Solidarity, a trade union movement, said yesterday it had met with US diplomats about the African Growth and Opportunity Act (Agoa) as it fears the government lacks commitment to tackle concerns that South Africa might be kicked out of the agreement.
South Africa’s trade with the US has been under pressure since the docking of a Russian ship at Simon’s Town naval base in the Western Cape in December, although the government has denied allegations of loading weapons onto the vessel.
Recently, a group of US legislators asked for the upcoming Agoa Forum to be hosted in another country, although there has been no formal plan to shift the event from South Africa. Agoa gives South Africa and other sub-Saharan countries preferential US market access on certain goods, but it is set to expire in 2025.
Solidarity is not the first delegation to visit the US to prevent the country from being ousted from the trade agreement.
Western Cape Premier Alan Winde last month led a delegation of provincial government and Wesgro representatives to the US, to assure that country that the province was committed to Agoa, that South Africa’s Agoa membership needed to be renewed when it expires and to promote the province as an investment destination.
Solidarity Research Institute economic researcher Theuns du Buisson said in a statement they believed the ANC “despises” the US, and they met with US diplomats to ensure South Africa was not kicked out of Agoa on behalf of the people and businesses in South Africa.
He said the government’s “nonchalant attitude” towards Agoa could have a devastating impact on many jobs and industries, and that South Africa could not afford to be left out of it.
The agreement is expected to be renewed in September and all signs point to South Africa being included again.
However, despite these allegations, a Department of Trade, Industry and Competition official said yesterday the department was hard at work and doing all it could with negotiations for an early extension of the Agoa agreement.
He said the department did not comment on what other organisations might be doing.
He said two weeks ago the government sent a delegation to the US to tackle concerns about Agoa, among other issues, a delegation that was headed by three ministers, Minister of Trade, Industry and Competition Ebrahim Patel, Minister of Finance Enoch Godongwana and Minister in the Presidency Khumbudzo Ntshavheni.
Du Buisson said: “During a meeting between American diplomats and Solidarity, the Americans indicated that they had very little information at their disposal about the impact of the Agoa agreement in South Africa. Solidarity then compiled a report in order to disclose the desired information.”
The Solidarity report found, among other things, that South Africa’s exports to the US amounted to R178 billion in 2022, of which 20% benefited from the Agoa agreement.
“The report was very well received in Washington,” said Du Buisson.
He said exports to the US puts food on the table for one in 37 South African families. Agoa currently provided 85 000 jobs, many of which were in vulnerable sectors such as agriculture and manufacturing.
BUSINESS REPORT