Ramaphosa hopeful SA will continue to enjoy preferential access to US under AGOA

President Cyril Ramaphosa remains hopeful South Africa will continue to enjoy preferential trade access to the United States (US) under the Africa Growth and Opportunity Act (AGOA), which expires on Tuesday.

Following last week's visit to the United Nations General Assembly and a trade and investment dialogue, Ramaphosa said commercial ties between the two countries have proven to be both durable and resilient.

Writing in his weekly newsletter, Ramaphosa said the Department of Trade, Industry and Competition remains in talks with the US trade representative to finalise a trade agreement government hopes will drive down the 30% tariff imposed by the Trump administration.

With more than 600 American companies operational in South Africa, South Africa is also the second-largest African destination for US exports.

Ramaphosa said both South African and US businesses can see the clear opportunities and commercial gains of investing in each other's respective markets.

He said government will continue to advocate for reciprocity in investment and trade relationswith the US.

Ramaphosa said South Africa also wants to expand the number of local companies operating in the US market and to create more jobs for Americans.

“As the official talks around trade tariffs continue, we take to heart the words of the US Chamber of Commerce representative at the recent dialogue that expanding commercial partnerships ‘happens one deal, one investment at time’," wrote Ramaphosa.

Ramaphosa said last week’s engagements with businesspeople in the US show that South African and US businesses remain deeply connected and are committed to mutually beneficial partnerships into the future.

He said further testimony to the strength of this relationship is that later this year, the US Chamber of Commerce will send a delegation, led by its CEO, to the B20 summit, the official dialogue forum of the G20 for the global business community.