The United States and Western Cape trade and investment partnership clinched
Earlier this month, the US Consulate General in Cape Town and Western Cape Government jointly launched a Trade and Investment Promotion Partnership which will build on the momentum of the existing economic relationship to promote shared prosperity and economic development.
At the launch event, Western Cape Finance and Economic Opportunities minister David Maynier and US acting consul general Will Stevens pledged to deepen cooperation and coordination to promote and increase bilateral trade and investment through various engagements, events, and high-level interactions.
The partnership will leverage the decades of innovative trade and investment promotion through provincial agencies such as Wesgro, and the services, resources, and expertise of 17 US government agencies to support American and African businesses.
Further good news is the support of the African Growth and Opportunity Act, which allows dutyfree exports of more than 6,500 goods from Africa to the US.
At the launch, Maynier said: “The United States is key tourism and business market for the Western Cape, and our biggest source of foreign direct investment, so I am excited about the potential for further economic growth for both regions through the Trade and Investment Promotion Partnership.”
Stevens concurred: “The trade and investment promotion partnership builds on our strong relationship with the Western Cape and the US Government’s commitment to increasing our already robust trade and investment.
“The partnership also reflects the US private sector’s increasing interest in investing in the Western Cape and the potential for further expanding bilateral trade.”
The economic relationship between the US and the Western Cape is evergrowing. The province’s diverse and dynamic economy attracts investment from American companies big and small, and the US has been the top foreign direct investor in the Western Cape for many years.
US companies investing in the province has created tens of thousands of jobs, offer training and skills development, and support local communities through local outreach and humanitarian programmes.
Over the last 20 years, bilateral trade between the States and W-Cape has risen by 335% and is currently valued at approximately R17-billion annually. In 2020, bilateral trade grew despite the C-19 pandemic. This growth included a 68% increase in citrus exports and a 78% increase in wine exports to the United States.
Hundreds of W-Cape companies export to the US as part of this reciprocal trade, while also setting up operations in the States or forming commercial partnerships with US companies.