The African Growth and Opportunity Act (Agoa) programme between South Africa and the United States (US) is not likely to be renewed in 2025, but could potentially be replaced by a more reciprocal trade relationship – if South African and the US start negotiations soon.
“The key issue for us is to start thinking about the future of trade relations between South Africa and the US,” said Xolelwa Mlumbi-Peter, deputy director general for the international trade and economic division of the Department of Trade and Industry (dti).
She was speaking as part of a panel discussion around Agoa-related issues at a workshop held by the Mandela Institute at Wits University today (Tuesday).
The suggestion that SA’s participation in the Agoa programme be replaced by a trade relationship that is more mutually beneficial was the key theme throughout the day, as this
provides certainty for both parties.
“The US would be open to the discussion of almost any type of bilateral trade agreement with South Africa,” said Ed Winant, trade and investment officer for the Embassy of the United States (US).
Tinashe Kapuya, manager of international trade and investment intelligence for the Agricultural Business Council, pointed out that it was strategically possible for the current Agoa agreement to potentially be used as a basis for reciprocal trade agreement.
He added: “There would be challenges around technicalities such as terms of engagement which would have to be redefined and the US would have to be flexible, but it is possible.”
Cyril Prinsloo, a researcher for the South African Institute of International Affairs, said it was time to start thinking past Agoa. “The Economic Partnership Agreement (EPA) that South Africa recently signed with the European Union serves as an example of the type of reciprocal trade relationship that could be possible between South Africa and the US.”
Prinsloo did however stress that time is not SA’s side and discussions need to happen soon.
“It took 10 years to set up the EPA with the EU, and we have nine before our Agoa agreement with the US expires.”
