Urgency required to secure AGOA inclusion

25th May 2023

This Africa Day, I raised concerns about the lack of urgency shown by the ANC National Government in securing South Africa's inclusion in the African Growth and Opportunity Act (AGOA), during a debate in the Western Cape Provincial Parliament. This has significant implications for trade and economic growth, particularly in the Western Cape.

AGOA has been instrumental in granting African countries preferential access to the extensive US market. This US act is up for renewal in 2025, with South Africa's continued participation in doubt due to a lack of urgency from National Government, as well as disastrous ANC foreign policy.

To address these concerns, I have called for a Standing Committee with the Department of International Relations and Cooperation and the Department of Trade, Industry and Competition, to provide clarity on their plans to lobby for our AGOA inclusion and the expansion of provisions to boost our economy.

AGOA has been a lifeline for our economy, especially benefiting the automotive, metals and jewellery, and agriculture industries, including wine and citrus. The value of South Africa's AGOA-eligible exports rose from $417 million in 2001 to $1.9 billion in 2021, while five of the top ten South African exports to the US originate from the Western Cape.

The ANC’s ineffective engagement with US stakeholders, illustrated by a poorly timed visit to Washington during Congressional recess, reflects a failure to safeguard our relationship with our top trading partner. Furthermore, their failure to condemn Russia's actions in Ukraine and their questionable dealings with Lady R in Simon's Town, raises concerns about their commitment to African interests.

In contrast, the DA-led Western Cape Government takes our AGOA inclusion seriously. I recently visited California as part of a delegation to raise awareness of the risks we face and strengthen bilateral ties. Additionally, the Premier will be heading to Washington to lobby for the Western Cape and our nation.

Securing our AGOA inclusion promptly is of utmost importance. Uncertainty undermines businesses and exporters. If excluded, American importers will seek cheaper alternatives from our competitors, resulting in job losses and business closures. This would severely impact our residents, particularly the 251 000 jobs supported by agriculture in our province.

Losing our AGOA inclusion not only harms our economy but also reflects a failure to stand up for African interests. The ANC's actions contradict the values they claim to uphold. It is time for them to prioritise the well-being of our citizens and the prosperity of our nation.

 

Issued by Cayla Murray, MPP - DA Western Cape Spokesperson on Finance, Economic Opportunities and Tourism