Scene set for ‘exponential’ growth on SA-US route

The recent renewal of the African Growth and Opportunity Act (Agoa) has created an environment for exponential growth in trade between countries in Africa and the United States (US).

Krysta Harden, US deputy secretary of agriculture, told delegates at the PMA Fresh Connections Southern Africa Conference in Cape Town recently that trade with Africa was a priority for the Obama government.

“Agoa represents that commitment,” she said. “Some $480 billion dollars worth of goods have come to the US from Africa through Agoa to date. It is not just the dollars, it is also that it is helping to establish brands and that is more than just a name on a box. It is breeding familiarity with American consumers, they like it and they ask for more.”

Harden said that was ultimately what good trade did. “It gives consumers a consistent supply of high quality products.”

She said Agoa was by no means a one-way street and was aimed at creating very real trade relationships between American and African countries.

“Trade can never be just one way. It cannot be sustained if it is. It has to be two way building relationships, credibility and trust,” said Harden who led a trade mission to southern Africa two years ago where $34 million worth of work was concluded.

“We brought several farmers along during that mission who had never been to Africa and it was very eye opening for them to see. It has helped us to do trade better. In fact we are returning in November with another delegation to a different part of the continent.”

According to Harden robust trade between the US and Africa should be encouraged - especially in the agricultural sector.

“We have to make more effort to open up new markets for our farmers in the US and for your farmers here in Africa. There is a lot of opportunity from research and technology transfers to financial support that can be shared.”

Harden said in light of globalisation there was no point in everyone fighting over the same piece of pie when barriers could just as easily be broken down and a collaborative approach taken which would ensure the pie be shared far more equally, benefiting everyone involved rather than just a few.