International trade

Agoa decision is in the balance

Agoa – the African Growth and Opportunities Act – is a piece of US legislation that since 2000 has given selected African countries beneficial access to the American market. Earlier this year South Africa’s continued membership seemed to be in trouble because of its perceived bias towards Russia and its failure to condemn the invasion of Ukraine.

Those difficulties appeared to have been smoothed over, and President Cyril Ramaphosa opened the annual three-day Agoa Forum in Johannesburg on an optimistic note. The forum also closed on an optimistic note, with US trade representative Katherine Tai recommitting her country to strengthening trade ties with Africa and improving the lives of African people.

The legislation is up for renewal in 2025, and US president Joe Biden sent a message to the forum stating that he fully supported this because Agoa was “the bedrock of US trade with sub-Saharan Africa”.

But no sooner had the Agoa forum closed than it became clear that renewal might happen without South Africa after all.

Senator Chris Coons, a senior Democratic politician, released draft legislation providing for a 16-year renewal – and an immediate “out of cycle” review of South Africa’s Agoa membership. This follows opposition to South Africa’s continued inclusion from a top Republican, Senator Jim Risch who cited South Africa’s Russian links and in addition its relations with Hamas and Iran over the war in Gaza.

This month the Biden administration named four African countries they are removing from Agoa next year. They are Gabon and Niger because of military coups, and Uganda and the Central African Republic because of human rights violations.

The US is ejecting these countries because of what they are doing domestically. South Africa, the biggest Agoa beneficiary, may yet lose its membership because of its foreign policy.