The minister of trade, industry and competition, Parks Tau, this weekend concluded a visit to the United States, participating in the 21st Africa Growth and Opportunity Act (Agoa) Forum.
The mission, says Tau, was a follow-up to the Agoa Forum hosted in Johannesburg in November 2023. The minister was accompanied by a high-level delegation that included deputy minister Andrew Whitfield, various government officials, and representatives from the private sector and organised labour.
With Agoa set to expire in 14 months, African ministers of trade, including Tau, urged the administration of US president Joe Biden and the US congress to renew Agoa with non-controversial enhancements and amendments for at least 16 years.
Agoa renewal vital for economic stability
This renewal is crucial for providing the necessary predictability and certainty to buyers, exporters, and investors. The ministers emphasised the need for the renewal to be concluded by the end of 2024.
“We welcome the support expressed by both the Biden administration and members of congress for the renewal of Agoa,” said Tau. The forum underscored South Africa’s role in developing regional value chains across various sectors, including agriculture, which remains a cornerstone of the economy.
According to a release, the delegation engaged extensively with US congress members, the Biden administration, the private sector, and think tanks. These discussions focused on sharing updates on the country’s political landscape, particularly the establishment of the government of national unity (GNU).
“We welcome the warm reception and productive discussions we had with members of congress and the US administration. There was significant interest in the GNU and its priorities, including efforts to deepen bilateral relations with the US,” noted Tau.
Agricultural exports and investment stability
The delegation advocated for the early reauthorisation of Agoa and explored enhancements that would facilitate greater utilisation and create policy stability to promote private sector investment and African exports to the US.
There was broad support for strengthening bilateral trade and investment relations between South Africa and the US, also in the agricultural sector.
The sector stands to benefit significantly from the renewal of Agoa. The act has already enabled South African farmers to boost exports of key agricultural products such as citrus, nuts, wine, and macadamia. The predictability offered by a renewed Agoa would allow farmers to plan and invest in long-term projects, enhancing productivity and sustainability.
“We welcome the positive discussions with US trade representative, ambassador [Katherine] Tai, and the agreement to revive the trade and investment framework agreement (TIFA) at a ministerial level, which last met in 2014.
“We instructed our officials to prepare for our first meeting, which will provide a platform for constructive discussions and effective resolution of trade-related matters from both sides. The resuscitation of TIFA provides new impetus to our strategic partnership,” said Tau.
The US remains a strategic trading partner to South Africa, and the country is the largest non-oil Sub-Saharan Africa exporting partner to the US. Through Agoa, South Africa has boosted both agricultural and value-added exports, creating much-needed jobs.
The Agoa Forum alternates between Africa and the US, with the 2025 forum scheduled to be held in the Democratic Republic of Congo.
READ NEXT: Beef over veggies: Botswana and Namibia clash with Mzansi
Sign up for Mzansi Today: Your daily take on the news and happenings from the agriculture value chain.
