SA’s suspension from AGOA signals significant deterioration in US relations – trade analyst

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A trade analyst believes South Africa’s suspension from the African Growth and Opportunity Act (AGOA) signals a significant deterioration in relations with the United States (US).

On Monday, the Trump administration ended preferential tariff-free access to the American market for a range of South African exports.

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Dr Saul Levin said Washington has long used the trade agreement as leverage over South Africa’s foreign policy.

He added that the suspension does, however, present an opportunity to strengthen domestic industries and pursue alternative export markets.

“The US government no longer sees South Africa as a strategic partner, which is quite a shift from previous administrations. Even administrations saw value in a good relationship with South Africa as one of the larger economies in Africa, but also quite an influential world player.”

Levin said the economic impact may be less severe than initially feared, as some exporters were already facing higher US tariffs.

He warned, however, that the loss of preferential access could add further pressure on sectors such as agriculture and automotive manufacturing.

“Those that were hit by the 10 or 12% of the tariffs that were revised earlier this year, they’re going to be feeling a lot more pain than the removal of AGOA.”

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