Trade a powerful development tool

In his address to the Ghanaian Parliament last month, President Obama laid out his vision for a new US-African partnership, one that includes “supporting development that provides opportunity for more people.” 

This week in Nairobi, I will attend the 8th African Growth and Opportunity Act (Agoa) Forum, as will Secretary of State Hillary Clinton, Secretary of Agriculture Tom Vilsack, senior US and African officials, and representatives of the private sector and civil society. 

At the Forum, we will discuss ways to advance the US-Africa partnership on trade and development. 

Agoa, which was passed by Congress and signed into law by President Clinton in 2000, eliminates duties on almost everything eligible African countries export to the United States.  It also provides a framework for US-African co-operation on economic issues. 

The theme of this year’s Agoa Forum is “Realising the Full Potential of Agoa through Expansion of Trade and Investment.” 

This is a difficult time for exporters around the world, and Africa is no exception. I am committed to finding new solutions to the challenges facing African exporters and new ways to realize the potential of Agoa. 

This is the first Agoa Forum of the Obama Administration, and it is an opportune time to discuss new strategies that can build on Agoa’s achievements and set a new path for US-Africa trade and investment.

Here are some key considerations that I think should be taken into account as we move forward:

The experience of developing countries in Asia suggests that African countries need to expand and diversify their trade in order to generate and sustain economic growth. 

Africans can become more competitive internationally by improving the business environment in their countries and nurturing entrepreneurial initiative, including through simplification and modernization of border procedures. 

More benefits
An ambitious and balanced outcome of the World Trade Organisation’s Doha Round negotiations could also help Africa to reap more benefits from the global trading system.