South Africa: Strong Bipartisan Backing From the US for the Reauthorisation of AGOA

South Africa’s position at the 21st African Growth and Opportunity Act (AGOA) Forum was to reset and create partnerships with an emphasis on industrialisation, building a capable state and job creation.

“As the dtic [Department of Trade, Industry and Competition] family, we regard the AGOA Forum as a crucial engagement reinforcing the strong economic ties between South Africa and the United States and our African continent,” Trade, Industry and Competition Minister Parks Tau said.

He said the mutually beneficial economic and trade partnership was highlighted by the more than 600 US businesses operating in South Africa and with over 1.3 million jobs created in sub-Saharan Africa.

The Minister was addressing the media in Cape Town on Tuesday to present some of the major outcomes that emanated from the two international engagements, AGOA and the 14th BRICS+ held in the United States and in Moscow, Russia, recently.

Parks said South Africa received strong bipartisan backing from the US Congress and colleagues in the US Administration for the reauthorisation of AGOA.

Proposals presented by the South African delegation included the extension of AGOA for stability, improved rules of origin, and adjustments to the eligibility review process to preserve regional value chains and enhance Africa’s manufacturing capabilities.

“The importance of maintaining these value chains was emphasised, with calls for AGOA enhancements to support the Africa Continental Free Trade Area (AfCFTA) integration.

“AGOA and AfCFTA should be viewed as complementary forces crucial for Africa’s economic integration rather than as separate entities.

“AGOA has significantly expanded Africa’s access to US markets, while AfCFTA aims to create a unified continental market by eliminating tariffs and fostering economic cooperation among African nations,” Parks said.

Parks said to fully leverage both frameworks, AGOA’s provisions should be enhanced to support AfCFTA’s goals.

“This includes extending AGOA to provide trade stability, improving rules of origin to streamline the integration of regional value chains, and adjusting the eligibility review process to reflect AfCFTA’s progress,” he said.

The Minister said by aligning AGOA with AfCFTA, Africa can create a more cohesive economic structure that boosts intra-African trade, enhances manufacturing capabilities and integrates regional economies into the global market and driving sustainable growth across the continent.

“I would like to commend Deputy Minister Andrew Whitfield for his exceptional facilitation during the highly contested meeting that determined the host nation for AGOA in 2025. He navigated such a challenging and contentious environment skillfully. DM Whitfield’s adept handling of the situation was crucial in achieving a balanced and effective outcome.

“Equally, Deputy Minister Zuko Godlimpi represented South Africa at the pivotal BRICS+ Trade Minister’s Meeting. A key from the BRICS+ Meeting was to call for a predictable, fair and equitable trade environment consistent with WTO’s rules as crucial for advancing economic prosperity,” the Minister said.

The outcomes emanating from the BRICS+ Meeting included, among others:

– The need for coordinated multilateral action on climate change and expressed concerns about unilateral measures like the Carbon Border Adjustment Mechanism (CBAM) impacting developing countries. Furthermore, they agreed to ensure climate measures respect WTO commitments and resist discriminatory practices.

– The potential of e-commerce to enhance market access and economic growth with calls for developing international rules and standards to address challenges such as cross-border taxation and data privacy.

– The role of SEZs in driving economic growth and investment was discussed, with a commitment to sharing best practices.

Parks said both the AGOA Forum and the BRICS Trade Ministers Meeting were fundamental in advancing international trade relations and economic cooperation.

“These engagements underscore the importance of cooperative trade relations in shaping a more equitable and sustainable global economy.

“They both underscore South Africa’s commitment to pursue transparent and strategic partnerships with both our Global North and Global South partners guided by the global policy and programmatic blueprints such as the SDGs, the Paris Climate Accord, the AU’s Vision 2063, and our very own NDP,” Parks said.