Mauritius meeting will discuss trade with the US

Leaders from almost 40 countries eligible for the US African Growth and Opportunity Act (AGOA) will meet in Mauritius next week for the second US-sub-Saharan African Trade and Economic Cooperation Forum. The forum, to be held at the University of Mauritius campus from 15 to 17 January, will see the delegations of up to eight members participating in discussions on trade, conditions for investment and "investing in people". Speakers would include trade and agriculture ministers from the various countries, as well as US Trade Representative Robert Zoellick and US Agency for International Development Administrator Andrew Natsios, a statement said. There would also be a parallel private sector event discussing finance, doing business with the US, agriculture, trade barriers and bio-technology. NGOs would meet between 13 and 15 January to discuss AGOA's results. AGOA was signed into law by former US president Bill Clinton in May 2000 to provide incentives for increased trade between sub-Saharan Africa and the US. An additional Trade Act of 2002, known as AGOA II, focusing on textile benefits, was signed into law by President George Bush last August. A report to the US Congress last year listed the major achievements of the Act. The included the opening of 11 new factories in Lesotho and the expansion of another eight, resulting in the creation of 15,000 new jobs, making manufacturing employment exceed government employment for the first time. In Malawi, 4,350 jobs had been created, Mauritius had gained at least US $78 million in investment and new and planned investment in Namibia in the clothing and textile sector was expected to top US $250 million, according to the report. In Swaziland, it said that at least eight factories had opened, creating 11,000 new jobs. South Africa was one of the top three countries to benefit from AGOA, bringing US $923 million into the country. However, to qualify for the benefits of AGOA countries were compelled to meet a list of requirements which were reviewed every year by a committee, which them submitted recommendations to the president. These included the establishment of a market-based economy, a commitment to the rule of law, internationally recognised human rights and workers' rights, the elimination of trade barriers to the US, the implementation of policies to reduce poverty and policies and to eliminate corruption. The countries must also have implemented commitments to eliminate child labour and must meet certain customs and visa requirements. "It is an unfortunate reality that some investors view Africa, and the risks associated with investing in some African countries, with a certain amount of trepidation. Countries will have to pursue economic and political reforms to create the stable and positive investment climate the potential investors seek," the report said. It cited the setbacks the Madagascar textile industry suffered during last year's political unrest as an example of the importance of stability for a successful economy. However, the Act has come in for criticism because it can invoke a cap on imports if these threaten the US domestic market. It also has strict guidelines for the origin of raw materials used in the textile industry. US companies benefiting from AGOA, like the trendy GAP clothing chain and Wrangler, have also been accused of turning a blind eye to the low wages paid by their garment suppliers in Africa. Research by the Clean Clothes Campaign has suggested that dramatic growth in Madagascar's Export Processing Zones has left textile workers faced with labour laws that are "hardly observed", demands for overtime where "workers have to work the whole night through, and even the next day", and where unions are protected by law "but are in reality powerless". Jobs may have been created, but the basic salary is about $24 a month. See IRIN Focus on Lesotho's textile industry