Cape Town – Trade, Industry and Competition Minister Ebrahim Patel has expressed support for the swift reauthorisation of the African Growth and Opportunity Act (Agoa) with possible refinements.
Patel suggested a two-stage programme, with the first stage focusing on rapid reauthorisation and modest refinements, and the second stage for deeper improvements that require more time.
He was delivering closing remarks at the three-day 20th African Growth and Opportunity Act Forum held at Nasrec in Johannesburg.
“One idea that’s come up from the discussions is whether we should consider, if needed, a two-stage programme. But the first stage firmly focused on reauthorisation as rapidly as possible, maybe with a modest package of refinements that does not require lengthy discussions.
“The second stage with further and perhaps deeper improvements that require more time and further study, and that can be done fairly shortly thereafter. We are particularly keen to get the reauthorisation in the earliest part of 2024, so this will be very helpful.
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“These are ideas that we want our friends in the United States to think through and consider. We are also reflecting a little bit on these weighing up the pros and cons,” the minister said.
Agoa provides qualifying sub-Saharan African countries with duty-free, quota-free access to the US market.
The Minister noted that the forum’s discussions also explored the possibility of implementing a graduation system for countries once they achieve a certain level of development. He even suggested having a “constructive dialogue about the criteria for this level of advancement.”
Patel also stressed the importance of reassessing policy areas, highlighting that refining existing policies would create opportunities for a greater number of African products to access international markets.
“Those colleagues who’ve been enjoying our fruits, SA citrus fruit from the region, which can be available in larger quantities, we can resolve those things. Matters we constructively engage in, for example relating to steel and aluminium, these are practical solutions we believe can unlock the value of trade. In different parts of the continent, in West Africa, there are constraints in accessing the American market. In East Africa, there are different products we need to refine,” he said.
Agoa plays a crucial role in US-Africa commercial relations, and it is considered a cornerstone of their economic partnership.
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Compiled by Betha Madhomu
