South Africa calls for Agoa renewal

Different trade representatives met under one roof for four days in the United States (US) to discuss how to grow Africa by continuing to give the continent access to the US market.

Minister of Trade, Industry and Competition, Parks Tau, Deputy Minister Andrew Whitfield and other government officials attended the 21st Africa Growth and Opportunity Act (Agoa) Forum from  22 July until 26 July in the US.

During the discussions, Tau urged the Biden administration and the members of the US Congress for the renewal of the Agoa.

Benefits of Agoa for Africa

Agoa came into law in 2000. It enabled trade between countries in sub-Saharan Africa and the United States. 

Direct benefits include creating employment and economic opportunities, reducing poverty, increasing exports to the US and supporting the development of the African countries.

The US put certain requirements in place for African countries to participate in the Forum.

“Countries must establish or make continual progress toward establishing a market-based economy, the rule of law, political pluralism and the right to due process. Additionally, countries must eliminate barriers to US trade and investment, enact policies to reduce poverty, combat corruption and protect human rights.”

32 countries are eligible for AGOA benefits in 2024.

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Renewing of Agoa

Tau’s call for renewing Agoa comes when there are 14 months left before it expires. He wants the renewal to be with what he describes as “non-controversial enhancements and amendments.” He also wants Agoa to be renewed for a minimum of 16 months, with the aim of providing predictability and certainty to buyers, exporters and investors.

“With the renewal expected to be concluded by the end of 2024, we welcome the support shown by Biden administration and members of congress for the renewal.”

During the discussions, it was highlighted that South Africa plays an important role in the development of value chains on the African continent in several sectors, particularly the auto sector.

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Strengthening trade

Tau says the agreement between relevant stakeholders will resuscitate the Trade and Investment Framework Agreement (TIFA), which last met a decade ago. The resuscitation of TIFA is expected to provide South Africa with a new impetus to trade’s strategic partnership.

“We instructed our officials to prepare for our first meeting which will provide a good platform for constructive discussions and effective resolution of trade-related matters from both sides.”

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