Imagine standing on the side of a river, watching a man drown. He’s not very far from shore, and he’s pleading with you to help. There’s a rope lying on the ground next to you. What do you do?
The answer is simple – you throw the man a line.
Unfortunately for the African apparel industry, the answer to this question has been elusive within the halls of the U.S. Congress. More than 200,000 jobs are sinking into oblivion, all because of inactivity on a very simple, non-controversial piece of trade legislation.
The so-called “Third Country Fabric Provision” of the African Growth and Opportunity Act (AGOA) created a thriving apparel sector across Sub-Saharan Africa. In a nutshell, it allows African countries to import raw fabric from other regions in the world, assemble them into garments with African workers, and export them into the U.S. duty-free. It sounds simple, but this single provision has done arguably more for job growth in Sub-Saharan Africa than any foreign aid program in history. And it has done so at miniscule cost to the U.S. taxpayer.
The broader AGOA legislation dates back to 2000 and has consistently enjoyed strong bipartisan Congressional and public support for the same reasons – because it is cost-effective and makes good policy sense. It is trade, not aid, that Africa needs the most, and they’ve proven that they can do it well. Consequently, the U.S. apparel buyer enjoys cheaper goods while building goodwill towards the U.S. throughout across sub-Saharan Africa.
Unfortunately, the Third Country Fabric Provision’s window closes on September 30. If it is allowed to expire, hundreds of thousands of African workers (on average, 70-80 percent women) will be left to fend for themselves. Even now, factories across Africa are shedding jobs left and right, because U.S. retailers place their orders months in advance and there is grave concern over Congress’ ability renew the provision. If the situation continues, virtually all apparel trade with Africa will grind to a halt even before the September cutoff and the U.S. will lose significant credibility as a reliable partner in the eyes of Africa’s leaders. If we cease being a reliable partner, I have no doubt they will find one elsewhere.
All of this begs the question: Why isn’t renewing the Third Country Fabric Provision a higher priority for Congress? Not a single constituent group from the U.S. private sector or civil society opposes this provision. To the contrary, the U.S. Chamber of Commerce and numerous industry groups have already written countless letters to Congress urging an extension of this legislation. . Nor is it a matter of international competitive pressure – compared to the national exports of Vietnam, Bangladesh, or Cambodia, the sum of all of sub-Saharan Africa’s exports is a mere drop in the bucket.
Even though the Third Country Fabric Provision’s renewal has broad, bipartisan support in both the House and Senate, it is simply getting lost in the cracks amid Election Year squabbles over who makes the first move, and whether the measure will become a “pile on” for other, completely unrelated measures.
Two hundred thousand African jobs, it seems, are being held hostage by procedural dysfunction.
The man in the river is drowning, and our lawmakers are checking their Blackberries to see if someone else will throw the rope first.
Melvin P. Foote is the founder, president and CEO of the Constituency for Africa (CFA), a Washington, D.C.-based education and policy advocacy organization in support of Africa’s development. Foote has more than 35 years continuous high-level engagement on Africa and African Diaspora development issues in the United States and in Africa.