Congress, make AGOA work

When it comes to suppressing political opposition, Ethiopia is nearly unrivaled in sub-Saharan Africa. The ruling party’s use of restrictive laws, political cronyism and brute force is so effective at eliminating its political opponents that the party and its allies won 546 out of 547 seats in parliament in the 2010 elections.

Yet, despite this complete disregard for even a semblance of democratic governance, Ethiopia — along with 10 other authoritarian African regimes — enjoys the ability to export nearly 6,500 products to the U.S. duty-free as a participant in the Africa Growth and Opportunity Act (AGOA).

{mosads}This is not what AGOA’s supporters envisioned when Congress passed the law in 2000.

Back then, the concept was simple: Promote sustainable export-led growth to help African countries like Ethiopia move away from relying solely on extractive resources and subsistence farming to improve livelihoods. To achieve that goal, the U.S. eliminated trade barriers on certain products for African nations that made efforts to improve their legal systems and human rights protections. This is a good approach, and we support it.

But, today, AGOA is falling short of its goals because Africa’s most repressive governments benefit from it. Congress should fix AGOA’s weaknesses when it reauthorizes the trade deal this year.

The main problem Congress should tackle is AGOA’s eligibility rules. They are vague and ineffective, and there is little scrutiny of whether countries are meeting those objectives. The president is authorized to make a country eligible for AGOA so long as that country is “making continual progress toward” having a market-based economy, eliminating trade barriers and establishing the rule of law.

The problem is that almost any country that has not had a coup or perpetrated massive human rights abuses can qualify. In fact, of the 39 countries eligible under AGOA, 11 are considered “not free,” according to rankings by Freedom House’s Freedom in the World 2015 report. Without more precise terminology and careful scrutiny, Africa’s dictators will continue to benefit from access to U.S. markets without actually making political and economic reforms.

A lack of transparency also hampers AGOA’s potential. It is unclear how the U.S. government determines a country’s eligibility. For example, Ethiopia and Gambia both have eliminated political pluralism, but Ethiopia is eligible for AGOA benefits while Gambia is not.

If Congress wants AGOA to promote development and incentivize reform, it needs to tighten and clarify eligibility requirements and improve transparency. African governments should receive trade benefits only if they take concrete steps to improve governance and accountability and protect human rights. For example, rather than just stating that countries must have established or be making progress toward “political pluralism,” as is the case under current law, AGOA should include specific markers such as fair elections, space for political opposition and dissent and so on.

Congress should strengthen the review process to ensure accurate assessment and enforcement of each country’s eligibility. The U.S. Trade Representative (USTR) should be required to consult with African and U.S. civil society groups to assess whether countries are truly making progress toward democracy and protecting human rights. And, when determining eligibility based on economic indicators, the USTR should seek the expertise of African and American businesses. Feedback from knowledgeable sources will provide the on-the-ground information needed to assess each country’s eligibility accurately.

Finally, Congress should require that the review process and its findings be public. This will provide much-needed clarity for Africans trying to hold their governments accountable and make AGOA work in their countries. It will also allow for more effective engagement by nongovernmental groups, improving the quality of feedback these groups can provide.

The simple fact is that dictators are bad for development. Long-term economic growth is not sustainable in environments plagued by corruption, abuse, and repression. Knowledge-based economies depend on democratic, accountable governance. Strong rule of law, independent media, innovation-spurring free expression, and responsive government policies are not just conditions for a functioning democracy, they are the conditions entrepreneurs and investors need to start and grow their businesses.

AGOA was meant to be much more than just a trade preference program. It still has that potential. It could become an effective way to promote the type of governments and legal systems necessary for deepening democratic cultures and flourishing marketplaces.

It would be tragic if Congress misses this opportunity.

Lagon is the president of Freedom House. Rickard is the executive director of the Open Society Policy Center.