SA pushes to keep AGOA alive in US trade talks

Trump

Cape Town – South Africa has proposed to the United States the continuation of the African Growth and Opportunity Act (AGOA), which currently benefits over 32 African countries with duty-free access to the US market.

Although South Africa’s eligibility has been under threat due to strained US relations, President Cyril Ramaphosa emphasised the country’s commitment to a regional approach through AU, SADC, and the Southern African Customs Union in any future trade negotiations, especially regarding tariffs.

He highlighted shared geopolitical interests between South Africa and the US, particularly in peacekeeping.

Despite early criticism, Ramaphosa noted that South Africa’s role in global peace efforts has since been acknowledged, even by President Trump, who responded unexpectedly mildly when questioned about South Africa’s ICJ case against Israel.

Meanwhile, according to The Citizen, Minister of Trade and Industry, Parks Tau, also provided an update on South Africa’s recent trade discussions with the United States following President Cyril Ramaphosa’s meeting with Donald Trump in the Oval Office.

Key topics included trade tariffs, minerals, and the African Growth and Opportunity Act (Agoa).

Tau revealed that a revised framework agreement proposal was submitted to the US, aiming to enhance trade and market access.

Discussions also covered tariff and non-tariff barriers, with the Southern African Customs Union (Sacu) playing a central role in negotiations.

“The context of discussing Sacu is because we negotiate tariffs as a customs union, and this is one of the areas that the US required a bit more elaboration.

“We agreed that we would have the issues on tariffs and non-tariff barriers added, which are the issues we added yesterday,”  the report quoted Tau as saying.

On Agoa, the minister said the agreement is still before the US Congress.

South Africa and other African nations are working on a collective position to be presented at an upcoming US-Africa trade forum.

Tau highlighted South Africa’s significance as a supplier of critical minerals to the US and stressed that 77% of US imports from South Africa enter tariff-free. Additional topics included digital trade opportunities and access to US liquefied natural gas.

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