South Africa faces scrutiny, possible loss of trade privileges from second Trump administration

 December 26, 2024

South Africa is facing the potential loss of its trade privileges with the United States as President-elect Donald Trump prepares to shift foreign policy in a tough new direction.

Republicans in Congress are pressuring Trump to remove South Africa from the African Growth and Opportunity Act (AGOA), which provides trade benefits for eligible developing countries, Fox News reported.

South Africa faces scrutiny

South Africa's critics have called for a more transactional approach with the country, which has fostered close ties with American rivals such as China and Russia despite its official policy of "non-alignment."

South Africa was accused of trying to please China when it asked Taiwan to move its unofficial embassy out of Praetoria, the South African capital.

South Africa has meanwhile accused Israel of genocide in the International Court of Justice, and South Africa's ruling African National Congress (ANC) has enjoyed warm ties with Russia that date to the apartheid era.

On the trade front, South Africa is part of BRICS, an economic alliance including Russia and China that has pushed to challenge the U.S. dollar. The president of South Africa, Cyril Ramaphosa, called Russia a "valued ally" at a BRICS summit in October.

"We continue to see Russia as a valued ally, as a valued friend who supported us right from the beginning, from the days of our struggle against apartheid," he said.

South Africa's moves have caused critics to label the country an emerging member of a new, anti-Western alliance with Russia, China, and Iran.

Republican Jim Risch (Id.), the incoming chair of the Senate Foreign Relations Committee, told Fox News Digital, "I remain concerned about South Africa’s efforts to cozy up to Russia, China and Iran, including Iran’s terror proxies, and the impact this has on U.S. national security — a vital element in AGOA eligibility. The country’s foreign policy actions will remain a focus of my oversight efforts."

Criticism of South Africa has also come from Republicans destined for Trump's Cabinet, like Senator Marco Rubio (R-Fl.), Trump's nominee for Secretary of State.

“The South African government is making a grave mistake by caving to Beijing’s demands,” he wrote on X on 24 October. “South Africa should not fall victim to Communist China’s diplomatic bullying tactics.”

Trump brings new approach

Currently, South Africa gets trade benefits under the African Growth and Opportunity Act (AGOA), which allows South Africa to export duty-free items like oranges and cars to the U.S.

Trump is known for using extreme pressure against countries that take advantage of the United States, and ahead of his second term, he has threatened 100% tariffs against South Africa and other countries in BRICS if they attempt to create their own currency.

"We require a commitment from these Countries that they will neither create a new BRICS Currency, nor back any other Currency to replace the mighty U.S. Dollar or, they will face 100% Tariffs, and should expect to say goodbye to selling into the wonderful U.S. Economy," Trump said on Truth Social.

Trump has issued similar tariff threats against Canada and Mexico, in part to force them to cooperate on controlling America's borders.

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