South Africa: SA Expected to Retain Its Agoa Status Despite Differences With US

U.S. Secretary of State Hillary Rodham Clinton delivers opening remarks at the 2012 African Growth and Opportunity Act (AGOA) Forum to mark Global Economic Statecraft Day at the U.S. Department if State in Washington, D.C. on June 14, 2012.
analysis

It is almost certain that South Africa's Agoa status will be renewed despite it and the US often being on opposite sides over geopolitical crises in the past year.

The eligibility of countries for the US's African Growth and Opportunity Act (Agoa) has been under review during the past few months, and it is becoming clearer that South Africa is one of the countries that will continue being a part of the trade agreement.

A strong indication of this is that the annual Agoa Forum will take place in Johannesburg between 1-4 November.

Donald MacKay, the director of XA Global Trade Advisors, said: "At present, I think we are more likely to be extended than terminated. The US agreement to host the [forum] in SA is a strong positive indicator. On the other hand, how we speak about the Hamas-Israel war is no trivial thing. If the US perceives us to be supportive of Hamas, this could swiftly change.

"Based on what I have seen in the media, it is not clear to me that the government understands the very large difference between Hamas and the Palestinian people, and this could be a lot more problematic than our fumbles around Ukraine."

South Africa's relationship with the US has been turbulent throughout the year, with SA being embroiled in the Lady R saga and having to constantly...

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