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

South Africa walks a tightrope on US relations

South Africa has been conducting a high-wire act in its relations with the United States (US). It is maintaining friendships with Washington’s enemies like Russia, Iran and China while trying to avoid disrupting its economic relations with America. Tensions came closer than ever to breaking point this month as the US House of Representatives’ Committee on Foreign Affairs passed the US-South Africa Bilateral Relations...

28 March 2024

Remarks by Deputy Treasury Secretary Adeyemo on the US-South Africa economic relationship

As Prepared for Delivery in Johannesburg, South Africa Thank you for the warm welcome. I want to express my gratitude to Consul General Spera and the American Chamber of Commerce for hosting me. I am honored to be joined today by South African Entrepreneurs that are building companies to unlock the economic potential of their country.  I owe my own presence here today to the inspiration I drew from South Africa. In the middle of the...

13 March 2024

USTR releases President Biden’s 2024 trade policy agenda and 2023 annual report

The Office of the United States Trade Representative today released President Biden’s 2024 Trade Policy Agenda and 2023 Annual Report to Congress, which details USTR’s work to advance President Biden’s trade agenda.  The President’s 2024 Trade Policy Agenda stands up for workers’ rights and sustainable trade practices, supports U.S. farmers, ranchers, fishers, and food manufacturers, bolsters supply chain resilience,...

05 March 2024

South African president Ramaphosa meets with US congressional delegation

South African President Cyril Ramaphosa today, 21 February 2024, received for a visit from a bipartisan congressional delegation from the United States of America, in Tuynhuys, Cape Town. The delegation is visiting South Africa at the invitation of the Aspen Institute. The President and the US congressional delegation discussed the importance of the relationship between South Africa and the US, which manifests in strong economic,...

21 February 2024

US congress receives Bill to review South Africa relations

A bill has been submitted to the United States congress calling for a full review of the country’s bilateral relationship with South Africa following the International Court of Justice ruling that found it plausible that Israel has committed acts of genocide against Gaza. The bipartisan bill which was introduced by US Republican congressman John James and Democratic Party congressman Jared Moskowitz this week could threaten South...

09 February 2024

Fitch research unit expects better AGOA deal for South Africa

Fitch’s research arm, BMI, believes SA has done enough to get improved trade terms under the African Growth & Opportunity Act (Agoa), which it expects to be extended and modified before its expiry in September 2025. But it warns that the deal might be stillborn if Donald Trump is elected US president. The research think-tank said in a note it assigns a 65% probability that Agoa will not only be renewed but modified to the benefit of...

09 January 2024

South Africa: BLSA CEO calls for more companies to leverage AGOA opportunities

Many more South African companies could benefit from the African Growth and Opportunity Act (AGOA), which gives eligible countries access to US markets free of tariff barriers, business organisation BusinessLeadership South Africa (BLSA) CEO Busi Mavuso writes in her weekly newsletter. Apart from mainstream formal sector businesses, there are opportunities to enable more entrepreneurs, including women-led...

20 November 2023

US ambassador: AGOA is an opportunity to deepen ties between the US and South Africa

President Joe Biden last December at the US-Africa Leaders Summit affirmed that the US will elevate its relationship with Africa. The future is Africa. One example is its youthful population: the median age on the continent is 19. By 2050, one in four people in the world will be in Africa. The US wants them to be healthy and wealthy. What happens in Africa will affect the rest of the globe — and we want to work together to ensure it is...

09 November 2023

Exploring synergies between AGOA and AfCFTA: The case for African exports

Africa is often characterised as a continent poised for economic growth and development. Often, prosperity and development in Africa can be linked back to exports and the benefits that they generate. This brings to the forefront the African Growth and Opportunity Act (AGOA) and its role in opening American markets to 35 African countries, as well as the African Continental Free Trade Area (AfCFTA), which aims to increase socio-economic...

09 November 2023

US Senator Chris Coons proposes AGOA extension by 16 years, immediate review of SA’s AGOA eligibility

Powerful US Democratic Party Senator Chris Coons is circulating a discussion draft of a Bill to renew the African Growth and Opportunity Act (Agoa) for 16 years that would also require an immediate “out-of-cycle” review of South Africa’s eligibility for Agoa. That could lead to South Africa being removed next year from the programme, which has provided considerable benefits to SA exporters to the US of cars, fruits and wine, in...

07 November 2023

AGOA benefits extend beyond trade [incl. VIDEO of Friday's opening session]

Economies in Sub-Saharan countries stand to benefit far more from the African Growth and Opportunity Act (AGOA) than notable trade statistics, says President Cyril Ramaphosa. “AGOA enhances the diversification of African economies, enabling them to export value-added products. By enabling African countries to have preferential access to the US market, this opportunity incentivises African countries to develop and export value-added goods...

06 November 2023

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