By Emem Ekanem
The United States African Growth and Opportunity Act (AGOA) trade forum in South Africa, starting today, is anticipated to focus significantly on the potential extension of the United States program granting Sub-Saharan African countries tariff-free access to the United States markets.
Officials including United States trade representative, Ambassador Katherine Tai, and Deputy Assistant Secretary of States for African Affairs, Joy Basu are scheduled to convene with African leaders and officials in Johannesburg for the next three (3) days. They will engage in discussions about various topics, including the possible extension of the African Growth and Opportunity Act (AGOA) and methods to enhance its advantages for African nations.
The forum kicks off shortly after the United States President Joe Biden announced his plan to remove Niger, Uganda, Central African Republic, and Gabon from the list of beneficiaries, citing their non-compliance with the eligibility criteria.
The African Growth and Opportunity Act (AGOA) is a program that grants sub-Saharan African nations the privilege of exporting goods to the United States without incurring duties, as long as they satisfy specific criteria such as upholding the rule of law and safeguarding human rights.
The last extension was granted in 2015, allowing for a ten-year period, and it is set to expire in September 2025. The potential for further extension depends on the decision of the United States Congress.
Professor John Stremlau, an expert in international relations expressed the anticipation that African nations benefiting from the African Growth and Opportunity Act (AGOA) would advocate for its continuation. This is due to the tangible advantages they have witnessed, even though some countries have gained more than others. In his words, he said, “We absolutely expect African countries benefiting from AGOA to push for its extension, because they have seen real benefits, even though some have benefitted more than others.” He also mentioned that AGOA held significance because it garnered bipartisan support from both Republicans and Democrats, aiming to foster economic progress in Africa.
Last week, South Africa’s trade minister, Ebrahim Patel, informed lawmakers in his country that they plan to advocate for the extension of the African Growth and Opportunity Act (AGOA). He emphasized the significant advantages it brings to South African businesses engaged in exports to the United States.
South Africa is one of the biggest beneficiaries of the AGOA, with its exports to the United States under this agreement valued at approximately three billion dollars ($3 billion) as of 2022.
In a letter directed to the members of the United States Congress, President Biden conveyed that despite extensive discussions with Niger, Uganda, Central African Republic, and Gabon, they had not sufficiently addressed the United States’ worries regarding their failure to meet the AGOA eligibility criteria.
He mentioned that Niger and Gabon hadn’t successfully established or consistently advanced the safeguarding of political diversity and legal governance. He also pointed out that the Central African Republic and Uganda were guilty of serious breaches of internationally acknowledged human rights.
The United States government has recently halted the majority of its financial aid to Gabon following a military coup that occurred earlier this year.
In May, President Biden threatened to exclude Uganda from the African Growth and Opportunity Act (AGOA) and implement sanctions in response to the enactment of a controversial anti-gay legislation. This law, which permits capital punishment (death penalty) for certain homosexual activities, enjoys widespread backing within Uganda, yet it has faced criticism from human rights advocates and various groups.
Uganda’s government spokesman, Ofwono Opondo, suggested in a tweet that the removal of Uganda from the African Growth and Opportunity Act (AGOA) may not have as significant an effect, comparing it to Cuba and Iran, which have contributed more globally despite facing sanctions.
Over the years, Ugandan officials, including the longstanding President Yoweri Museveni, have viewed the AGOA as a valuable initiative despite Uganda not fully realizing its potential as a beneficiary.
This year, South Africa’s ongoing involvement in AGOA was put into question by lawmakers from both the Republican and Democratic parties in the United States. They raised concerns about South Africa’s eligibility for participation, pointing to allegations that the country provided arms to Russia amid its war with Ukraine. They also urged the forum to take place in a different country, aiming to convey a message to South Africa regarding the consequences of its close ties to Moscow.
An inquiry set up by South African President, Cyril Ramaphosa, has confirmed that South Africa did not provide Russia with weapons. Ramaphosa is scheduled to address the forum on Friday.
