South Africa Government

07/30/2024 | Press release | Distributed by Public on 07/31/2024 02:16

Trade, Industry and Competition on AGOA Forum and BRICS Trade Ministers Meetings

Consolidated media briefing on AGOA Forum and BRICS Trade Ministers Meetings

This press briefing is convened to present some of the major outcomes emanating from the two international engagements that we, as the dtic family, have participated in recently, namely: the 21st African Growth and Opportunity Act (AGOA) Forum in Washington, DC and the 14th BRICS+ Trade Ministers Meeting in Moscow, Russia. At the AGOA Forum, the dtic family was supported by a diverse South African delegation who engaged with the United States (US) stakeholders with a view to strengthen trade and investment relations.

Our mission was undertaken, guided by the GNU Statement of Intent that outlines key priorities for the 7th administration with a focus on achieving rapid, inclusive, and sustainable economic growth. Our key message was to reset and create partnerships with an emphasis on industrialization, building a capable state and job creation. As the dtic family, we regard the AGOA Forum as a crucial engagement reinforcing the strong economic ties between South Africa and the United States and our African continent.

We received strong bipartisan backing from the US Congress, and our colleagues in the US Administration for the reauthorisation of AGOA. The mutually beneficial economic and trade partnership is highlighted by the more than 600 US businesses operating in South Africa and with over 1.3 million jobs created in sub-Saharan Africa.

Proposals presented by our delegation included the extension of AGOA for stability, improved rules of origin, and adjustments to the eligibility review process to preserve regional value chains and enhance Africa's manufacturing capabilities. The importance of maintaining these value chains was emphasized, with calls for AGOA enhancements to support the Africa Continental Free Trade Area (AfCFTA) integration

AGOA and AfCFTA should be viewed as complementary forces crucial for Africa's economic integration rather than as separate entities. AGOA has significantly expanded Africa's access to U.S. markets, while AfCFTA aims to create a unified continental market by eliminating tariffs and fostering economic cooperation among African nations.

To fully leverage both frameworks, AGOA's provisions should be enhanced to support AfCFTA's goals. This includes extending AGOA to provide trade stability, improving rules of origin to streamline the integration of regional value chains, and adjusting the eligibility review process to reflect AfCFTA's progress. By aligning AGOA with AfCFTA, Africa can create a more cohesive economic structure that boosts intra-African trade, enhances manufacturing capabilities, and integrates regional economies into the global market, driving sustainable growth across the continent.

I would like to commend Deputy Minister Andrew Whitfield for his exceptional facilitation during the highly contested meeting that determined the host nation for AGOA in 2025. He navigated such a challenging and contentious environment skilfully. DM Whitfield's adept handling of the situation was crucial in achieving a balanced and effective outcome.

Equally, Deputy Minister Zuko Godlimpi represented South Africa at the pivotal BRICS+ Trade Minister's Meeting. A key from the BRICS+ Meeting was to "call for a predictable, fair and equitable trade environment consistent with WTO's rules as crucial for advancing economic prosperity". The outcomes emanating from the BRICS+ Meeting included, amongst others:

(i) The need for coordinated multilateral action on climate change and expressed concerns about unilateral measures like the Carbon Border Adjustment Mechanism (CBAM) impacting developing countries. Furthermore, they agreed to ensure climate measures respect WTO commitments and resist discriminatory practices.
(ii) The potential of e-commerce to enhance market access and economic growth with calls for developing international rules and standards to address challenges such as cross-border taxation and data privacy.
(iii) The role of SEZs in driving economic growth and investment was discussed, with a commitment to sharing best practices.

Both the AGOA Forum and the BRICS Trade Ministers Meeting were fundamental in advancing international trade relations and economic cooperation. These engagements underscore the importance of cooperative trade relations in shaping a more equitable and sustainable global economy. They both underscore South Africa's commitment to pursue transparent and strategic partnerships with both our Global North and Global South partners guided by the global policy and programmatic blueprints such as the SDGs, the Paris Climate Accord, the AU's Vision 2063, and our very own NDP. These blueprints are seen as viable vehicles for the comprehensive development and positive transformation of our country and the continent using instruments like the AfCFTA.