Why the renewal of AGOA is so important for South Africa

Readers who follow international relations will know that the US Congress is due to review the countries included in the African Growth and Opportunity Act

- Theo Boshoff

AGOA, as it is commonly called, is not a trade agreement, but a concession made to qualifying countries in sub-Saharan Africa to export duty-free to the US.

It aims to promote market-based economies in Africa and development through the philosophy of ‘trade, not aid’.

The list of qualifying countries is reviewed on a regular basis, but what makes the upcoming review particularly topical is the fact that South Africa is due to host the US-Africa AGOA forum later this year. That is, unless the event is moved in retaliation for what some congressmen view as South Africa’s close ties with Russia.

On 7 July, Agbiz and Business Unity South Africa submitted written inputs to the US Congress to underscore the reasons they believed South Africa should remain within AGOA.

COMPLIANCE WITH CRITERIA

To qualify for the benefits under AGOA, African countries must promote human rights, build democratic institutions, create an enabling environment for US investment, and refrain from any actions that threaten US foreign interests.