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Washington, Oct 20, 2005 - Today, the House Subcommittee that focuses on Africa held a hearing to assess the Africa Growth and Opportunity Act (AGOA), which was enacted in 2000. As Vice-Chairman of the panel, and one of the chief authors of the historic and largely successful trade pact, U.S. Rep. Ed Royce (R-CA-40) issued the following opening statement at the hearing:

"AGOA, five years old now, is a proven success. In fact, it is one of the most successful Africa policy initiatives our country has taken, ever. We will hear its results today, including a doubling of non-oil AGOA imports since 2001.

"Over the years, I have visited manufacturing sites where AGOA is working, and seen job creation first-hand. And, as anyone who knows Africa is aware; one formal sector job often supports an extended family. Formal sector jobs also support many informal sector jobs. In sum, AGOA has benefited millions of Africans. Without it, there would be far fewer jobs in several very poor African countries, period. They would be in China and elsewhere, especially the apparel jobs.

"By promoting economic and political reform - reforms that are happening in several African countries - AGOA aids U.S. businesses. U.S. exports to sub-Saharan Africa increased 25 percent from 2003 to 2004. These include agricultural goods, machinery, and transportation equipment. More trade means higher economic growth for Africa, which leads to better infrastructure, and health and education services.

"AGOA has given many Africans a psychological boost. It has shown that Africa, traditionally only a raw materials exporter, can play in the highly competitive global apparel industry, and in some light manufacturing sectors. This is no small feat given intense global competition, especially from China.

"Before AGOA, there was no U.S.-Africa trade agenda. With AGOA, we started a trade dialogue, including annual forums, which several Members, myself included, have participated in. The goal has been to better integrate Africa into the world economy, from which it has been marginalized. Encouraged by AGOA, many African countries are now active players in global trade negotiations. Some have not appreciated Africa's new assertiveness, as our cotton subsidies have been rightly challenged. Many of us believe that Africa's empowerment on trade has been a very positive development, largely spurred by AGOA.

"Of course, AGOA can be strengthened. That is what the AGOA Acceleration Act of 2004 does. Trade capacity assistance is needed, especially in the agricultural sector, though it increased to $199 million last year - no small sum. This should help diversification. The Millennium Challenge Account, which also promotes market reform, complements AGOA. I would like to see AGOA's eligibility criteria used more aggressively, giving us greater reform leverage. But, we should not lose sight of the fact that this bipartisan Act has greatly improved the living standards of many Africans in a way that few other U.S. efforts have. You would have to hold AGOA to very unrealistic standards to suggest anything but success."