Department of Trade, Industry and Competition Minister, Parks Tau. (Supplied/Department of Trade, Industry and Competition)
- A high-level South African trade delegation led by the government says it has had a successful visit to the US.
- The Department of Trade, Industry and Competition says both the Biden Administration and members of Congress had expressed support for the renewal of the Africa Growth and Opportunity Act (AGOA).
- It said there was also broad support for strengthening bilateral trade relations between the US and SA.
- For more financial news, go to the News24 Business front page.
A top-level South African trade delegation to the US led by the government says it has garnered support from President Joe Biden’s administration and members of Congress for a renewal of the Africa Growth and Opportunity Act (AGOA).
A statement from Department of Trade, Industry and Competition (DTIC) on Saturday, reported that the delegation led by its minister, Parks Tau had concluded a successful visit to the US, where it attended the 21st AGOA Forum held there between 22 and 26 July.
Tau, who was accompanied by his deputy Andrew Whitfield, government officials, private sector players and labour representatives, said the delegation welcomed “the support expressed by both the Biden Administration and members of Congress for the renewal of AGOA”.
At the same time the delegation also secured broad support for strengthening bilateral trade and investment relations between SA and the US, the DTIC said.
The DTIC noted that with Agoa expiring in 14 months, African ministers of trade attending the forum urged the Biden Administration and the US congress to expeditiously renew AGOA with “non-controversial enhancements and amendments” for a minimum of 16 years.
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This, they argued, would provide the “required predictability and certainty to buyers, exporters and investors”. At the same time they called for AGOA to be concluded by the end of 2024.
The DTIC said there was also an agreement to promote stronger and closer investment relations to complement AGOA and change the structure of Africa’s trade towards value-added exports.
AGOA is a US trade law that significantly enhances market access to the country for qualifying sub-Saharan African countries, including South Africa.
There has also been mounting concerns in recent months that SA could find itself excluded from AGOA as some members of Congress have argued the US should consider excluding SA because of its stance on Israel and ties with Russia, China and Iran.
DTIC said the South African delegation held “extensive engagements” with members of the US Congress, House of Representatives and Administration, as well as American private sector and think tank representatives.
These discussions focused on sharing information on political developments in SA, in particular the establishment of the Government of National Unity (GNU).
Tau said:
We welcome the warm reception, as well as productive and constructive discussions we had with members of Congress across the aisle and with the US Administration. There was a lot of interest in the GNU and its priorities, including efforts to deepen and enhance bilateral relations with the US.
DTIC said the delegation also used the engagements to advocate for the early reauthorisation of Agoa, including exploring enhancements that facilitate greater utilisation and create the necessary policy stability to promote private sector investment and African exports into the US.
The group also held “positive discussions” with US trade representative Katherine Tai with an agreement by “both sides” to resuscitate the Trade and Investment Framework Agreement (TIFA) at a ministerial level, adding this had last met in 2014.
“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. The resuscitation of the TIFA provides new impetus to our strategic partnership” said Tau.
The DTIC said the US remained SA’s strategic trading partner and that SA was the largest non-oil Sub-Saharan Africa exporting partner to the US. It added that through AGOA it has been able to boost both agriculture and value-added exports, thus creating jobs for South Africans.