Africa-Press – South-Africa. South African trade officials are optimistic the lapse in the African Growth and Opportunity Act (AGOA) is not the end of the road for the preferential trade pact between the United States (US) and qualifying countries in sub-Saharan Africa.
AGOA, which was established in the year 2000, exempts eligible African countries from taxes on their exports to the US.
The legislation was not renewed by US Congress ahead of its expiration date at the end of last month, sparking fears of a pinch on investment, jobs and exports.
Manufacturers in the automotive sector and the agricultural industry stand to suffer significant losses.
Deputy director general at the department of trade and industry Xolelwa Mlumbi-Peter says all is not lost.
“There are discussions that are taking place in Congress to look at an extension; however, the indications are that it will be a short extension.” ‘Mlumbi,’ Peter said.
Trade and Industry Deputy Minister Zuko Godlimpi joined the DDG on the sidelines of the G20 Trade and Investment Ministerial Meeting in Gqeberha yesterday.
“The fact that the US has agreed on an extension means they are committed to renegotiating a reviewed AGOA, so AGOA is still in action, it’s still in force, and the conversations about AGOA are still there.” Godlimpi said.
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