As President-elect Donald Trump’s January 20 inauguration approaches, there are increasing concerns about South Africa’s continued benefits with regard to the African Growth and Opportunity Act (Agoa).
The trade deal was put in place to provide preferential access to the US market for qualifying African countries.
An important consideration for South Africa is its perceived bias towards China, Russia, Iran and Hamas.
An opinion piece in FairPlay points out that the long-term threat is a possible investigation into whether South Africa poses a risk to the national security interests of the United States.
“This is important because the eligibility criteria for Agoa benefits include a condition that the country must not ‘engage in activities that undermine the United States national security or foreign policy interests’,” the advocacy organisation says.
Once inaugurated, Trump has vowed to put his new tariff regime into effect from “day one”.
His main targets are China, Mexico and Canada. But South Africa may also be impacted, indirectly as a member of the Brics group of countries, and directly because the US controls its benefits under Agoa.
The trade agreement is due to be renewed this year – and whether the Trump administration will do so, with or without South Africa, remains to be seen.
While potential trade wars with China and Mexico are likely to dominate the headlines, South African diplomats should be hard at work in Washington to secure continuing ties with the country’s second-largest trading partner, the organisation adds.
