Cape Town – Trade, Industry, and Competition Minister Parks Tau has reported strong bipartisan support from the US Congress for the re-authorisation of the African Growth and Opportunity Act (AGOA).
Following a successful forum in Washington DC and the BRICS meeting in Moscow, South Africa is no longer at risk of being removed from AGOA, the minister said on Tuesday, according to EWN.
Tau said that the AGOA Forum reinforced economic ties between South Africa and the US, with proposals for extending AGOA to ensure stability and enhancing it to support the Africa Continental Free Trade Area (AfCFTA).
“We received strong bipartisan backing from the US Congress and our colleagues in the US administration for the reauthorisation of AGOA.
Our key Message to AGOA was indeed to reset and create partnerships. https://t.co/iwGCw3rrL5
— Parks Tau (@TauParks) July 30, 2024
“The mutually beneficial economic and trade partnership is highlighted by the more than 600 US businesses operating in South Africa, with over 1.3 million jobs created in sub-Saharan Africa,” the report quoted the minister as saying.
A South African delegation led by the department recently met with US Congress members to discuss strengthening economic ties and advocate for the extension of the AGOA.
AGOA provides duty-free access to US markets for 35 Sub-Saharan countries.
The current AGOA is set to expire next year.
The meetings, held during the 21st AGOA Forum in Washington DC and the 14th BRICS Ministers Meeting in Moscow, aimed to address concerns following a US House of Representatives vote for a review of bilateral relations between the US and South Africa, SABC reported.
Tau expressed optimism that AGOA might be extended regardless of the upcoming US elections, the report said.
We received broad support for our AGOA mission and committed to continuous engagement. https://t.co/ABNXkVpVXt
— Parks Tau (@TauParks) July 30, 2024
The South African proposals included improving rules of origin, preserving regional value chains, and aligning AGOA with the AfCFTA to boost intra-African trade and manufacturing.
“We engage on a product-by-product basis of course there are products that are accommodated in the AGOA agreement and we work on the basis of that basket. If there are other products as we’ve indicated, we are in discussions about pork, and citrus. Some of it is from our side going to the US some of it is from the side coming this way. So, it’s not limited to chicken or bones if you like. On the scenarios, we received broad support from both the Republican and the Democratic parties in the US and both sides indicated a commitment to the renewal of AGOA,” the minister said, according to the report.
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Compiled by Betha Madhomu
