The African Growth and Opportunity Act Agoa, a United States US legislation that gives African countries access to US markets, has passed another hurdle when the US Senate passed it on Monday and sent it on to the desk of President Donald Trump, who now has to sign it into law for another year.
Although many experts believe that Agoa benefits are over for South Africa and that Trump will remove South Africa from the list, the Trade, Industry and Competition Minister Parks Tau says this extension of Agoa will provide some relief for South African products exported under the scheme.
However, we are concerned by the short nature of the extension, and we hope the United States will use this opportunity provided by the short extension towards a programme that will provide certainty around investment and purchasing decisions. Agoa was designed to promote export diversification and encourage investment.
