Stakeholders in Support of DRC AGOA Eligibility Designation and US Investment in the DRC

The Issue

We, the undersigned Congolese naturalized US citizens, other members of the US resident Congolese diaspora, Congolese citizens, friends of the Congo DRC, and American advocates for increased US-Africa trade respectfully request the Administration of President Trump to re-designate the Democratic Republic of the Congo (DRC) as eligible for beneficiary status under the African Growth and Opportunity Act (AGOA), the flagship US commercial program in Africa.

We add our voices to previous comments made to the AGOA Implementation Subcommittee of the Trade Policy Committee (TPC) arguing that the record of Congolese President Felix Tshisekedi warrants recommendation to President Trump for beneficiary status eligibility. These comments were submitted to the Subcommittee by a number of concerned stakeholders representing the Congolese government, the Congolese and US business community, and civil society, among them; Dr. Ngoie Nshisso, Stephen Lande, Professor Dr. Serge Tshibangu, Reverend Dr. Milenge Mwenelwata, Claude Bambi, and Bin Tambwe. They noted that since becoming the first DRC president ever to succeed to the office after a democratic election and peaceful transition of power, his Administration’s record has more than satisfied the requirements for eligibility for the program. 

The petitioners believe DRC re-designation is in the interest of the United States as well as the DRC.  For well over a decade, China has been engaged in an unrelenting effort to displace the US presence in Africa.  It has used official Chinese government programs, mainly generous loans, and credits, supplemented by an active direct campaign by Chinese State-Owned Enterprises (SOEs) and government-affiliated companies (so-called Chinatown) to quietly gain a controlling stake in the Congolese mining industry and other economic development.  To combat these insinuations, U.S. Ambassador to the DRC, Michael Hammer has led efforts to have the DRC become the only country in the world to enter into a Privileged Partnership for Peace and Prosperity with the United States.  The key component and goal of this effort are to promote US investment on a level playing field for American developers and exporters, especially regarding projects that will convey technical skills, technology transfers, and solid management practices to help build a sustainable foundation for the Congolese economy and a culture of entrepreneurship in Congolese society.

AGOA eligibility designation requires that Sub-Saharan beneficiary countries meet a rigorous set of requirements.  The DRC lost its eligibility status in 2010 due to its dismal record of human rights abuses and corruption under the previous administration of Joseph Kabila. Beginning on his first day in office in January 2019, the Felix Tshisekedi Administration has taken bold actions to improve human rights such as releasing political prisoners, allowing the return of exiles, prosecuting human traffickers, reducing police omnipresence and military abuses against civilian populations, and generally instilling a breath of freedom and hope not known in the DRC for generations. 

In the area of labor rights, the Administration has vociferously opposed child labor, gender discrimination, and unsafe working conditions.  It has defended worker rights including the right to organize and bargain collectively and to ensure acceptable working conditions with respect to minimum wages, working hours, and occupational safety in line with OECD guidelines.  More generally, it has implemented progressive policies promoting universal education and eliminating school fees, universal health coverage, and greater economic development to fight poverty.  The Administration is outspoken in its defense of, and support for, rule of law, political pluralism, freedom of the press and speech, and an effective court system to prosecute corruption.

Re-designation would provide comfort to US investors as a clear indication that the USG no longer considers the DRC a pariah country.  Beneficiary status carries the potential to unleash the formidable tools established by the Trump Administration to support US private investment to be prioritized for inflow to the DRC.  These tools include:

•    The deal-making facilities of Prosper Africa which allows a coordinated approach of 16 agencies to support US investment.

•   The new United States International Development Finance Corporation (USIDFC) with an available $60 billion for such support.

•   The revitalized Export-Import Bank and the  US Trade and Development Agency. 

The initial priority for these investment mechanisms should be in mining, especially for critical minerals such as cobalt, tantalum, copper, and rare earths. It should rapidly expand to energy, infrastructure, agriculture, IT, and SME manufacturing. With this in mind, we respectfully request that the Trump Administration encourage these institutions to direct more US investor attention toward the tremendous potential and critical needs in the DRC.

Thank you for your consideration,

168

The Issue

We, the undersigned Congolese naturalized US citizens, other members of the US resident Congolese diaspora, Congolese citizens, friends of the Congo DRC, and American advocates for increased US-Africa trade respectfully request the Administration of President Trump to re-designate the Democratic Republic of the Congo (DRC) as eligible for beneficiary status under the African Growth and Opportunity Act (AGOA), the flagship US commercial program in Africa.

We add our voices to previous comments made to the AGOA Implementation Subcommittee of the Trade Policy Committee (TPC) arguing that the record of Congolese President Felix Tshisekedi warrants recommendation to President Trump for beneficiary status eligibility. These comments were submitted to the Subcommittee by a number of concerned stakeholders representing the Congolese government, the Congolese and US business community, and civil society, among them; Dr. Ngoie Nshisso, Stephen Lande, Professor Dr. Serge Tshibangu, Reverend Dr. Milenge Mwenelwata, Claude Bambi, and Bin Tambwe. They noted that since becoming the first DRC president ever to succeed to the office after a democratic election and peaceful transition of power, his Administration’s record has more than satisfied the requirements for eligibility for the program. 

The petitioners believe DRC re-designation is in the interest of the United States as well as the DRC.  For well over a decade, China has been engaged in an unrelenting effort to displace the US presence in Africa.  It has used official Chinese government programs, mainly generous loans, and credits, supplemented by an active direct campaign by Chinese State-Owned Enterprises (SOEs) and government-affiliated companies (so-called Chinatown) to quietly gain a controlling stake in the Congolese mining industry and other economic development.  To combat these insinuations, U.S. Ambassador to the DRC, Michael Hammer has led efforts to have the DRC become the only country in the world to enter into a Privileged Partnership for Peace and Prosperity with the United States.  The key component and goal of this effort are to promote US investment on a level playing field for American developers and exporters, especially regarding projects that will convey technical skills, technology transfers, and solid management practices to help build a sustainable foundation for the Congolese economy and a culture of entrepreneurship in Congolese society.

AGOA eligibility designation requires that Sub-Saharan beneficiary countries meet a rigorous set of requirements.  The DRC lost its eligibility status in 2010 due to its dismal record of human rights abuses and corruption under the previous administration of Joseph Kabila. Beginning on his first day in office in January 2019, the Felix Tshisekedi Administration has taken bold actions to improve human rights such as releasing political prisoners, allowing the return of exiles, prosecuting human traffickers, reducing police omnipresence and military abuses against civilian populations, and generally instilling a breath of freedom and hope not known in the DRC for generations. 

In the area of labor rights, the Administration has vociferously opposed child labor, gender discrimination, and unsafe working conditions.  It has defended worker rights including the right to organize and bargain collectively and to ensure acceptable working conditions with respect to minimum wages, working hours, and occupational safety in line with OECD guidelines.  More generally, it has implemented progressive policies promoting universal education and eliminating school fees, universal health coverage, and greater economic development to fight poverty.  The Administration is outspoken in its defense of, and support for, rule of law, political pluralism, freedom of the press and speech, and an effective court system to prosecute corruption.

Re-designation would provide comfort to US investors as a clear indication that the USG no longer considers the DRC a pariah country.  Beneficiary status carries the potential to unleash the formidable tools established by the Trump Administration to support US private investment to be prioritized for inflow to the DRC.  These tools include:

•    The deal-making facilities of Prosper Africa which allows a coordinated approach of 16 agencies to support US investment.

•   The new United States International Development Finance Corporation (USIDFC) with an available $60 billion for such support.

•   The revitalized Export-Import Bank and the  US Trade and Development Agency. 

The initial priority for these investment mechanisms should be in mining, especially for critical minerals such as cobalt, tantalum, copper, and rare earths. It should rapidly expand to energy, infrastructure, agriculture, IT, and SME manufacturing. With this in mind, we respectfully request that the Trump Administration encourage these institutions to direct more US investor attention toward the tremendous potential and critical needs in the DRC.

Thank you for your consideration,

Support now

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