Minister of Trade and Industry Ebrahim Patel is hopeful that the US will extend Agoa in 2025. Picture: Jacques Naude/African News Agency (ANA)
Minister of Trade and Industry Ebrahim Patel believes they will be able to strike a deal with the US to extend the Africa Growth and Opportunity Act (Agoa) when it expires in 2025.
He said his last meeting with US officials was last week when he put forward the case for the extension of Agoa.
South Africa has had tensions with the US over the Russian ship that docked in Simon’s Town in December.
US ambassador Reuben Brigety alleged that South Africa was supplying Russia with arms.
But this was denied by Pretoria, leading to Minister of International Relations and Cooperation Naledi Pandor to summon Brigety to her office to express her anger.
Pandor also had talks with US Secretary of State Antony Blinken over the matter.
President Cyril Ramaphosa has appointed Judge Phineas Mojapelo to investigate the allegations that arms were loaded on the Russian ship.
Patel, who was part of the Economics Cluster ministers answering oral questions in Parliament on Wednesday, said they were doing all they can to get Agoa extended.
He said he was also asked by African countries to put forward the case for the continent to the US to renew Agoa.
Patel also said he has met with US Trade Representative, Katherine Tai several times to discuss the matter.
Patel said he met with US administration officials and Congress members over the extension of Agoa beyond 2025.
“We are working with a number of other African countries to have it renewed and extended again. As part of this effort, we have engaged across three fronts. First, with members of the US administration. Second, with members of Congress, and third with members of the US business community.
“Last year I met with my US counterpart, who is the US Trade Representative in June, September, December and again in January this year. In addition, we have had virtual meetings, most recently last week. I also met in Washington in December with senior members of the US administration from other departments in addition to trade. They included agriculture, commerce and state,” said Patel.
He said he was nominated by other African ministers of trade to put forward the case for the continent on the need to renew Agoa.
He did this when he presented the case for Africa to senior US officials in the administration and Congress.
He said they value the trade with the US and it creates jobs.
“We value the relationship with all our trading partners and the relationship with the US is important as it accounts for significant trade and investment that helps with jobs. Most of our exports to the US are covered by the World Trade Organisation rules accounting for just over 80% of all our exports during 2021. Agoa and another preference called GSP (Generalised System of Preferences) account for just under 18% of our exports to the US,” said Patel.
He said they hope Agoa will be extended in 2025 and their engagements with US officials has been going well.
siyabonga.mkhwanazi@inl.co.za
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