South Africa Strengthens Its Role in AGOA and Global Trade Relations

Addressing the National Assembly on Tuesday, President Ramaphosa emphasized the reciprocal nature of the trade initiative, underscoring South Africa’s significant role in both exporting and importing goods under AGOA.

President Cyril Ramaphosa has reaffirmed that Africa, particularly South Africa, is not merely a beneficiary of the African Growth and Opportunity Act (AGOA) but an active and valuable contributor to the trade partnership with the United States. His remarks came in response to a parliamentary inquiry from Democratic Alliance (DA) Chief Whip George Michalakis regarding the potential removal of South Africa from AGOA.

Addressing the National Assembly on Tuesday, President Ramaphosa emphasized the reciprocal nature of the trade initiative, underscoring South Africa’s significant role in both exporting and importing goods under AGOA.

“There is going to be a review of the AGOA process. Last year, we hosted the African and US AGOA Forum here in our own country, where we demonstrated, along with other African nations, that AGOA is not a one-sided arrangement. We derive value from it, but we also provide value. We export goods, but we also import from the United States. This is a two-way engagement, as it should be with all global trade partnerships,” President Ramaphosa stated.

AGOA, established under U.S. President George W. Bush, has provided African nations with preferential access to U.S. markets for several years. However, participation in the program is subject to review, and some countries have faced removal due to non-compliance with its terms. President Ramaphosa highlighted that South Africa has consistently upheld trade regulations and remains a key partner to the U.S.

“Participation in AGOA is not determined by us; it is at the discretion of the United States. Our focus has been to demonstrate that we are a reliable trading partner—not just to the U.S., but to multiple nations worldwide. We have complied with trade agreements, whether they are bilateral or multilateral, and will continue doing so,” he added.

Reflecting on discussions with former U.S. President Donald Trump, President Ramaphosa recalled advocating for the balance in trade relations.

“When I spoke to President Trump, I emphasized the mutual benefits of AGOA. Many workers, both in South Africa and the U.S., benefit from this initiative. We sell critical minerals, vehicles, and agricultural products to the U.S., and in return, we also purchase American goods. This balanced trade relationship is something we aim to maintain.”

Beyond AGOA, President Ramaphosa detailed the government’s broader strategy to expand South Africa’s export markets. He stressed the importance of diversifying trade relationships and reducing reliance on a single market.

“As we visit different countries, we actively promote South African goods and services to create more market opportunities. Deputy President Paul Mashatile, along with ministers and deputy ministers, will soon travel to Japan to explore new trade avenues. Additionally, we are expanding engagements in the Middle East and Asia,” he announced.

China, South Africa’s largest trading partner, has expressed a strong interest in increasing imports from the country. President Ramaphosa noted that leaders from the Middle East are similarly keen on South African goods, further enhancing economic opportunities.

“President Xi Jinping has indicated that China wants to buy more goods from South Africa. Likewise, several leaders in the Middle East have conveyed the same interest. At the same time, we remain committed to our trade relationship with the United States, as we continue to export minerals, vehicles, and agricultural products,” he stated.

President Ramaphosa concluded by emphasizing that South Africa does not take its trade opportunities lightly. The country aims to showcase its value not just as an exporter but as an essential partner in global commerce.

“We recognize the Africa Growth and Opportunity Act as a key initiative, but we also want to ensure that our trade relationships are balanced and mutually beneficial. Our goal is to grow our economy, create jobs, and ensure that South Africa remains a key player in global trade.”