DTIC fails to account to Western Cape Standing Committee on AGOA as 136 000 agriculture jobs hang in the balance

11 June 2023

On Friday, the Standing Committee on Finance, Economic Opportunities and Tourism was briefed by the Western Cape’s Tourism, Trade, and Investment Promotion Agency, Wesgro, and the Provincial Departments of Economic Opportunities and Tourism, and Agriculture.

This Standing Committee meeting focused on the steps being taken to lobby for South Africa’s continued inclusion in the US African Growth and Opportunity Act (AGOA). The Departments of International Relations and Cooperation (DIRCO), and Trade, Industry and Competition (DTIC) were also invited to attend the Standing Committee but declined.

In response to the invitation, DTIC wrote: “As AGOA is a matter of national policy interest affecting all provinces, the Ministry proposes that the NCOP Select Committee convenes a briefing on AGOA and invite all Provincial Legislatures to the briefing. I have spoken to the Select Committee Chairperson … to facilitate the Select Committee Briefing Session.”

MPP Cayla Murray said: “Trade is an area of concurrence for provinces according to the Constitution and we know that AGOA contributes the most in trade and jobs to the Western Cape’s economy. Five of the top ten South African exports to the US originate from our province alone. I am extremely disappointed that DTIC, as the responsible Department, failed to brief the Standing Committee on their efforts to lobby for South Africa’s inclusion in AGOA or elaborate on provisions that could be expanded.”

“That is why I will be writing to DTIC and the NCOP to inform them that the committee has a legitimate interest in meeting directly with DTIC and that my committee should be allowed active involvement in the NCOP engagement, should this be the right avenue to engage DTIC. It is not enough to simply be invited to the NCOP. This is indeed an area of competence for this Standing Committee, and we need to be able to ask questions and get information from Departments that determine our province’s economic fate.”

During the Standing Committee, the Department of Agriculture revealed that there are more than 136 000 jobs in the province’s agriculture sector alone that depend on AGOA. South Africa’s inclusion in AGOA, which is set for reauthorisation in 2025, is not at all assured. This is because of the ANC-led National Government’s fumbling approach to international relations. These jobs are related to the following commodity groups:

Wine: 36 302 jobs

Citrus and nuts: 10 655 jobs

Dairy: 6 590 jobs

Deciduous fruit: 83 073 jobs

The Standing Committee further welcomed the increased lobbying efforts by the Western Cape Government, with Premier Alan Winde and Minster of Finance and Economic Opportunities, Mireille Wenger, currently in the US to advocate for South Africa’s inclusion in a renewal of AGOA.

MPP Cayla Murray: “The harsh reality is that we are going to bleed jobs if we don’t secure our AGOA status urgently. The top ten Western Cape exports to the USA were valued at R17 billion in 2021, with an average yearly growth of around 15% from 2017 to 2021. That trade, and the jobs it supports, will take a massive hit if we were to lose our preferential access to the USA.”

On the agriculture front, MPP Andricus van der Westhuizen added: “The Western Cape’s investment over many years in developing the USA as an export market has led to the recent phenomenal growth in the export of particularly agricultural products. The Western Cape would feel twice the impact of the rest of the country should the USA decide not to renew the AGOA. That is why the DA in the Western Cape is trying everything in its power to avoid such a destructive scenario.”

Issued by Cayla Murray and Andricus van der Westhuizen, DA, 11 June 2023