The African Growth and Opportunity Act

The U.S. House of Representatives passed a bi-partisan bill on May 11, that seeks to establish a new trade and investment policy for sub-Saharan Africa. Sponsored by Rep. Phil Crane (R-IL), H.R. 1432 would provide sub-Saharan African countries with increased foreign aid and U.S. trade concessions. The bill passed 233 to 186 and had much Democratic support. Liberal lawmakers such as Alcee Hastings (D-FL), Charles Rangle (D-NY), and Ronald Dellums (D-CA) all were original co-sponsors.

Following the passage of the bill in the House, the Senate introduced companion legislation (S.778), sponsored by Sen. Richard Luger (R-IN). That bill has been referred to the Committee on Finance and awaits markup. If the bill passes the Senate, makes it through conference committee, passes Congress and is signed by the President, it would mark a drastic shift in U.S. policy toward sub-Saharan Africa.

Claiming that, "It is in the mutual interest of the United State and sub-Saharan Africa to promote stable and sustainable economic growth and development in sib-Saharan Africa," the bill establishes a series of requirements that must be met by recipients of U.S. foreign aid in order for them to benefit from increased trade ties and increased foreign aid.

The bill states:

In particular, the United States seeks to assist sub-Saharan African countries, and the private sector in those countries, to achieve economic self-reliance by:

1) strengthening and expanding the private sector in sub-Saharan Africa, especially women-owned businesses;

2) encouraging increased trade and investment between the United States and sub-Saharan Africa;

3) reducing tariff and nontariff barriers and other trade obstacles;

4) expanding United States assistance to sub-Saharan Africa's regional integration efforts;

5) negotiating free trade areas;

6) establishing a United States-Sub-Saharan Africa Trade and Invvestment Partnership;

7) focusing on countries committed to accountable government, economic reform, and the eradication of poverty;

8) establishing a United States-Sub-Saharan Africa Economic Coopoeration Forum; and

9) continuing to support development assistance for those countries in sub-Saharan Africa attempting to build civil societies.

The bills states as it policy: "The Congress supports economic self-reliance for sub-Saharan African countries, particularly those committed to:

1) economic and political reform;

2) market incentives and private sector growth;

3) the eradication of poverty; and

4) the importance of women to economic growth and development."

The bill establishes a methodology based on The Heritage Foundation/Wall Street Journal Index of Economic Freedom. It would require the President of the United States to certify that sub-Saharan African countries are making progress in:

1) promoting free movement of goods and services through free trade;

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