US erects trade hurdles for Africa
Regional-USA, Economics, 9/29/2000

The US administration has presented African governments with the text of a one-size-fits-all customs co-operation agreement that they must accept to qualify for textile and apparel benefits under the African Growth and Opportunity Act.

Panafrican news agency PANA reports that requirements of the model agreement, a confidential document cabled to US embassies in Africa last week with instructions to get it signed, are considerably more onerous than those of similar pacts the US has negotiated with other trading partners.

In some details the terms are also more stringent than what the act called for, and could lead to delays in otherwise eligible countries getting promised access to the US clothing market.

Also striking, goes on PANA analysis, is that the agreement was presented to African governments as a non-negotiable fait accompli just a fortnight before the act is to go into effect, on October 1.

The interdepartmental committee in charge of implementing the legislation has recommended to the White House that most African countries be deemed to qualify for enhanced trade preferences under the act's economic and political reform criteria. But those wishing to take advantage of the act's duty-free provisions for apparel must jump an extra set of hurdles and show they can and will crack down on traders that falsely claim their otherwise dutiable goods originated in preference eligible African countries.

The agreement sets forth the "visa" procedures they must adopt to certify the volume, content and origin of clothing shipments. The visa is essentially a rubber stamp applied by an exporting country's authorities, specially coded each time it is used, to attest that the information on an exporter's commercial invoice is accurate.

In all visa agreements, the exporting government agrees to help US customs investigate fraud and provide a monthly accounting of "visaed" shipments.

To qualify for benefits, African governments must also require their producers to "register with the authorities before they begin apparel production and de-register when they cease production." The "appropriate cabinet-level official" must also sign a letter saying the government will impose penalties on visa cheats and "any manufacturer that fails to keep required production records" for five years.

In addition, governments must agree that "no further visas will be issued to any textile or apparel manufacturer that fails to provide sufficient production records to satisfy the US customs service" and that "civil penalties will be imposed on anyone who refuses to co-operate with US customs."

In contrast to bilaterally negotiated agreements, there is no appeal or dispute resolution mechanism.

Previous Stories:
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  Italian sources: Italy cancels debts on 41 poor countries   (9/16/2000)
  Third conference of African trade ministers in Cairo today   (9/16/2000)

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