WASHINGTON, April 24 (UPI) -- U.S. and African trading partners are studying ways to preserve trade relations despite the end of a law that had been promoting trade for 2,000 products for 25 years.
Soon, the African Growth and Opportunities Act Civil Society Organization Network was expected to deliver to Congress, the Trump administration and African governments recommendations for preserving and strengthening U.S.-African trade relations.
The African Growth and Opportunity Act has given eligible Sub-Saharan African countries duty-free access to U.S. markets for almost 2,000 products -- including petroleum, auto parts and apparel -- for 25 years in an effort to promote economic growth and political stability.
However, the law will expire this September unless renewed, and with President's Trump's America First trade agenda, the continuation of the law that benefits trade from this part of the world seems to be seriously in doubt, according to observers.
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Fred Oladeinede, the chairman of the network, emphasized that, rather than working against the Trump administration's policy, there should be an effort on behalf of the Sub-Saharan African countries to work within the framework of his trade agenda to create a better and mutually beneficial version of AGOA.
"What I want us to do is to answer the questions that the administration is asking through the report that the [U.S. trade representative] published on the 31st," said Oladeinde. "Let us answer all those questions so that we can get better support from the administration."
Oladeinde particularly stressed the importance of implementing changes within the 90-day pause on reciprocal tariffs as an "opportunity to convince the president" of the value of trade with Africa. Specifically, he outlined four main recommendations for African countries to make their trade policy more in line with Trump's demands:
- Diversify their exports to reduce dependency on specific products and markets
- Enhance trade infrastructure to facilitate smoother operations
- Strengthen bilateral relations with the US
- Address non-tariff trade barriers, such as regulatory standards, intellectual property rights, and customs procedures
Even though he stressed that the African trade law has been a net-positive for Sub-Saharan African countries, Oladeinde pointed out that it has not necessarily resulted in more foreign direct investment from the United States, which is one of the ways a "new" African trade law could be improved.
Although there is still skepticism about Trump's support for renewing the law, support remained widespread on both sides of the aisle in Congress.
For example, Rep. Sheila Cherfilus-McCormick, D-Fla., who sits on the House committee on Africa, has been a vocal advocate of the renewal of AGOA.
"Congress cannot afford to miss the mark on the timely reauthorization of [African Growth and Opportunity Act] AGOA," Cherfilus-McCormick said. "Reauthorization must reflect this current global context, Africa's growing economic integration with a market of 1.5 billion consumers, and rapidly growing industries such as critical minerals, technology, and digital services."
