Congress Moves Closer to Passing Africa Trade Bill


Editor's Note : For more information on the following article see, African Growth and Opportunity Act BTJ

The House International Relations Committee marked up a bill (H.R. 434) that will reduce barriers to trade and investment between the U.S. and Africa, encourage free market reforms in Africa, and extend increased foreign aid and technical assistance to the region.

The bill is sponsored by Rep. Phil Crane (R-IL) and has 69 co-sponsors, both Democrats and Republicans. However, a large U.S. constituency opposes the bill, mainly organized labor and the U.S. textile industry, which fears increased competition from cheap African textile imports.

The U.S. textile industry also is warning that Asian countries will try to circumvent U.S. trade restrictions by using Africa as a trans-shipping location. Also included in the legislation was a last minute amendment by Rep. Sam Gejdenson, (D-CN) that requires African nations to adopt tougher labor standards for African workers. A similar amendment to enact tougher environmental regulations in Africa was rejected by the committee's members.

Another Democratic amendment passed that establishes a "sense of Congress" that economic aid it vital to Africa and that it be extended, even though the bill's language makes this quite clear. The markup clears the way for the legislation to be considered by the whole House in late February. The Clinton Administration has made the bill a priority this year.

Still, the bill passed the House last year, but failed to reach the Senate floor. Congressional sources indicate that the bill could meet rougher seas in the Senate, where the textile and labor lobby has a better chance of obtaining a sympathetic audience. Some members of Congress are especially wary of trade liberalizing legislation this year, particularly if it affect countries that are being harmed by a flood of cheap imports from Asian countries affected by the financial crisis.

The copyright of the article Congress Moves Closer to Passing Africa Trade Bill in Political Economy is owned by Bryan Johnson. Permission to republish Congress Moves Closer to Passing Africa Trade Bill in print or online must be granted by the author in writing.

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