Naledi Pandor, the international relations & co-operation minister, is probably correct in claiming that trade cannot be the sole factor to guide our foreign policy. But she is wrong to suggest, as she did a week ago, that addressing our partners’ concerns is tantamount to putting our country up for sale.
These unfortunate remarks were made after it emerged that a group of US legislators — from both parties in Congress — had written to the US government asking that an Africa-US trade summit be moved from SA to another country later in 2023. The government has also scolded Western Cape premier Alan Winde for undertaking a trip to the US to bolster trade and investment relations between SA and the US.
Pandor’s comments show how out of touch the ANC government is with reality, and are in keeping with Luthuli House’s propaganda which believes the Africa Growth and Opportunity Act (Agoa) is more important to the US than it is to Africa.
This grandstanding is also out of step with a more pragmatic and level-headed approach being followed by Ebrahim Patel, Pandor’s colleague in the department of trade, industry &competition. He has been working hard, mostly behind the scenes, to ensure that SA remains a beneficiary of Agoa — the unilateral trade law that grants 35 Sub-Saharan countries duty-free access to US markets. SA exporters of minerals and vehicle components have been key beneficiaries of the scheme, which is due to expire in a year.
Unlike Pandor, Patel recognises the importance of Agoa in creating much-needed jobs and for growing investment in SA.
Pandor’s position is also at odds with the views of SA’s business leaders, who are growing increasingly concerned with the government’s irrational and incoherent foreign policy. Quite rightly, business is worried that SA’s economic interests — jobs, investment and growth — are much lower on the government’s priority list.
SA’s proximity to Russia, which invaded Ukraine 15 months ago, has annoyed the West, and has started to cost the country. For the first time in decades, SA was not invited to the Group of Seven leaders’ summit of the world’s advanced economies and a group of hand-picked leaders of developing economies.
Moving the Agoa Forum, a summit of African leaders with US President Joe Biden, from SA to another African country will be the first sign of trouble for SA. The final straw will be SA’s exclusion from Agoa. The uncertainty about the future of these trade benefits could force SA companies to move their production facilities to countries that are still participants to the scheme.
Business is aware of these threats. Our government appears oblivious.
Instead of rebuking Winde, he deserves praise for putting the interests of the country first. It’s a pity that ANC premiers will not be following Winde’s commendable approach. Indeed, it would be a great pity if SA exporters lost the Agoa benefits because of the government’s incoherent foreign policy conduct.
If recent history is anything to go by, it looks unlikely that Pretoria will review its foreign policy. On the contrary, in the run-up to 2024’s general election anti-West rhetoric will rise.
In the circumstances, it is very important that other voices be heard in the discourse about our national interest. Business and civil society — who have much to lose — have to speak out, and make clear to our trading partners that they appreciate what’s at stake here.
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.