The South African government is relieved to find that the country has not – so far – been kicked out of America’s AGOA trade deal with African countries, but there is concern at the short period of the one-year renewal.
The African Growth and Opportunity Act (AGOA) expired last September, and with it went the preferential access to United States markets that South Africa and many other African countries had enjoyed for 25 years.
Two different versions of a proposed extension were passed in the US Congress. The House of Representatives approved a three-year renewal, but the US senate passed a bill that would renew AGOA for only one year. After the House agreed to the shorter extension, it was signed into law by President Trump.
News24 reported that South African trade minister Parks Tau welcomed the extension, but said the short period of the renewal was a concern.
There has so far been no move to strip South Africa of its AGOA benefits – duty free access to the US for South African exports such as automotive products, wine and fruit. However there is continuous speculation South Africa’s inclusion in a renewed AGOA still remains in jeopardy. Powerful US politicians have had harsh words about South Africa, with one calling the country “an adversary of America”.
This relates directly to AGOA, which is a piece of US legislation so the US determines the beneficiaries. The AGOA Act provides for the exclusion of countries that “engage in activities that undermine United States national security or foreign policy interests”.
There has also been extreme hostility to South Africa by President Donald Trump, who boycotted the G20 meetings in South Africa last year and then banned South Africa from attending G20 meetings in the US this year.
And, at the Davos international talk shop last month, President Trump repeated his accusation of a “white genocide” in South Africa – a claim repeatedly denied by government and opposition politicians. He said that “what’s happening in South Africa is terrible. It’s a terrible situation”.
South Africa might keep its AGOA benefits. Or it might not. The warning bells keep ringing.
