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Nigerian-born United States Deputy Secretary of the Treasury, Wally Adeyemo, will be in Lagos, Nigeria between September 17 – 19, 2023, for a number of diplomatic engagements including a meeting with entrepreneurs and start-ups to discuss how they can sell their products by exploring “duty-free access” to the US market. Duty-free access is the permission given by a host country for another country to export goods into their country without having to pay tax or import duty. A statement published by the US Embassy and Consulate in...

In an effort to extend South Africa’s preferential trade agreement with the US, trade, industry & competition minister Ebrahim Patel is holding high-level meetings with US legislators ahead of the UN General Assembly this week.  President Cyril Ramaphosa is understood to have attended some of the meetings, including with senator Gregory Meeks, the foreign affairs committee chair who called on the US to strip SA of the right to host the 2023 Agoa forum, accusing Pretoria of supporting Russia in its war in Ukraine. SA has...

Kenya's President William Ruto will address leading US technology companies and investors on Friday at the US-Kenya Business Roadshow in San Francisco organised by the American government’s Prosper Africa initiative. The roadshow - also co-organised by the US Embassy in Nairobi - highlights the business and investment potential in Kenya’s booming tech sector, a statement from the US Embassy in Kenya said. The event is part of a three-city US-Kenya Roadshow tour showcasing opportunities for companies exploring doing business and...

The coming AGOA forum, intended to map the way forward for US-SA trade relations, presents an opportunity for SA and the US to move on from the diplomatic storm stemming from perceptions that Pretoria sides with Russia in its war on Ukraine, says a top Washington official.  SA-US tension escalated in May after US ambassador to Pretoria Reuben Brigety accused SA of providing arms to Russia in December 2022. The presidency released a report in September on a finding that there was no evidence that SA supplied arms to Russia or that...

On Wednesday, the Ways and Means Trade Subcommittee examined the Generalized System of Preferences (GSP) trade program and what possible reforms could help align the program better with America’s strategic trade goals. Witnesses emphasized the importance of the United States using trade policy to benefit American workers, farmers, and small businesses while combatting China’s unfair trade practices and coercive economic model. GSP Can Be Reformed to Benefit American Workers and Producers and Help Move Supply Chains from...

There was more good news for the successful implementation of the African Continental Free Trade Area (AfCFTA) agreement in December 2022, when a Memorandum of Understanding (MoU) was signed between the United States (US) Trade Representative and the AfCFTA Secretariat at the US-Africa Leaders’ Summit (Summit) in Washington DC. The MoU covers expanded engagement between the two regions and intends to “promote equitable, sustainable, and inclusive trade; boost competitiveness; and attract investment to the continent.” It was also...

Loss of access to US trade benefits through the African Growth and Opportunity Act (Agoa) would hurt not only the SA motor industry but also many more across Africa that depend on it for their future growth, says a new report.  Attempts to create a pan-African motor industry and quintuple the size of the continent’s new-vehicle market could be undermined if the SA industry, the strategy’s main driver, is weakened, the report by motor industry association Naamsa says.  The SA government’s flirtations with Russia, most...

About 26 535 tonnes of sugar is shipped yearly to the Unites States of America through the African Growth and Opportunity Act (AGOA). Eswatini Sugar Association (ESA) Logistics Manager, Sibusiso Hlandze said the local sugar was exported  to a terminal in Maputo, Mozambique. He said the terminal,called the Sociedade Terminal De Acucar De Maputo (STAM), played a significant role in the country's sugar industry. It is owned by four sugar companies in four countries namely Eswatini, South Africa, Zimbabwe and Mozambique. According to...

On the eve of the 15th BRICS summit, both SA and US diplomatic sources say they believe that relations between the two countries have improved, with the US adding that there has been more engagement in the past six months than in the past decade. The BRICS summit, which starts in Sandton on Wednesday afternoon, will highlight SA's relationship with two of the US's global opponents: Russia, with which it is indirectly at war, and China, with which it is engaged in a growing contest for geopolitical influence.  In an address to the...

On Friday, the Standing Committee on Finance, Economic Opportunities and Tourism met with key stakeholders in the citrus industry at Market Demand Fruits, Stellenbosch. The meeting focussed on the detrimental impact on citrus exports to the United States should South Africa not be included in the reauthorisation of the African Growth and Opportunity Act (AGOA). These stakeholders included representatives from Summer Citrus South Africa, Seatrade, Good Hope Fruit, Cape Fruit Coolers, Cedar Citrus, Maersk and MSC; and was followed by an...

The US and Kenya announced a trade and investment partnership in July 2022. Talks have been progressing on the way forward in nine areas, including agriculture, anti-corruption, digital trade, environment and climate change action, and workers’ rights and protections. The Strategic Trade and Investment Partnership (STIP) will be the first significant trade partnership between the US and a country in sub-Saharan Africa. Countries in the region currently rely on the African Growth and Opportunity Act (AGOA), which offers duty- and...

Mr. Kobina Tahir Hammond, Minister of Trade and Industry, says Ghana desires to increase its exports to the United States (US) market, arguably the most lucrative consumer market globally. He indicated that the Government had stepped up support for the private sector, both domestic and foreign, to enhance production and export capacity, particularly in the manufacturing sector, with notable opportunities for export into the U.S. market. The Minister made the remarks at the 2023 Ghana-US Business Expo which was held on the theme,...

The United States govern­ment has expressed its willingness to create jobs through increased trade and investment in sectors such as agriculture, technology and infrastructure, as well as boost innovation and elevate the living standards of mil­lions of Africans. The U.S. Consul General, Will Stevens, disclosed this at the Africa Social Impact Summit 2023, themed: “Global Vision, Local Action: Reposi­tioning the African Develop­ment Ecosystem for Sustain­able Outcomes,” which was held in Victoria Island, Lagos, on...

The African Growth and Opportunity Act (AGOA) has benefitted Kenya’s textile and apparel sector, leading to monthly exports to the tune of Sh4.5 billion, or Sh150 million per day, last year, according to a study by London-based Institute of Economic Affairs (IEA). The programme has had a positive impact on the country’s export-processing zones (EPZs), especially in the textile and garment sector. Kenya is the second-largest exporter of textile and apparel products to the Unitd States among AGOA beneficiaries. The sector has...

US fashion companies are calling for the early renewal of the African Growth and Opportunity Act (AGOA), a trade program that allows thousands of African products to enter the United States duty-free. They argue that a longer-term arrangement would not only benefit African economies but also boost investment in the region. The AGOA was first enacted in 2000 and is currently set to expire in 2025. However, US officials have indicated that the qualifying criteria for beneficiaries could be revised or the program replaced altogether. This...

In a span of two weeks, US President Joe Biden has dispatched two senior members of his administration to Nairobi with a firm message to President William Ruto on good governance, human rights and a subtle push on the geopolitics surrounding the Russian invasion of Ukraine. And Kenya, a longtime Western ally, is under pressure to maintain trading ties with the US. The timing of the visit was significant as Russia hosted over 17 African leaders out of the expected 43 on Thursday and Friday, with promises of free Russian grain “to...

Beginning in August, China will levy export controls on two critical minerals: gallium and geranium. These metals are essential to semiconductor technology and restricting access to them marks Beijing’s latest volley in its strategic power competition with Washington and will significantly disrupt U.S. and Taiwanese chip manufacturers. The global mineral supply chain is already narrow and China has an overwhelming lead with respect to rare earth metal extraction and processing. This market dominance enables Beijing to manipulate...

The South African government sent a senior ministerial delegation to the US to make its case for keeping South Africa as a beneficiary of its trade preferences under the African Growth and Opportunity Act (AGOA). Most commentators focus on the benefits of Agoa to South Africa, but there are good reasons that it is very much in America’s interests to keep South Africa as a trading partner and within its sphere of influence through Agoa membership. Agoa is not a bilateral trade agreement – it is a piece of US legislation in terms of...

South Africa has asked the US to consider an early extension to the African Growth and Opportunity Act (Agoa), saying this would provide certainty for investors and encourage them to commit additional investment on the continent. Trade, industry & competition minister Ebrahim Patel said the expeditious renewal trade agreement, which gives SA and other sub-Saharan African countries preferential access to US markets, would be beneficial not only for SA, but also Africa’s industrialisation. “We identified improvements that can be made...

US Senator Jim Risch has tabled legislation in Congress aimed at shifting this year’s AGOA forum from South Africa to another country because of Pretoria’s perceived closeness to Russia. It’s yet another sign that the US may pare back SA’s AGOA and Pepfar benefits. Powerful US Senator Jim Risch – South Africa’s chief foe in Congress – has tabled legislation which says the US administration should shift this year’s forum of the Africa Growth and Opportunity Act (Agoa) from South Africa to another country. Risch, the senior...

The Trade and Investment Framework Agreement (Tifa) between the US and the East African Community has begun taking shape, with a section of the bloc’s members keen on it and others still biding their time. This week, US officials were in Nairobi to conduct part of the negotiations on the US-Kenya Strategic Trade and Investment Partnership and to meet Trade ministers from the region. On July 18, Trade ministers from Tanzania, Uganda, Rwanda, DR Congo, Burundi and South Sudan met with US Trade Representative Katherine Tai. Kenya was...

The US says it may consider proposing to its lawmakers an extension of duty- and quota-free access to its market for sub-Saharan countries when the current deal expires in May 2025. [AGOA.info note: AGOA removes standard import tariffs, but not quotas).  United States Trade Representative Katherine Tai, said another renewal of the preferential trade programme depends on the US Congress, but her office could facilitate it. “We are working on facilitating pathways to having the conversations and consultations …to enable the...

A recent report has shown that the United States is unsure when discussions for a free trade agreement with Kenya would be completed, notwithstanding the fact that Nairobi previously stated that the talks would be completed by December. The United States Trade Representative Katherine Tai, who wrapped up a three-day visit in Nairobi on Wednesday, stated that the US negotiators do not have a timetable for ending discussions or signing the planned US-Kenya Strategic Trade and Investment Partnership (STIP). “In terms of signature and when...

Kenyan President William Ruto has today held talks with US Trade Representative, Ambassador Katherine Tai. The discussions were based on US trade policy. Ruto said that the country is ready to strengthen the already existing relations between the two nations. "We will stretch our ties beyond the African Growth and Opportunity Act (AGOA) in the wake of advanced technology and climate change, for the full exploitation of our trade potential," he said. The President said trade between the two countries is key and has been...

The Economic Community of West African States (ECOWAS), in collaboration with the United States Agency for International Development (USAID), commenced a two-day sensitization workshop for economic operators on the African Growth and Opportunity Act (AGOA) and Food Safety Act in Monrovia. However, the African Growth and Opportunity Act (AGOA) is a U.S. unilateral trade preference program that allows eligible countries in sub-Saharan Africa to export to the United States up to 6,900 products duty-free, increasing trade and...

The US trade representative is in Nairobi to co-lead a meeting that seeks Kenya's partnership in a fresh trade deal. The Trade and Investment Framework Agreement (TIFA Council) is pursuing various agreements even as regional peers express concern over Kenya's solo approach.  Yesterday, Trade Representative, Katherine Tai met patron circle members of the American Chamber of Commerce-Kenya (AmCham Kenya) ahead of today's meeting.  "The meeting marks the fifteen-year anniversary of the US–EAC TIFA and comes as the Biden-Harris...

With over 1300 delegates at the US-African  Business Summit held mid-July in Gaborone, Botswana, the main focus was on mapping out strategies to strengthen trade and economic relations between the United States and Africa. Majority of the speakers emphasized reviewing and widening collaboration between governments, while others underlined the importance of the private sector as the key driver in achieving  robust economic growth in African countries. African leaders together with corporate business executives and majority of the...

The country’s performance in AGOA was highlighted by Tammy Dlamini, who is the Senior Country Representative (Eswatini and Angola) for the USAID Africa Trade and Investment Southern Africa Buy-in Activity.  In his presentation it was noted that the country’s exports to the United States (US) in 2022 was over E1.4 billion, while in 2021 it was E669 164 496 and E387 702 611.40 in 2021. Dlamini said the US was a big market worth taking advantage of. He said Eswatini was the United States’ 163rd largest supplier of goods...

With over 1300 delegates at the US-African Business Summit held mid-July in Gaborone, Botswana, the main focus was on mapping out strategies to strengthen trade and economic relations between the United States and Africa. The majority of the speakers emphasized reviewing and widening collaboration between governments, while others underlined the importance of the private sector as the key driver in achieving  robust economic growth in African countries. African leaders together with corporate business executives and majority of...

Minister of Finance Enoch Godongwana, his counterpart at Trade and Industry Ebrahim Patel and Minister in the Presidency Khumbudzo Ntshavheni have held discussions with senior officials in the US over the extension of the preferential trade agreement and investments. The ministers were in Washington this week where they met with US Trade Representative Katherine Tai to strengthen bilateral ties with Washington and push for the renewal of the African Growth and Opportunity Act (AGOA). On Friday the ministers met with business executives in...

Leaders at the U.S.-Africa Business Summit in Botswana have urged renewal of the long-standing Africa Growth Opportunities Act (AGOA). The trade deal gives some African countries preferential or even tax-free access for their exports to the U.S. market. The agreement is due to expire in 2025, and African delegates at the summit want the deal renewed. Botswana President Mokgweetsi Masisi, addressing delegates gathered in Gaborone for the summit, led the pleas to Washington to renew the arrangement. Since it was put into place in 2000, AGOA...

Has the African Growth and Opportunity Act (AGOA) achieved its goal of improving trade and investment between the U.S. and Africa? Created in 2000 and renewed in 2015, AGOA is a U.S. government trade program that gives countries in sub-Saharan Africa preferential access to U.S. markets, allowing them to export products to the United States tariff-free. AGOA has certainly helped boost African exports to the United States, but the trade data raise questions about why some countries are better able to capitalize on the...

South Africa’s place in the African Growth and Opportunity Act (AGOA) could be under threat due to SA's relationship with Russia. Motheo Khaoripe is joined by John Hudson, head of agriculture at Nedbank, to discuss the impact of South Africa's potential removal from AGOA. Listen to the interview here.  We export more than 50% of what we produce, so a market like the United States is really important, says John Hudson, Head of Agriculture - Nedbank. It's around 5% of our total exports, and last year our total exports were...

The American Apparel & Footwear Association (AAFA) recently urged the office of the US trade representative (USTR) to renew the African Growth Opportunity Act (AGOA) this year for at least another 10 years—or maybe longer—so that US companies will have the necessary certainty and timeframe they need to grow a vertical, responsible and competitive industry in Africa up to and beyond 2025. AAFA vice president for trade and customs policy Beth Hughes, in a letter to USTR’s trade policy staff committee chair William Shpiece, said the...

The DA has urged US legislators to keep SA as a member of a trade pact that gives African countries preferential access to US markets, saying its removal will have unintended consequences for both countries. This comes ahead of the US government’s virtual hearings, starting on July 24, when 35 sub-Saharan countries, including SA, are expected to make oral representations in a bid to retain trade benefits under the African Growth and Opportunity Act (Agoa). Written submissions were due on July 7. The DA submission to US trade...

The geopolitical fallout from Russia’s invasion of Ukraine is disrupting long-established relations and making the international economic and political landscape difficult to navigate.  Such disruption could threaten the ability of SA manufacturers to compete globally. In particular, the possibility of exclusion from the US’s legislated Africa Growth & Opportunity Act (Agoa), or even economic sanctions, is causing consternation in many industries. Agoa has been of significant value to SA. The automotive industry has benefited...

Different sectors of South Africa’s economy will be keeping a careful eye on discussions between the government and US representatives on the fate of the African Growth and Opportunity Act (Agoa) agreement. South Africa’s neutral stance on the war in Ukraine and the docking of the Russian vessel the Lady R in Cape Town amid accusations from US ambassador to South Africa Reuben Brigety that weapons were loaded on to the ship have strained diplomatic relations between the countries. Also, the US could decide that South African exporters...

South Africa should focus on attracting foreign investment and extending trade relations, the South African Chamber of Commerce & Industry (Sacci) said after business confidence fell to a year low. An index compiled by the chamber showed average business confidence declined to 106.9 in May from 107.1 a month earlier. The latest figure is the lowest since May 2022, when global headwinds exacerbated by Russia’s war on Ukraine fuelled inflation and capital outflows. “With a global economy that is slowly recovering, to perform...

When it was established during the Obama administration, the President’s Advisory Council on Doing Business in Africa—or its acronym PAC-DBIA—was an important initiative, and it still is highly relevant. After all, the body was charged with providing recommendations to the president of the United States through the secretary of commerce on how to increase the U.S. commercial presence in Africa. Who better to provide advice than some of the leading American companies on the continent? The U.S. companies represented on the PAC-DBIA...

South Africa is expected to send a high-level delegation headed by trade, industry & competition minister Ebrahim Patel to the US in July as part of the country’s plan to remain eligible for preferential access to US markets. Patel is expected make an oral submission to the office of US trade representative Katherine Tai to ensure SA remains one of 35 Sub-Saharan countries eligible for trade benefits under the African Growth and Opportunity Act (AGOA) for 2023. The submissions are to come ahead of the 10-year review of SA’s...

The South African department of international relations and co-operation (DIRCO) is adamant the AGOA Forum, which is intended to map the way forward for US-SA trade relations, will still be hosted in SA, despite a push by Washington’s legislators to move the conference to another country.  “There is no decision by the state department/White House to move the Agoa (African Growth and Opportunity Act) Forum from SA,” said Dirco spokesperson, Clayson Monyela.  “President Cyril Ramaphosa’s special envoys recently visited...

Powerful leaders of the US Congress have called on the Biden administration to move this year’s Africa Growth and Opportunity Act (AGOA) forum from South Africa to another African country because of South Africa’s perceived support of Russia in its war against Ukraine.  The letter from top legislators of both the Democratic and Republican parties is the first clear and concrete sign of possible US retaliation to Pretoria’s stance on Russia’s war against Ukraine which has been controversial in the US and other Western...

South Africa is accused of helping supply Russia with weapons for the Ukraine war, a charge that South Africa denies. A bipartisan group of American lawmakers has asked the Biden administration to punish South Africa for what it sees as the country’s support of Russia’s war in Ukraine by moving a major trade conference scheduled to be held in South Africa this year to another country. The request, made in a letter sent last week, is the first concrete effort at retaliation by members of the U.S. government over the growing view in...

Luxury jewellery brand Pichulik is one of the thriving local companies at risk of losing preferential US market space if South Africa is excluded from the African Growth & Opportunity Act (AGOA) arrangement. Billions of rand in trade with the US flows in South Africa’s direction under AGOA; it gives certain companies tariff-free access to the US market, and constitutes about 30% of total sales. But because of this country’s [alleged] support for Russia in its invasion of Ukraine, it is in danger of losing these benefits....

Trade relations between the US and Africa have centred on Congress’s ‘Africa Growth and Opportunities Act’ (AGOA) since 2000, designed to foster the continent’s economic development and prosperity via preferential access to American markets. Yet in the last decade African trade with the United States has stagnated at much the same levels as it was when the Act was passed. David Luke and Jamie Macleod consider how the original impetus behind the AGOA can be revived. Until the Biden Administration, US-Africa...

President Biden called for the immediate repeal of Uganda’s new Anti-Homosexuality Act [ download statement alongside] and warned of possible sanctions in a statement Monday, as his administration evaluates “the implications of this law on all aspects of U.S. engagement with Uganda.”  “This shameful Act is the latest development in an alarming trend of human rights abuses and corruption in Uganda.  The dangers posed by this democratic backsliding are a threat to everyone residing in Uganda, including U.S....

South Africa currently enjoys valuable preferential access to mainly traditional markets – the EU, UK, US, Africa and some South American countries (under Mercosur).  In the equally lucrative and fast-growing South and East Asian region, only one agreement potentially exists - a preferential trade agreement with India that remains under negotiation. No trade agreements exist with Middle Eastern states.  However, government maintains close relationships with most markets in these regions and efforts continue to deepen trade....

Our agricultural sector’s relationship with the US is a two-way stream that is mutually beneficial based on intrinsic value. When preparing for the Agoa summit, this is the narrative we should be pushing.  The comments by US Ambassador Reuben Brigety regarding theLady R shipments sent the South African currency plummeting and inflamed fears about South Africa’s future trade relations with the US. This is a high-stakes issue for South African business, and the agricultural sector in particular. In 2021, South Africa’s total...

Amid diplomatic tensions with the US over an alleged sale of arms to Russia, South Africa is continuing to make the case for its ongoing designation as a beneficiary of the Africa Growth and Opportunity Act (AGOA), which extends preferential trade access to the giant American market on certain goods and is due to expire in 2025. In a briefing ahead of his Budget Vote, Trade, Industry and Competition Minister Ebrahim Patel said that he shared the anxiety expressed by Finance Minister Enoch Godongwana about the potential...

IN 2000, President Bill Clinton’s administration passed special trade laws to promote trade ties between the US, Africa, and the Caribbean. One of the enactments was the African Growth and Opportunity Act, AGOA. To be eligible to access the benefits of the Act, participating countries are required to meet certain criteria set by the US government. Among the long list of requirements is the adherence to international human rights standards. By insisting that countries seeking to take advantage of the Act to market their products to the...