South Africa faces a ban on trade with the US for the second time in its history, as the war of words between Washington and Pretoria escalates
South Africa’s fresh produce industry is keeping a low profile following the announcement by US president Donald Trump that it is ending aid to South Africa.
There is now real concern that South Africa’s participation in trade with the US under its AGOA Act is under threat.
The Act is due to be renewed later this year, meaning South African growers will benefit from the Act for this export season at least, before any new Act is signed.
At present South African fruit exporters are allowed to land their produce duty-free in the US.
After the war of words over the weekend, the South African government is now sending a delegation to the US and other trading partners to change the narrative.
South Africa believes that statements by Trump, his secretary of state, and businessman Elon Musk are based on misconceptions.
According to media reports, the real reason behind Trump’s decision is believed to be linked to Elon Musk’s Starlink internet service, which so far has been denied a license to operate in South Africa due to its refusal to follow the country’s black economic empowerment (BEE) laws.
The delegation to Washington is expected to include senior government officials and business leaders, who will attempt to persuade the US president to reconsider his decision.
The team will also engage with US lawmakers and other stakeholders to resolve the issues at hand.
Although unconfirmed by the government, sources close to the presidency said the delegation will comprise of government and non-government officials including Ramaphosa’s political strategist Bejani Chauke, international relations minister Ronald Lamola and ANC deputy secretary-general Nomvula Mokonyane.
Other sources say the US president’s unhappiness with South Africa goes deeper than merely Elon Musk’s business endeavours.
It also concerns South Africa’s actions in the International Criminal Court against Israel, its support for the Palestinian state and close ties with BRICS nations.
In the mid-1980s the US introduced sanctions against South Africa to target the apartheid government.
These sanctions were only lifted in 1993, long after the freedom of Nelson Mandela and the start of negotiations to move to a new Democratic Government.
The sanctions were a devastating blow for the South African fruit exporters and resulted in huge job losses in the industry.
Now those who export fresh fruit to the US are nervously watching the situation – and hoping that sanity will prevail.
