Trade Agreement Between Sa And Usa
Following President Mbekis` visit to the United States in June 2001, it was agreed that the work of the former South African-United States Binational Commission (BNC) would continue and that the new structure would be known as the SA-US BILATERAL COOPERATION FORUM (BCF). The first meeting of the Secretariat was held in February 2002 to discuss ways to coordinate and strengthen the work of the 10 Committees. The expansion of trade and investment, as well as the deepening of substantive relationships in areas such as agriculture, justice and the fight against crime, defence, energy development, health, human resources development, housing, science and technology, nature protection and the environment, are currently the main elements of the Forum`s activities. Earlier this year, the Trump administration revived this historic stance on South Africa and revoked the status of “developing country.” This was followed by a similar US decision regarding China and India. This means that these countries no longer benefit from the preferential trade regime that will be extended to poor nations. An electoral victory for Biden is unlikely to deviate from the path taken by the current administration. Trade is one of the few areas in which there is still strong support between the parties. South Africa is the United States` largest trading partner in Africa with a total of $14 billion in 2018. About 600 U.S. companies operate in South Africa, many of which use South Africa as their regional headquarters. South Africa qualifies for preferential trade benefits under the African Growth and Opportunity Act and the U.S. Generalized System of Preferences Trade Preference Program. The two governments have frequent discussions to increase bilateral trade and investment opportunities and improve the business climate.
The United States and South Africa signed a revised Trade and Investment Framework Agreement (TIFA) in 2012. In addition, the country is part of the South African Customs Union, which in 2008 signed a Trade, Investment and Development Cooperation Agreement (TIDCA) with the United States. The United States and South Africa have concluded a bilateral tax treaty that eliminates double taxation. Annual development assistance to South Africa currently amounts to about $60 million and, since 1994, more than $650 million. U.S. programs are delivered through the U.S. Agency for International Development (USAID). The South African government, coordinated by the Treasury, and USAID are highly consulted on the orientation of USAID programs towards South Africa`s national development priorities. USAID assistance programs focus on promoting democracy and good governance in South Africa; build the capacity of provincial and local educational institutions; improving primary health care; technical assistance and scholarships to improve the country`s economic performance; and improving the quality of and access to housing, urban and ecological services in South Africa. . .