SA delegation meets US Congress to lobby for AGOA extension

A South African delegation led by the Trade, Industry and Competition Department has met with members of the US Congress to discuss economic ties between the two countries and to advocate for the extension of the African Growth and Opportunity Act (AGOA).

This comes as AGOA – which provides 35 Sub-Saharan countries with duty-free access to US markets – is due to expire next year.

South Africa’s visit to the US comes after the US House of Representatives voted to pass legislation calling for a full review of bilateral ties between Washington and Pretoria.

Trade and Industry Minister Parks Tau says that based on South Africa’s analysis, AGOA is likely to be extended despite the outcome of the upcoming US elections. He says the meetings took place on the sidelines of the 21st African Growth and Opportunity Act (AGOA) Forum in Washington DC and the 14th BRICS Ministers Meeting in Moscow, Russia.

Tau could not confirm what the impact of the bill to review bilateral ties would be on South Africa’s place in AGOA.

“We are working towards a position where it is not considered but that’s not within our control. If it is passed, it still has to go to the President for signature before it is implemented. So there are two other steps that need to take place before it can be implemented and we will continue to engage with all the parties involved on the 200 steps on the matter. But we can’t give firm commitments about what would happen in an environment that’s outside our control.”

Tau has emphasised that proposals presented by the SA delegation in the extension of AGOA include improved rules of origin, and adjustments to preserve regional value chains and enhance Africa’s manufacturing capabilities.

The Minister says there were also calls for the enhancement of AGOA to support the goals of the Africa Continental Free Trade Area (AfCFTA).

“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.”

Government says aligning AGOA with the AfCFTA can create a more cohesive economic structure that boosts intra-African trade, enhances manufacturing capabilities, and drives sustainable growth across the continent.

Through AGOA, more than 600 US businesses operate in South Africa, and over 1.3 million jobs were created in sub-Saharan Africa.