Never mind the Donald: US trade deal is likely still Agoa

SOUTH Africa’s eligibility for the African Growth and Opportunity Act (Agoa) is likely to remain untouched when US president-elect Donald Trump steps into office next year.

But Trump’s candid arguments for protectionism for US industry could have far-reaching impacts as many countries rely on trade agreements for access to the US market.

Alan Mukoki, the CEO of the South African Chamber of Commerce and Industry, said on Friday that the US had a lot to lose if agreements such as Agoa were scrapped, as American industries needed to grow in places like Africa and deals like Agoa allowed them to do that. An example of this was the appearance of US chicken in South African supermarkets after hard-fought negotiations under Agoa.

Mukoki said South Africa needed to be proactive in courting US business by lobbying interest groups.

There are 38 African countries benefiting from Agoa. Two-way trade between South Africa and the US in goods topped $13-billion (about R187billion) in 2015, compared to $15.8-billion in 2014. About 600 US companies are active in South Africa.

US embassy spokeswoman Cynthia Harvey said there was long-standing bipartisan support for the US-Africa policy. She said Agoa was a trade preference and was not at the discretion of the president, but was affirmed and ratified by the US Congress.

“We don’t expect that to change with the election of president-elect Trump and the start of another Republican administration. Our commitment to Africa has remained steadfast over many years.”

Sidwell Medupe, spokesman for the Department of Trade and Industry, said Agoa was approved by Congress for the next 10 years. “If there’s any change we are waiting on them to tell us. From our side trade relations are still on track.”