The US-South Africa Business Council welcomed South African Minister Parks Tau on his first official visit to the US, representing South Africa’s new government at the 21st Agoa Forum in Washington, DC. Picture: Supplied
US Secretary of State Antony Blinken has assured a newer, revamped version of the African Growth and Opportunity Act (Agoa) as the current administration fully supported the re-authorisation of the trade deal to a modern, agile, adaptable model capable of driving trade forward.
This comes as US President Joe Biden yesterday called on the US Congress to quickly reauthorise and modernise this landmark act, which is set to expire in 2025.
Agoa allows more than 30 African countries to export 1 835 types of goods to the US consumer market, and in turn affords the US access to critical minerals, product value chains, and investment opportunities in Africa.
“In sub-Saharan Africa, it has increased the competitiveness of African products, led to the creation of tens of thousands of quality jobs, and helped advance human rights,” Biden said in a statement.
“Here at home, Agoa has created investment opportunities and new markets for American businesses. And on both sides of the Atlantic, Agoa has promoted sustainable economic growth and resilient supply chains.”
The establishment of a Government of National Unity (GNU) in South Africa is seen to have given the country a reprieve following strained relations with the US, principally over differences in the treatment of Russia in its conflict with Ukraine, which had raised doubt on the trade arrangement’s continuation.
Addressing a private sector gathering at the opening of the 21st Agoa Forum 2024 in Washington, DC, yesterday, Blinken said the US was focused on modernising the Agoa trade arrangement.
Blinken said the arrangement had resulted in hundreds of new private sector deals between African and American businesses, adding that altogether they were worth more than $16 billion.
He said the newly created Africa Trade Desk, a platform that connects African agricultural producers with more than 20 000 American retailers such as Walmart and Whole Foods, had helped to conclude the $56 million deal for the South African grapes industry to export to the American market while meeting requirements that promote good conditions for workers.
“We will be working alongside the governments across sub-Saharan Africa to invest in our joint strengths and help shape a shared economic future,” Blinken said.
“One way we are doing that is creating more opportunities creating better opportunities for trade with the US, we want to create better opportunities that support our workers and protect the environment.”
Blinken said in the last two years, the US had committed $82m for expanding digital access and improving digital literacy across sub-Saharan Africa, and had recently granted a $3bn funding to aid the expansion of the corridor connecting Angola, Zambia, and DRC though high-impact investment in ports and bridges rail, roads, high-speed internet access, clean energy, and agriculture, all designed to unlock growth in key industries along a nurtured economic thoroughfare.
He said the US Export-Import Bank granted a $1.6bn loan to help construct solar energy grids in Angola, which will provide energy for water supply systems, clean energy and clean drinking water across four provinces once completed.
“Trade programmes policies like Agoa are also crucial for creating a good environment for business, for breaking down barriers to economic co-operation for bringing the benefits of trade home to our people,” Blinken said.
“Let’s us and our partners in sub-Saharan Africa know how we can do more to collaborate, how we can make Agoa even more effective. Together we’ll keep working toward the idea that inspired Agoa so many years ago, that are still at the hearts for the future.”
South Africa was represented by Minister of Trade, Industry and Competition Parks Tau, who has said the priority was to lobby for the country’s continued participation in the trade agreement.
Earlier this month, Prosper Africa announced the US–Africa Trade Desk (USATD) first $56m trade deal for 700 containers (1.26 million crates) of South African-grown table grapes to the US.
Shipping will start in the first week of November and continue until April 2025, filling the gaps in the US domestic growing season.
USATD will facilitate the entire transaction, providing an end-to-end solution that bridges the gap between retailer needs in the US and African production.
BUSINESS REPORT