The past few years have seen an unprecedented focus on efforts to increase U.S. trade and investment in Africa. On May 18, after a five-year battle in Congress, President Clinton signed legislation called the Africa Growth and Opportunity Act that will make it easier to sell goods from sub-Saharan Africa and the Caribbean within the United States. Lawmakers hail the Africa Growth and Opportunity Act as a package that "advances U.S. economic and security interests by strengthening the relationship with regions of the world that are making significant strides in terms of economic development and political reform." It will expand two-way trade and create incentives for the countries of sub-Saharan Africa to continue reforming their economies and participate more fully in the benefits of the global economy, they contend. The 48 nations of Sub-Saharan African make up a market of 700 million people that offers enormous commercial potential for U.S. exporters. Trade with Africa - which totaled $22.5 billion in 1997 - constitutes less than 2 percent of overall U.S. foreign trade. Petroleum products, mostly from Nigeria, Angola and Gabon, account for two-thirds of U.S. imports from Africa. As a condition for receipt of existing and potentially some new aid and trade benefits, the Africa trade bill will require African countries to follow stringent requirements of International Monetary Fund structural adjustment programs and satisfy a number of other economic policy demands. On one hand... Trade can broaden the benefits of the global economy and lift the lives of people everywhere. The Africa Growth and Opportunity Act is a more mature, more pragmatic approach to African trade. Increased trade with Africa will help both the United States and Africa by creating new opportunities and markets. The bill reaffirms the United State's commitment to working with Africa to promote sustainable development and to encourage economic reform. AGOA puts U.S. relations with Africa on a path that will create greater prosperity for all. On the other hand... Social needs rather than the economic market should be affirmed. Globalization with little regard for human aspirations and needs is simply wrong. "NAFTA for Africa" undermines African interests in sovereign, equitable development in order to promote U.S. corporate control of African economics and natural resources. AGOA imposes harsh conditionalities that will be devastating to Africa, doesn't mention the debt crises, offers no labor or environmental protections, and does not encourage local development within Africa. The U.S. should take a more holistic approach to a new, mutually beneficial trade and investment policy that includes debt cancellation and aid provisions, as well as labor, human rights and environmental standards.

• Trade with Africa constitutes less than 2 percent of overall U.S. foreign trade.
• Under AGOA, clothing made in Africa from African fabric would be allowed to rise from 1.5 percent of U.S. imports to 3.5 percent over eight years, boosting African exports of these products from about $250 million a year now to as much as $4.2 billion.
• AGOA allows African nations where the gross domestic product is less than $1,500 a year per person (all but six of the 48 sub-Saharan nations)to have four years of quota-free benefits for apparel made with third-country fabric.