US House approves three-year AGOA extension, but where does this leave South Africa?

Mthobisi Nozulela|Updated

The US House of Representatives has approved a three-year extension of the African Growth and Opportunity Act (AGOA)

Image: File/ AFP

The US House of Representatives has approved a three-year extension of the African Growth and Opportunity Act (AGOA), the trade programme that allows many sub-Saharan African countries duty-free access to American markets.

AGOA expired last October after lapsing for a few months, with many economists and experts warning that the delay could disrupt African exports, hurt businesses, and weaken the continent’s trade ties with the United States.

The US House of Representatives voted overwhelmingly in favour of the extension, with 340 lawmakers supporting the bill and 54 opposed. The legislation now moves to the Senate for further consideration, where the fate of South Africa’s participation remains uncertain amid ongoing trade and diplomatic tensions with Washington.

South Africa and the US have been at odds over trade and diplomatic issues in recent years, including disputes over market access and the country’s military exercises with China, Russia, and Iran.

According to reports, as Congress prepared to vote, South Africa asked Iran to withdraw from the joint naval exercise “Will for Peace” in False Bay, a move aimed at avoiding further tensions with the US.

Senate Foreign Relations Committee Chairman Jim Risch has also slammed South Africa, saying the government’s claims of non-alignment are undermined by its military ties with US adversaries, and that its actions signal hostility toward Washington, raising questions about the country’s eligibility under AGOA.

"South Africa’s ANC-led government’s foreign policy hides behind a claim of non-alignment, yet its military hosts drills with America’s chief adversaries. Any promise or deal this government offers Washington is meaningless when its actions signal open hostility toward the United States," Risch said.

"President Trump is right to treat South Africa’s government for what it is: an adversary of America. That is why the US should take stronger action against the South African government. The time for envoys, bureaucratic reviews, or business deals bridging the gap has passed."

mthobisi.nozulela@iol.co.za

IOL Business

Get your news on the go. Download the latest IOL App for Android and IOS now