Trade and Industry Minister Ebrahim Patel has requested the Joe Biden Administration to consider an early extension of the African Growth and Opportunity Act (Agoa) to help stimulate investment across the continent,
Local officials visited the US earlier this month to discuss the trade pact and finalise preparations for an Agoa forum scheduled to be hosted in South Africa this year.
An early renewal of Agoa in its current form would be preferable to a revised agreement that may take time to conclude, Patel said.
“If we extend Agoa largely in its current form, we can incrementally improve the terms over the next few years.
“Many African countries are keen on an early extension because it gives investors certainty to commit additional investment on the continent.”
The plea comes after several US lawmakers called on Biden’s government to reconsider whether South Africa should continue to benefit from Agoa.
Besides being angered over South Africa’s foreign policy stance — the country has maintained what it terms a non-aligned position toward Russia’s invasion of Ukraine — some legislators argue that Africa’s most industrialised nation is too developed to participate in the programme.
Agoa expires in 2025 and US officials have previously said the qualifying criteria for beneficiaries could be revised or the program replaced.
South Africa ships cars and agricultural produce to the US under the accord.
Last year, it exported $2.7-billion of goods using Agoa and the so-called Generalised System of Preferences.
Patel also said that South Africa is an important transit route for many southern African countries through its ports, underpinning the importance of keeping Agoa in place.
