Protecting AGOA & Western Cape-United States trade ties

Western Cape Premier Alan Winde is leading a delegation of Western Cape Government (WCG) and Wesgro representatives to the United States of America. The aim of the visit is to further promote the Western Cape as a trade and investment destination of choice. Topping the agenda is to assure the US Government that the province remains committed to the Africa Growth and Opportunity Act (AGOA).

Premier Winde said, “AGOA is very important to us. It is a critical statute that has benefited our province, our country, and region for over a decade. We are fully aware that there are concerns over whether the US Government will retain and renew our membership come 2025. We are demonstrating through a series of meetings in Washington DC that our delegation has held so far that as a province we value the benefits AGOA has brought to our region and country.” To this end, the delegation met with strategic stakeholders of the US Senate Committee on Foreign Relations. In a robust discussion, the officials explained that Washington does not want to sever ties with South Africa by not renewing its AGOA eligibility.

However, there are concerns related to security matters but that it is also in the interests of the US to keep growing the potential future benefits the statute aims to foster and create. But it was added that challenges will arise. South Africa’s AGOA eligibility must be part of an ongoing debate, the Premier and the committee agreed. “If South Africa lost its AGOA eligibility it would be a major setback for the entire economy,” the Premier stressed.

But the Western Cape’s economic losses would be higher than the rest of the country due to higher trade tariffs, which have been tempered by the act. The province’s lucrative agriculture sector would suffer the most, particularly in creating much-needed jobs.

It was resolved that the provincial and national governments must continue to engage on substantive matters regarding South Africa’s eligibility, especially on the application of the rule of law, a crucial eligibility criterion.

The WCG delegation then met with members of the US House Committee on Ways and Means and the AGOA Civil Society Network. Premier Winde once again assured members that the Western Cape stands by and respects the eligibility criteria of AGOA, evidenced by its track record of good governance and encouraging employment figures. The statute states that sub-Saharan countries that are part of AGOA must:

• entrench economic policies that reduce poverty, increase the availability of healthcare and education opportunities; and
• establish a system to combat corruption.

Western Cape Minister of Finance and Economic Opportunities Mireille Wenger said, “We as the provincial government are working hard to deepen relations with the US. AGOA is critical to achieving this. We have created policy certainty in our province to further the mutual benefits of the act.”

Alexandra Whittaker, a member of the Ways and Means Committee, told the WCG that there is undeniable support for South Africa-US relations, but there are issues that must be debated. Premier Winde concluded the meeting saying, “We will always be honest with our international partners as this is an important pillar to growing our relationship.”