Agoa to be renewed, says Blinken

US SECRETARY of State Antony Blinken has assured the establishment of a newer, revamped version of the African Growth and Opportunity Act (Agoa) as the current administration fully supported the re-authorisation of the trade deal to a modern, agile, adaptable model capable of driving trade forward.

This comes as US President Joe Biden yesterday called on the US Congress to quickly reauthorise and modernise this landmark act, which is set to expire next year.

Agoa allows more than 30 African countries to export 1 835 types of goods to the US consumer market, and in turn affords the US access to critical minerals, product value chains, and investment opportunities in Africa.

“In sub-Saharan Africa, it has increased the competitiveness of African products, led to the creation of tens of thousands of quality jobs and helped advance human rights,” Biden said in a statement.

“Here at home, Agoa has created investment opportunities and new markets for American businesses. And on both sides of the Atlantic, Agoa has promoted sustainable economic growth and resilient supply chains.”

The establishment of a Government of National Unity (GNU) in South Africa is seen to have given the country a reprieve following strained relations with the US, principally over differences in the treatment of Russia in its conflict with Ukraine, which had raised doubt on the trade arrangement's continuation.

Addressing a private sector gathering at the opening of the 21st Agoa Forum 2024 in Washington, DC, yesterday, Blinken said the US was focused on modernising the Agoa trade arrangement.

Blinken said the arrangement had resulted in hundreds of new private sector deals between African and American businesses, adding that altogether they were worth more than $16 billion (R293bn).

He said the newly created Africa Trade Desk, a platform that connected African agricultural producers with more than 20 000 American retailers such as Walmart and Whole Foods, had helped to conclude the $56 million deal for the South African grape industry to export to the American market while meeting requirements that promoted good conditions for workers.

“We will be working alongside the governments across sub-Saharan Africa to invest in our joint strengths and help shape a shared economic future,” Blinken said.

“One way we are doing that is creating more opportunities, creating better opportunities for trade with the US, we want to create better opportunities that support our workers and protect the environment.”

He said the US Export-Import Bank granted a $1.6bn loan to help construct solar energy grids in Angola, which would provide energy for water supply systems, clean energy and clean drinking water.