A Near-Miss on AGOA

Last week, in what can only be considered a historical feat, the African Union dispatched a delegation of African Ministers of Trade to Washington, D.C. to effectively lobby the United States Congress, the United States Trade Representative and a whole host of strategic stakeholders on ensuring that the African Growth and Opportunity Act (AGOA) is seamlessly renewed – well in advance of its September 2015 expiry. AGOA provides duty free and quota free market access for sub-Saharan African countries’ products into the United States. If AGOA were to expire – like the Generalized System of Preferences (GSP) did in July 2013 – countries like Lesotho, South Africa, Mauritius or even Kenya, Nigeria and Angola would not be able to export their textiles, vehicles or crude oil at the level they currently do.

In simple terms, AGOA non-renewal would have disastrous consequences in those countries that were, to a certain extent, taking advantage of these benefits.

The African Ministers were very well received by the various strategic stakeholders they went to see. They were feted with dinners and accorded respect by various sections of the Diaspora, Civil Society and intelligentsia. The Ministers – from countries like Lesotho, Gabon and Mauritius – intimated to us was that although they had worried about the political quandary the United States and Barack Obama find themselves in – what with the Republicans taking over Congress overwhelmingly – AGOA was still assured of passage. What they were worried about, instead, was when.

Invariably, these Ministers, and in extrapolation the African Union and its respective member states, made three strategic missteps: First, they did not fully appreciate the essence of lobbying; then, it was painfully obvious, over the past week, that much of Africa does not understand the political processes of the United States, and lastly, Africa came to the United States like a step child to a parent instead of the favored partner our continent really is.

In explanation, whenever you go lobbying partners like those in the United States, not only do you come delivering talking points and arguments, you must – and this is important – also leave some really compelling documents and keepsakes behind so that you can be remembered. Our Ministers did not really come prepared for this and their lobbying efforts may come to naught. On the other hand, if Africa had a full grasp of American politics, they may not have felt the need to panic about the Republicans taking over Congress. The Republican party quite favors trade of any kind, and Africa presents an opportunity for most American businesses. That is why the Corporate Council for Africa and the U.S. Chamber of Commerce [arguably the most powerful lobby entity here] spent lots of time paying attention to Africa.

More than anything else, the largest tactical error from Africa is in not recognizing that the United States government – the Obama Administration, the U.S. Congress and most stakeholders – all want a more effective AGOA. Significant effort has been expended in holding hearings, reaching out to various sections in both the United States and Africa and especially the United States Trade Representative proposing specific ways in which AGOA could be enhanced. For example, by changing AGOA’s rules of origin, Africa would have a real chance to be inserted into global supply chains and distribution networks. In increasing the products admissible into the United States under AGOA, perhaps countries like Ghana could export their processed cocoa, and Mozambique, Tanzania and Zambia could export their leaf tobacco – making huge amounts of foreign exchange for their cash crops. The Americans had even more progressive proposals.

But alas! The Africans seemed keener on a plain renewal of AGOA, instead of a more effective program; guaranteeing that the few countries that currently benefit from AGOA could continue to benefit, while the rest – the vast majority – continue to be beholden to Europe, China and a whole host of third countries.

The Habari Network Editorial Board
January 26, 2015