The Congress of South African Trade Unions (Cosatu) has expressed concern that vital jobs could be lost in the poultry, beef and pork production sector following what it terms “political bullying and emotional blackmail” by United States president Barack Obama.
Obama issued a proclamation earlier this week setting a March 15, 2016 deadline for South Africa to show that it is implementing the import agreements reached last week or it will face the loss of duty-free access for its agricultural products under the African Growth and Opportunity Act (Agoa).
“Our government must not allow the agricultural sector to collapse like the textile industry nearly did when we opened our trade barriers too soon in the 1990s,” said national Cosatu spokesperson, Sizwe Pamla.
She commented in a statement that Cosatu had “noted with deep alarm” the threats by American President, Barack Obama that he would suspend South Africa from Agoa if it failed to convert itself into a “dumping site of American goods”.
Pamla added: “We recognise that there is no such thing as altruism or charity in international commerce and relations and that each country always acts to advance its own economic interests. This should not be abused. The US should not take advantage of its economic and political strength over South Africa by forcing us to sacrifice our fragile economic sectors or thousands of badly needed jobs.”
Director-general of the Department of Trade and Industry, Lionel October, said in response to the statement that the US government had simply adopted a "prudent, risk-averse" approach in extending rather than completely lifting the threatened suspension of SA’s agricultural products under Agoa.
"The US does not want to let SA off the hook 100% by lifting the suspension, as then it will lose its leverage," said October. He insisted that the US approach did not indicate a lack of trust in SA’s commitment, nor was it heavy-handed and threatening.
