South Africa exports an enormous amount of goods to the US annually – including vehicles, aluminium, chemicals, fruit, wine, ferroalloys, and even ice cream and edible ice. But now its privileged access via the Agoa deal could be at risk amid allegations that SA’s stand on the war in Ukraine is contrary to America’s national security or foreign policy interests.
South Africa stands to lose up to R60-billion a year in exports to the US if it forfeits its privileged access to the US market under the African Growth and Opportunity Act (Agoa) because of its ever-closer ties with Russia.
That was roughly the value of goods SA exported to the US under Agoa in 2022, according to US figures. About half of that was in motor vehicles – many of them high-end Mercedes-Benzes and BMWs – and about R8-billion was in agricultural products, much of it citrus and wine. Jewellery was another major export.
In 2022, SA exported about R275-billion in goods to the US, of which about 21.6% – or R59.59-billion – entered the US under Agoa, which provides duty-free access to eligible sub-Saharan African countries. Thirty-five of those are currently eligible. Countries can be removed for:
- Human rights abuses, including waging war, for supporting terrorism or for raising unacceptable barriers to US trade.
- Or for acting contrary to America’s national security or foreign policy interests.
It is the latter which could cause SA to be removed from Agoa, as many US legislators regard SA’s warming ties with Russia – including its alleged sale of weapons to Moscow -…