Agoa.info - African Growth and Opportunity Act
TRALAC - Trade Law Centre
You are here: Home/News/Article/'The renewal: US-Africa relationship'

'The renewal: US-Africa relationship'

'The renewal: US-Africa relationship'
Published date:
Tuesday, 13 April 2021
Author:
Hasnaine Yavarhoussen

In his first allocution to African leaders at the virtual African Union Summit in February, recently elected United States President, Joe Biden, reiterated his administration’s commitment to rebuilding partnerships with Africa and re-engaging with international institutions such as the African Union.

Biden set out his foreign policy priorities, pointing towards multilateralism and a healthier US-Africa relationship.

Within days of his inauguration, the US re-joined both the World Health Organisation and the Paris Agreement, whilst supporting Covax, the global initiative to ensure equitable access to coronavirus vaccines for lower-income countries.

The distinct change of tone from the previous administration was crystal clear.

In a world profoundly impacted by the Covid-19 pandemic, multilateralism matters now more than ever. T

he pandemic has taught us that the only way to solve global issues is by showing a unified front in the face of adversity to bring about global solutions. I believe that enhanced co-operation between nations is the only way forward if we are to tackle global issues such as climate change, pandemics and overall socio-economic development.

Less aid, more trade 

With the new US administration putting a strong emphasis on renewed partnerships with the African continent, the “less aid, more trade” adage will be a key motivator in ensuring bilateral trade and commercial relations. All eyes will be on the new African Continental Free Trade Agreement (AfCFTA) and its successful implementation. Taking full advantage of the market opportunity the agreement has to offer among 1.3-billion-people will be hugely beneficial for both the US and African nations.

On one hand, successful implementation of the AfCTFA will participate in the continent’s sustainable development and prosperity, while also propelling Africa on the global stage as a viable trade partner. On the other hand, the AfCFTA presents an opportunity for a single point of entry from the US into Africa. The agreement will shape harmonised policy and regulatory framework, reducing costs of transaction, and increasing commercial transaction.

Furthermore, with the African Growth and Opportunity Act (AGOA) set to expire in 2025, the need for the US and the African Union (AU) to maintain trade and investment ties beyond that date is essential to deepen the cooperation between the two. The AfCTFA offers an opportunity for the US and the AU to work together towards their common goal of increasing trade and investment, both inside and outside the continent. The new US administration’s change of tone indicates an interest for the US to regain its influence in Africa, and strengthening trade ties will plan a key role in achieving this.

Global issues require global solutions

The climate change crisis was a priority of Biden’s agenda, and he informed the United Nations of the US’s intent to re-join the Paris Agreement as a re-commitment to combat climate change earlier this year. On 19 February, the country officially returned to the landmark international agreement. The US re-entering the accord constitutes a new chapter in the global fight to save the planet and create a sustainable future for all. This new chapter of climate leadership sends a strong signal and a unifying call for international leaders to take bolder actions on climate protection.

Africa continues to be most vulnerable to the impact of climate change, despite being the continent least responsible for it. Madagascar, Kenya and Rwanda were on the list of the 10 countries most affected by climate change, according to The Global Climate Risk Index 2020. Climate crisis has been recognised as an utmost priority as it presents a serious threat to the continent achieving the UN’s sustainable development goals.

Conscious of the threat, 49 countries in Africa have signed and ratified the Paris Agreement, with a common understanding that global challenges must be faced together.

The US re-joining the fold in the battle against climate change represents a strong ally for all developing regions. In fact, developed countries are required to provide financial resources to developing countries to mitigate the impact of the climate crisis, as stated in Article 9 of the Paris Agreement.

Achieving the agreement’s objectives means effectively reducing greenhouse gas emissions caused by human activities such as burning fossil fuels — more alternative energy solutions for electricity production are required.

Multilateralism, combating climate change, and fighting the Covid-19 pandemic are at the forefront of the new American administration’s agenda. Both the African continent and the US share ideals of prosperity and a sustainable future for all, but achieving these ideals will only be possible through robust co-operation and meticulous coordination from all parties involved.


 agoa business connector

Read related news articles

Renewed commitment: South Africa to host AGOA summit amid calls for extension

South Africa is set to host the African Growth and Opportunity Act (AGOA) Summit later this year, despite recent diplomatic tensions between the country and the United States (US). In June this year, US legislators called for the relocation of the summit due to controversy surrounding alleged arms shipments to Russia by South Africa. Cleared of any wrongdoing by an internal judicial panel, the US has reaffirmed its commitment to shared growth...

21 September 2023

South Africa confirmed as AGOA host country for 2023

United States Trade Representative Katherine Tai and South African Minister of Trade, Industry and Competition Ebrahim Patel today announced that the Government of South Africa will host the 20th US-sub-Saharan Africa Trade and Economic Cooperation Forum (AGOA Forum) in Johannesburg, from November 2-4, 2023. The Forum will bring together the governments of the United States and AGOA-eligible countries, as well as representatives from key...

20 September 2023

South Africa well positioned as Africa's industrial centre: President Ramaphosa

President Cyril Ramaphosa has told American business representatives that Africa is ready for new investment and strong partnerships. The President was delivering remarks at the US - South Africa Trade and Investment Business Roundtable Dialogue in New York on Monday.  “Africa is ready for new investment and strong partnerships. South Africa is well positioned as the continent’s industrial centre, with deep capital markets, the rule...

19 September 2023

US Chamber of Commerce hosts South African president Ramaphosa to deepen bilateral trade, investment ties

The U.S. Chamber of Commerce is organizing a record number of meetings and events on the sidelines of the 78th session of the UN General Assembly (UNGA) to help foster public-private collaboration and underscore the indispensable role of the private sector in realizing the UN’s global targets. As part of this effort, the U.S. Chamber’s U.S.-Africa Business Center (USAfBC) today hosted the U.S.-South Africa Trade and Investment Executive...

18 September 2023

South Africa: Trade high on Ramaphosa’s US agenda

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...

17 September 2023

South Africa and the US aim to put AGOA storm behind them

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...

14 September 2023

United States and Africa: increased engagement regarding trade creating opportunities in the AfCFTA

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...

04 September 2023

Loss of ‘bedrock’ AGOA will hurt South African motor industry, warns new report

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...

02 September 2023

A warming between South Africa and the US on the eve of BRICS summit

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...

22 August 2023

South Africa: $1bn citrus industry highlights importance of inclusion in AGOA

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,...

20 August 2023

Rhetoric aside, the US needs South Africa inside the AGOA tent, not outside

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...

27 July 2023

You are here: Home/News/Article/'The renewal: US-Africa relationship'