Mbabane: United States of America President-elect Joe Biden and his new administration are expected to take a multilateral approach to foreign policy, easing tensions and increasing engagement with allies.
Trade issues are also expected to be a top priority, and US engagement with African countries will likely focus on strengthening relationships in a strategic, co-operative way. Eswatini being an African member state could not be left behind.
Business day news reported on Wednesday that Biden’s administration is likely to look at new, reciprocal, bilateral and regional trade agreements with Africa. Such agreements are expected to eventually replace the non-reciprocal African Growth and Opportunity Act (AGOA), which allows duty — and quota-free — exports from eligible African countries into the US but is due to expire in 2025. AGOA was signed into law by Bill Clinton, and Presidents Bush and Obama extended it during their tenure.
In July 2018 Eswatini got approved back to AGOA after the Office of the U.S. Trade Representative determined that Eswatini has adopted an effective visa system and related procedures to prevent the unlawful transhipment of textile and apparel articles and the use of counterfeit documents in connection with the shipment of such articles. Eswatini had also implemented and follows, or making substantial progress toward implementing and following, the customs procedures required by the African Growth and Opportunity Act to assist U.S. Customs and Border Protection in verifying the origin of textile and apparel products.
As a result, effective with respect to articles entered or withdrawn from warehouse for consumption on or after July 3, 2018 imports of eligible products from Eswatini qualified for the textile and apparel benefits provided for under AGOA.
This came after Eswatini lost the AGOA benefits in January 1, 2015.
Biden is reportedly supportive of the African Continental Free Trade Area Agreement (AfCFTA), which kicks off in January. AfCFTA is a landmark deal that aims to bring together 54 African countries with a population of more than 1-billion people and a combined GDP of over $3-trillion. Eswatini is among those countries. Once the agreement’s ambitious goals are realised it will help African member states establish new cross-border value chains, encourage foreign investment and better insulate the continent’s economies from future global shocks.
All future trade agreements signed between the US and African countries will have to align with AfCFTA trade stipulations and, considering Biden’s environmental stance, they could include climate change provisions and tariffs on high-carbon imports. Biden will also continue to focus on trade agreements that don’t hamper the exchange of goods or disadvantage US businesses and consumers.
Biden’s likely focus on increased engagement and continued trade and investment in Africa will be good news for a continent in vital need of strong allies and support in its post-pandemic recovery.
Furthermore, Biden is also likely to provide financing for the Green Climate Fund, which was started under the Obama administration to help developing countries respond to climate change. In this regard Eswatini is also part of the Green Climate Fund
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