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Renewal of AGOA (which gives exports duty-free access to US) not a done deal
Minister of Trade and Industry Ebrahim Patel discusses expectations for the African Growth and Opportunity Act (Agoa) labour forum.
The trade agreement gives preferential, duty-free access for many African goods and services to the US market. It is set to expire in two years and requires congressional approval for re-authorisation.
RELATED: The AGOA Business Forum is currently underway at Nasrec in Joburg
Starting at the Sandton Convention Centre on Thursday, the United States and 35 sub-Saharan African countries are meeting for the 20th Africa Trade and Economic Cooperation Forum (Agoa Forum).
The African Growth and Opportunity Act (AGOA) gives certain African countries duty-free access to the United States market and was signed into law by former United States President Bill Clinton in May 2000.
Minister Patel says there has always been a time stamp on the AGOA agreement and hopes it will be extended for a third time in 2025.
But he admits the complex nature of the US political landscape means the renewal of the agreement is not a done deal.
Over the last six or seven years there's been a backlash in the United States against free trade agreements and we've seen a growing appetite in the US to industrialise its economy and to avoid the very high levels of import penetration.
Ebrahim Patel, Minister of Trade and Industry - South Africa
RELATED: South Africa to pull off a 'balancing act' as they host 20th Agoa Forum
Some other headwinds include the United States' unhappiness with how South Africa has handled Russia's invasion of Ukraine.
But, Patel says there are some positive tailwinds too.
The Africa value proposition is just so utterly compelling. America's industrialisation needs Africa's critical minerals and so, when we talk to our American friends, it's about saying, how we as the Continent get more benefits than simply being the providers of raw material.
Ebrahim Patel, Minister of Trade and Industry - South Africa
The Agoa Forum concludes on Saturday (4 November).
RELATED: AGOA explainer: How important is this to South Africa?
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