Opinion
A Blueprint for the U.S. – Africa Partnership
The U.S. must also upgrade its current trade and investment framework agreement (TIFA) structure to make these into a major tool for opening up markets for U.S. exports through trade liberalizing efforts of US AGOA partners. Coincidentally, duty-free/quota free benefits and other LDC programs in the WTO should be extended to all developing country belonging to REC s proceeding towards regional integration.
This should also support African regional economic community participation in implementing the Bali Trade Facilitation Agreement (TFA) particularly through those provisions, promoting regional trade in Africa and with the U.S.
Complementary non-Trade Efforts to AGOA
Summarily, it would help the Obama Administration a great deal if it could bring, under a single umbrella, the wide, a number of its initiatives towards the region. At the same time, we must set up a one-stop shops for U.S. firms wishing to invest, export or otherwise do business in Africa as one of the outcomes of the Administration whole of government approach.
Lastly, on top of reaching out to equity funds so that they can develop leads in Africa, the U.S. must also develop specific initiatives in each agency to support African development. For instance, the Millennium Challenge Corporate should devote at least 20 percent of its funding to support regional integration.
Loulou Geboers is a Fall Associate at Manchester Trade and contributed to this piece. She is a a law student from Belgium.
Other possible initiatives include:
i. EXIM Bank should develop African targets and devote at least 25 percent of its recent increase in its ability to lend to Africa projects; going beyond the recent targets for regional investment.
ii. The Treasury Department should instruct its representatives to Multilateral Development Banks to support special purpose vehicles to finance regional projects which surpass national borders making sovereign guarantees at a national are not appropriate.
iii. Institute a U.S. information technology drive as one of the Administration’s initiative towards the region.
iv. Increase the Overseas Private Investment Corporation’s lending ceiling and staffing levels for Africa.
v. Negotiate investment friendly double taxation with African countries as is done by many countries currently with Africa to exempt them from U.S. taxes when profits earned as a result of tax holiday granted by third countries for development.
vi. Provide authority for the Army Corps of engineers to work with U.S. companies to support the development of productive infrastructure in sub Saharan African countries.
vii. Modify the United States Department of Agriculture restrictions limiting government support of sensitive products provided such production is not destined for the US market to help facilitate cooperation among small business to agglomerate resources.
viii. Provide special training on growing business in Africa for the Minority Business Development Agency and the Small Business Administration.
ix. Congress should enact general guidelines for the implementation of U.S. conditionality and sanctions. Like we suggested before, instead of providing direct pressure, consideration of their effectiveness should especially work if our suggestion for REC designation were considered.
x. We should remove self-imposed limitations on U.S. investments and exports with requirements to carry these on U.S. bottoms or failure to provide financial support for exports of services and IPR.
