Senators Back African Trade Deal as China Competition Heats Up

The Senate Finance Committee met recently to discuss extending two important trade programs: the African Growth and Opportunity Act (AGOA) and the Generalized System of Preferences (GSP). These programs help remove trade barriers for African goods coming into the U.S. AGOA is due to expire next year, while GSP's benefits in the U.S. ended in 2020. Uganda, which was removed from AGOA over human rights issues, wants back in. Odrek Rwabwogo, a high-ranking official from Uganda, visited Washington to talk about this. He thinks it's crucial for African countries to work together and speak with one voice when dealing with the U.S. and other trading partners.

The U.S. is keen on African trade because of competition with China, which has invested heavily in Africa's infrastructure. President Biden recently announced new tariffs on some Chinese goods, including cheap vehicles. Africa's rich natural resources are also a big draw for the U.S., especially as the world shifts towards alternative energy. After the failure of the Trans-Pacific Partnership and updates to the North American free trade agreement, African trade could become a new focus for the U.S. Senator Chuck Grassley (R-Iowa) believes that free trade can lift people out of poverty. He thinks he's in the minority with this view in Congress and perhaps even in the whole country.

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