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The African Growth and Opportunity Act - Page 2

© Bryan Johnson

2) protecting intellectual property, and reductions in non-tariff barriers such as labeling, testing, and certification of imports;

3) protecting private property and establishing the rule of law and a fair and open judicial system;

4) openning the economic to foreign investment;

5) eliminating government corruption;

6) encouraging privatization of inefficient and costly state-owned enterprises; among others.

The bill requires the President to submit regular reports certifying that countries are making continual progress in these areas. Countries that fail to be certified not only would be ineligible for the bill's programs but could be cut-off of exisiting programs, like foreign aid, alltogether.

Countries that are making continual progress will be able to seek increased foreign aid, funding from such organizations like the Overseas Private Investment Corporation (OPIC) and the Export-Import Bank (Ex-Im), preferential treatment for their exports into the U.S., possible free trade agreements, and related programs.

The Senate is unlikely to take up their version, wich differs only slightly from the House version, anytime soon. However, once it is taken up, Senate sources beleive there is enough support for passage. The Clinton Administration already has said it would sign the bill. Thus, there does not seem to be much opposition at the moment.

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