Indianapolis Recorder, Indianapolis, Marion County, 2 June 2000 — Page 2

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THE INDIANAPOLIS RECORDER

FRIDAY, JUNE 2,20pp{

Despite drawbacks, Africa-Caribbean trade act should increase economic status

By JIM LOBE

WASHINGTON (IPS) — Celebrating his first trade victory in six years, President Bill Clinton recently signed into law the Trade and Development Act of 2000, which is designed to promote U.S. commerce with sub-Saharan Africa and two dozen countries of the Caribbean Basin. In an enthusiastic ceremony on the south lawn of the White House, Clinton told the two regions' diplomatic corps, as well as key lawmakers, that the legislation “will be good for the United States, good for Africa, good for Central America and the Caribbean.” “Let me say that the legislation I sign today is about more than development and trade; it's about transforming our relationship with two regions full of good people trying to build good futures, who

are very important to our own future,” he said. He also called for quick congressional approval of debt relief for the poorest nations and for proposed tax incentives to speed the development and delivery of vaccines for HIV/AIDS, malaria, and tuberculosis. The new law - an amalgam of the Africa Growth and Opportunity Act (AGOA) and the Enhanced Caribbean Basin Initiative (CBI) • passed both houses of Congress by large majorities after a protracted negotiation to reconcile different versions which they had approved last year. Both the AGOA and Enhanced CBI bills had been pending in Congress for a long time. The Africa bill, which Clinton submitted in 1997 and which the House had approved the following year, was blocked in the Senate by lawmak-

ers from textile-producing states. EnhancedCBI, which was originally designed to give Caribbean nations many of the same trade advantages acquired by Mexico under the 1993 North American Free Trade Agreement (NAFTA), was held up by acoalition of textile interests, labor unions, and some environmental groups. It was actually rejected by the House in 1997 but revived when senators attached it to the Africa bill late last year. As a result, the final version of both bills, which runs through 2008, is a pale shadow of what their supporters had originally hoped to achieve in the way of opening the US market much wider to exports from poor regions. For example, it fails to reduce tariffs and increase quotas on key farm commodities, such as sugar or coffee, important commodities in both regions, especially for poorer countries.

The new law’s main provisions concern textiles and apparel. The original intent of the bill was to eliminate quotas and tariffs on these products from beneficiary countries. But that proved politically impossible. As a result, a complex set of rules was devised for each region. Apparel made in both regions from U.S. yam and fabric may now enter the U.S. market duty-free, a provision that favors the Caribbean in particular, due to the major transport costs involved in shipping goods to and from Africa. African textile and apparel manufacturers, hbwever, could benefit more by two other provisions in the law. Apparel shipped from Africa and made from regional fabric and yam will be accorded duty- and quota-free benefits, up to a ceiling ranging from 1.5 percent to 3.5 percent of all

U.S. apparel imports over eight years. All apparel exports from Africa currently add up to less than 1 percent of the U.S. import market with a value of about $380 million. South Africa and Mauritius, the region’s two most important exporters, could be major beneficiaries of this provision, according to a 1997 government study. In addition, apparel made in Africa from non-regional, non-U.S. fabric will also be given duty- and quota-free treatment, provided that the exporting country’s annual per capita income is less than $1,500. This provision could prove a boon to Kenya, Lesotho, Swaziland, Madagascar, and Zimbabwe, all of which currently export apparel to the United States. It could also help eight other countries - Cameroon, Cote d’Ivoire, Ghana, Malawi,

Mozambique, Nigeria, Tanzania, and Zambia - which have the potential to expand apparel exports,(q the United States, according to the

same study.

To prevent illegal trans-shtpr ments of goods made or assemble^ outside Africa, the law provides additional funding for U.S. Cus T toms inspection and requires beii? eficiary countries to upgrade, thgir own monitoring practices. , , v In addition to duty-free treaty ment for apparel made in CBI epunjtries from U.S. yam and fabric, Caribbean exporters may receive the same benefits for knit apparel

made from regional fabric up cap of 250 million square meters

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N.Y. Rep. Rangel guided trade bill through Congress

By LANI RUSSELL LEWTER

WASHINGTON (NNPA) — When President Clinton said Africa matters by signing the African trade bill into law, ending five years of bickering among and between both parties, U.S. Rep. Charles B. Rangel, D-N. Y., was at his side all the way - from the walk from the White House to the south lawn, and while Clinton signed the bill. Beaming like a proud new father, Rangel, the co-author and primary advocate of the bill for Africa, could hardly contain his excitement asClinton signed “his baby.” With the stroke of a pen, Africa was placed on America’s economic map.

Clinton says the law gives Africa “access to our markets and opens the door for two way trade and creates incentives for the countries of sub-Saharan Africa and the Caribbean Basin to continue reforming their economies and participate more fully in the benefits of the global economy.” The signing came exactly two weeks after the House approval and one week to the day of the Senate vote. Clinton publicly thanked Rangel for his work on the bill. Rangel responded by joking: “I can’t begin to tell you the sense of pride that I feel in being intro-

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during the first year, or about 'ft percent of what the region expo/tqii to the United States last year. Thqj ceiling will rise by 16percentdacfi year for the following three years and will be capped at 450 millioh square meters after that. The law also extends trade beri^ efits already enjoyed by CBI courU tries through 2008. At the same time, it requires beneficiary court- 1 tries to guarantee intellectual pfdpi erty rights, protect foreign invest'-' ment, improve market access for U.S. exports, ensure internationally recognized worker rights, arid eliminate the worst forms of child

labor.

It applies similar conditions to African beneficiaries. Under the law, the president must certify that a country is making “continual progress” towards establishing “a market-based economy” whichj among other things, provides-na* tional treatment to foreign invests ment, ensures the rules of law, and protects worker rights. ;. Critics have charged that these conditions amount to a “new colo^ nialism” against Africa which place U.S. corporate interests above thosq of most poor Africans. .. ilC The law also creates a U.S.Africa Trade and Economic Cqop-< eration Forum, similar to the AsiaPacific Economic Cooperation (APEC) forum, to facilitate regcir. lar trade and investment policy di^n cussions between U.S. and African officials and authorizes the presh dent to put together a plan fqr*et|r. tering free-trade agreements, wj^y^ those African countries whichf yily meet the law’s eligibility reqqjren

ments.

At present, Africa accounts foe only I percent of all U.S. exports, imports and foreign invest,mept, which are concentrated in only. 4 handful of countries. In 1999, 74 percent of US exports to the region, ($5.5 billion) went to only, fiv^ countries - South Africa, Nigeria, Angola, Ghana, and Equatorial Guinea - and 92 percent of U.S. imports ($14 billion) came ffoi^i four countries - South Africa ar oil-exporters Nigeria, Angola, ar Gabon, according to recent Coni" merce Department statistics. Two-way trade with CBI coun£ tries, which include the seven nag' tions of Central America, Guyan^j Suriname, and all Caribbean is^ land-countries except Cuba, last year was - at more than $40 billion

— twice as great as trade , with Africa. *1

Mind you, there'i nothing wrong with buytaf tickets for our tecood, third, or—heck, our next 15 gxines. But on Saturday, June 3rd, we zealously encourage you to don your luckiest, reddest outfit and witness our 2 p.nn. season opener against the Orlando Miracle. This is, after all, a bona fide sporting milestone you'll be gushing over for decades. Assnming you’re here to see it. Ml Thhslmsitar at 2M-S1S1 or vtslf lbs 1