Deputy US Trade Representative Demetrious Marantis has described his recent discussions with South Africa’s Department of Trade and Industry as “candid, frank and productive”, adding that they had also allayed any concerns he had and opened up new prospects in the areas economic cooperation, trade and investment.

Speaking during a visit to South Africa ahead of the African Growth and Opportunity Act (Agoa) Forum in Zambia, he added that there was a common recognition of the tremendous potential to grow trade between the two countries, as well as to forge new investments that would support jobs for Americans and South Africans.

Earlier, South Africa’s Trade and Industry Minister Rob Davies had hosted Marantis and his delegation, during which discussions were held about ways to reinvigorate the US-South Africa Trade and Investment Framework Agreement (TIFA), as well as on how to bolster foreign direct investment and ensure that South Africa made better use of opportunities under the Agoa.

The TIFA, which is bilateral forum set up to resolve trade and investment concerns and improve trade and investment ties, was re-launched in 2010. Recent discussions had covered areas such as technical rules and regulations, regional integration, infrastructure development, intellectual property rights protection and reducing trade barriers to foreign investment.

More regular yearly TIFA meetings have now been propose rather than the previous more ad hoc approach.

Addressing delegates at the South African Institute for International Affairs Marantis stressed that Agoa remained foundation of US-South Africa trade and that South Africa had emerged as the biggest non-oil beneficiary of all 37 Agoa-eligible countries.

The decade-old programme offered duty-free and tariff-free access on 98% of goods produced in sub-Saharan-Africa, with South Africa currently using the scheme to export vehicles, citrus, wine, and minerals, among other items, to the world’s largest market.

South African exports to the US had grown to more than $8-billion, with than $3-billion of these exports entering the country under the preferences offered by Agoa. The US was currently the second-largest market for South African exports.

Agoa is set to expire in 2015, but discussions were under way on extending the arrangement, with analysis being conducted in what had been successful and what should be changed. The Agoa forum, which was scheduled for June 8 and June 9 in Lusaka, Zambia, would seek to gain even better insights into possible amendments.

“A key next step is deciding what to do next on our preference program for Africa. Agoa is set to expire in 2015, and the [Barack] Obama administration is actively engaging Agoa beneficiaries, Congress, and stakeholders to determine what approach to take as we consider a possible renewal of Agoa,” said Marantis.

Marantis said that he left South Africa encouraged by the potential highlighted through the discussions, and added that key progress areas had been identified for further work before another meeting would take place next year.