AMIP News - Washington, DC - September 2, 2010
By Frederick Nnoma-Addison
Only months after elaborate celebrations in Washington, DC to commemorate the 10th anniversary of the African Growth and Opportunity Act – AGOA and the conclusion of the 9th AGOA forum (August 2-6), respected AGOA architect and Washington, DC leader on U.S. - African trade affairs Rosa Whitaker has challenged U.S. Government’s assessment of AGOA as “disappointing,” in a special radio interview to be broadcast across Africa. Speaking to AMIP News’s Frederick Nnoma-Addison, Whitaker referred to recent comments by U.S. government officials including Secretary Clinton as a mischaracterization of a program that is obviously working and has a huge potential to eradicate poverty in Africa.
“ … I think that is the position of the Obama administration, you just have to hear the speeches from everybody…What we expected to hear at the AGOA forum was how this administration was going to build on it and not how AGOA is not working… I am supportive of the President but it is important to speak out and challenge the administration… it helps them get better, and I am not the only one doing so… AGOA is an opportunity and not a guarantee. It was not designed as a panacea but as one very effective tool in the U.S. policy arsenal to help stimulate U.S.-Africa trade and long-term economic growth and development. In that regard it has been a phenomenal success…”
A classic example of some of the statements that Ms. Whitaker referred to includes one by Secretary Hillary Clinton’s during the just ended 9th annual AGOA forum in the U.S.
“…Regional integration has gotten too little attention within the AGOA framework, but I think it should be at the top of our shared agenda. Today, the nations of Africa trade with each other less than any region of the world...”
Secretary Clinton
Ms. Whitaker does agree with Secretary Clinton on the need for regional integration but beyond that she says intra-regional trade should be reflected in U.S. trade policy with Africa, if there is talk about the lack of it.
“Millennium Challenge Corporation should have a regional compact or there should be legislations that invest in regional integration… we must pursue correlating policies to match our areas of concern. And we should also recognize the successes that Africa has achieved in regional integration and intra-regional trade – east Africa for example…”
Whitaker
Signed into law on May 18, 2000 by President Clinton as the Trade and Development Act of 2000 (H.R. 434) or more commonly referred to as AGOA (African Growth & Opportunities Act), this law provides some 41 eligible countries trade preferences for quota and duty-free entry of 6,500 different goods into the United States. This piece of legislation is designed to expand U.S. trade with sub-Saharan Africa, stimulate economic growth, promote trade and investment talks and encourage economic integration.
10 years later AGOA is viewed by many as a success although Ms. Whitaker concedes that investment response has been weak because U.S. companies have not been incentivized like say the Chinese. According to her the Obama administration is sending out an inconsistent report about the performance of AGOA. Under AGOA $1billion in garments and $2billion worth of equipment and automobile investments (Mercedes Benz, GM, BMW etc.) from South Africa have been exported to the United States duty-quota free, not to talk about exports from all the other sectors, the 300,000 jobs that have already been created or compare the return on investment (ROI) with aid dividends.
“AGOA Incentivizes investments and I think that this is the time for the government to be signaling to Africa and investors the extension of AGOA which is scheduled to expire in 2015. This in the interest of the United States, we do have economic imperatives… Africa is going to have the largest consumer base in the world… "
Whitaker
In her recently published article on the same subject Ms. Whitaker writes - I find it troubling that declaring AGOA's achievements a "disappointment" has gained currency in so many policy circles. It leverages a pernicious line of thinking, one that belittles the significant achievements African countries have made over the last 10 years and perceives polices that support African economic growth as zero-sum. This thinking threatens to undermine what I believe is one of the United States' most successful and cost-effective development assistance programs ever.
Between the seemingly differing views expressed by Ms. Whitaker, Assistant Secretary of State for African Affairs Johnnie Carson, US Trade Representative Ambassador Ron Kirk, Secretary Clinton and other higher government officials in the Obama administration, I finds it necessary to probe further into AGOA and evaluate in certain terms the state of AGOA today and its future, especially beyond 2015 since Ms. Whitaker informs that there are legislations pending designed essentially to “kill” AGOA.
Several viewpoints in Washington attempt to explain the administrations alleged unenthusiastic attitude towards AGOA. They could be looking for reasons not to build upon it like previous administrations have done or the right people are just not empowered.
“Historically politicians water down the merits of a program if they do not wish to expend energy and resources in a particular area and some in Washington think this might one of such situations…”
Whitaker
Ms. Whitaker strongly defends AGOA and explains that it is a powerful engine for growth if its trade preferences are coupled with effective development programs and reforms that build the capacity for African businesses to succeed in international markets.
She compliments U.S. development agency MCC for delivering “smart country-led aid” and recommends that MCC should consider focusing on a few things; power and transport infrastructure - since the two contribute to the highest cost of doing business in Africa. Whitaker explained that pre-AGOA America did not see Africa as a potential trading partner. There was AID, humanitarian and political policies formulated towards African but not a trade policy. She stressed the fact that no region of the world had ever transitioned from poverty into prosperity without putting business and trade over aid dependence – “Businesses create jobs not NGO’s… and brings people out of poverty” Says Whitaker.
“Cost of implementing AGOA is a fraction of the cost of delivering development assistance to Africa and it successfully moves from the aid industrial complex built around Africa to trade…”
Whitaker
One cannot rule out the fact that politics-as-usual may be behind the Obama administration’s response to AGOA as described by Ms. Whitaker although one needs to give them due credit for making Africa a high priority in their foreign policy. Ultimately African governments and private sector need to spend time to explore the opportunities vested in this program and maximize them while it lasts because come 2015 the life cycle of AGOA will end and it will be up to legislators in Washington to determine whether it will be extended or not. As the interests of individual nations converge in a global economy, a program like AGOA becomes a win-win for both the United States and African countries. For the U.S. companies that have not yet explored AGOA, the law makers and politicians who might not necessarily favor the program, this might be the time to take a closer look at AGOA because when Africa prospers, the whole world prospers too.
About The Whitaker Group
The Whitaker Group (TWG) is the premier strategic consulting firm in the US committed to creating sustainable prosperity in Africa. The firm actualizes the promise of AGOA by working with the largest companies in the world to help them facilitate their engagement and investments in Africa and with countries on their investment attraction strategies. TWG also chairs an AGOA action coalition. Since its inception in 2003, The Whitaker Group has facilitated more than $1 billion in trade and capital flows to Africa.
Before launching TWG, Rosa Whitaker served as the first ever Assistant U.S. Trade Representative (USTR) for Africa in the administrations of Presidents George W. Bush and William J. Clinton. In this capacity, she developed and implemented the African Growth and Opportunity Act (AGOA) and other bilateral and multilateral trade policy initiatives for Africa.
She started the USTR’s Office of African Affairs and was the lead U.S. negotiator for trade agreements with African countries. Under her leadership, the U.S. was credited with a string of unprecedented initiatives to enhance American trade, investment and economic cooperation with African countries. Before joining USTR, Ms. Whitaker was Senior Trade Adviser to Congressman Charles Rangel. In that position, she was one of the hands-on architects of AGOA and helped develop the Africa Trade and Investment Caucus in Congress. She was responsible for advising Congressman Rangel on a broad range of issues related to the World Trade Organization, Africa and China.
As a career diplomat, she served in Africa and the State Department’s Office of International Energy Policy. She also served as Executive Director of the Washington Office of International Business. Over her career, Ms. Whitaker has built an extensive network of contacts in the U.S. government and business community, as well as in the public and private sectors throughout Africa. Her leadership in designing and implementing initiatives has brought numerous trade and investment opportunities to Africa.
Among her many honors, in March 2008 Bennett College for Women named her a Woman with the Audacity to Excel, along with legendary civil rights pioneer Dr. Dorothy Height and three other African-American women leaders. In 2002, she was named Woman of the Year in International Trade by the Women in International Trade organization. Her other honors include the 2001 Africa-America Institutes Award for Promoting U.S.-Africa Trade Relations and the Annual Achievement Award from the U.S. Association of Importers of Textile and Apparel in 2000. She was inducted into the Hall of Fame for Trade by Consumers for World Trade in 2003. She holds Masters and Bachelor degrees from the American University in Washington, D.C. and has completed studies in England and Italy as well as at the U.S. Foreign Service Institute. In April 2008, Ms. Whitaker married Archbishop Nicholas Duncan-Williams, overseer of Christian Action Faith Ministries.
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