On March 24, the Subcommittee on Africa and Global Health of the House Committee on Foreign Affairs held a hearing on U.S. policy in Africa. The key witness was Assistant Secretary of State for African Affairs Johnnie Carson. Much of the discussion focused on human rights issues and whether the continent is experiencing a decline in democracy.
On the subject of trade, Ambassador Carson said that the Obama administration is working closely with African partners to maximize opportunities under the African Growth and Opportunity Act (AGOA). He highlighted the President’s Entrepreneurship Summit, scheduled for April 26-27, which will bring together African businesspeople and explore ways to promote private sector growth.
Princeton Lyman, former ambassador to South Africa and a Senior Fellow of the Council on Foreign Relations, argued that regional economic communities (RECs) are important for the future growth of African states. He praised the progress made by the East African Community (EAC) and the Common Market for Eastern and Southern Africa (COMESA). He expressed concern that the European Union’s bilateral agreements with some states are threatening the unity of RECs. Ambassador Lyman also noted that African governments are siding against the United States in the WTO’s Doha negotiations, and he called for the U.S. to take a broader perspective on trade with Africa in the context of the WTO. He also called for more coordination on trade policy between government agencies such as State, USTR and USAID.
Witney Schneidman, President of Schneidman & Associates International, recommended that Congress grant tax credits to American companies that invest in AGOA eligible countries (excepting extractive industry investment). He quoted an estimate that for every $1 deferred in U.S. taxes, $5 in African income would be produced. In order to build support for African RECs, Dr. Schneidman also recommended that senior U.S. officials hold a joint annual meeting with the heads of the RECs.
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