January 9, 2025
US, Africa face-off at Biden summit, with SA’s preferential market access up in the air
The US’s resolve to claw back lost influence in Africa will be put to the test this week when dozens of the continent’s leaders and officials gather for three days of talks with their American counterparts in Washington.
A top priority of President Joe Biden’s US-Africa Leaders Summit, which aims to increase cooperation on some of the world’s most pressing issues, will be to map out the future of market access.
The African Growth and Opportunity Act, which expires in 2025 and gives about three dozen African nations duty-free access to the world’s biggest economy for almost 7 000 products, will be discussed at the summit on Tuesday and at a subsequent meeting with lawmakers.
One of the contentious issues to be ironed out will be who gets access.
South Africa is at risk of losing part of its preferential access to the US if its trade policies disadvantage American exporters relative to their developed-nation counterparts, according to people familiar with the matter.
Trade ministers will have an opportunity to speak directly with members of Congress, who are in charge of legislating on AGOA, on what should be improved and how to move forward, Sarah Bianchi, the deputy US trade representative for Asia and Africa, said in an interview ahead of the summit.
“We very much have the next phase in mind as we start these conversations,” Bianchi said. “This was a priority for us. Getting these direct dialogs is truly the point and the opportunity of this summit.”
Deepening Ties
The US is trying to deepen its ties with Africa as it competes for influence with rivals China, the continent’s largest trading partner and bilateral creditor, and Russia, which has successfully strengthened relations with the region in recent months as western nations tried to isolate it over its invasion of Ukraine.
US two-way trade with sub-Saharan Africa was $44.9 billion last year, a 22% increase from 2019, while foreign direct investment into the region fell by 5.3% to $30.31 billion in 2021.
