“The Increasing American Jobs Through Greater Exports to Africa Act” —legislation to support American jobs by growing U.S. exports to Africa—was passed Thurday by the full House Foreign Affairs Committee, which voted unanimously to pass the bill, written by Congressman Chris Smith (NJ-04), Chairman of the House congressional panel that oversees African issues.
H.R. 1777, “The Increasing American Jobs Through Greater Exports to Africa Act of 2013,” was passed as an amendment in the form of a substitute. Click here to read the final bill.
“Improving the competitiveness of U.S. business in Africa is in America’s interests as well, since more prosperous Africans can afford U.S. manufactured goods,” Smith said. “This legislation focuses on increasing exports of U.S. goods and services to Africa by 200 percent in real dollar value within 10 years. According to the department of commerce every 1 billion in US exports creates some 6000 jobs in this country.”
In 2012, Smith held a hearing on the legislation with U.S. Assistant Secretary of State Johnnie Carson, U.S. Assistant Trade Representative for Africa Florizelle Liser, and advocate and former star of ABC’s Grey’s Anatomy, was Isaiah Washington. The hearing was held before the House Subcommittee on Africa, Global Health and Human Rights, chaired by Smith. Smith is author of the bill, and Rep. Bobby Rush (IL-01) is the coauthor.
H.R. 1777 encourages members of the African Diaspora to increase their involvement in U.S.-Africa trade. Small and medium-sized businesses in the United States accounted for 60 percent of U.S. exports in 2010, and traditional and recent members of the African Diaspora are most evident in these categories. The legislation calls for not less than 25 percent of existing available trade financing be used for U.S.-Africa projects, especially small and medium-sized businesses. The legislation is intended to stimulate U.S. bilateral trade with Africa and boost American exports to Africa by 200 percent within 10 years.
African officials have long encouraged American entrepreneurs to sell more of their products to Africa, such as irrigation equipment and other agricultural equipment and supplies. Such sales would not only increase jobs in the United States by expanding production for an expanding market, but it would allow African agricultural producers, for example, to become more efficient and productive.
According to the U.S. International Trade Administration, the United States is the world’s largest importer of African goods, receiving 20.2 percent of the continent’s total global exports. However, U.S. exports fell sharply during the height of the global recession. From 2008 to 2009, U.S. exports to Africa dropped 45 percent from $78.3 billion to $42.8 billion. According to estimates by the U.S. Trade Representative Office and the U.S. Department of Commerce, every $1 billion in exports supports more than 6,000 jobs. If the legislation’s goal of raising U.S. exports to Africa by 200 percent with 10 years (from $21 billion in 2011 to $63 billion) is achieved, the creation of over a quarter of a million new U.S. jobs could be realized.
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