Zoellick Says it's Time for Stronger U.S.-Africa Trade Relationship

U.S. Trade Representative meets with press following ministerial talks

Pretoria, South Africa -- It is time for the United States to build a stronger trade relationship not only with South Africa but all of Africa, U.S. Trade Representative Robert Zoellick told reporters February 18.

Speaking at a press conference following lengthy talks with South African Minister of Trade and Industry Alec Erwin, Zoellick said the mutual desire for a stronger trade relationship is why he is making his February 12-21 trip to Kenya, South Africa and Botswana. Zoellick said his deputy will soon be traveling to West Africa as well.

Zoellick, who is the first U.S. trade representative to travel to Africa, called the U.S.-Africa trade relationship a "two way street," just as it is supposed to be.

"Having been involved in this business in past years," Zoellick noted, "I think there is an opening, an opportunity here because of a new African leadership and a new African approach to trade. Here I would put President (Thabo) Mbeki and Minister Erwin among the leaders, but fortunately for them and me there are many others in a variety of different posts at the ministerial and presidential levels."

"Our agenda covers the WTO negotiations, ... the African Growth and Opportunity Act (AGOA)" which is a U.S. preferential trade program, and the possibility of sometime in the future establishing a free trade agreement with an organization such as Southern African Customs Union, which would make for an even much deeper and fuller relationship, Zoellick said.

"No one underestimates the difficulty of achieving" a free trade agreement between the United States and African nations, he said. When the United States engages in free trade negotiations, he said, it aims for a comprehensive and full agreement. "But because of that, it also offers some benefits for our partners in terms of investment and linkage to their own reform effort and regional integration. That is how we would see it."

The best known such agreement is the North American Free Trade Agreement between the United States, Mexico and Canada. The United States also has free trade agreements with Israel and Jordan.

Asked if the situation in Zimbabwe is adversely impacting investment in South Africa and the region, Zoellick said what is going on there demonstrates why it is "vitally important for Africans to talk about the issue of governance, rule of law, corruption and democracy, and it is best of all if those issues are raised by Africans with other Africans."

"One cannot help to be disappointed by what is going on in Zimbabwe," Zoellick told reporters, but he expressed hope for free and fair elections and a democracy that would benefit not only Zimbabweans but also people throughout the region.

Zoellick said despite what is ongoing in Zimbabwe, he is visiting Kenya, South Africa and Botswana because "I believe in the potential for trade, investment and growth in the region. I know that the region will move in fits and starts and I know that Zimbabwe is not the only country that has problems, but I am optimistic over the future. Like any part of the world, it will have its ups and downs."

Picking up on Zoellick's comments, Erwin said, "the impact (of Zimbabwe on South Africa and the region) is obviously adverse. There can be no question about that. It is adverse in terms of perceptions that it creates of instability of the area no matter how much the basic economics say something different. The 'bad neighborhood' effect is also a problem and this concerns all the Southern African Development Community leaders. This is why they have intervened to try to bring about a free and fair election."

The biggest impact has been on South Africa's trade with Zimbabwe and Zimbabwe's trade with its neighbors. "There can be no question that a vibrant Zimbabwean economy is of benefit to this region," he added.

During the press conference, Zoellick also highlighted the fact that during the first nine months of last year South Africa recorded almost $700 million in exports to the U.S. market due to the impact of the African Growth and Opportunity Act, which allows thousands of products to enter the U.S. market duty free from eligible African nations. There is great potential under AGOA for a country to diversify its exports to the United States, he said.

The Zoellick-Erwin press conference followed talks during which both ministers discussed matters of mutual interest pertaining to the World Trade Organization and the Doha Development Agenda, as well as AGOA and bilateral trade issues concerning steel, poultry and telecom.