NEWS & MEDIA

African Growth & Opportunity Act (AGOA) Ministerial
Washington, DC
29-30 October 2001

Minister Dlamini Zuma arrived in Washington, DC for the first Africa Ministerial Meeting hosted by the United States in terms of the provisions of the African Growth and Opportunity Act (AGOA).  The meeting is scheduled from Monday 29 - 30 October 2001.  South Africa's delegation will consist of senior officials from the Departments of Foreign Affairs and Trade and Industry. 

To date, the US Administration has designated 35 sub-Saharan countries as eligible to benefit under the provisions of AGOA.  The AGOA provides for significantly improved access to the U.S. market for products through special (qualified) provisions dealing with textiles and apparel, and an additional number of products eligible for quota and duty-free treatment under the U.S. General System of Preferences (GSP). 

South African is one of thirty-five (35) sub-Saharan African countries that are designated as beneficiary countries under the general provisions of the Act and, along with only nine (9) other African countries, is also eligible to benefit from the textile and apparel provisions of the Act.

South Africa is taking advantage of AGOA benefits.  An analysis of the US trade
statistics indicates that South African benefits from AGOA totaled US$135,5 million for the period January to June 2001. Excluding the benefits accrued to participating oil—producing African countries South Africa accounts for some seventy-two (72) percent of total benefits accrued through AGOA.  South Africa had, as of April 2001, shipped at least 18 distinct products (not counting apparel, which is treated separately) using ACQA preferences. These products include mushrooms, nuts, fruit, wine, footwear, cars, vehicle bodies, tableware, and 16 kinds of steel (including several facing anti-dumping actions).

The AGOA holds significant opportunities for South Africa and other designated African countries to expand their export base, and by implication manufacturing base, through the preferential non—reciprocal access to the US market that AGOA accords.  Furthermore, the legislation opens   up investment opportunities in South Africa for
foreign and local investors wishing to access the US market with eligible products, as well as for South African businesses wishing to invest in African countries, particularly those that are designated as lesser-developed

The forthcoming AGOA Ministerial attended by Minister Dlamini Zuma is very important in engaging the United States on the impact that the legislation is having on trade (exports) and investment levels. It is at this forum that African countries are expected to provide their assessments of the benefit of the AGOA to date, and to make recommendations on ways to further expand the benefits.