President Biden Strengthens United States Trade Relations with Africa, Wants to Compete with China?

JAKARTA - President Joe Biden announced an agreement aimed at strengthening trade ties between the United States and Africa, after years of the continent not being a priority for Washington, while China was making inroads with investment and trade.

"The United States stands for the future of Africa", President Biden told African leaders from 49 countries and the African Union at a three-day summit in Washington that began Tuesday, reported Reuters on December 15.

President Biden's statements and the summit aim to position the United States as a partner with African nations, amid competition from China seeking to expand its influence by funding infrastructure projects on the continent and elsewhere.

China's trade with Africa is about four times that of the United States, with Beijing having become a key creditor offering cheaper loans than Western lenders.

President Biden said the new agreement with the African Continental Free Trade Area would give American companies access to 1.3 billion people and a $3.4 trillion market. He listed companies that had made deals at the summit, including General Electric Co., and Cisco Systems Inc.

"When Africa succeeds, the United States succeeds. Frankly, the rest of the world succeeds", President Biden said.

This is the first summit since the last such meeting was held in 2014 when Barack Obama presided over Uncle Sam's country.

For starters, President Biden's Administration has pledged $55 billion toward food security, climate change, trade partnerships, and other issues.

President Biden is also expected to endorse the recognition of the African Union as a permanent member of the Group of 20 major economies during Thursday's summit.

The summit is part of a new push to improve ties as China gains leverage in trade, investment, and a boost in lending. Beijing has held high-level meetings with African leaders every three years, for more than two decades.

Some US officials were reluctant to frame the meeting as a battle for influence. President Biden also did not mention China in his remarks, and Washington has toned down criticism of Beijing's lending practices and infrastructure projects.

On Wednesday, White House national security spokesman John Kirby highlighted the importance of US investment in Africa, saying Washington was seeking "two-way discussions" on trade, investment, and opportunities for economic growth.

African leaders welcomed the approach.

"Instead of exporting commodities, the US should look for investment opportunities", said Kenyan President William Ruto.

"They have the engines, they have the know-how, so they can produce for the African continent in Africa", he continued

Ruto cited projections that Africa's agribusiness sector will more than triple, to US$1 trillion by 2030, saying Washington's capital could help overcome the continent's physical infrastructure deficit to unlock this growth.

Separately, Eurasia Group analysis data shows, China-Africa trade will reach 254 billion US dollars in 2021, far exceeding US-African trade which is 'only' 64.3 billion US dollars. Those figures are up from $12 billion and $21 billion respectively in 2002.

Western leaders have sharply criticized what they see as Beijing's slow pace in tackling the heavy debt burden many African countries face.

Beijing's ambassador to Washington rejected the idea ahead of the summit, citing reports that African nations owed three times as much to Western institutions while noting that Chinese-built hospitals, roads, airports, and stadiums are "everywhere" in Africa.

China remains the region's biggest bilateral investor, but its new loan commitments to Africa have declined in recent years.

Meanwhile, many African leaders reject the idea that they must choose between the United States and China.

"The fact that the two countries have different levels of relations with African countries makes them equally important for Africa's development", Ethiopia's UN Ambassador Taye Atske Selassie Amde told Reuters.

"However, it should be noted that every African country has an institution to determine relations and the best interests of each", he said.