Cape Town – South Africa’s ambassador to Brics, Anil Sooklal, says he believes South Africa will maintain its preferential access to US markets under the African Growth and Opportunity Act (Agoa) due to the mutual benefits for both countries.
According to Bloomberg News, he noted that around 600 US companies are conducting business in South Africa, suggesting that they are unlikely to abandon these ventures.
“I don’t think there is any serious threat of us losing preferential access to Agoa. Agoa is not a one-way issue, trade is not a one-way issue,” the reort quoted Anil Sooklal as saying at a Bloomberg conference in Johannesburg on Monday.
“You have 600 US companies doing business in South Africa. Are they going to turn their backs on that?”
South Africa has requested an early extension of Agoa, which is set to expire in 2025.
However, there have been calls from some US lawmakers to review South Africa’s access to Agoa.
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In June, a bipartisan group of American lawmakers urged the Biden administration to punish South Africa for its alleged support of Russia’s war in Ukraine.
The group of both US Democratic and Republican lawmakers requested the relocation of the Agoa forum, from South Africa to another country.
In a letter dated June 9 and addressed to US Secretary of State Antony Blinken, Trade Representative Katherine Tai and National Security Advisor Jacob Sullivan, the lawmakers expressed concerns over South Africa’s growing relationship with Russia, which is seen as a threat to US national interests.
A report about the letter was first published in New York Times.
US officials claimed that South Africa may have assisted Russia by supplying arms for the conflict, although South African officials deny these allegations.
“We are seriously concerned that hosting the 2023 Agoa Forum in South Africa would serve as an implicit endorsement of South Africa’s damaging support for Russia’s invasion of Ukraine and possible violation of US sanctions law.
“Further, these actions by South Africa call into question its eligibility for trade benefits under Agoa due to the statutory requirement that beneficiary countries not engage in activities that undermine United States national security or foreign policy interests.
ALSO READ | South Africa fights to retain Agoa status in Washington
“While we understand that the Agoa eligibility review processfor 2024 is under way and that decisions have not yet been made, we question whether a country in danger of losing AGOA benefits should have the privilege of hosting the 2023 Agoa Forum.
“Our concerns are shared by many South African citizens and businesses, who are increasingly vocal about deteriorating conditions in the country,” read the letter.
It continued: “We encourage you to explore other possible locations to host this year’s forum: we believe it is important that the forum take place this year and that it be held in Africa, continuing the tradition of alternating the forum’s location between the United States and an AGOA- eligible country. If South Africa continues to demonstrate support for Russiainits unlawfulinvasionofUkraine, then hosting the forum in another country in sub-Saharan Africa would send a clear and important message that the United States continues to stand with Ukraineandwillnot accept our trading partners provision of aid to Russia’songoingand brutal invasion
Despite tensions and allegations, Sooklal emphasised that trade relationships often transcend geopolitical issues, referencing ongoing business interactions between companies and Russia despite sanctions.
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Compiled by Betha Madhomu
