President Cyril Ramaphosa will this week send a high-level delegation to the US where discussions around the African Growth & Opportunity Act (Agoa) are expected to take centre stage.
The Sunday Times understands that the delegation will include three cabinet ministers, Enoch Godongwana of finance, Ibrahim Patel of economic development and Naledi Pandor of international relations.
According to Presidency spokeserson Vincent Magwenya , the trip is part of Ramaphosa’s administration’s visits to the G7 countries, Canada, France, Germany, Italy, Japan, the Uk and the US.
“They are starting with the US. Don’t fall into the trap of making this thing about the US. It’s not about the US, it’s about trade and political bilateral relationships with all these G7 countries and it’s about them appreciating our position on the Ukraine-Russia conflict, it is also to then share with them an update on the African Leaders Peace Mission and other issues of mutual bilateral interests, so naturally Agoa will come up,” said Magwenya.
The trip comes on the backdrop of a move by some politicians in the US lobbying for South Africa to be excluded from Agoa. They argue that South Africa should be removed as it was no longer a developing country and should no longer benefit.
However, the move appears to be inspired by South Africa’s non–aligned stance on the Russia-Ukraine war.
The West has been pushing for South Africa to take a pro-Ukraine stance by condemning Russia’s invasion of Ukraine territories.
“According to them they say it’s because of our stance on the Russia-Ukraine conflict, which is fundamentally flawed on their part because there is no assistance that we are providing to Russia. Secondly, us not condemning Russia has enabled us to be able to facilitate the African Leaders Peace Mission,” said Magwenya.
The threat to remove South Africa from Agoa is not backed by any facts, he said..
In any case, he argued, South Africa is not in Agoa with a begging bowl as the US also benefits from the country’s participation in the trade act.
“This thing is being made to seem like some kind of a charity that we are getting from the US and it’s South Africa only. No, it’s a bilateral trade agreement that provides tariff exemption on certain products from African countries into the US and vice-versa.
"You may argue and say the balance of trade is skewed to the favour of Africa and what have you, in any case it is a development instrument that is aimed at enabling development of African economies but it is a two-way trade agreement.”
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