Bridges Weekly Trade News Digest • Volume 8 • Number 43 • 15th December 2004

Zoellick, African Leaders Discuss Cotton, Textiles, US-SACU FTA

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During a week-long trip to West and Southern Africa from 7 to 13 December, a US team led by US Trade Representative (USTR) Robert Zoellick met with African leaders to discuss a range of issues. These included the current round of multilateral trade liberalisation talks, West Africa’s concerns about cotton, the imminent phase-out of textile quotas, and the difficult free trade agreement (FTA) negotiations between the US and members of the Southern African Customs Union. SACU comprises South Africa, Botswana, Lesotho, Namibia and Swaziland (for further information on the US-SACU FTA see BRIDGES Weekly, 6 October 2004).

Africa’s concerns about cotton

Senegalese Commerce Minister Mamadou Diop Decroix enquired when the US would eliminate its cotton subsidies, and raised the possibility of "protection measures in order to support African cotton producers" until the US has done so. In response, Zoellick pointed to ongoing work within the WTO Doha talks on agriculture to address cotton; US domestic efforts, including aid programmes, to enhance African cotton; and emphasised that the market access dimension of cotton also had to be addressed in light of the fact that "some of the biggest cotton users such as India, Pakistan and China have high barriers to the sale of your cotton and our cotton."

AGOA and textiles

When questioned about the possibility of further improving market access under the African Growth and Opportunity Act (AGOA) to enhance the competitiveness of African textiles after the quota phase-out in January 2005, Zoellick offered no assurances, saying that "under AGOA we actually extended the ability of African countries to get fabric from third countries — Asia, and elsewhere — but only for a couple of years because our African counterparts said it’s important to develop their own industry." For further information on AGOA’s textile benefits see BRIDGES Weekly, 14 July 2004.

The Millennium Challenge Account

The Senegalese minister also enquired about the implementation of US commitments under the Millennium Challenge Account (MCA), an initiative by the Bush administration in which development assistance would be provided to countries that fulfil certain good governance criteria. Senegal is eligible to receive benefits under the programme. Zoellick responded that he would be meeting with the MCA board upon his return to the US and would relay further information on this issue to the Senegalese government.

Addressing the US-SACU FTA

In Namibia, Zoellick and Southern African leaders discussed how to advance the US-SACU FTA talks, which have stalled over issues such as intellectual property rights, services and investment — areas that SACU members argue should be excluded from the negotiations. South African Trade and Industry Minister Mandisi Mpahlwa hinted at a proposed mechanism currently being "examined" in the SACU camp to kick-start the talks and to prevent negotiators from "finding themselves stuck simply because ministers can’t meet." Expressing a similar interest in moving the FTA talks forward, Zoellick agreed that "on some of these issues we are going to have to do some more homework. We are going to have to do some trade capacity building [for SACU members]."

Further information on the MCA is available at: http://www.mca.gov/about_us/overview/index.shtml

Full transcripts of Zoellick’s meeting with African leaders during this trip are available on the Office of the USTR website at: http://www.ustr.gov/Document_Library/Recent_News/Section_Index.html

ICTSD reporting, "US African Countries Discuss Free Trade," Associated Press, 10 December 2004.