SOUTH AFRICA – The South Africa-Israel Chamber of Commerce (SAICC) has sounded an alarm regarding the potential repercussions of South Africa’s foreign policy on local exporters. The concern stems from recent developments in the US Senate, where Democratic Senator Chris Coons is rallying support for a proposed 16-year renewal of the Africa Growth and Opportunity Act (AGOA).
If the proposal is accepted in its current form, South Africa faces expulsion from the AGOA program, which could have severe consequences for its trade relationship with the United States. Currently, over 1800 duty-free products that South Africa exports to the US could be affected, along with more than 5000 products eligible for duty-free access.
Bipartisan support for the proposal is evident, with Republican Senator Jim Risch expressing reservations about South Africa’s eligibility. Risch cites concerns about South Africa’s ties with Russia and, more recently, its association with Hamas and its financial sponsor, Iran. AGOA mandates that beneficiary countries should not compromise US security interests, a condition Risch believes South Africa might be infringing upon.
Risch has raised objections to the US Secretary of State, Antony Blinken, citing South Africa’s interactions with Hamas leader Ismail Haniyeh and its meetings with Iranian counterparts as reasons for concern. These events have led Risch to criticize the decision to allow South Africa to host the recent AGOA Forum in Johannesburg.
The SAICC, representing a group of prominent South African business leaders, urges President Cyril Ramaphosa and Minister Naledi Pandor to reassess the country’s foreign policy swiftly. The organization emphasizes that South Africa’s departure from its non-alignment stance, particularly its alignment with Russia and Iran, could jeopardize its relationship with the US.
“We speak on behalf of a group of prominent South African business leaders and urge President Cyril Ramaphosa and Minister Pandor to reassess the situation as a matter of urgency, in light of the devastating impact that an ousting from AGOA will have on our export market,” states the SAICC.
Expressing concern for the potential economic fallout, the SAICC underscores that exclusion from AGOA could lead to a diminished economy, job losses, and increased poverty, which South Africa can ill-afford. The SAICC also emphasizes the importance of engaging with Israel and other Western countries to gain a comprehensive perspective on the Middle East.
The SAICC, known for promoting business and community interests, is vested in maintaining strong ties between South Africa and Israel. The organization highlights the potential for collaboration in areas such as water, agriculture, and health, emphasizing the mutual benefits for both nations and the global community.
In conclusion, the SAICC urges the South African government to address the concerns raised in the US Senate promptly. The organization stresses the importance of averting a crisis that could have far-reaching consequences for South Africa’s economy and its citizens.
“We hope that SA’s government will listen to our plea and urgently address this looming crisis in the US Senate, to ensure business as usual between SA and the US for the foreseeable future,” concludes the SAICC.