Another US Senator, James Risch, has written to US Secretary of State Antony Blinken and the country’s trade representative Katherine Tai opposing the renewal of the African Growth and Opportunity Act (Agoa) trade agreement with SA.
His request contradicts the views of Blinken, Tai and US President Joe Biden who have all endorsed the extension of Agoa, which expires in 2025, and SA’s hosting of the forum this year.
Though the trio have endorsed the extension of Agoa, its extension requires a bipartisan consensus in the US Congress to secure the necessary backing for its renewal . The resistance seems to suggest the Biden government will not have it easy pushing the authorisation through the Republican Party-controlled Congress.
Risch alleges that SA has subverted US national and foreign policy interests through its relationship with Russia, Iran and Palestinian group Hamas.
“SA’s relationship with Russia, and most recently with Iran and Hamas, undermines necessary eligibility safeguards in the Agoa statute, and the administration failed to take standard formal actions to communicate Agoa-related concerns to SA through a warning letter or démarche,” Risch said.
“The administration’s handling of Agoa, exemplified by its posture towards SA, makes it clear that Congress must take course-correcting action.” Risch writes in the letter.
“As Congress grapples with Agoa reauthorisation, I urge robust changes to Agoa’s eligibility criteria, management of the Agoa program by USTR, and oversight of the act’s implementation by Congress.”
Risch, who is the Republican senator for Idaho, echoes similar sentiments by other senior US legislators, who in June wrote to Blinken requesting that the Agoa forum be held in another country.
The legislators pointed to SA’s perceived closeness to Russia in its war with Ukraine. US-SA trade relations came under pressure after Washington accused SA of providing weapons to Russia , a charge Pretoria has denied.
An inquiry commissioned by President Cyril Ramaphosa into the matter cleared SA of any wrongdoing.
The Agoa forum is currently under way in Johannesburg.
Business Day previously reported that African countries who are beneficiaries of Agoa are seeking a 10-year extension of the trade pact with “non-controversial amendments”.
African trade ministers will also push for the extension to include AU member states that have signed and ratified the African Continental Free Trade Area (AfCFTA).
In her address during the opening of the forum on Friday, Tai said total imports into the US under Agoa were valued at about $10bn in 2022, compared with $6.8bn in 2021.
Non-petroleum imports, which are major sources of new investment and jobs in Africa, increased to $5.7bn in 2022 from $5bn in 2021, Tai said.
SA exported goods valued at $3.6bn under Agoa in 2022.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.