Dirco pours cold water on threats to move Agoa meeting

President Cyril Ramaphosa meeting with President Joe Biden of the United States of America. Picture: Jairus Mmutle/GCIS

President Cyril Ramaphosa meeting with President Joe Biden of the United States of America. Picture: Jairus Mmutle/GCIS

Published Jun 14, 2023

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Cape Town - The Department of International Relations and Cooperation (Dirco) has poured cold water on threats to move the forthcoming African Growth and Opportunity Act (Agoa) Forum meeting to a third country.

Public diplomacy head Clayson Monyela said there had been no discussions between South Africa and the US about moving the meeting.

Monyela was responding to a call by four senior Democrat and Republican US congressmen and senators to the Biden administration to punish South Africa by moving the Agoa meeting to another country.

In a letter to the US Secretary of State Anthony Blinken, the four lawmakers said that this would be a fitting sanction against South Africa for what they see as support for Russia in its war with Ukraine.

Monyela said the letter, published in the New York Times had been noted, and that President Cyril Ramaphosa’s special envoys recently visited the US to meet and explain South Africa’s active non-aligned position on the Russia-Ukraine conflict to key stakeholders and decision-makers.

Monyela said: “Our diplomats in Washington continue to engage on these matters. The relations between South Africa and the US are mutually beneficial. Even in the context of Agoa.”

The lawmakers who wrote the letter include Subcommittee on State, Foreign Operations and Related programmes chairperson Senator Christopher Coons (Democrat) and House Foreign Affairs Committee chairperson Congressman Michael McCaul (Republican).

They were joined in signing the letter by Senate Foreign Relations Committee member Senator James Risch (Republican) and House Foreign Affairs Committee member Congressman Gregory Meeks (Democrat).

They said that hosting the 2023 Agoa Forum in South Africa would serve as “an implicit endorsement of South Africa’s damaging support for Russia’s invasion of Ukraine and possible violation of US sanctions law.”

They also questioned South Africa’s eligibility for trade benefits under Agoa due to the statutory requirement that beneficiary countries did not engage in activities that undermine US national security or foreign policy interests.

Agoa provides duty-free treatment to goods of designated African countries and aims to promote economic growth through good governance and free markets.

The letter to the Biden administration came as Premier Alan Winde began his mission to lobby US politicians and trade officials in the US capital, Washington, assuring them the Western Cape remained committed to Agoa.

From Washington, Winde said he and his team had already engaged with Senate and House committees.

“We have noted the letter that has been written to say that because of South Africa's geopolitical stance in the world, that the US is threatening to take Agoa away and also saying that Agoa meetings should not take place in South Africa.

“We will really work hard to make sure we keep the process of Agoa going. We will also really work hard over the next few days here in Washington to try to keep that meeting in South Africa, even if we’ve got to host it in the Western Cape.”

Trade, Industry and Competition Minister Ebrahim Patel said South Africa was engaged in discussions with the US on the extension of Agoa beyond its expiry date of 2025, and to retain South Africa’s status as an Agoa-eligible country.

“Two-way trade helps to create jobs in SA and in the US. Preferences associated with Agoa and related trade measures account for close to 20% of all exports by South Africa to the US.”

Patel said South Africa, in turn, was a supplier of raw materials to US manufacturing factories and a market for US farm and factory products, which support many thousands of US jobs.

Western Cape Agriculture MEC Ivan Meyer. said: “…We are in deep trouble if Agoa is not renewed.”

He said SA’s top exported agricultural products to the US, most of which were produced in the province, were worth R8.2 billion in 2022.

Premier Alan Winde and Agriculture MEC Ivan Meyer.

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Cape Argus