Despite the complex the diplomatic relationship among South Africa and the United States, South Africa will be able to benefit from preferential acces to the US market up to 2025. This is a result of that of the US Trade Representative’s annual report in accordance with the African Growth and Opportunity Act (AGOA) that didn’t alter the criteria that countries are eligible for free access into the US.

The US has raised concerns the US concerning South Africa’s position on diplomatic issues and relations with China as well as its stand regarding the war in Ukraine and also its actions in relation to Israel in the International Court of Justice. The issues raised have led for the US House to vote on an act on defense policy that includes an amendment to allow for an assessment of South Africa’s risk to national security in relation to the US the bill needs to be approved again.

In the case of South Africa, the US has been a key trading partner, second after China. It is vital to keep AGOA benefits is essential in the case of South Africa, especially given the current economic difficulties facing it. AGOA permits access for certain goods to be duty-free to US markets, for certain goods US marketplace, has been scheduled for expiration in 2025. Discussions to extend it until 2041 are in progress, but official confirmation is in the process of being made.

At present there are there are 17 African nations, which includes Ethiopia, Uganda, and Zimbabwe don’t qualify for the AGOA’s preferred market access. The condition of AGOA and the impact it has on trade dynamics is an important issue for all affected nations.

Source: BNN Bloomberg