The capital of Botswana, Gaborone, hosted ten days ago the 15th “US-Africa Business Summit”, a summit which was held without South African President Cyril Ramaphosa. South Africa’s relations with the United States have been strained since the start of the war in Ukraine, with Pretoria choosing not to give up on its good relations with Moscow. A choice that could exclude it from the American trade preference program of Agoa.
From our special correspondent in Gaborone,
While the African and American business world gathered in Gaborone at the beginning of the month, the South African Minister of Commerce made the opposite route, to go to Washington and try to save South Africa’s place in AGOA. ” A necessary visit “, according to Cynthia Griffin, representative of the US Department of Commerce for Sub-Saharan Africa.
« Demands around Agoa are under consideration, for all of sub-Saharan Africa, and trade continues for now, as South Africa engages directly with the US government and lawmakers. It is important that there is open communication, on each side, to share different points of view. »
Last month, US congressional representatives from both parties wrote a letter calling for South Africa’s withdrawal from the program. This is not the first time that the country has received such threats: in 2015, Pretoria was forced to open its market to American poultry.
From now on, it is his links with Russia which are in question, useful links according to the Minister of Public Enterprises, Pravin Gordhan, since they have made it possible to carry out a peace mission.
« We have ties with every country in the world. Our President, along with other African counterparts, have visited Ukraine and Russia. Perhaps our intentions are misunderstood. We just want to encourage countries to talk to each other and solve their problems without civilians being negatively affected.. »
As for the South African private sector, it is hoped that Vladimir Putin’s non-appearance at the Brics summit will soften Washington. Because a withdrawal from Agoa could have serious consequences according to Cas Coovadia, head of Business Unity South Africa (BUSA), one of the unions in the sector: “ Our country is one of the main trading partners of the United States on the continent. And our agriculture, as well as our automotive and mining industries have benefited greatly. So it would certainly have a strong impact. »
But beyond the political aspect, South Africa, which exported, thanks to AGOA, 2.5 billion euros of products to the United States in 2021, sees its eligibility being questioned because of its classification by the World Bank in the upper bracket of middle-income countries. An argument that Cas Coovadia rejects: “ This is not admissible because of our serious social and economic problems, with a lack of growth and a very high unemployment rate.. »
The country is, for now, still supposed to host the Agoa summit on its soil, by the end of the year.
Read alsoUS-Africa Business Summit: What future for AGOA? [1/4]
2023-07-24 22:58:27
#Africa #economy #United #StatesAfrica #business #summit #South #Africa #excluded #AGOA
