Nokukhanya Mntambo29 July 2024 | 9:34

SA,US seemingly in tune again on trade relations after cracks in diplomatic ties concerns

Following the successful conclusion of the AGOA Forum, Minister of Trade and Industry Parks Tau said the Biden-Harris administration in the US has endorsed not only an early renewal of the legislation but also an extension for 16 years.

SA,US seemingly in tune again on trade relations after cracks in diplomatic ties concerns

Parks Tau. Picture: Instagram

JOHANNESBURG - Following concerns about cracks in diplomatic ties between South Africa and the United States (US), the two countries now appear to be on the same page again on trade relations.

Minister of Trade and Industry Parks Tau led a delegation of government, labour, and business leaders at 2024’s African Growth and Opportunity Act (AGOA) Forum in Washington, D.C., which wrapped up at the weekend.

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Following the successful conclusion of the AGOA Forum, Tau said the Biden-Harris administration in the US has endorsed not only an early renewal of the legislation but also an extension for 16 years.

The programme gives eligible African countries, including South Africa, exemption from taxes on their exports to the US.

The act is set to expire in a little over a year but appears to be on track for renewal following President Joe Biden’s call to members of the US Congress to sign off on it.

Talks of excluding South Africa from the programme appear to have fallen away after some members of Congress wanted Pretoria to be punished for its ties with Russia and China.

Tau welcomed the endorsement, adding that South Africa remains critical in the development of regional value chains on the African continent.