Agoa gives US ‘unworthy licence to interfere’ in domestic affairs of African states

Despite geopolitical differences, US-SA trade relations remained strong, with South Africa’s hosting this week of 20th African Growth and Opportunity Act (Agoa) forum in Johannesburg, seen by some analysts as a vote of confidence in the country.

University of South Africa political science professor Dirk Kotze and University of Johannesburg associate economics professor Peter Baur applauded Agoa, which has translated into US goods and services trade with SA totalling an estimated $25.5 billion (about R478 billion) last year – but independent political analyst Sandile Swana described the figure as “negligible”.

Agoa provides new market opportunities

Starting tomorrow, Agoa has provided new market opportunities to sub-Saharan Africa. The forum has been used by the US to bolster economic growth, promoting economic and political reform and improving economic relations with the US. Kotze said the forum was “very important” because it affected many African countries.

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“That SA is the host means the US sees us as one of the leading partners on the continent. Agoa is one of the mechanisms in the trade relations between SA and the US with agreements in place – making it significant.

“Given the fact the US is one of the key trading partners of South Africa is very important – like other free trade agreements we have signed with such blocs as the European Union.

“This mean SA products are much more competitive in foreign countries, making them beneficial to boost the local economy.”

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Referring to the US role in the Middle East crisis and the war in Ukraine, Kotze said: “We will not have a perfect relationship where there are no complications.

“SA’s relations with other countries is equally complicated.”

US interference

Swana said Agoa was “a negligible portion of our trade with the US and can be replaced with trade in many other countries”.

“Agoa gives the US an unworthy licence to interfere in the domestic affairs of African states, with special emphasis on forcing Africans to support US-Nato (North Atlantic Treaty Organisation) positions in world affairs.

“Ethiopia and others are no longer part of Agoa. Uganda is no longer part of Agoa, due to the gay and lesbian question.”

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But Baur said Agoa was “very significant for South Africa”.

“Also significant is the role of imports from US, with key service exports from the US in the travel, financial services and intellectual property sectors.

“According to OEC World, in 2021 South Africa exported commodities in precious metals ($8.2 billion), metals ($1.44 billion), and other chemical products ($1.19 billion) – earning a significant income for South Africa.

“Technology is also a significant contribution to the SA economy.”