South Africa faces showdown with United States

Key Republican Party representatives in the United States are pressuring the incoming Trump administration to extricate South Africa from lucrative trade arrangements.

South Africa benefits from the African Growth and Opportunity Act (AGOA), which provides participating countries with preferential access to US markets.

South African products currently enter the world’s biggest market duty-free under AGOA, which benefits local producers.

However, South Africa’s close ties with Russia and China, its anti-Israel stance, and its refusal to condemn Moscow’s invasion of Ukraine have angered many US lawmakers.

United States lawmakers have been critical of South Africa after it took Israel to the International Court of Justice over accusations of genocide in Gaza.

In June 2024, the US House passed a key annual defence policy bill with an amendment calling for a review of South Africa’s national security risks to the United States,

This annual defence policy bill still needs approval from the United States Senate and the White House.

If passed, it could complicate the status of thousands of South African products and cause damage to the country’s exports.

The United States is South Africa’s largest trading partner after China and is an important country for many exports.

Maintaining favourable commerce ties between the two countries is key to the newly formed South African coalition government’s efforts to bolster an economy.

The AGOA will expire in 2025, and its beneficiaries are still awaiting formal guidance about its future.

The positive news is that South Africa will retain preferential access to the US markets for its goods in 2025 despite strained relations between the countries.

However, this can change with increasing pressure from United States politicians to review their relationship with South Africa.

Many economists warned that South Africa is alienating its biggest trading partners, including the United States and Europe.

The country is siding with countries it does not benefit from or have big trading relationships with, like Iran and Russia.

South Africa faces showdown with United States

Fox News reported that key Republicans are pressing the incoming Trump administration to remove South Africa from lucrative trade arrangements.

Senator Jim Risch of Idaho told Fox News that he is concerned about South Africa’s efforts to cosy up to Russia, China and Iran.

He said South Africa’s actions go against the AGOA eligibility requirement that the country’s actions should not impact US national security.

To be part of AGOA, a country could not “act in a manner that undermines U.S. national security or foreign policy interests”.

South Africa’s close ties with Iran, Russia, and China and its actions against Israel raise questions about its adherence to this policy.

Senator Tim Scott from South Carolina, a member of the Senate Foreign Relations Subcommittee on Africa, shares Risch’s concerns.

“South Africa has harboured sanctioned Russian ships, expanded relations with Iran and issued statements against Israel’s right to defend itself following Hamas’ recent terror attack,” he said.

Scott said he looks forward to working with the Trump administration to ensure that AGOA participants are not undermining US national security interests.