Cape Town – South Africa has sent a delegation led by Minister of Trade, Industry, and Competition Ebrahim Patel to Washington in a last-ditch effort to retain preferential trade benefits with the United States.
South Africa is at risk of losing its benefits under the African Growth and Opportunity Act (Agoa) when the eligibility review concludes in 2024.
The delegation includes Minister of Finance Enoch Godongwana, Minister in the Presidency Khumbudzo Ntshavheni, senior businesspeople, and representatives from Cosatu.
The loss of Agoa, which allows 25% of South African exports to enter the US tariff-free, would have a detrimental impact on the country’s agricultural and manufacturing sectors.
According to Business Live, the delegation plans to meet US lawmakers and lobby for SA to retain its eligibility to export goods duty free to the US under the Agoa.
The officials also intend to try to dispel what the government has termed misinformation about its stance towards Russia’s war in Ukraine, the report said.
Ministers Patel, Ntshavheni and Godongwana briefing to the African Diplomatic Corps in Washington DC. pic.twitter.com/nDx6OLBbJM
— South African Embassy, Washington D.C (@RSAinDC) July 12, 2023
The non-aligned stance of South Africa and allegations of arms sales to Russia and military exercises with Russia have raised concerns in the US about the country’s eligibility for Agoa benefits.
A group of US legislators, including Democratic Senator Christopher Coons, has questioned South Africa’s suitability to host the upcoming Agoa forum.
The final decision on eligibility rests with the US Congress.
The Democratic Alliance (DA) has already raised concern that the government’s non-aligned position in the Russia-Ukraine war could lead to the collapse of the country’s vehicle manufacturing sector if South Africa is excluded from the Agoa trade pact.
According to Times Live, the DA has initiated a lobbying process to ensure South Africa’scontinued inclusion in Agoa in order to protect the country’s economy.
“We are no longer the favourite [country] of the southern African region when it comes to trade, and South Africa’s economy is quickly being outflanked by our neighbours. The incentive to grant South Africa exclusive access to our key export destinations in the US, the EU, and the UK is no longer guaranteed. This is especially true in the automotive sector,” the report quoted DA leader John Steenhuisen as saying.
We had an opportunity today, in New York to engage with the members of the US Congress, Administration, Business Community and Civil Society to strengthening the economic relationship between South Africa and the United States pic.twitter.com/rFNUVs9BAD
— Khumbudzo Ntshavheni (@Khu_Ntshavheni) July 12, 2023
He added: “Given that the ANC is hosting an exclusive Brics political parties dialogue and that the South African government, under the ANC, plans to host Russian President Vladimir Putin at the 2023 Brics Summit later this year, South Africa faces the very real threat of economic sanctions, with Agoa hanging in the balance.”
He said that the DA was actively engaging with US politicians and has made a formal submission to the US Trade Representative to advocate for South Africa’s continued inclusion in Agoa.
“The DA, including leaders of our governments in the Western Cape and Cape Town, have already engaged US politicians on the importance of Agoa’s renewal for regional economies, making the point that the ANC does not speak for South Africa as a supporter of the Russian Federation,” said Steenhuisen.
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Compiled by Betha Madhomu
