US extends Agoa to counter Russia and China

The House of Representatives in the US this week voted to renew the African Growth and Opportunity Act (Agoa) for a further three years, amid heightened geopolitical competition with China, Africa's largest trading partner.

- Nkateko Joseph Mabasa

It is, however, not yet clear whether South Africa, which has clashed with President Donald Trump's administration in the past year over policy differences, will remain a beneficiary of the Act. It was enacted in 2000 to provide duty-free access to the US market for eligible sub-Saharan African countries.

The programme, which lapsed on 30 September last year, had been expected to end as part of broader US funding cuts, but the renewal bill will be sent to the Senate for consideration. The extension was approved by a vote of 340 to 54 in the House of Representatives.

As tension simmers between Washington and Pretoria, the US last year slapped a 30% tariff on South African exports. Trump also boycotted the G20 leaders' summit in Johannesburg and South Africa faces the possibility of exclusion from the US-hosted G20 summit this year.