US President Joe Biden’s administration backed the early extension of a program that will enable more than 30 sub-Saharan African nations to retain their duty-free access to the world’s biggest economy, an envoy said.
“We have indicated our support for an early reauthorization” and an extension of the African Growth and Opportunity Act that expires in September 2025, Joy Basu, the deputy assistant secretary of state in the Bureau of African Affairs in the US Department of State, told a press briefing on Monday.
The ministers also called for the preferential market-access deal to be extended by at least 16 years with minimal changes to stabilize commerce and investment relations and preserve regional value chains, the African Union said in a statement last week.
Basu said a deal that runs for longer than the current 10-year one is under consideration.
While US senators introduced a bill in April to extend AGOA until 2041, its beneficiaries are still awaiting formal guidance about its future.
“Congress is completely in charge of the legislation,” Constance Hamilton, the US trade representative for Africa, told the briefing. I am very confident that it will happen before AGOA is set to expire in 2025.”
Market Access
Two-way trade between the US and countries that qualify for market access under AGOA exceeded $46 billion in 2022, with $30 billion worth of goods shipped to the US in that year. As much as $10.2 billion worth of goods traded under the preferential trade access program.
South African Trade Minister Parks Tau and his deputy, Andrew Whitfield, said they are confident the country will retain its AGOA access.
“We had a net-positive visit” to the US, Whitfield told reporters in Cape Town on Tuesday. “We also acknowledge that there is hard work to be done. There will be follow-up engagements with Congress and other stakeholders in Washington.”
Pretoria has raised the ire of the US for refusing to condemn Russia’s invasion of Ukraine and its laying of genocide charges against Israel in an international court over its war in Gaza, with some lawmakers calling for a comprehensive review of trade ties.
“South Africa has consistently maintained a non-aligned position, and many of the parties we engaged with said they respect a non-aligned position,” Tau said. US lawmakers “however perceived that South Africa might not, in certain instances, have articulated its non-alignment in a manner that is demonstrable. And it’s a matter that we’ve said we’re prepared to engage with,” he said.
--With assistance from Ana Monteiro.
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