POLITICS

Appeal to newly elected US government to retain AGOA - Solidarity

Movement says AGOA often benefits precisely those people in rural areas where there is not much other economic activity

Solidarity appeals to newly elected US government to retain AGOA

7 November 2024

In a letter to the newly elected US President, Donald Trump, and his government Solidarity today called on him and his government to maintain the good trade relations South Africa has built up with the USA.

It was also specifically requested that the African Growth and Opportunity Act (AGOA) be upheld.

In the letter to President-Elect Trump the Chairperson of the Solidarity Movement, Flip Buys, mentions that approximately one in 37 South African households relies on exports to the USA to put food on the tables.

Buys emphasises in the letter how approximately 20% of these households depend directly on AGOA and that they would not be able to survive without it.

According to Theuns du Buisson, economic researcher at the Solidarity Research Institute (SRI), South Africa cannot afford it to continue without this trade agreement.

“AGOA often benefits precisely those people in rural areas where there is not much other economic activity. For this reason, it is essential that this agreement remains in place for the sake of South Africa’s most vulnerable workers.

“Africa has numerous communities of the same kind where trade with the world’s largest economy would not be possible without AGOA. This is where the difference between poverty and prosperity lies,” Theuns du Buisson, economic researcher at the Solidarity Research Institute (SRI) said.

Moreover, around 30 000 of Solidarity’s members work in industries that benefit specifically from AGOA.

The Solidarity Movement’s Head of International Liaison, Jaco Kleynhans, is currently in the USA as a representative of the Movement, and he has followed the election closely.

During his visit he will also have talks with numerous influential players in the newly elected government in order to emphasise South Africa’s dependence on AGOA.

In a message to the South African Government of National Unity (GNU), the Solidarity Movement further warns the GNU to be cautious not to jeopardize economic ties and trade benefits with the USA through hasty policy decisions and statements.

The Solidarity Movement therefore hopes that the incoming US government will decide to keep in place the agreement that is favourable to a large number of South African workers.

Issued by Theuns du Buisson, Economic Researcher, Solidarity Research Institution, 7 November 2024