Agoa.info - African Growth and Opportunity Act
TRALAC - Trade Law Centre
You are here: Home/News/Article/South Africa plans US mission to lobby against US review of ties

South Africa plans US mission to lobby against US review of ties

South Africa plans US mission to lobby against US review of ties
Published date:
Monday, 15 July 2024
Author:
S'thembile Cele

South Africa’s newly formed government will use an upcoming forum on US preferential trade access to push back against a Senate review of ties between the two countries.

The House of Representatives last month passed a law requiring a full assessment off bilateral relations and submitted it to the Senate for approval.

South African business lobby groups have warned the legislation threatens to curb trade with the world’s biggest economy at a time when the country needs to accelerate economic growth to address widespread inequality.

A review of ties may risk South Africa’s access to the African Growth and Opportunity Act, which provides the country with duty-free access to the US market. Two-way trade between the two nations amounted to $23.7 billion last year, with South Africa shipping cars and agricultural produce under the accord.

"We intend to engage senators and also members of Congress about what our position is on a whole range of issues as the South African government on the back of the AGOA act, but also taking into account bilateral relations," Trade, Industry and Competition Minister Parks Tau said in an interview.

A delegation will head to the US to attend the AGOA Forum in Washington, DC from July 24-26, he said.

US lawmakers called for the review of relations in February, after South Africa took Israel to the International Court of Justice over allegations of genocide. They also cited reasons including South Africa’s history of “siding with malign actors,” including Hamas, which the US designates as a terrorist organization, and its pursuit of closer ties with China and Russia.

The US is South Africa’s second-largest trading partner after China and will form a crucial part of the new government’s efforts to revive the economy. South African gross domestic product has expanded by less than 1% a year on average over the past decade — well below what’s needed to maintain living standards for the nation’s growing population.

The US legislation is being considered as America prepares for presidential elections in November, in which former President Donald Trump will run against incumbent US President Joe Biden. Relations between the US and Africa reached a low ebb during Trump’s first term, during which he made disparaging remarks about African nations and high-level diplomatic engagements were few and far between.

"We work on the basis that we have established relations with a whole range of countries on multilateral and bilateral platforms," Tau said. "We should be able to build on the basis of the electoral outcomes."

Read related news articles

AGOA and AfCFTA: Unlocking business potentials between US and Africa

United States Trade Representative Katherine Tai will host the 21st U.S.–sub-Saharan Africa Trade and Economic Cooperation Forum (AGOA Forum) in Washington, D.C., from July 24 to 26, purposely to work out further on measures to deepen trade and strengthen economic cooperation. In addition, it will also build on the most diverse areas of cooperation discussed in the previous gathering, particularly pertinent questions within the framework of...

03 July 2024

How access to US market changed the fortunes of two South African sisters

Two entrepreneurs take traditional African designs and sustainable materials and turn them into international success What started as a pastime desire to sell crafts at local markets, deeply rooted in the South African culture, has since blossomed to become an international business entity for two local women.It took the Mokone sisters, Morongwe "Mo" (37) and Michelle (34), three years only to turn around their home decor business into an...

01 July 2024

USTR Katherine Tai to host AGOA Forum in Washington D.C., on 24-26 July

United States Trade Representative Katherine Tai today announced that she will host the 21st U.S.–sub-Saharan Africa Trade and Economic Cooperation Forum (AGOA Forum) in Washington, D.C., from July 24 to 26, 2024. “AGOA has been the cornerstone of our economic partnership with sub-Saharan Africa for over twenty years,” said Ambassador Tai.   “This Forum is an opportunity to discuss how we can make the program more...

01 July 2024

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

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

You are here: Home/News/Article/South Africa plans US mission to lobby against US review of ties