Amid concerns about South Africa’s foreign policy stance, Minister of Trade, Industry and Competition Parks Tau heads to Washington to reassure US legislators of the country’s commitment to strong bilateral ties and secure an extended AGOA deal.
As this bulletin is published, DTIC Minister Park Tau will be in Washington to attend the three-day AGOA Forum, a regular meeting of US officials and delegates from the African countries that benefit under the African Growth and Opportunities Act (AGOA).
This US legislation gives qualifying countries preferential access to US markets, and it is the US that determines who qualifies and who does not. There are still lingering fears that South Africa might lose those benefits because US legislators accuse it of bias towards Russia, China and Hamas.
Hence Tau’s presence in Washington at the head of a high-level South African delegation. As his predecessor Ebrahim Patel did on a previous occasion, Tau will seek to reassure US legislators that South Africa is not biased but non-aligned, and that it remains a good friend of the US.
If all goes well, the AGOA trade deal will be renewed, this time for a longer period, and South Africa will retain its considerable, job-creating benefits. Tau will also use the opportunity to push back against a US review of ties between the two countries, Bloomberg reported.
The House of Representatives last month passed a law requiring a full assessment of bilateral relations and submitted it to the Senate for approval.
South African business lobby groups have warned the legislation threatens to curb trade with the world’s biggest economy at a time when South Africa needs to accelerate economic growth.
“We intend to engage senators and also members of Congress about what our position is on a whole range of issues as the South African government on the back of the AGOA act, but also taking into account bilateral relations,” Tau told Bloomberg in an interview.
Only weeks into his new job, Tau is starting his career at Trade and Industry with a series of international meetings where the stakes are very high indeed.