This is how Ebrahim Patel, Minister of Trade and Industry, tried to allay fears on Wednesday that South Africa could be kicked out of the AGOA agreement because of the country’s relationship with Russia. Ebrahim is one of the many ministers who has been trying to put out fires during their budget speeches this past week following concerns that the debacle involving the Lady R cargo ship from Russia that docked in Simonstown in December could mean that America could decide to kick South Africa out of the AGOA agreement when it is reviewed in 2025.
During a media session before his budget speech, Ebrahim said that South Africa’s relationship with America is very important and therefore, cooperation with senior US government officials and business representatives will be intensified so that South Africa’s preferential access to trade in terms of the AGOA agreement is preserved. “A significant part of South Africa’s exports is headed for America under the AGOA agreement. We will do everything possible to keep it.”
South Africa’s ever-closer ties with Russia jeopardise R60bn in annual exports to US under Agoa deal
According to Ebrahim, there is already being actively worked on the relationship with Washing to ensure that South Africa remains part of the agreement. Enoch Godongwana, Minister of Finances, who also emphasised the necessity of trade relations with America during his budget speech, is trying to protect South Africa’s position within the agreement, according to Ebrahim.
Expanding trade relations
“South Africa is well placed to benefit from all the different trade relations we have with other countries. All these relationships are important to us because each one contributes a different value to our country’s economy and people. That is why we must ensure that all trade relations receive the necessary appreciation, respect and attention. We also want to continue to increase our trade operations to the European Union (EU) and Britain,” Ebrahim said regarding South Africa’s trade markets.
“Access to markets for our products must be expanded, and we will continue to work with our trading partners to open markets for our citrus, horses and venison.”
According to Ebrahim, trade with the rest of Africa has great potential to expand South Africa’s economy.
He admitted that the consequences of the war between Russia and Ukraine, together with the power crisis, have several adverse effects on South Africa’s trade operations and cost of living.
