African Growth and Opportunity Act (AGOA) maintains high standards and most stringent eligibility criteria.
WASHINGTON, D.C. – Today, Ways and Means Committee Chairman Jason Smith (MO-08) delivered the following remarks during debate in the U.S. House of Representatives on the AGOA Extension Act (H.R. 6500).
As prepared for delivery.
“I rise in support of H.R. 6500, the AGOA Extension Act – legislation to reauthorize the African Growth and Opportunity Act trade preference program.
“Our nation’s economic, strategic, and national security interests are front and center in AGOA. Think about it: This program strengthens our critical supply chains and helps us counter the harmful global influence of nations like China and Russia.
“Don’t just take my word for it: A witness testifying before the Ways and Means Trade Subcommittee put it bluntly when discussing the potential for a lapse in AGOA when he said ‘there’ll be a party in Moscow; there’ll be a party in Beijing, if we don’t reauthorize it.’
“To achieve this, however, we aren’t going to lower our standards. This extension maintains the most stringent eligibility criteria of any trade preference program with annual reviews to defend IP rights, human rights, market access, and the rule of law against corruption. To be eligible, countries must also ensure they are not undermining America’s national security or foreign policy interests.
“While we still need a longer-term AGOA extension, this reauthorization provides a much-needed level of certainty and stability in the near term so that Congress can continue its work on future reforms to address and strengthen U.S. priorities.
“After all, U.S. businesses have invested $8 billion annually under AGOA while our African trading partners have begun to open their markets for U.S. agriculture. Protecting market access for America’s farmers and ranchers is incredibly important to the rural communities I represent in Missouri – a point I’ve made in my travels to the region going back to 2015 when I attended an AGOA forum in Gabon.
“After we take this step, we can build further. Americans would benefit if African nations graduated into formal bilateral trade agreements with the U.S.
“Right now, the nation of Mauritius is on track to graduate from AGOA within the next five years. When African nations take steps to expand their markets to American products, graduating from AGOA should have clear benefits, not negative consequences.
“Africa is home to 30 percent of the world’s critical mineral reserves, and China is moving quickly to corner the market on critical minerals and exploit Africa’s vast resources. Stronger partnerships with African nations mean we will limit China’s ability to make further gains in the region and protect our national security interests.
“For example, last year, the Trump Administration announced a Strategic Partnership Agreement with the Democratic Republic of the Congo to develop critical minerals.
“I want to thank the Chairman of our Ways and Means Trade Subcommittee, Congressman Adrian Smith for his tremendous work and leadership in proactively building support for this renewal effort.
“I urge my colleagues to support this extension of AGOA – which received strong bipartisan approval in the Ways and Means Committee – and I look forward to continue working across the aisle to further strengthen this critical program.”