Boat exporters can be forgiven for feeling confused about the mixed signals coming out of the US concerning the African Growth and Opportunity Act, more commonly known as Agoa.
The much-ventilated piece of US legislation allows for preferential trade terms for African exporters selling into the US market. Boats are one of well over 1000 product categories currently enjoying the Agoa benefit, and boat builders are among many local stakeholders agitating for more of the same when the legislation comes up for renewal.
In recent months some US politicians have called for an ‘out-of-cycle’ review of South Africa’s Agoa eligibility due to South Africa’s perceived close diplomatic ties with Russia and other countries currently out of favour with the US.
However earlier this month a group of bipartisan US senators submitted a much friendlier proposed Agoa bill that makes no mention of a clause contained in an earlier version of the bill — a mandatory review of South Africa’s Agoa status. The new 34-page bill entitled “Agoa Renewal and Improvement Act of 2024” appears to be more conciliatory in its attempts to promote the trade programme between the US and sub-Saharan African countries, including South Africa.
Other media reports have highlighted the significance of the upcoming US election in determining South Africa’s Agoa fate. Commentators believe a Trump victory would amplify the voices calling for a review of South Africa’s eligibility.
