Premier

1. The visit was conducted in consultation with National Government, as is the norm with international visits undertaken by the Province.  These included preparatory discussions with DIRCO and our missions in Washington and New York, as well as physical briefing meetings during the visit.  Discussions were also held with Minister Patel prior to the visit. Kindly find attached letter to DIRCO.

Bearing in mind the response to question 1, the visit to the USA was not in contravention of the constitutional principles of intergovernmental relations.  Extensive interaction with national government regarding the visit proceeded throughout the planning and execution of the visit..  Furthermore, trade, tourism, industrial promotion and agriculture are areas of concurrent national and provincial legislative competence (Section 125(2) of the Constitution). As such, the Western Cape Government plays a crucial role in facilitating trade, attracting investment and supporting industries within the Western Cape. 

Many Western Cape exporters will be negatively impacted should SA be excluded from AGOA going forward, or should the               AGOA programme not be extended beyond the 2025 expiration date.  Almost 70% of the Western Cape’s top 20 goods               exports to the USA in 2022 were AGOA-eligible, with agricultural products and food and beverages ranking among the major               beneficiaries.  In agriculture in particular, the Western Cape is at risk of higher impacts than the rest of South Africa from the               loss of AGOA benefits. According to research by the Bureau for Food and Agricultural Policy (BFAP), on average, the Western               Cape’s economic losses due to higher tariffs would be twice the magnitude of South Africa’s. As such, South Africa’s                      continued inclusion in AGOA is of strategic significance when it comes to export support and development in the Western   Cape and it is important for US officials tasked with making decisions about AGOA and assessing its usage and success to be     fully aware of the positive impacts of the legislation. 

Lastly, it should be noted that the African Growth and Opportunity Act (AGOA) is a US law which grants trade preferences to qualifying sub-Saharan African countries.  Discussions as such focused on a piece of US legislation, its positive impact on the economy of the Western Cape, and the negative effect it could have on the provincial economy should SA be excluded from AGOA and not on international trade relations per se.  

The total costs for the trip were R1 667 075.89, including Travel costs (R 979 632.78), accommodation costs of

R535 885 and other costs at R151 558.11 for all six individuals.

The were no costs implications as the session was virtual.

Please see delegation list below.

Please see the details of the meetings held below.