While losing the benefit would have a negative impact in terms of exports to the United States, making our products less competitive in that market, it's unlikely SA would lose that market.

The AGOA legislation gives some Sub-Saharan African countries preferential or even tax-free access for their exports to the United States market.

The agreement is due to expire in 2025, but it needs to be renewed every year.

SA is one of the Sub-Saharan countries expected to make presentations as the US holds virtual public hearings to receive oral testimony related to eligibility for AGOA benefits.

SA has been the largest beneficiary of AGOA by virtue of the volume of trade and the diversity of products going into the United States. Twenty-five percent of trade with the United States happens under AGOA. A significant component of this trade is made up of automotives, wine, citrus,and nuts, amongst others. Losing AGOA benefits will have a negative impact, affecting 25% of trade and possibly affecting the competitiveness of local products in the US market.

Independent Economist Eckart Naumann says US lawmakers calls for South Africa's hosting rights for the AGOA Forum later this year to be revoked are a sign of the US's frustration with SA's political posturing in the Russia-Ukraine war in Ukraine. He says the Lady R Russian vessel docking in Simon's Town and the allegations of the sale of arms to Russia have not helped South Africa's ambitions for continued benefits under AGOA.

"I think obviously the developments happen on a day-to-day basis. Just yesterday we heard that, for example, the Russian president is not going to be attending the BRICS summit in person. I think it's potentially the most notable thing to have happened in the context of South Africa's eligibility or beneficiary status, and certainly the hosting of the forum. I think if that BRICS summit had taken place as anticipated initially with all presidents and heads of States being present, there is absolutely no chance of SA hosting that forum, and that is just one thing leading to the next, and I think SA would have been on particularly shaky ground in terms of future AGOA renewal. It is still on shaky ground. The conditions for SA's future AGOA beneficiary status are not guaranteed. AGOA may not be reciprocal, but it is not unconditional."

SA's opposition party, the Democratic Alliance (DA), says it does not believe that South Africa would be removed from AGOA. The DA's Shadow Minister of Finance, Dion George, together with other DA leaders, traveled to the United States on a mission to plead for South Africa not to be removed as an AGOA beneficiary.

The party says it is concerned that the relationship between South Africa and the US is getting strained due to the government's stance on the Russia-Ukraine war in Ukraine.

The DA says South Africa being excluded from AGOA would be detrimental to the local economy.

--SABC--