NEWSLETTER ISSUE #2/2016
|
Guest lecture by Mr Peter Draper
On 21 April, well-known trade expert Mr Peter Draper of Tutwa Consulting addressed students and staff at the NWU School of Economics on the current state of SA-US trade relations and what the future holds - particularly in the light of the fractious run-up to the renewal of AGOA earlier this year. He explained that to the United States, South Africa is a difficult trading partner, not helped by the fact that South Africa has been nurturing its trade and investment ties with China (a strategic competitor of the US) and the rest of BRICS. South Africa still receives most of its FDI (foreign direct investment) from the US, but South Africa’s changing legislative landscape (including the tightening of BBBEE regulations where investors are concerned) could see a spike in American companies departing our shores for greener pastures.
It is likely that South Africa will be ‘graduated’ from AGOA when the facility expires in 2025, but previous unsuccessful attempts by South Africa and the United States to negotiate a free trade agreement do not auger well for South Africa having a ready replacement for AGOA. Consequently, the country could find itself at a severe competitive disadvantage vis-à-vis other developing economies, with negative repercussions for its export performance.
Related news:
|
|
Guest lecturers get TRADE staff and students thinking
Archive Newsletters |
