June 23, 1999

The Senate finance Committee has approved a trade bill designed to base U.S. policy toward Africa on trade and private sector investment and not solely on foreign aid. Senate Agriculture Committee Chairman Richard Lugar (R-IN) said the bill would "start a new era in U.S.-African relations."

Lugar's bill provides transition from aid to greater economic self-reliance for sub-Saharan countries committed to economic and political reform; endorses a free trade area to increase U.S.-sub-Saharan African trade and encourages private sector development in the region; increases access to U.S. markets for African textiles and other products and provides incentives for economic and political reform in Africa.

"We have an historic opportunity to help integrate African countries into the global economy, to rethink dependency on foreign assistance and to help strengthen civil society and economic and political institutions," said Lugar. "As African countries pursue meaningful economic and political reforms, it is important to provide trade and investment incentives. A stable and economically prosperous Africa will contribute to U.S. commercial and security interests."

The bill has the support of the Clinton Administration, nearly all African ambassadors and a large part of the U.S. business community. The House Ways and Means committee has passed a similar bill.