The South African leader revealed that his counterparts in sub-Saharan Africa and U.S. trade representatives have reached an understanding for the export trade program to facilitate trade for small businesses.
“But we have been clear that we do not want AGOA to be rewritten, we do not want it to be dismantled and a complete overhaul, we are looking for small adjustments,” the South African official said on Saturday at the closing of the 20th annual African Growth and Opportunity Act (AGOA) Forum in Johannesburg, South Africa’s economic capital.
The U.S. trade pact, created in May 2000, grants eligible African countries duty-free on about 6,900 products for export to the U.S.
Of Africa’s 54 countries, at least 35 currently export to the United States under this program, which was renewed in 2015 and expires in September 2025.
Among the eligible countries are Portuguese-speaking Angola, Cape Verde, Guinea-Bissau, Mozambique and Sao Tome and Principe.
South Africa is the largest exporter with about US$3.6 billion (€3.3 billion) to the US in 2022 of products such as car parts, textiles and agricultural products, according to the deputy assistant secretary of the Office of African Affairs of the United States Department of State (USA), Joy Basu, to Lusa.
The U.S. annually renews each country’s eligibility, and it is up to the U.S. Congress to approve the continuation of the legislative package with the recommendations discussed at the recent annual meeting held in Johannesburg, according to the U.S. official.
However, South Africa’s continuation in the AGOA program is expected to face opposition in the US Congress due to the support expressed by the African National Congress (ANC) government to Russia, in the context of the Russian invasion of Ukraine, and more recently to the Palestinian movement Hamas, according to the South African press.
In Johannesburg, the Trade Forum brought together government representatives from the United States and more than 30 AGOA-eligible countries, along with major regional economic organizations, the private sector, civil society, and trade union federations.
“Since its inception in 2000, AGOA (African Growth and Opportunity Act) has been instrumental in strengthening economic ties and promoting growth and development across the African continent,” said the Presidency of the South African Republic, which called for the continuation of the program for another 10 years.
U.S. Trade Representative Katherine Tai stressed at the meeting that “over the past two decades, AGOA has helped Africa increase its extraordinary economic potential.”
“Consider this: the total value of imports of goods into the United States under AGOA was about $10 billion in 2022 (€9.4 billion), a significant increase from $6.8 billion (€6.3 billion) in 2021,” he said.
“Non-oil imports, which are important sources of new investment and jobs in Africa, increased to $5.7 billion (€5.3 billion) in 2022 from $5 billion (€4.6 billion) in 2021. The programme has promoted economic growth and development on the continent – to increase investment and create new jobs and opportunities,” he said.
According to the senior U.S. official, AGOA was created to “open new doors to trade and investment” on the African continent, and to “encourage African leaders to develop and implement African-led solutions for economic and political reform.”
Source: Angola24Horas