, the African Growth and Opportunity Act, expires at midnight on Tuesday, with no extension in sight. That’s a shame, because the 25-year-old trade deal has helped create jobs, reduce poverty and bolster the economies of some of the continent’s poorest countries.
But all is not yet lost. Some African leaders, who have been lobbying in Washington and on the sidelines of the U.N. General Assembly in New York, have returned home hopeful that Congress could pass a short extension of AGOA before the end of the year. “They promised us that by November or December (at) the latest, it will be extended by a year,” the trade minister of tiny Lesotho, one of the main beneficiaries of the act, said after meetings in Washington.
In Washington’s unpredictable budget negotiations, things can still go awry, even on issues with bipartisan support. Most worrying is that the White House has not said publicly whether it supports a renewal. That means it will be up to Africa’s friends in Congress, and the business community, to make the case that the pact is worth saving.
It should be an easy sell. AGOA grants duty-free access to the U.S. market for 32 African nations now qualifying. It is responsible for creating 300,000 jobs directly and roughly 1 million more indirectly. The program has boosted America’s image and influence across Africa at a time when China and Russia have increased their economic, diplomatic and military ties. It has allowed the U.S. to minimize financial aid handouts to Africa in favor of bolstering local industries and increasing countries’ self-reliance. And it is creating markets for American businesses on the world’s youngest and fastest-growing continent.
Critics rightly point out that AGOA’s benefits are concentrated among a few countries, but a short-term renewal would buy time for Congress to negotiate reforms that would broaden participation under a longer-term reauthorization. AGOA stands on its own merits. A short-term lapse, even by a few weeks, will cause uncertainty and chaos as exporters and importers are forced to adjust to new duties.