Solidarity delivers a plea for SA to remain in AGOA

28 June 2024

Solidarity has submitted an appeal for the extension of another 10 tears of South Africa’s membership of the AGOA trade agreement with the USA.

This was done on the occasion when Solidarity had an opportunity to give input during the annual review of AGOA membership which gave various interest groups from African countries to express their opinions.

Currently, this trade agreement is valid until 2025. However, its extension depends on opinions in the US Congress. Diverse opinions have been expressed about South Africa’s membership in recent years, and it has even been suggested that South Africa be kicked out.

Theuns du Buisson, an economic researcher who represented Solidarity at the meeting, said during his turn to address the meeting that the trade agreement affects nearly 30 000 Solidarity members’ sectors or professions.

He explained how 6 000 members in the chemical industry have job opportunities that benefit from the agreement. A further 2 000 members are employed in the motor manufacturing industry, the export products of which are made directly possible by the agreement.

Moreover, the South African citrus industry is certainly also reaping the fruits of trade with the USA.

Solidarity therefore called on behalf of its members and South Africans in general, that the agreement with South Africa be renewed in 2025.

Du Buisson is also optimistic about the potential of a government of national unity (GNU) to improve the climate for foreign investment, and said that the AGOA trade agreement should be preserved at all costs.

“The South African economy is often portrayed in terms of developed cities and underdeveloped surrounding areas and rural areas. AGOA helps to level this playing field by giving rural communities an opportunity to participate in trade activities with the strongest economy in the world. 

“We therefore ask that the agreement remain valid for another 10 years to promote the mutual benefits that trade brings for both South Africa and the USA, and to give certainty to prospective investors, as well as workers in the relevant sectors,” Du Buisson said.

Issued by Theuns du Buisson, Economic Researcher: Solidarity Research Institute (SRI), 28 June 2024