AGOA - A Lesson In Self-Interest

The AGOA debacle prominently features on South Africa's 24 hour news cycle. Adding to the mess are local trade unions, Cosatu and Fawu. Both are angry at the United States for allegedly undermining South Africa's agricultural industry. As a rule, I would not take the time and effort to educate those in Cosato and Fawu on the specifics of AGOA, but because nothing is more dangerous than ignorance, an exception to the rule is warranted. AGOA is a benevolent creature of statute passed by the US Congress and enacted into law. The legislation offers immense trade benefits to qualifying Sub-Saharan African countries for duty free access to the US market. South Africa is currently an AGOA beneficiary resulting in many thousands of local jobs, and millions of Rand in export revenue. If I am able to impart one piece of information to local unions, it is an understanding of the unilateral nature and scope of non-reciprocal trade preferences under AGOA . To put it simply: South Africa was not a party, contractual or otherwise, to AGOA, and therefore it does not rise to the level of a bilateral treaty between both countries. South Africa must meet published eligibility requirements under AGOA, one of which is elimination of trade barriers. In short, AGOA is a magnanimous gift to Sub-Saharan qualifying countries. No self-respecting unionist should argue otherwise. To union leaders who still feel aggrieved by the US move, note that South Africa's lifeline to AGOA can be severed by South Africa at anytime. It is not as if the US is holding a gun to South Africa's head. Union leaders should take the time to see the wood for the trees - the big picture - before engaging in further anti-US rhetoric. Preferably, now armed with insight of the Agoa trade regime, and mindful of the extraordinary trade benefits that redound to South Africa, union leaders should insist that Minister Davies lay down his fiddle and get the job done.