SA’s inclusion in AGOA under threat, once again

 

Tensions between Pretoria and Washington seem to be boiling over – now with four US Republican members of Congress writing a letter to Donald Trump, urging him to exclude South Africa from the African Growth and Opportunity Act (AGOA).

AGOA is a trade programme that was enacted in 2000 to boost and diversify African trade with the US. It allows duty-free entry for a wide range of African products into America, with almost 40 sub-Saharan African countries benefitting from it.

In their letter, Andrew Olges, Tom Tiffany, Joe Wilson and Don Bacon, say South Africa needs to be reminded of what happens when American interests are marginalised.

 

The politicians also accuse the country of human rights abuses and of having a vendetta against Israel.

They also cited government’s continued friendship with China’s Communist Party, as proof to the country’s disregard for American interests.

AGOA expires in September and while some have urged calm over this, economist Dawie Roodt says losing the duty free access to the US market, will be a huge blow to farmers who stand to lose trade privileges, which will lead to exports facing steep tariffs.

 

South Africa’s trade relations between the US has been hanging on a balance since Trump’s return to the Oval Office.

Fears over this were worsened on the 8th of this month, when he signed an executive order to cut US financial assistance to South Africa, citing the same issues raised by his Republican colleagues and his disapproval of the Expropriation Act.

In January, the US statesman took to social media accusing Mzansi’s government of confiscating land and mistreating certain class of South Africans.

In response to this, Trump offered refugee status to Afrikaners as a solution to escape the alleged hardship they’re subjected to in the country.

Pretoria has, however, dismissed Trumps opinions as misguided and fueled by mistruths with most blame for this being placed at lobby group, AfriForum and Solidarity Movement’s door step.

The two organisations have continued to deny the allegations, blaming ANC leaders for the tense situation.

However, while AfriForum has expressed appreciation for Trump’s recognition of the alleged injustices against Afrikaners, it has said it won’t be taking up his offer for Afrikaners to migrate to the US.

Instead, the lobby group says, it’s committed to address the issues faced by the Afrikaners here in South Africa.

On the other hand, it’s not the first time American politicians lobby for South Africa’s removal from AGOA.

In 2014, the then US Consular General in Cape Town, Erica J. Barks-Ruggles, said powerful US industries were calling for the move.

Barks-Ruggles attributed this to South Africa being perceived as a middle-income country, which some congressmen argued that it should not be benefiting from AGOA’s non-reciprocal preferences.