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Africa Economy Politics USA World

US Lawmakers Drop Review of South Africa Ties, Maintaining Trade Benefits

  • PublishedDecember 25, 2024

A potential review of US-South Africa relations, based on national security concerns, has been dropped by US lawmakers, Bloomberg reports.

President Joe Biden signed the annual defense policy bill on Monday, which did not include an earlier amendment, passed by the House of Representatives in June, that would have mandated the review.

The move comes after months of tension stemming from South Africa’s foreign policy positions, particularly its stance on the conflict in Ukraine and its relationship with Russia and the BRICS economic bloc. In February, two congressmen introduced a bipartisan bill criticizing South Africa’s foreign policy, including its case before the International Court of Justice accusing Israel of genocide.

Despite these concerns, the decision not to proceed with a formal review signals a desire to maintain strong economic ties. South Africa is the US’s largest trading partner after China. In a positive move for South Africa, the US confirmed this weekend that the country will retain its preferential access to the American market in 2025 under the African Growth and Opportunity Act (AGOA). This crucial trade benefit allows thousands of South African products to enter the US duty-free.

The US Trade Representative’s office announced that, after its annual review, the list of eligible and ineligible countries under AGOA would remain unchanged for next year. Maintaining a favorable commercial relationship with the US is considered vital for South Africa, especially for the newly formed coalition government which is struggling to boost its sluggish economy.

 

 

 

 

 

 

 

 

 

 

 

Written By
Michelle Larsen