US Democratic Senator Chris Coons is circulating a discussion draft of a Bill to renew the African Growth and Opportunity Act (Agoa) for 16 years that would also require an immediate “out-of-cycle” review of South Africa’s eligibility for Agoa. Agoa grants duty-free access to the lucrative US markets for most exports from eligible sub-Saharan countries.
A review could lead to South Africa being removed next year from the program, which has provided considerable benefits to SA exporters to the US of cars, fruits and wine, in particular. Coons released the draft Bill on Monday, after the annual Agoa Forum was held in Johannesburg last week. Much of the discussion focused on whether to renew Agoa when it expires in 2025, for how long and whether to change its terms.
South Africa has been the biggest beneficiary of Agoa, but recently SA’s eligibility has been questioned, as the nation has firm ties with Russia and these were deemed to threaten US national security and foreign policy interests, violating an Agoa condition.
Source: dailymaverick.co.za