Understanding the African Growth Opportunities Act (AGOA) and its impact on the economies of South Africa and the Western Cape

Understanding the African Growth Opportunities Act (AGOA) and its impact on the economies of South Africa and the Western Cape

South Africa enjoys duty-free market access to the United States (US) under a US law called the Africa Growth and Opportunity Act (AGOA). This Act is set to expire in 2025. Renewal of AGOA is currently uncertain; South Africa’s continued inclusion in the preference programme, should it be extended, is also uncertain. This paper provides an overview of the AGOA legislation, an overview of South Africa and the Western Cape’s trade and investment relationship with the US and looks at the role that AGOA plays. This includes an analysis of South Africa and the Western Cape’s trade and investment relationship with the US, the Western Cape’s exposure to the US market, and the importance of AGOA to the province’s labour market, and an analysis of the short-, medium- and long-term realistic export opportunities for the Western Cape in the US market.

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