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Solidarity today welcomed the approval of the extension of the African Growth and Opportunity Act (AGOA) by the US Senate. AGOA expired in September last year and since then the favourable trading conditions it creates no longer apply to African countries that have benefited greatly from it for 25 years. Before AGOA can come into effect again, the White House must first determine which Sub-Saharan African countries qualify for AGOA, and there is a significant risk that South Africa could be excluded.
According to Dr Dirk Hermann, Chief Executive of Solidarity, this organisation has once again appealed to the White House to keep South Africa as part of AGOA. “Over the years, AGOA has empowered hundreds of companies in South Africa to manufacture high-quality products, which are often not produced in the USA, and to export them to America at competitive prices. Hundreds of thousands of jobs have been created in this way. Excluding South Africa would penalise these companies and their employees.”
Solidarity is concerned, however, that the current tensions between South Africa and the US over a long list of issues, including the recent naval exercises in which Iran also participated, could ultimately lead to South Africa’s exclusion. “No country that threatens US national security is usually granted access to AGOA. Furthermore, there is a strong emphasis on human rights, minority rights and property rights. The Trump administration has been building a case against South Africa’s inclusion in AGOA for the past twelve months. Unfortunately, the South African government has done nothing to effectively resolve the dispute.”
The Solidarity Movement, of which Solidarity and AfriForum are part, requested the White House two weeks ago, in a letter, not to exclude South Africa. In the letter, the movement states that it is important that the benefits of AGOA flow directly to South Africa’s private sector and its hard-working employees. “While we recognise the concerns that have been raised about South Africa’s foreign policy positions and certain domestic policies such as farm attacks, expropriation, racial laws and the rights of minorities such as Afrikaners, these issues can and should be addressed through direct bilateral negotiations, diplomatic pressure or targeted conditions rather than broad trade measures that penalise innocent businesses, farmers and workers,” according to the letter to President Trump, which was sent to the White House on 19 January.
According to Solidarity, excluding South Africa from AGOA will destroy export-dependent industries and jobs and undermine the very economic players that contribute positively to stability and growth. That is precisely why Solidarity is urging the Trump administration to retain South Africa as a beneficiary of AGOA, but under specific, strict conditions.
Issued by Solidarity
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