The Trade and Development Act of 2000

THE TRADE AND DEVELOPMENT ACT OF 2000: STRENGTHENING OUR
ECONOMIC PARTNERSHIP WITH SUB-SAHARAN AFRICA AND THE CARIBBEAN BASIN

May 18, 2000

TODAY, PRESIDENT CLINTON WILL SIGN INTO LAW THE TRADE AND DEVELOPMENT ACT OF 2000. The measure includes the Africa Growth and Opportunity Act (AGOA) and the U.S.-Caribbean Basin Trade Partnership Act (CBTPA) and other important provisions. This package advances U.S. economic and security interests by strengthening our 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 (SSA) and the Caribbean Basin to continue reforming their economies and participate more fully in the benefits of the global economy.

STRENGTHENING OUR PARTNERSHIP WITH AFRICA THROUGH THE AFRICAN GROWTH AND OPPORTUNITY ACT. The 48 nations of sub-Saharan Africa make up a market of 700 million people that offers enormous commercial potential for U.S. exporters. In 1998, for example, our exports to Africa amounted to more than $6.5 billion -- more than 45 percent greater than those to all the countries of the former Soviet Union combined. Yet, U.S. trade with Africa still represented merely 1 percent of our total trade that year. There is room for our trading relationship to grow and benefit both markets as Africa develops. AGOA will promote reforms in Africa that will leverage efforts to increase investment, expand economic growth, and reduce poverty. Among other provisions, the Act will:

STRENGTHENING OUR TIES TO THE CARIBBEAN THROUGH THE U.S.-CARIBBEAN BASIN TRADE PARTNERSHIP ACT. The 23 independent countries of the Caribbean Basin region together form the sixth largest export market for U.S. goods, totaling $19 billion and absorbing 2.7 percent of U.S. exports in 1999. But the devastation of Hurricanes Mitch and Georges in 1998 set the regional economy back. To help repair the damage and promote long-term growth, the aAct, among other provisions, will:

THE TRADE AND DEVELOPMENT ACT OF 2000 IS PART OF PRESIDENT CLINTON’S LARGER TRADE AND DEVELOPMENT AGENDA. ForIn too many poor countries, foreign debt obligations, major public health challenges, infectious disease (especially HIV/AIDS), and illiteracy and inadequate workforce skills inadequate basic education impede efforts to reduce poverty and capitalize on opportunities in the global economypresented by expanding international trade and investment. To meet this three-pronged challenge, the President has:

 

 

DETAILS OF THE

TRADE AND DEVELOPMENT ACT OF 2000

SUMMARY. This bipartisan legislation includes the Africa Growth and Opportunity Act (AGOA) and the U.S.-Caribbean Basin Trade Partnership Act (CBTPA), and other important provisions. This package advances U.S. economic and security interests by strengthening our 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 (SSA) and the Caribbean Basin to continue reforming their economies and increase their participation in the benefits of the global economy. And, it will contribute to the continuation of our own strong economic performance by encouraging the opening of markets and the reduction of poverty in countries with hundreds of millions of potential consumers of American exports.

STRENGTHENING OUR PARTNERSHIP WITH AFRICA THROUGH THE AFRICAN GROWTH AND OPPORTUNITY ACT. This Act promises to deepen our economic partnership with Africa and expand two-way trade to the benefit of both partners. It will also encourage SSA countries to undertake economic reforms and engage in the world economy. As reform spurs growth in Africa, it will create new and bigger markets for U.S. exports, as the following statistics indicate:

AGOA lies in America’s interest because it promotes the types of reforms in Africa that will make sub-Saharan nations better allies and better trading partners. It has the support of virtually all African governments, including that of South Africa. The Act’s specific provisions will:

STRENGTHENING OUR TIES TO THE CARIBBEAN THROUGH THE U.S.-CARIBBEAN BASIN TRADE PARTNERSHIP ACT. In recent years, the countries of the Caribbean Basin have formed an increasingly important export market for our goods, as the following figures illustrate:

But Hurricanes Mitch and Georges of 1998 took a terrible toll -- $12 billion in damages, by some estimates -- on the nations of the Caribbean Basin. Forming a complement to the disaster relief the U.S. has already provided, CBTPA will help CBI countries get back on their feet and grow over the long-term. That will help not only U.S. exports; it will create the conditions in which healthy democracies can thrive. Specifically, CBTPA will:

OTHER PROVISIONS OF THE TRADE AND DEVELOPMENT ACT OF 2000. The Act also:

BENEFITS OF FREER TRADE. Since the creation of the General Agreement on Tariffs and Trade in 1948, Democratic and Republican Administrations, working in partnership with Congress, have concluded eight negotiating Rounds, signed hundreds of bilateral trade agreements, and opened markets for American goods. All this has helped to:

Since the conclusion of the Uruguay Round in 1994, a more open world economy has helped American exports rise by over $200 billion (51 percent). Export expansion accounted for more than one-quarter of U.S. economic growth between 1992 and 1998. Average real wages have grown 6.3 percent under President Clinton, with export-related jobs paying 15 percent more on average than non-export-related jobs.




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