op-ed

Trade is Africa's Greatest Hope for Prosperity - By Chargé d'Affaires Christopher L. Stillman

April 13, 2005

The United States believes that trade is Africa's greatest hope for prosperity. In 2003, outlining his agenda for Africa, President Bush said, "I understand that freedom and prosperity are not achieved overnight. The 48 nations of Sub-Saharan Africa have a historic opportunity to grow in trade and to grow in freedom and stability. And most importantly, to grow in hope."

That is why we share Africa's frustration with the state of global agricultural trade. Reform of the system will benefit African farmers, and we think the most effective forum for change is the World Trade Organization (WTO). In 2004, the Doha Round's framework for agricultural negotiation laid the groundwork to eliminate export subsidies and negotiate new disciplines on export credits and state trading enterprises.

This would help farmers in Africa compete on a level playing field. Trade-distorting domestic supports for agriculture would be cut substantially and include caps on support levels for specific commodities. . In addition, members have agreed to negotiate a reduction in import tariffs, the most significant barrier to agricultural trade. A World Bank analysis estimates that if agricultural trade were completely freed, a huge 92% of ensuing gains would come from eliminating import tariffs.

To unleash the power of markets to raise the incomes of the world's farmers, all countries must be willing reduce barriers to trade. Most countries have forms of trade protection, and we must all come to the table prepared to negotiate. The United States is ready and willing to cut trade-distorting domestic supports, if we can count on others to move forward as well. We cannot, however, liberalize trade or boost farm incomes by focusing only on one product or one sector. A global solution demands a global commitment.

Cotton provides a useful example of how global gains might be made. African cotton farmers would benefit from the implementation of the U.S. proposals in the WTO negotiations. The WTO framework agreement created a special subcommittee to deal with cotton. This subcommittee's work plan includes an examination of all issues affecting trade in cotton while emphasizing the coherence between trade and development matters relating to cotton.

If global trade in cotton is to flourish, we must also work together to reduce barriers between and among developing countries. With much of the apparel market under their control, China, India and Pakistan maintain cotton tariffs from 50 to 100%. The end of the apparel quota system has reduced the number of countries producing cotton apparel, and many of those remaining have high taxes and tariffs that impede the ability of countries in West Africa to sell cotton into their markets.

The United States has mobilized our program agencies to work on the obstacles facing cotton-producing countries. We are also working with our G8 partners and the New Partnership for Africa's Development (NEPAD) to focus attention on African agricultural development. In addition, the U.S. Government's Millennium Challenge Account offers a significant opportunity for participating countries to address obstacles to development. African leaders themselves took a significant step in the right direction at an African Union Summit in Maputo in 2003 when they promised to devote 10% of their national budget to agriculture, a primary source of export earnings.

Our commitment to development issues is reflected in our participation last year in the WTO Workshop in Cotonou, the Ministerial Conference on Science and Technology in Ouagadougou, a visit by African Ambassadors to the United States for a tour of our cotton sector, a USAID assessment of the West Africa cotton sector, and a visit by former Trade Representative Robert Zoellick to the region. In conjunction with the National Cotton Council, we sent a high-level delegation in January to Bamako to deliver the findings of our earlier West Africa cotton- sector assessment.

Together we share a sacred responsibility to build a global trading system in which farmers are able to reap fully the rewards of their labor. To honor our charge, we must all play an active role in the WTO negotiations. We must commit ourselves to dealing with the problems of market-access barriers, of export subsidies, and of trade-distorting domestic support.

As President Bush has said, "The powerful combination of trade and open markets is history's proven method to defeat poverty on a large scale, to vastly improve health and education, to build modern infrastructure while safeguarding the environment, and to spread the habits of liberty and enterprise that lead to self-government."

Christopher L. Stillman is Chargé d’Affaires of the United States of America in Tanzania.