The Trump administration is a step closer to passing legislation that could see a review of US and SA relations — including targeted sanctions of ANC leaders.
This follows the passing of a bill by Republican Ronny Jackson through committees in the House of Representatives. It has, however, not been voted on by the full House, which is in recess until September, so no further action is expected before then.
Citing racial discrimination as the reason, the US has slashed aid to SA and granted refugee status to a group of white South Africans.
This move has added to tensions as SA officials and exporters grow concerned the US Congress may let the African Growth & Opportunity Act (Agoa) expire in September. The lapse would jeopardise tariff-free access for key exports.
The legislation calls for a comprehensive review of diplomatic, defence and economic ties, and paves the way for possible sanctions against senior SA officials and ANC leaders accused of human rights abuses or corruption.
The bill includes provisions requiring US President Donald Trump to determine whether SA’s foreign policy undermines American national security interests and mandates a classified report listing individuals eligible for sanctions under the Global Magnitsky Act.
Tensions between SA and the US reached a high point after the renewed circulation of claims alleging a campaign of “white genocide” in the country — rhetoric Pretoria has condemned as false and inflammatory.
The SA government has sought to strengthen its relations with its other major trading partners in a bid to ease reliance on the US. SA also faces a 30% tariff on exports to the US from August 1.
This could effectively nullify Agoa, which guarantees duty-free access to the US for most goods and services from Africa, including macadamia nuts from SA. Other hard-hit local exports would include vehicles and vehicle parts, citrus products and wine.
Business Day previously reported vehicle exports to the US collapsed almost 82% in the first half of the year after the Trump administration’s unilateral tariffs.
Business Leadership SA CEO Busi Mavuso has urged the government to implement mitigation measures to cushion the impact of the tariffs and to protect jobs.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.