US and SA sign new trade agreement

US trade representative Ron Kirk, and SA’s minister of trade and industry, Rob Davies, have signed a new trade and investment framework agreement (Tifa). This amends the Tifa signed in 1999 in order to deepen the US-SA trade and investment relationship. It also provides a forum to address trade issues and will help enhance trade and investment relations between the two countries. “This amended agreement will provide a forum to better exchange views on improving the trade and investment climate and promoting new US investment that is critical to SA’s economic development,” said Kirk. He added that it would not only help to increase and diversify trade, but would also provide for a regular dialogue. Under Tifa, the US-SA Council on Trade and Investment will meet annually. Davies and the deputy US trade representative, Demetrios Marantis, also co-chaired the first Tifa council meeting under the new agreement. It examined how the two governments would work together on a number of trade and investmentrelated issues, including tariffs, the business and regulatory environment, implementation of Agoa, export diversification, energy, trade facilitation, and enhancing the participation of small and medium-sized enterprises in trade and investment. A Tifa is a trade pact that establishes a framework for expanding trade and resolving outstanding disputes between countries. They are often seen as an important precursor towards establishing free trade agreements (FTAs). It is exactly what the name implies – it sets the groundwork for the involved countries to come to terms that allow all parties to trade with ease. It may also serve as sort of a peace treaty, in that disputes over import/ export issues are resolved, which promotes an ongoing civil relationship. Current US Tifas with individual countries in Africa are with SA, Angola, Ghana, Liberia, Mauritius, Mozambique, Nigeria, Rwanda. Those with trade blocs are with the Common Market for Eastern and Southern Africa (Comesa), the East African Community (EAC), and the West African Economic and Monetary Union (Waemu).