Cape Town - Premier Alan Winde on Monday evening took part in a session of virtual hearings of the US Africa Growth and Opportunity Act (Agoa) Implementation Subcommittee where he joined business leaders in stating South Africa’s case for the continuation of the agreement.
The aim of the two-and-a-half hour first virtual hearing for the annual review of country eligibility for benefits under Agoa for 2024, was for participants to argue their cases as trade and investment destinations of choice.
Topping Winde’s agenda was assuring the representatives of the US government, headed by the US presidential Council of Economic Advisers as well as the Departments of Commerce, State, Treasury and Labour, that the province remains committed to Agoa.
During the talks, the elephant in the room was the controversy over South Africa’s ties with Russia with regard to the Russia-Ukraine war. Winde tackled the issue when one of the panellists asked about South Africa’s efforts to meet the Agoa eligibility criteria.
“Obviously, the big issue that we faced was South Africa’s geopolitical positioning, such as what South Africa has been saying up until now in the UN, and then perhaps some of the actions and behaviour that were happening around our country specifically linked through our relationship with Russia.
“Obviously I come from a region within the country. But I can say on this platform that in our region we do not subscribe to what’s happening in the illegal war.
“We are concerned that when we make a neutral statement at the UN, and then have behaviour that is not directly aligned to what we’re all trying to achieve here,” he said.
Winde argued that if South Africa lost its Agoa eligibility, it would have a huge impact on the Western Cape’s economy, and the province’s lucrative agriculture sector would suffer the most.
“I want to say that I represent a region in South Africa called the Western Cape. Agoa is very, very important for us, specifically because our region primarily is agricultural,” Winde said.
However, he also said that as many as 30 000 jobs would suffer in the province’s citrus trade, there would also be an impact on jobs in the value chain in the US.
In June, Winde travelled to Washington to advocate for renewing South Africa’s access to Agoa.
Since returning to South Africa, Winde has made a written submission to the Agoa implementation subcommittee, outlining the importance of the country remaining part of Agoa, which ensures access to one of the Western Cape’s key markets, particularly for agricultural exports.
The meeting came shortly after a visit to Washington by Finance Minister Enoch Godongwana and Trade and Industry Minister Ebrahim Patel, where they held meetings with senior US officials to discuss Agoa’s extension.
The Agoa Implementation Subcommittee will have a big say in extending Agoa beyond its expiry date of 2025, and particularly the retention of South Africa’s status as an Agoa-eligible country.
Other countries which argued their case before the panel ahead of South Africa were Somalia and Mauritius.
The hearings came on the back of yesterday’s launch of the Province’s new Growth For Jobs (G4J) strategy.
In a statement to mark the launch, Winde said: “The Western Cape is endowed with a wealth of resources and people. The aim is to unlock massive potential through this ambitious strategy.
“We have proven that despite adversity, together we can still endure and succeed. G4J will provide us with renewed vigour and guidance to achieve break-out economic growth.”
He said at the core of this bold plan was the understanding that the private sector created jobs, while the role of the Province was to enable this by making it as easy as possible to do business in the province.
mwangi.githahu@inl.co.za