Durban - South Africans could soon be paying dearly for the government’s cosying up to Russia.
South Africa’s benefiting from the US trade act known as AGOA is possibly under threat after the naval exercise off the KZN coast by the South African, Russian and Chinese navies and South Africa’s refusal to condemn the invasion of Ukraine in the UN General Assembly.
South Africa, with 31 other countries, abstained from the UN vote on Thursday.
The same day, US Secretary of State Antony Blinken said countries like India and South Africa, which had not denounced Russia's invasion of Ukraine, were likely on a trajectory away from alignment with Moscow but that process would not happen “in one fell swoop”.
He noted their historic links with Russia and the former Soviet Union and regretted Washington’s “sympathetic” stand towards the apartheid government while Moscow had trained and supported anti-apartheid activists during the Cold War.
Yesterday marked the first anniversary of the Russian invasion of Ukraine.
The issue of African Growth and Opportunity Act (AGOA) could be a ripple effect of a resolution tabled on Thursday calling on US President Joe Biden’s government to review its relationship with South Africa.
AGOA provides duty and quota-free access to many products South Africa exports to the US, according to the DA, which said it would request a meeting with the US ambassador to South Africa.
The opposition party would “discuss the implications and likelihood of South Africa being removed from the AGOA agreement”, said Dean Macpherson, the party’s spokesperson on trade, industry and competition.
“We will also be seeking clarity on the actions we can take to help prevent South Africa from being excluded from the benefits of AGOA,” he said.
In 2021, South African AGOA exports were valued at R2.7 billion, the party said in a statement.
“The agreement therefore serves as a significant boost to our local economy and a vital lifeline for many of our most vulnerable and developing industries.”
A resolution has been tabled in the US House of Representatives, calling for a detailed account of the economic benefits South Africa derives from its inclusion in AGOA, and for the US to review it bilateral realtions with SA.
“This suggests that the United States Congress is considering the possible removal of South Africa from the ambit of AGOA,” said Macpherson.
“If the resolution is approved, it has potentially devastating economic consequences for South Africa as the country’s participation in the US’s African Growth and Opportunity Act may be reviewed which limits favourable trading conditions between the two countries,” said ActionSA president Herman Mashaba.
“South Africa currently has a trade surplus of $6.5 billion with the US, our largest trading partner, compared with a trade deficit of $210 million with Russia, further reiterating how the ANC’s communist-driven loyalty to Russia has little to no benefit for the people of South Africa.”
He said the global community was clearly noticing and, as with the US House Resolution, it may have significant negative consequences for the country, hurting SA’s economy and costing jobs.
“At a time when our people are suffering, the South African government should do everything in its power to grow the economy and create jobs ‒ and not isolate the US, our biggest trading partner.”
Requests for comment from the ANC had not been forthcoming by the time of publishing.
On the local stage, China also came under the spotlight.
Desmond D’Sa, the chairperson of the South Durban Community Environmental Alliance, at a protest in Durban, warned that Chinese goods and Chinese-owned outlets could face a boycott if Beijing supported Russia in the Ukraine War.
“This will happen if they go down the wrong path,” he said.
D’Sa said he was also concerned about the impact South Africa’s relationship with Moscow would have on trade relations with its largest trading partner, the US, as well as the EU, Australia, Japan, South Korea and others.
“We, the South African people, will pay the price for it,” he said.
The Russian, Chinese and South African navies have been involved in a joint exercise off the KZN coast for the past week, bringing into question the government’s neutral stance on the war in Ukraine.
D’Sa lashed out at the government’s spending of about R200m on the exercise.
“It could be used to fix sewage systems, for housing, water supply, particularly for the poor who are most affected by climate change. That money should be used for the people of South Africa, not for war games.”
Katya Fedkina, a representative of the Ukrainian Association in SA (UAZA), said she was grateful to locals for participating in the march.
“Their protecting their own country goes together with our mission,” she said.
“For 365 days, South Africans have been supporting the Gift of the Givers and UAZA initiative that has touched lives of more than a million people in Ukraine through soup kitchens in the bombed cities, medical support to those who were under occupation, assistance to people with limited abilities, and the provision of food for animals.”
Additional reporting by Reuters and the Washington Post
The Independent on Saturday