By Lehlohonolo Lehana.
South Africa is breathing a sigh of relief after the United States (US) confirmed that the country will remain the host of the AGOA Summit.
South Africa will host the 20th United States-sub-Saharan Africa Trade and Economic Cooperation Forum (AGOA Forum) in Johannesburg from 2 to 4 November 2023.
The forum will bring together the governments of the United States and AGOA-eligible countries, as well as representatives from key regional economic organisations, the private sector, civil society, and labor.
ANC spokesperson Mahlengi Bhengu-Motsiri says the summit scheduled for November, is crucial for the country’s economy.
“The hosting of the AGOA Forum provides an essential platform for discussing sustainable development, trade, and investment and is a welcome demonstration of mutual respect between the two nations,” she said.
Bhengu-Motsiri said Agoa was a strategic and important trade deal that allows for reduced tariff duties for a range of products from Africa to the US market.
She said the Agoa summit will boost trade ties between the US and South Africa as well.
“The upcoming Agoa Forum in Johannesburg will attract foreign direct investment and increase job opportunities in South Africa. It is a significant event that will strengthen economic ties between the United States and Africa and contribute to the continent’s development.
“The ANC will also endeavour to host and engage the leadership of the Democratic National Convention in a bilateral engagement to advance various political perspectives between parties that move from a similar ideological base,” said Bhengu-Motsiri.
The Agoa summit was facing threats of being taken away from South Africa after US Congress members wrote to national security adviser Jake Sullivan, Secretary of State Antony Blinken, and Trade Representative Katherine Tai, asking them to find another country to host it.
This was after US ambassador Reuben Brigety alleged that a Russian ship had loaded arms from the naval base in Cape Town.
The allegations were denied by government and President Cyril Ramaphosa set up a commission of inquiry to investigate the allegations.
Judge Phineas Mojapelo, who chaired the inquiry, found that no arms were sold to Russia.
Meanwhile United States Trade Representative, Katherine Tai, says she is looking forward to visiting South Africa in November to reaffirm the US’s commitment to the African continent and discuss opportunities to make AGOA more transformative.
“The AGOA Forum is an opportunity for the United States to build upon the success of the Africa Leaders’ Summit and further our economic partnership with AGOA countries,” said Tai.
“As President [Joe] Biden has said, the future is Africa. I look forward to visiting South Africa in November to discuss our shared priorities, reaffirm the Administration’s commitment to the continent, and discuss opportunities to make AGOA more transformative as we deepen our trade and investment relations with the sub-Saharan African countries.”
Minister of Trade, Industry and Competition Ebrahim Patel said South Africa looks forward to welcoming a senior delegation from the United States and a number of countries in sub-Saharan Africa.
“AGOA has helped to promote the export of African goods to the United States, and we believe there is scope to deepen its impact on African industrialisation.
“An extension of AGOA beyond 2025 will promote inward investment in Africa and provide benefits to both the United States and African countries. It will also support our efforts to increase growth through the African Continental Free Trade Area (AfCFTA) that will cover 54 countries and 1.4 billion people,” said the Minister.
Since its enactment in 2000, the African Growth and Opportunity Act (AGOA) has been at the core of United States economic policy and commercial engagement with Africa.
AGOA provides eligible sub-Saharan African countries with duty-free access to the US market for over 1800 products, in addition to the more than 5000 products that are eligible for duty-free access under the Generalized System of Preferences program.
To meet AGOA’s rigorous eligibility requirements, countries must establish or make continual progress toward establishing a market-based economy, the rule of law, political pluralism, and the right to due process. Additionally, countries must eliminate barriers to U.S. trade and investment, enact policies to reduce poverty, combat corruption, and protect human rights.
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Video Courtesy of SABC.