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The AGOA and MCA Modernization Act Passes in the House

AGOA and MCA Modernization ActOn Jan. 17, 2018, the House of Representatives passed H.R. 3445, the AGOA and MCA Modernization Act. The legislation adds on to the original African Growth and Opportunity Act, or AGOA, which was passed into law on May 18, 2000, by the 106th Congress.

As an extension of AGOA, the AGOA and MCA Modernization Act encourages plans to promote trade and cooperation while also providing aid to countries that are AGOA eligible. The region of focus of the legislation is sub-Saharan Africa, with the goal being to build private sector growth. Under the bill, the President will be directed to create a website with information about AGOA along with encouraging embassies in chosen countries to promote export opportunities to the United States.

In addition, the​ ​bill​ ​would​ ​give​ ​the​ ​Millennial Challenge Corporation (MCC)​ ​the​ ​authority​ ​to​ ​develop​ ​a​ ​second​ ​concurrent​ ​compact​ ​with countries,​ ​provided​ ​the​ ​compact​ ​focuses​ ​on​ ​regional​ ​economic​ ​development.​ The​ ​ability​ ​to​ ​enter​ ​into​ ​a​ ​second​ ​compact​ ​will​ ​be​ ​limited​ ​to​ ​countries​ ​that​ ​demonstrate​ ​progress toward​ ​meeting​ ​the​ ​objectives​ ​of​ ​the​ ​first​ ​compact​ ​and​ ​capacity​ ​to​ ​handle​ ​an​ ​additional​ ​compact.

The MCC was created in 2004 by the Bush administration, with the aim to reduce poverty through economic growth. The MCC has committed more than $10 billion in 58 projects in 25 countries. Around 70 percent of this investment has gone into infrastructure projects like highways and ports and an increasing percentage is being invested in energy.

On the House floor prior to the vote, House Foreign Affairs Committee Chairman Rep. Ed Royce (R-CA-39) said that the AGOA and MCA Modernization Act “seeks to facilitate trade and private sector-led growth in poor but relatively well-governed countries, particularly in Africa, so they can grow their own way out of poverty.”

“Through AGOA, goods produced in eligible African countries enter the U.S. on a duty-free basis. To be eligible, countries must be committed to the rule of law, eliminating barriers to U.S. trade and investment, combating corruption and supporting counterterrorism activities. So AGOA advances U.S. interests on many levels.”

Trade being a driver of economic development and increased civilian participation in politics is one of the main arguments for passing the AGOA and MCA Modernization Act. Economists and experts agree that the legislation does not just benefit sub-Saharan Africa, but also the United States, as it helps create jobs and benefits consumers and companies through free-market principles.

Rep. Karen Bass (D-CA-37) was enthusiastic about the passage of the AGOA and MCA Modernization Act by a unanimous vote. Bass is a ranking member of the House Africa Subcommittee. She is an avid supporter of the legislation and said the policy would foster economic development, as well as strengthen the United States as an international leader and boost the domestic job market and economy.

The bill was introduced to the House by Rep. Royce. At the time the bill was initially introduced, Rep. Royce along with fellow representatives Bass, Eliot Engel (D-NY) and Chris Smith (R-NJ), stated that steering developing countries toward trade and away from aid helps African countries and women. Africa’s consumer spending nearing $1 trillion was what prompted the four to push for the passing of the AGOA and MCA Modernization Act.

The AGOA and MCA Modernization Act still needs to be approved by the Senate. The bill has been introduced by Sens. Ben Cardin (D-MD), Johnny Isakson (R-GA) and Chris Coons (D-DE) as S.832. Sen. Coons stated that it is vital that Congress does all it can do to promote economic growth in developing countries and expand American business access to foreign markets. He is excited that the act will encourage trade with sub-Saharan Africa.

The recent passing of the AGOA and MCA Modernization Act in the House may give the legislation the momentum it needs to soon be accepted in the Senate. Visit The Borgen Project Action Center to contact your representative about this critical legislation.

– Blake Chambers

Photo: Wikimedia Commons

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Poverty Advocacy, ONE Way

Poverty Advocacy
With a staggering amount of global poverty, ONE.org was established as a nonpartisan, nonprofit organization striving  to help lend a strong hand in the battle against destitution. Co-founded by U2 front-man Bono in May 16, 2004, the ONE Campaign strives to end extreme poverty and reduce the prevalence of preventable diseases, especially in Africa.

The roots of the ONE campaign lie in a previous organization created by Bono called DATA (Debt, Aids, Trade, Africa), which also strove to raise awareness about AIDS and other social issues in Africa. However, in 2008, DATA and ONE united simply as the ONE Campaign. Since its engenderment, ONE has already garnered the support of 3.5 million advocates.

The methods that ONE employs to fulfill its mission of eradicating global poverty and disease involve educating the public about such issues, raising awareness among politicians to push global poverty to the top of political agendas and collaborating with African policymakers rather than simply directing them. By raising awareness about global poverty among the general public and among politicians and policymakers, ONE makes global poverty more relevant and urgent in the eyes of individuals who may not have previously been concerned with such global issues.

Although ONE headquarters are currently located in Washington, D.C., London, Johannesburg, Brussels, Berlin and Paris, the message of the campaign permeates through any global boundaries, bringing the organization closer and closer to fulfilling their goal of assuaging poverty. Due to support of volunteers, ONE has been able to help reduce extreme poverty and preventable diseases.

For instance, over 7.5 million African residents today are able to gain access to AIDS medication whereas in 2005, only a paltry 50,000 Africans were able to access such life-saving treatments. Additionally, malaria has also been reduced by a staggering 75% within the past decade – no doubt with lobbying and contributions from the ONE Campaign.

– Phoebe Pradhan

Sources: ONE, Look to the Stars