South Africa’s continued participation in the African Growth and Opportunity (AGOA) programme looks secure – for now – amid reports that US senators have dropped plans for a review of the country’s eligibility.
South Africa’s position under the AGOA programme has been in a state of limbo since last November when US senators – led by Democrat lawmaker Chris Coons – proposed a draft bill that would have required an immediate “out-of-cycle” review of the country’s eligibility.
The AGOA Renewal Bill of 2023 proposed, among other things, that the US Trade Representative Katherine Tai should “undertake an immediate out-of-cycle review of South Africa.”
However, according to reports monitored here on Friday, US senators from both the Democratic and Republican parties seem to have had a change of heart and have dropped plans for the review.
The reports said the Bill had now dropped the specific reference to South Africa but cautioned that Pretoria remained a concern to many US senators due to its foreign policy positions on issues like the Russia-Ukraine war and Israel’s war against Hamas.
Established by the US Congress in 2000 and renewed in 2015, the AGOA programme provides tariff-free access to the US market for exports of most products from 35 eligible countries in sub-Saharan Africa.
Eligibility depends on favourable annual reviews of a country’s trade and investment policy, governance, worker rights, human rights, and other conditions.
“Out-of-cycle” reviews are initiated through petitions by any US lawmaker or economic grouping to determine whether a beneficiary African country still meets the eligibility criteria set out in the AGOA Act.
South Africa has been the biggest beneficiary of AGOA, but recently influential members of Congress, including Coons and Republican Senator Jim Risch, have questioned Pretoria’s eligibility because of its warm ties with Russia, which are deemed to threaten US national security and foreign policy interests, violating an AGOA condition.
The possible exclusion of South Africa from AGOA would have far-reaching negative ramifications on the country’s economy and international relations.
AGOA has provided considerable benefits to South African exporters of cars, fruits and wine, in particular.
JN/APA