South Africa\u2019s newly formed government will use an upcoming forum on US preferential trade access to push back against a Senate review of ties between the two countries.<\/p>\n\n\n\n
The House of Representatives last month passed a law requiring a full assessment of bilateral relations and submitted it to the Senate for approval. <\/p>\n\n\n\n
South African business lobby groups have warned the legislation threatens to curb trade with the world\u2019s biggest economy at a time when the country needs to accelerate economic growth to address widespread inequality.<\/p>\n\n\n\n
A review of ties may risk South Africa\u2019s access to the African Growth and Opportunity Act, which provides the country with duty-free access to the US market. Two-way trade between the two nations amounted to $23.7 billion last year, with South Africa shipping cars and agricultural produce under the accord.<\/p>\n\n\n\n
\u201cWe intend to engage senators and also members of Congress about what our position is on a whole range of issues as the South African government on the back of the AGOA act, but also taking into account bilateral relations,\u201d Trade, Industry and Competition Minister Parks Tau said in an interview.<\/p>\n\n\n\n
A delegation will head to the US to attend the AGOA Forum in Washington DC from July 24-26, he said.<\/p>\n\n\n\n
US lawmakers called for the review of relations in February after South Africa took Israel to the International Court of Justice over allegations of genocide. <\/p>\n\n\n\n
They also cited reasons, including South Africa\u2019s history of \u201csiding with malign actors,\u201d including Hamas, which the US designates as a terrorist organization, and its pursuit of closer ties with China and Russia.<\/p>\n\n\n\n
The US is South Africa\u2019s second-largest trading partner after China and will form a crucial part of the new government\u2019s efforts to revive the economy. <\/p>\n\n\n\n
South African gross domestic product has expanded by less than 1% a year on average over the past decade \u2014 well below what\u2019s needed to maintain living standards for the nation\u2019s growing population.<\/p>\n\n\n\n
The US legislation is being considered as America prepares for presidential elections in November, in which former President Donald Trump will run against incumbent US President Joe Biden. <\/p>\n\n\n\n
Relations between the US and Africa reached a low ebb during Trump\u2019s first term, during which he made disparaging remarks about African nations and high-level diplomatic engagements were few and far between.<\/p>\n\n\n\n
\u201cWe work on the basis that we have established relations with a whole range of countries on multilateral and bilateral platforms,\u201d Tau said. \u201cWe should be able to build on the basis of the electoral outcomes.\u201d<\/p>\n\n\n\n