South Africa’s Trade Future Hangs in the Balance at Agoa Forum

As the African Growth and Opportunity Act (Agoa) Forum kicks off in Washington this week, South Africa’s new Trade and Industry Minister, Parks Tau, is fighting to secure the country’s continued participation in the US trade program. The formation of the Government of National Unity (GNU) has granted South Africa a “honeymoon period” to retain its privileged access to US markets under Agoa, according to US politicians and South African trade analysts.

However, South Africa’s continued participation in Agoa and its diplomatic relations with the US have been under attack in the US, mainly from conservative Republican members of Congress, who have tabled legislation that would require the Biden administration to conduct a comprehensive review of US-SA bilateral relations. This review would assess whether South Africa is undermining US national security and foreign policy interests.

The proposed legislation has been driven by concerns over the ANC government’s friendships with Russia, China, and Iran, as well as its perceived hostility towards Israel. The government’s decision to take Israel to the International Court of Justice over alleged genocide in Gaza has been particularly contentious.

The Agoa Forum, which runs from July 24 to 26, provides a crucial platform for Minister Tau to plead South Africa’s case and negotiate with US officials to ensure the country’s continued participation in the trade program. The outcome of the forum will have significant implications for South Africa’s economy, which relies heavily on trade with the US.

As the world watches, Minister Tau’s efforts will be closely monitored to determine whether South Africa can maintain its privileged access to US markets and avoid a comprehensive review of its bilateral relations with the US.