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Repeated warnings from Solidarity about the consequences for South Africa of harmful and anti-US policy are more and more looming to become reality.

A letter in which members of the US Congress request Pres Donald Trump to terminate South Africa’s access to benefits under the African Growth and Opportunity Act (AGOA) is currently being widely circulated.

In the letter it is contended that it is necessary to remind South Africa of what happens when US interests are being disregarded.

For a long time, Solidarity has specifically pointed out how damaging the loss of AGOA benefits could be for ordinary South Africans as well as for various industries. An AGOA report, drafted by the Solidarity Research Institute (SRI), highlighting the benefits of the trade agreement for South Africa was submitted to the South African government in the first place.

However, no reaction to the report was received.

Eventually, Solidarity brought this report to the attention of US government departments and other interest groups in the US. According to Theuns du Buisson, who compiled the AGOA report and an economic researcher at the SRI, officials in the US were grateful for this report as their pleas to the South African government for similar figures had also fallen on deaf ears.

Meanwhile, the SRI has drafted an updated AGOA report that indeed highlights the positive impact of AGOA on the South African economy. 

It is accordingly clear how the cancelling of the agreement would greatly harm industries such as mining and metal processing, or how industry sectors relying on non-precious metals, chemicals and agricultural products would be adversely affected. The automotive manufacturing industry could possibly also be forced to its knees.

The report indicates that South Africa’s total exports to the USA stand at R156,8 billion, with about half (48%) of that coming from sectors that directly benefit from AGOA.

Some of the harmful policies pointed out by Solidarity in the past are now also repeated in the letter by the members of the US Congress. These include the South African government’s hostile attitude towards Israel, as well as the ANC’s openly close ties with Hamas.

The letter also mentions the South African government’s close relationship with the Chinese Communist Party and their views on Taiwan.

The letter further states how attempts to bring about expropriation without compensation, as well as the high levels of corruption and crime, already make South Africa ineligible for access to AGOA benefits.

Du Buisson says it is clear that the ANC’s persistence with anti-American policies is now taking its toll.

“The very first prerequisite for AGOA is respect for human rights and property rights, and that is under suspicion. So are our foreign relations. That is the cause of this diplomatic crisis and the reason why South Africans should be angry with our government.

“Yet Solidarity does not want South Africa to be kicked out of AGOA as the ordinary workers and the people who want to protect the interests of the USA will actually be the people who will suffer as a result,” Du Buisson said.

Issued by Solidarity