South Africa's Minister of Trade, Industry and Competition, Parks Tau, has returned from the 21st African Growth and Opportunity Act (Agoa) Forum in Washington, expressing optimism about the future of trade relations between South Africa and the United States.
During the forum, which took place from July 24 to 26, discussions centred on the potential for a significant 16-year extension of the key trade agreement that allows for tariff-free access to the US market for eligible sub-Saharan African countries.
Tau highlighted that the Biden administration had shown strong support for the swift renewal of Agoa, which is set to expire in 2025.
He reported that there had been a consensus among participants on the importance of concluding the renewal process by the end of the year, thereby ensuring stability and predictability in trade relations.
Senior officials from both the US and African nations, alongside representatives from civil society and the private sector, gathered at the forum, themed "Beyond 2025: Reimagining Agoa for an Inclusive, Sustainable and Prosperous Tomorrow”. The discussions underscored the strategic significance of Agoa in promoting economic growth and regional integration across Africa.
Tau also noted that the renewed focus on Agoa came at a crucial time, as South Africa sought to strengthen its economic ties with the US, especially following recent diplomatic tensions.
The minister expressed confidence that the new Government of National Unity in South Africa had created a “honeymoon period” that may facilitate the retention of Agoa benefits.
Tau welcomed the endorsement to extend the agreement to 2040, saying that South Africa had a critical role to perform in developing regional value chain dynamics.
He didn’t say anything about political developments in the US following Kamala Harris succeeding President Joe Biden as the likely candidate for the Democratic Party against the Republican Party’s presidential candidate for the November elections, Donald Trump.
As of this morning, polling figures indicate a competitive race between Harris and Trump in the lead-up to the 2024 presidential election.
Following the incumbent’s withdrawal from the race, Harris has emerged as the Democratic front-runner, and the latest aggregate polls reflect a tight contest.
