US passes AGOA extension bill, but South Africa still on edge
A US House committee has approved the AGOA Extension Bill.
Image: Karen Bleier / AFP
The African Growth and Opportunity Act (AGOA) is set to be extended by a further three years.
On Wednesday the US Committee on Ways and Means approved the AGOA Extension Act by a vote of 37-3, Reuters reported.
The committee, which described the trade initiative as “the cornerstone of economic relations between the US and Sub-Saharan African nations", did not mention any exclusion of South Africa in its statement.
However, there are widespread fears that Pretoria will be excluded from the renewed AGOA, following mutterings at the White House this week.
As IOL reported earlier on Thursday, US Trade Representative Ambassador Jamieson Greer faced sharp questioning from Republican Senator John Kennedy over South Africa’s continued participation in AGOA.
This took place at a Senate Appropriations subcommittee hearing, where Kennedy argued that South Africa is “not America’s friend,” while pressing Greer on why the country should continue benefiting from the trade programme.
Greer acknowledged the ongoing tensions, stating that South Africa maintains significant tariff and non-tariff barriers that complicate trade relations between the two countries. He noted that Washington has already imposed a 30% reciprocal tariff on South African imports - far higher than the 10% applied to most sub-Saharan African countries - because Pretoria is considered a “unique case” within the AGOA framework.
Kennedy pushed further, suggesting South Africa should be separated from AGOA entirely, calling the country “a unique problem” and even “our enemy right now,” citing its alignment with US adversaries.
Greer then indicated that a different treatment for South Africa could be on the table.
South Africa’s trade ministry, meanwhile, stated that it was doing everything in its power to ensure that the country is included in AGOA’s extension.
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