JOHANNESBURG — The United States is intensifying efforts to forge a renewed and robust trade relationship with Africa, as outlined by the United States Trade Representative Katherine Tai at the African Growth and Opportunity Act (AGOA) Forum.
According to South African Government News Agency, Tai spoke at the Nasrec Expo Centre in Johannesburg, where the AGOA Forum is being held over three days. She emphasized the United States’ commitment to supporting the African Continental Free Trade Area (AfCFTA), citing the recent US-AfCFTA Memorandum of Understanding (MoU) on Cooperation for Trade and Investment.
The endorsement of the AfCFTA by the United States follows the signing of the MoU by Tai and AfCFTA Secretary General, Wamkele Mene, during last December’s US-Africa Leaders’ Summit. Tai elaborated on the US backing, which includes the establishment of four Technical Working Groups and an investment of approximately $160 million to assist in the negotiation and execution of the AfCFTA, with contributions from the United States Agency for International Development, the US Department of Agriculture, and Prosper Africa.
Tai’s message to delegates highlighted the intention of the United States to deepen economic relationships with African nations, aiming to facilitate economic growth, worker empowerment, and the establishment of equitable societies across the continent.
Further, Tai urged various stakeholders to come together to amplify the potential of the US-Africa partnership to promote sustainable and equitable growth, with a focus on inclusivity, particularly for women, youth, and members of the African diaspora.
In her discourse, Tai recognized the critical role of all participants in the forum, insisting on collaborative efforts to advance the US-African trade and investment relationship. She acknowledged AGOA as a key driver for workers and businesses throughout Africa, noting its significance in the ongoing economic recovery from the COVID-19 pandemic.
Despite acknowledging challenges such as the climate crisis and economic insecurity, Tai pointed to positive strides including the initiation of trading under the AfCFTA since January 2021 and the African Union’s recent accession to the G20. She referenced the African Development Bank’s report indicating that five of the world’s fastest-growing economies are in Africa, with South Africa highlighted as a leading AGOA participant and a staunch advocate for human rights.
Trade statistics were also shared, revealing a notable increase in goods imported into the United States under AGOA, amounting to about $10 billion in 2022, up from $6.8 billion in 2021. Notably, non-petroleum imports, crucial for new investments and job creation in Africa, rose to $5.7 billion in 2022 from $5 billion the previous year.
Tai’s remarks at the AGOA Forum underscore the United States’ intention to support economic development and job creation in Africa, fostering a mutually beneficial trade and investment landscape.