The Administration strongly supports House passage of H.R. 1432, which
would provide enhanced trade and investment benefits for sub-Saharan
African countries. This bill complements the President?s "Partnership for
Economic Growth and Opportunity in Africa" initiative and will help to
promote broad economic reform and accelerated growth in Africa.
African countries are on the doorstep of a new era of democracy and
prosperity. H.R. 1432 encourages them to undertake trade and other reform
efforts in return for greater trade benefits. African countries have shown
that when they implement successful and sustainable economic and political
reform programs, they can experience the same strong growth rates seen
elsewhere in the world.
The President observed last year, that as Africa?s nations join the global
march toward freedom and open markets, the United States has a deep
interest in helping to ensure that these efforts pay off. The United
States must respond constructively to the changes in Africa. H.R. 1432
will encourage continued economic reform and development in Africa and
increased U.S.-African trade.
The Administration commends the efforts of the Ways and Means Committee to
increase measures to discourage transshipment. The Administration supports
the bill?s requirement for cooperation from participating countries, and
the inclusion of additional penalties against those caught engaging in
The Administration will continue to work with Congress through the
legislative process to ensure the strongest possible bipartisan support for
H.R. 1432 would affect receipts; therefore, it is subject to the
pay-as-you-go requirements of the Omnibus Budget Reconciliation Act of
1990. The bill contains provisions that do not fully offset the five year
reduction in receipts. The Administration supports this bill, and will
work with Congress to find appropriate offsets.