Blog #10: South Africa and US agree to build trade ties
South Africa and the United States have agreed to strengthen and deepen their bilateral trade and investment relations following the Trade and Investment Framework Agreement (Tifa) Council meeting in Washington DC. Under the proposed deal, US chicken bone-in cuts exports to South Africa would be restored to their value prior to 2000 with a growth factor that took into account current dynamics in the South African market. The South African and US poultry associations met last week on the margins of International Egg and Poultry meetings in Europe and the Department of Trade and Industry expected the South African Poultry Association to table an improved offer that may lead to a deal being finalized. The US is South Africa's third largest trading partner; their bilateral trade and investment relations are guided by the Tifa, which was initially signed in 1999. South Africa and other sub-Saharan African countries are calling for a 15-year renewal of Agoa for all eligible countries without conditionality's. South Africa's top exports were vehicles and associated transport equipment (representing 27% of total exports to the US), precious metals (23%), base metals (11%), mineral products (9%), and chemical or allied industries (16%).
The importance or the relevance I took from this article was the US being able to strengthen its trading power. I find it very important for the US to have resources in more than two other countries. South Africa may/will be able to help the US by trading with us, as the US will be able to offer South Africa a good or service.
Citation:"SouthAfrica.info." South Africa and US Agree to Build Trade Ties. N.p., n.d. Web. 23 Apr. 2015. <http://www.southafrica.info/business/trade/relations/tifa-210415.htm#.VTlpsc5H1sM>.