A delegation in government is set to embark on a charm offensive in the US this week in a bid to defuse tensions with South Africa’s second largest trading partner over foreign policy and retain its preferential access to American markets.
Enoch Godongwana, the finance minister is one of the people planning meet with US politicians and lobby for South Africa to retain its eligibility to export goods duty free to the US under the African Growth and Opportunity Act (Agoa). The intention is for the officials to try and dispel what the government has termed misinformation about its stance toward Russia’s war in Ukraine.
South Africa has managed to maintain what it terms a non-aligned position towards the invasion, a stand that has irked Washington. Tensions went up earlier this year when the US ambassador to South Africa, Reuben Brigety, accused South Africa of supplying arms to Russia, but an allegation Pretoria denied.
A number of US lawmakers have called on President Joe Biden’s administration to reconsider whether South Africa should continue to benefit from Agoa. Apart from being angered over South Africa’s foreign policy stance, some legislators argue that the country is too developed to participate in the programme.
President Cyril Ramaphosa’s spokesman, Vincent Magwenya said there’s no officially expressed view that seeks to exclude South Africa from Agoa. “This is despite some politicians in the US lobbying for our exclusion. Agoa is coming up for renewal towards the end of this year, and naturally it will be reviewed as it happens with all trade agreements. That review will not only apply to South Africa but to all participating countries.” – he added.
The expiry date for Agoa is 2025, and US officials have previously said the qualifying criteria may be revised or the programme may be replaced. SA ships cars and agricultural produce to the US under the accord. Last year, it exported US$2.7-billion worth of goods using Agoa and the so-called Generalised System of Preferences.
