AGOA: Solidarity intervenes to protect jobs

1 August 2023

Solidarity is currently in discussions with diplomats from the USA to ensure that South Africa is not kicked out of the African Growth and Opportunities Act (AGOA). This came after South Africa’s inclusion in the agreement was in jeopardy following recent allegations about weapons that South Africa allegedly supplied to Russia.

During a meeting between American diplomats and Solidarity, the Americans indicated that they had very little information at their disposal about the impact of the AGOA agreement in South Africa. Solidarity then compiled a report in order to disclose the desired information. The report found, among other things, that South Africa’s exports to the USA amounted to R178 billion in 2022, of which 20% benefited from the AGOA agreement.

“It is very clear that the ruling party despises South Africa’s relationship with the USA, our second largest trading partner. This compelled us to reach out to the USA on behalf of the people and businesses of South Africa. Too many people depend on the income they generate from this deal for it to be ignored. The US must know that the ANC government does not always embody the will of the people or act in their best interest. The report was very well received in Washington,” said Theuns du Buisson, economic researcher of the Solidarity Research Institute.

According to Du Buisson, AGOA offers extremely favourable trade terms to African countries, which includes South Africa. He further argues that the government’s nonchalant attitude about the AGOA agreement could have a devastating impact on many jobs and industries, and that South Africa cannot afford to be left out of it. The agreement is expected to be renewed in September and all signs point to South Africa being included again.

“The benefit South Africa derives from this agreement is much greater than the benefit for the USA. With trade, all parties win, but for South Africa it makes the difference between progress and ruin. Exports to the USA put food on the table for one in 37 South African families. AGOA currently provides 85 000 jobs, many of which are in extremely vulnerable sectors such as agriculture and manufacturing. We cannot stand back while the government promotes its own political agendas at the expense of the survival of South African citizens. We will continue to intervene and act to protect jobs in South Africa. We will build bridges where the government is tearing them down," Du Buisson concluded.

Issued by Theuns du Buisson, Economic Researcher, Solidarity, 1 August 2023