Minister Parks Tau Successfully Advocates for South Africa’s Continued Inclusion in Agoa

South Africa’s new Trade Minister Parks Tau and Deputy Minister Andrew Whitfield have made significant strides in persuading Washington to retain South Africa’s duty-free access under the African Growth and Opportunity Act (Agoa). In a significant diplomatic effort, Trade, Industry, and Competition Minister Parks Tau, along with his deputy Andrew Whitfield, has successfully made headway in ensuring that South Africa retains its duty-free access to the US market under the African Growth and Opportunity Act (Agoa). This comes after their first major international assignment in Washington, D.C., where they participated in the annual Agoa Forum and lobbied key members of the Biden administration and Congress.

The context of their mission was fraught with challenges. Republican members of Congress had threatened to exclude South Africa from Agoa, citing concerns over Pretoria’s perceived friendliness with nations like Russia, China, and Iran, and its hostility towards Israel. However, according to Washington insiders, Tau’s message was well-received by the Biden administration, though the ultimate decision rests with Congress.

The formation of South Africa’s Government of National Unity (GNU) appears to have played a crucial role in this diplomatic success. It has provided South Africa with a “honeymoon period” during which it is perceived to adopt more moderate positions on trade and foreign policy. This perception has bolstered Tau’s efforts to secure South Africa’s Agoa status.

Constance Hamilton, the assistant US trade representative for Africa, highlighted that Tau had a productive bilateral meeting with US Trade Representative Katherine Tai. Hamilton emphasized that the review of Agoa eligibility is ongoing and that a final decision has yet to be made.

Joy Basu, the US deputy assistant secretary of state for Africa, welcomed Tau’s engagement and noted the clear communication and intention from South African partners to address concerns raised in the past year. Tau’s public remarks at the Agoa Forum underscored the benefits of Agoa for both the US and Africa, emphasizing the potential for economic growth and industrialization across the continent.

South Africa’s exports to the US under Agoa accounted for $3.6 billion last year, representing over a quarter of all South African exports to the US, and contributing to a trade surplus of $6.851 billion with the US in 2023. These figures underscore the importance of Agoa for South Africa’s economy.

Despite the positive developments, South Africa faces ongoing scrutiny from some US legislators. Republican Representative John James has proposed legislation for a comprehensive review of US-South Africa bilateral relations, particularly regarding whether South Africa undermines US national security and foreign policy interests. This legislation reflects broader concerns about South Africa’s international alliances and its stance on Israel.

The Agoa programme itself is up for renewal by Congress next year. Both President Joe Biden and Secretary of State Antony Blinken have expressed strong support for its renewal. However, the outcome of the 2024 presidential election, especially if Republican candidate Donald Trump were to win, adds an element of uncertainty.

Constance Hamilton reiterated the US administration’s commitment to Agoa, emphasizing the need to modernize the programme and increase its usage to better support economic growth and integration in Africa. Participants at the Agoa Forum also stressed the urgent need for greater certainty about Agoa’s renewal to encourage investment and economic planning.

Paul Ryberg of the African Coalition for Trade highlighted that Agoa has created significant employment opportunities in Africa, particularly in the textiles and apparel sector. However, uncertainty about its renewal has led to a decline in exports, underscoring the need for timely reauthorization of the programme.

Minister Tau and Deputy Minister Whitfield will brief the media about their trip, providing further insights into their efforts and the future of South Africa’s participation in Agoa. Their successful advocacy represents a crucial step in maintaining and strengthening the economic ties between South Africa and the United States.