South Africa’s AGOA inclusion hinges on White House decision


South Africa’s inclusion in the Africa Growth and Opportunity Act (AGOA) hinges on the decision of the White House.

The US Senate has approved an extension of AGOA as part of a package of appropriations bills to fund the government. The extension is until December 31 this year.

Earlier the House of Representatives passed legislation for a three-year extension, but the lower house is not likely to adopt the Senate’s measure.

The programme has been in limbo since expiring last September. This after giving eligible sub-Saharan African countries preferential access to the US market since 2000.

The legislation will go back to the House for reconciliation before it heads to the President for signature – expected early next week.

The one year extension leaves a mere 11 months of the free trade agreement in place that is currently still undercut by President Donald Trump’s reciprocal tariffs imposed on African countries including South Africa.

The US Supreme Court is weighing the legality of those tariffs after two lower courts ruled that Trump overstepped his authority by imposing the trade levies.

The administration earlier signalled it was in favour of a one-year extension of AGOA while lawmakers have stressed that the President retained the power to include or exclude countries from the programme.

At least one Republican Senator has already argued for South Africa’s exclusion from the programme.

Related video| US House of Representatives approves Agoa extension: Thabile Nkunjana weighs in
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