AGOA extension will help to restore business confidence: Saccusa

FILE| Vehicle manufacturing plant in the US.

The South African Chamber of Commerce in the United States of America (Saccusa) says the one-year extension of the Africa Growth and Opportunity Act (AGOA) will help to restore business confidence.

Trade, Industry and Competition Minister Parks Tau has confirmed that South Africa remains a beneficiary of AGOA, which provides duty-free access to the US market for its automotive, agricultural, and manufactured goods.

There was anxiety among exporters following AGOA’s expiration in September last year.

It has now been extended to December 31 this year.

The Chamber’s Chairperson, Neil Diamond, however, says they have some concerns.

Diamond says, “As business, we are concerned about the relationship and the ongoing tensions. We still do not have an ambassador in the US, and as business, we will be sending a delegation next month to meet with (International Relations and Cooperation Minister) Ronald Lamola to raise our concerns with the minister. We are very happy with the work that Minister Parks Tau has done, but we are concerned that the overall political relationship may have long-term economic ramifications.”