Tailor Africa Trade Deal to Fit Need

The world’s poorest countries are being offered what at first appears to be a generous deal. Developed nations would accept much of the poor nations’ exports, free of tariffs and quotas, in return for negotiations with the World Trade Organization. But for the 48 least-developed countries, including many in Africa, the offer is not as generous as it seems, and there are strings attached.

True, exports by the least-developed to the rich countries have been declining, and that’s worrisome. But under a variety of programs, about 90% of exports from the least-developed countries are already exempt from duties in Western Europe and the United States. The goods, mostly tropical produce and raw materials, pose little danger to domestic industries in the developed countries. Extending concessions to grains and textiles and clothing, where it would make a real difference for the poor countries, is where generosity ends. For Europe, the sticking point is African farm products, particularly rice. For the United States, it’s textiles.

For more than five years, Rep. Edward Royce (D-Calif.), chairman of the House Africa subcommittee, has backed the African Growth and Opportunities Act, which would remove restrictions on imports of African textiles and apparel. A bill finally made it through both houses of Congress last fall, but the Senate version included unacceptable restrictions put in at the behest of labor unions and the textile industry. Imports of African clothing would be free of restrictions only if the cloth and yarn were made in and imported from the U.S., which would make the African products uncompetitive.

Opening U.S. markets to African textiles and apparel would have a marginal effect on U.S. jobs, though companies in China and elsewhere in Asia might choose to relocate to sub-Saharan Africa, where labor is even cheaper, and approach the American market from there.

The African countries need free access to U.S. textile markets much more than they need another round of WTO trade talks. They are willing to accept conditions written into the Africa trade bill, including complying with core international labor standards, to qualify.

Time is critical. If the congressional conference committee trying to reconcile the House and Senate versions fails to act before the April 15 recess, the Africa bill may be crowded out of Congress’ busy election-year agenda. The key will be compromise by Majority Leader Trent Lott (R-Miss.) and Sen. Jesse Helms (R-N.C.).

The Royce bill offers the poorest nations the most effective form of development assistance, self-help. It should be enacted.