US Congressman Andy Ogles has called for South Africa to be expelled from the African Growth and Opportunity Act (AGOA), alleging that the country "hates native whites" and "loves terrorists".
Image: Itumeleng English/ Independent Newspapers
In a stunning move, President Donald Trump has decided to remove South Africa’s Ambassador to the United States, Ibrahim Rasool, as part of a broader shift in U.S. foreign policy. Rasool is said to have criticised Trump while he(Rasool) was addressing a think tank.
In the eyes of many South Africans is regarded as a hero for standing up to a bully. While serving as South Africa's Ambassador to the United States, Rasool made pointed remarks about Trump at a panel discussion at the Atlantic Council, a prominent think tank based in Washington, DC. During this event, Rasool expressed his strong disapproval of Trump’s leadership, particularly his views on race and immigration. He referred to Trump’s rhetoric as divisive and criticised his “America First” policy as one that undermined global cooperation.
Rasool also condemned Trump’s comments regarding African nations, after Trump referred to certain African countries as "sh*thole countries".
The South African government, while disappointed by the move, has indicated that they are seeking to understand the rationale behind Trump's decision.
However, analysts are already predicting that this could signal a deterioration in US-South Africa ties and raise questions about the stability of AGOA, an agreement that has provided significant economic benefits to South Africa for nearly two decades.
South Africa is being punished for taking a stand against Israel’s war on Gaza, where South Africa took Israel to the International Court of Justice where Israel was found to be committing a genocide against the people of Gaza.
The abrupt diplomatic change has raised concerns regarding the future of the African Growth and Opportunity Act (AGOA), a pivotal trade agreement between the United States and Sub-Saharan Africa, of which South Africa is a key beneficiary. The axing of Rasool may have far-reaching implications for both US-South Africa relations and the stability of AGOA itself.
AGOA was signed into law by former President Bill Clinton in 2000, a trade agreement that provides duty-free access to US markets for goods from eligible sub-Saharan African countries. South Africa, as one of the most developed economies in Africa, has been a major beneficiary of AGOA, particularly in sectors such as automotive manufacturing, agriculture, and textiles.
Under the terms of AGOA, South Africa has been able to export a wide variety of products to the US without the imposition of tariffs, which has allowed South African businesses to remain competitive in the American market. The act has been instrumental in fostering economic growth in South Africa and other African nations.
However, the removal of Rasool could undermine South Africa’s standing in Washington, threatening the long-term viability of AGOA.
Should the Trump administration decide to retract or collapse AGOA, the economic consequences for South Africa could be devastating. The country’s economy, which is heavily reliant on exports to the US could face significant disruptions. Loss of duty-free access to US markets would likely lead to higher costs for South African products, reducing the competitiveness of local industries and potentially resulting in job losses.
In addition, AGOA’s potential collapse could have a ripple effect on the broader African continent, as many other nations also benefit from the programme. The move could prompt other countries to reassess their trade relations with the US, particularly if the Trump administration continues to take an isolationist approach to international trade.
For now, the diplomatic community will be closely monitoring the implications of President Trump’s decision, as the future of AGOA, and South Africa’s economic fortunes, hang in the balance.