Dear Editor
On the day the African Growth and Opportunity Act (Agoa) is due to expire, the signals coming from Washington and Pretoria on reaching a comprehensive trade deal are positive. The Democratic Alliance welcomes the progress reported from a number of sources to this effect.
Minister Tau and his negotiating team, after a false start and delays from failing to appreciate the implications of Donald Trump’s election as president, appear to have finally woken up to the potential to re-set our trade relations into a new era of co-operation.
We do not merely need to remove the 30% tariffs imposed from August 1st and renew Agoa. We must seek a far more ambitious trade deal, that addresses our two nations’ economic, trade and security priorities.
Reports have emerged that the White House is willing to support a one-year extension of Agoa by the US Congress. This indicates a welcome thawing in relations between the White House and the Union Buildings. A one-year extension, which would be retroactive and could be passed quickly, would give the 32 eligible African states time to re-negotiate a formal renewal over the next twelve months.
Today, Western Cape Premier Alan Winde released a detailed statement describing the highly successful 10-day trade mission he has just completed in the USA. Winde’s mission further cemented the already-strong trade relations between the province and key trading partners in the USA.
The Western Cape accounts for half of SA’s agricultural exports to the US, as well as exports from the thriving boat-building and satellite parts sectors. Mr Winde and his delegation’s efforts give an important boost to repairing US-SA relations since Ambassador Rasool was expelled and trade representative Jonas could not take up his role.
An opinion piece in today’s Business Day pointed out the opportunity to add $125 billion to US-SA trade and investment in the medium term by focusing on critical minerals infrastructure. The merits of their plan aside, it is the strategy itself that matters: South Africa must go beyond merely restoring our previous deal if we want to grow the economy.
A mutually beneficial deal with the United States, that brings in technology and new investment, would be a key step forward. We must align our domestic policies with our goals of increasing foreign investment and trade. Failed policies like BBBEE, a labour regime that kills jobs, and a state-centred approach to logistics like ports and freight rail have done too much damage to our trade already.
We must think ambitiously. The DA supports efforts by the GNU and private sector players to re-set relations with our second biggest trading partner and cast unfortunate recent mis-steps onto the scrap heap of history.
Regards
Toby Chance MP
DA Spokesperson on Trade, Industry & Competition