South Africa Branded An Enemy As US Lawmakers Move To Rewrite AGOA Trade Rules

South Africa Branded An Enemy As US Lawmakers Move To Rewrite AGOA Trade Rules

South Africa’s already strained trade relationship with the United States has come under renewed scrutiny following blunt remarks from a senior Republican lawmaker, who publicly characterised Pretoria as an adversary of Washington. The comments were made against the backdrop of mounting pressure in the US Congress to reconsider South Africa’s participation in the African Growth and Opportunity Act, a cornerstone of American trade policy towards the continent.

The exchange, which took place during a Senate Appropriations subcommittee hearing, underscores how trade policy, foreign relations and domestic politics in Washington are becoming increasingly intertwined. It also highlights the growing uncertainty facing South African exporters who rely on preferential access to the US market under AGOA.

Congressional Pressure Builds Around AGOA And South Africa

Republican Senator John Kennedy used the hearing to question US Trade Representative Ambassador Jamieson Greer on whether South Africa should continue to benefit from AGOA should the programme be extended. Kennedy framed his concern in stark terms, asking:

“What do you want to do about South Africa as part of AGOA, given that South Africa is not America’s friend?”

AGOA, which grants eligible African countries duty free access to the United States for thousands of products, has long been presented as a vehicle for development and economic integration. However, critics in Washington have increasingly argued that South Africa, as the continent’s most industrialised economy, should not be treated in the same manner as poorer states.

Greer acknowledged the broader political context shaping the debate, while focusing his remarks on trade considerations rather than diplomatic disputes.

“That’s correct. We have had some conversations with South Africans when it comes to trade, and there are a lot of kind of foreign policy issues that I do not get into with South Africa. But when it comes to trade, they have a lot of barriers …

He continued by stressing that tariff and non tariff barriers remained a sticking point in bilateral discussions.

We have made it clear to the South Africans that if they want to have a better tariff situation with us they need to take care of these tariff and non-tariff barriers.

Trade Barriers And Economic Expectations

Greer went on to describe South Africa as an economy with significant capacity and responsibility, suggesting that its current trade posture does not align with its level of development.

“They are a real economy, they are a big economy, right. They have an industrial base, they have an agricultural base; they should be buying things from the United States,”

His remarks reflect a view held by some US policymakers that South Africa should engage with American goods and services on a more reciprocal basis, rather than relying heavily on preferential access.

Kennedy then pressed the issue further, arguing that an extension of AGOA without structural changes would disproportionately benefit South Africa. Greer conceded the point, noting that South Africa already faces a significantly higher tariff regime than most of the continent, including a 30 percent reciprocal tariff.

While acknowledging that reality, Greer emphasised that South Africa occupies a distinct position within US trade policy.

Calls To Separate South Africa From AGOA

The discussion took a sharper turn when Kennedy suggested removing South Africa from AGOA altogether.

“Don’t you think we have to separate South Africa and AGOA?”

Greer responded that such an option was worth considering, particularly if Congress believed reform was necessary.

”Congress has come to me and said we want AGOA. And if we are going to give away, we need to figure out how to improve it. If you think that we should give South Africa a different treatment, I am open to that, because I think they are a unique problem.”

Kennedy then escalated his rhetoric, framing South Africa’s foreign policy alignment as a direct challenge to US interests.

“Well, they are a unique problem for America. I mean, they are our enemy right now. They are buddies with all of our enemies. And they have been very critical of the United States.”

Greer agreed with the characterisation of South Africa’s differentiated treatment under current trade measures.

“That is exactly right. And that is why they are actually treated in a much different way. Most of the African continent, sub-Saharan Africa, has just 10%, and South Africa has 30%.”

Tariffs And Pretoria’s Response

Earlier this year, the United States imposed a 30 percent tariff on imports from South Africa, following what US officials described as an absence of progress on trade proposals submitted by Pretoria. The decision marked a significant escalation in economic pressure.

In July, President Cyril Ramaphosa acknowledged receiving formal communication from US President Donald Trump informing South Africa of the unilateral tariff decision. He noted that South Africa was not alone, with several other countries also receiving similar notices.

The South African presidency has strongly contested the basis on which the tariff was calculated. Presidential spokesperson Vincent Magwenya addressed the issue directly, stating:

”This 30% tariff is based on a particular interpretation of the balance of trade between South Africa and the United States. This contested interpretation forms part of the issues under consideration by the negotiating teams from South Africa and the United States,”

Magwenya added that Pretoria’s own assessment of the data painted a different picture.

“Accordingly, South Africa maintains that the 30% reciprocal tariff is not an accurate representation of available trade data. In our interpretation of the available trade data, the average tariff on imported goods entering South Africa stands at 7.6%.

He further noted the extent of duty free access already granted to American exports.

”Importantly, 56% of goods enter South Africa at a 0% most favoured nation tariff, with 77% of US goods entering the South African market under the 0% duty,”

Despite the sharp rhetoric and punitive tariffs, the presidency has reiterated that South Africa remains committed to strengthening its trade relationship with the United States. Officials have stressed that negotiations continue, even as political sentiment in Washington hardens.

 

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