-Caveat Lector-

June 17, 1999

Africa Trade Bill Headed for Senate

By TOM RAUM Associated Press Writer

WASHINGTON (AP) -- Supporters of legislation that would grant trade benefits
to Africa are optimistic for its chances this year after it gained broad
bipartisan support in the House.

The measure, designed to spur economic growth and private investment in 48
sub-Saharan countries, now goes to the Senate after Friday's 234-163 House
vote.

The House passed almost identical legislation last year, but it died in the
Senate. Some senators based opposition partly on fears that the legislation
could hurt American textile workers. Others opposed it over an unrelated
trade dispute.

Sen. Richard Lugar, R-Ind., the measure's Senate sponsor, said the
legislation ``encourages a transition from aid to trade.''

``We have a historic opportunity to help integrate African countries into
the global economy,'' he said. The region, with 700 million people, now
accounts for only 2 percent of U.S. trade.

The measure would grant duty-free and quota-free treatment to many products,
particularly textiles and apparel, and promote private investment in Africa.

To qualify for the trade preferences, the countries would have to establish
and maintain market-driven economies and refrain from violating their
citizens' human rights.

U.S. Trade Representative Charlene Barshefsky called the House vote ``a
vital step toward promoting further economic growth and reform in Africa.
... It is the best opportunity in decades to create the right relationship
with the Africa of the future.''

Opposition to the bill came from lawmakers from Southeastern textile states
and from those who suggested it would benefit large multinational
corporations at the expense of African sovereignty.

Some opponents said they worried that China and other low-wage Asian
countries would send products to Africa to be relabeled and shipped to the
United States to avoid duties and tariffs.

``There will be a national holiday in China when this bill passes,'' said
Rep. Lindsey Graham, R-S.C. ``There's going to be a stamp that says `Made in
Africa,' but the slave labor will come from China.''

However, Rep. Ed Royce, R-Calif., chairman of the International Relations
subcommittee on Africa, said any country found to be engaging in such
so-called transshipment could be removed from the program of trade
preferences.

Rep. Charles Rangel, D-N.Y., said the House vote ``sends a strong message to
the Senate that the emerging democracies of Africa must be included when it
comes to U.S. trade policy.''

------<

The bill is H.R. 434.

http://www.newsday.com/ap/rnmpwh1d.htm


Bard

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