First of all, I would like to thank the Creator for the opportunity to participate in such a privileged journey and the ability to contribute to the field. This thesis draws attention to the discrepancies that have often gone unnoticed over the decades and the effects that have arisen as a result. The trade relationship of South Africa (SA) and the United States of America (USA) through the African Growth and Opportunity Act (AGOA) is the focus of this study, where this relationship is analyzed from as far back as recorded history to the modern day.
Examples include two world wars; oppressive regimes such as apartheid; and the creation of global institutions, from the International Trade Organization (ITO) to the General Agreement on Tariffs and Trade (GATT) and the World Trade Organization (WTO). The first three chapters contain an introduction, a background which focuses on the development and history of relations between South Africa and the United States of America.
CHAPTER ONE
INTRODUCTION/RESEARCH PROPOSAL
- Background
- Preliminary literature study
- Research problems and objectives
- Principal theories
- Research methodology
- Dissertation structure
- Conclusion
Previously, scholars have explored the impact of this agreement on trade relations between the US and SA. The research problem this dissertation intends to pose is to investigate the impact on trade relations between SA and the US in relation to AGOA. On the other hand, Carroll's similar position offers a different approach to SA-US trade relations.
Therefore, the position taken by the US with AGOA could potentially harm its ambitions in the long run. The goal of AGOA is to give the US market access to SSA countries, which in return provide benefits on selected products and goods.
CHAPTER TWO
DEVELOPMENT IN THE MULTILATERAL TRADING SYSTEM
- Introduction
- A brief background
- World Trade Organization (WTO)
- The African Union
- Development within multilateral trading systems
- Conclusion
60 D Drache "The Short but Important Life of the International Trade Organization: Lessons for Our Time". 80 Zeiler “Expanding the mandate of GATT: The first seven rounds” in The Oxford Handbook on The World Trade Organization Oxford University Press (2012) 145. They came from the loopholes created by the GATT apparatus.
116 E Preeg 'Uruguay round negotiations and establishment of the WTO' in The Oxford Handbook on The World Trade Organization (2012) 168. Inequality is still widespread in most of the world and the need to accelerate it is urgent now, more than ever .
CHAPTER THREE
OVERVIEW OF THE TRADE AND POLITICAL RELATIONS BETWEEN SOUTH AFRICA AND THE UNITED STATES
OF AMERICA
- Introduction
- A brief history of trade between South Africa and the United States Interestingly, trade between these two countries can be traced as far back as in the
- Apartheid
- Democratic South Africa
Prior to the US dollar becoming the reserve for most of the world’s currency, its value was derived from gold. 280 In order to maintain the stability of their currencies, the US and Britain had to ensure the continued production of gold. Regardless, trade and investment between SA and the US has increased significantly over the past two decades, with total trade including imports and exports having grown from under $3.3 billion in 1985 to a staggering $16.8 billion in 2011.
Trade relations between SA and the US have been turbulent to say the very least. The US has been an undoubted beneficiary as a result of its influential position derived from its early involvement in barter and trade in opposition to SA. It was during apartheid that the US gained a stronghold on the South African economy, as demonstrated through the significant foreign investment it had in SA.
This shows that the US is usually inclined to look after its interests above others’ in most circumstances – even basic human rights. This would see the US lose its influential position in institutions and organisations that govern global affairs. Other nations would not be as reliant on the relationship and ties with the US as they would have been previously.
Therefore, it is difficult to see the US supporting other nations in an attempt to see to the development of less developed countries. This chapter has taken a look at the historic relations between the US and SA with a closer look at the activity during one of the most strenuous periods in modern history where moral values ought to have persevered – apartheid – but to no avail. This chapter serves as the foundation for the discussion of AGOA which takes place in the following chapter and will further illustrate the role of the US in trade relations with Africa and SA.
CHAPTER FOUR
THE AGOA AND THE OVERALL IMPLICATIONS IN RELATION TO AFRICAN COUNTRIES
- Introduction
- Background to AGOA
- General operation of the AGOA in Africa
- AGOA and South Africa
- Recent issues involving South Africa and the United States
- Conclusion
On a broader spectrum, the formulation of AGOA was borne out of necessity for the United States as opposed to assisting economic growth and development on the African continent. Negotiate reciprocal and mutually beneficial trade agreements, including the possibility of establishing free trade areas that serve both US and SSA countries' interests. Apparel made from yarns and fabrics not produced in commercial quantities in the United States (a determination must be made that the yarn or fabric cannot be supplied by U.S. industry in a timely manner and to extend preferential treatment to the eligible fabric).
There is a give-and-take relationship where the US decides what it sees fit to give or share, leaving the potential for exploitation by African countries.491. The export economy is the 33rd largest in the world, with the US being the second largest export destination, with a total value of US$5.47 billion. This, in retrospect, is responsible for the tension between SA and the US that recently arose during the renegotiation and reauthorization of AGOA.529 An argument raised by Senators Coon of Delaware and Isaakson of Georgia.
519 The US had complied with AD duties imposed on it in respect of chicken exports to South Africa during the term of the AGOA agreement, but during the reauthorization negotiations this issue was raised again as non-compliance with the provisions of the law. One of the reasons why this law came about is because the US wanted to compete with the EU and the position it was taking regarding trade relations in Africa, in the form of EPAs and, as mentioned above, the TDCA, which they had entered. in with SA. If the US wants to compete with the EU, it must improve or establish comparable or even better relations and trade conditions with African countries.
It would be in the best interest of the US to remain in the position it currently occupies because it has had the most influence from there for centuries. The SA-US debate revealed another side of US intentions. As a side note, US actions are based more on political than economic content.
RECOMMENDATIONS AND CONCLUSION
- Introduction
- Findings
- Recommendations
- Conclusion
In this chapter, the study focused on the origins of the GATT and the WTO, focusing on the extent to which development was the focus of attention of developing countries. All this laid the foundation for an unequal position, the leveraging of developing countries at the will of developed countries, as well as the expansion of the current economic position of LDCs and developing countries, as illustrated by the AGOA reauthorization negotiations. Finally, Chapter 2 finds that institutions such as the WTO only deal with the challenges of developed countries because of the constant struggle developing countries have in implementing policies designed for their development.
This chapter recognizes that trade is a piece of the overall puzzle as it is the basis for the economic reality of most countries. 565 Chapter 3: Overview of The Trade and Political Relations Between South Africa and The United States of America, 6. This study also found that features of the AGOA such as the eligibility requirement should be unnecessary for participation in trade as it excludes the initiation .572 This further grants powers to the US and enables it to further dictate the course of events which indirectly causes division among developing countries in Africa.
US interests are paramount in their operations and every other agenda comes second. This was illustrated by the way the country behaved during the reauthorization negotiations with South Africa. In essence, this recommendation encompasses many aspects due to the nature of how development is defined. It has also been suggested that creating reciprocal conditions may be the solution to alleviate some of the challenges faced by developing countries.
The intent to trade with the US or any developed country must be to achieve the goals outlined by Agenda 2063. This comes in the form of consideration of the development dynamics that are in relation to Africa, those involving social and human development. The conclusions on this topic are drawn from the initial research question of the extent to which development was the focus of trade relations between SA and the USA in terms of AGOA.
LIST OF REFERENCES
Oluyeju, O and Mafu, M ‘The African Growth and Opportunity Act: A Poisoned Chalice Handed to South Africa?’ (2016) South African Yearbook of International Law 30–50. Assessing the legal implications of the African Growth and Opportunity Act (AGOA) for South Africa’s trade policy.’ (Unpublished LLM thesis, University of Pretoria) (2016). Available at http://www.bdlive.co.za/business/trade chicken-dispute-unlikely- to-scuttle-trade-boon, accessed on 19 October 2018.
Available at https://www.cbsnews.com/news/bill-clinton-talks-about-his- friendship-with-nelson-mandela/, accessed on 20 September 2018. Available at https://agoa.info/news/article/5382-don-t-let-chicken- wars-get-in-the-way-of-agoa-south-africa.html, accessed on 15 February 2019. Available at https://www.tralac.org/discussions/article/5354-some-bigger- picture-implications-of-south-african-trade-policies.html, accessed on 16 October 2018.
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Available at http://www.acs-aec.org/index.php?q=trade/the-link-trade-and-development-part-one, accessed August 22, 2018. Available at https://www. tralac.org/publications/article/13008-trump-s-steel-and-aluminium-tariff-action-putting-america-first.html, accessed October 17, 2018. Prinsloo, C'AGOA and the Future of US-Africa relations' South Africa Institute of International Affairs 1 Available at http://www.saiia.org.za, accessed October 16, 2018.
