Lawmaker unveils US economic engagement plan with Africa to counter China

By Julian Pecquet - 03/07/13 11:10 AM ET

The chairman of the Senate Foreign Relations panel on Africa unveiled an 18-page report Thursday urging greater U.S. economic engagement with fast-growing Africa.

The United States is losing the economic competition against China, Sen. Chris Coons (D-Del.) said, despite its billions of dollars of public health and other forms of aid. To remedy the situation, Coons urged Congress and the Obama administration to focus on increased trade and investment in a region that is home to six of the 10 fastest-growing economies in the world over the past decade.

“America is losing ground and ceding economic opportunities in Africa to competitors,” Coons said. “China, which has made dramatic inroads across the continent in recent years, may undermine or even counter value-driven U.S. goals in the region, and should serve as a wake-up call for enhanced American trade and investment. This is truly a critical moment, as our Chinese competitors are securing long-term contracts that could lock American companies and interests out of fast-growing African markets for decades to come.”

The recommendations include:

Supporting African-led efforts to improve the business climate on the continent and removing barriers to trade;

Reauthorizing and strengthening the African Growth and Opportunity Act (AGOA), a system of trade preferences for eligible countries, well in advance of its 2015 expiration;

Improving coordination between U.S. government agencies and developing a comprehensive interagency strategy for increased investment in sub-Saharan Africa;

Increasing the presence of U.S. Foreign Commercial Service Officers in sub-Saharan Africa to help U.S. companies navigate the business climate in the region;

Increasing support for agencies that provide financing to encourage U.S. commercial engagement overseas, mitigate investment risks, and generate a profit for American taxpayers; and