US House of Representatives in favour of Agoa renewal for another three years
The US House of Representatives has voted to continue bipartisan trade programme the African Growth and Opportunity Act (Agoa), which protects and strengthens the US’s strategic, economic and national security interests, including access to critical minerals found outside the US.
The Bill will now go to the US Senate for approval. South Africa’s participation in a renewed Agoa is however not guaranteed, given the strained relationship with the US under the Trump administration.
Agoa is a key element of US strategy to challenge Chinese and Russian economic coercion and exploitation of African nations, the House said in a January 12 statement.
“Agoa and HOPE/HELP for Haiti are long-standing trade programmes that serve America’s economic and national security interests and, with today’s vote, will continue their history of bipartisan support,” said US House Ways and Means Committee chairperson Jason Smith.
These programmes are key for countering the threats to the US's strategic and economic security posed by China and Russia in Africa and by turmoil inside Haiti. This is particularly important when it comes to securing the US's supply chains and access to critical minerals, he said.
“A swift reauthorisation will ensure the US can support reliable trading partners and deny nations that seek to exploit resources and spread harmful influence around the world more room to advance their interests,” he said.
The Agoa Extension Act renews the programme for three years.
Agoa is the cornerstone of economic relations between the US and sub-Saharan African nations. It has the most stringent eligibility criteria of any trade preference programme, and countries must meet strict standards related to rule of law and political pluralism, anti-corruption, intellectual property rights, human rights and market access, the House said.
Further, it stated that the programme ensured beneficiaries did not undermine US national security or foreign policy interests.
Africa was home to about 30% of the world’s critical mineral resources and China had invested $8-billion to $10-billion in Africa to try to monopolise these essential supply chains, the House noted.
The Trump Administration had focused on stability in Africa, most recently evidenced by President Donald Trump’s work to secure peace between Rwanda and the Democratic Republic of Congo (DRC) and the US Administration’s announcement of a Strategic Partnership Agreement with the DRC to develop critical minerals, said Smith.
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