A South African government delegation has returned from the United States optimistic that its mission to cement trade ties between the two countries has been successful.
New Trade and Industry minister Parks Tau headed the delegation, which included deputy minister Andrew Whitfield, government officials, and representatives from the private sector and organised labour.
They attended the three-day Agoa Forum in Washington, which brings together US officials and the African countries that benefit from the US trade law The Africa Growth and Opportunities Act (AGOA). The legislation expires next year, and US politicians are proposing that it be extended for 16 years, instead of the previous 10-year terms.
“We welcome the support expressed by both the Biden Administration and Members of Congress for the renewal of AGOA” said Tau.
A statement from Tau’s office said African countries had called for the AGOA renewal to be concluded by the end of 2024. What the statement did not say is that they hope it gets renewed this year because, if Donald Trump wins the US election in November, AGOA might be a gonner.
However, barring a Trump veto, AGOA seems almost certain to be extended as it has support from both Democratic and Republican politicians. What remains at issue is South Africa’s continued membership while other African countries continue to benefit.
US politicians – again from both sides – have expressed concern at what they believe is South Africa’s bias towards countries they see as harming US interests – Russia, China and Iran. This has led to calls both for a review of South Africa’s AGOA membership and for a general review of its trade relations with the US.
The South African statement did not mention these sensitivities, but it was optimistic about future trade ties. It said the delegation met US politicians and government officials, and members of the private sector and think tanks. It had found “broad support” for strengthening bilateral trade and investment relations.
South Africa and the US agreed to resuscitate the Trade and Investment Framework Agreement at a ministerial level after officials last met in 2014. This “provides new impetus to our strategic partnership,” Tau said.
“The US remains South Africa’s strategic trading partner and South Africa is the largest non-oil Sub-Saharan Africa exporting partner to the US and through AGOA has been able to boost both agriculture and value-added exports, thus creating much-needed jobs for South Africans.”
One of the factors in the newly improved relationships was the formation of South Africa’s government of national unity (GNU) after no party achieved an electoral majority in the May general election.
“There was a lot of interest in the GNU and its priorities, including efforts to deepen and enhance bilateral relations with the US,” said Tau.
The delegation was well placed to explain South Africa’s new political scene. Minister Tau is from the previously dominant African National Congress, while his deputy, Andrew Whitfield, is from the Democratic Alliance, previously the official opposition.
Despite all the smiles, uncertainty will reign until we have the results of the US election in November. The headline on the Sunday Times editorial comment was “Trump elephant in the room as SA argues Agoa case”.
