Business lobby alarmed as US House votes for 'full review' of SA relationship
A South African business lobby in the US has raised the alarm after the US House voted to pass legislation requiring a "full review" of Washington's bilateral ties with Pretoria.
The vote took place last month on the same day South Africans went to the polls to elect a new government and came amid strained relations over South Africa's stance on Israel and ties with Russia, China, and Iran.
The legislation, which passed the lower chamber of Congress by a vote of 272 to 144 as an amendment to another bill, is not yet law. It still needs to pass the Senate and be signed into law by the White House.
Impact trade
Neil Diamond, president of the SA Chamber of Commerce in the US, said the legislation would "significantly impact South Africa's trade with the US" were it implemented.
The legislation obliges the US president to "fully" review America's bilateral relationship with SA and publicly release a report on whether the country has engaged in activities that "undermine US national security or foreign policy interests."
It also requires a third report on the extent of SA's defence cooperation with Iran, China, and Russia.
Diamond said a review of the bilateral relationship between the US and SA may endanger SA's place in the African Growth and Opportunity Act (AGOA).
AGOA is a trade pact that grants SA and 30 other African countries duty-free access to the US for thousands of goods.
SA is the largest US trade partner in Africa and the largest beneficiary of AGOA. In 2022, it exported goods worth around R65 billion to the world's biggest consumer market.
"Any negative outcomes from this review could jeopardise these benefits, potentially leading to increased tariffs and reduced market access for South African exports," said Diamond.
Bilateral relations
Busisiwe Mavuso, CEO of Business Leadership South Africa (BLSA), said the lobby group was tracking the legislation, which could have "significant repercussions on South Africa's trade with the United States."
"Our members are keenly aware of the implications such legislation could have on bilateral relations," she added.
Mavuso said the BLSA still remained optimistic about the future of SA-US relations. If the two countries worked in a "constructive manner to prevent misunderstandings" with more diplomatic engagements, the relationship could still thrive.
The measure to review the US's relationship with South Africa was quietly passed as an amendment to an unrelated defence bill on 14 June. US law allows for amendments to be added to unrelated bills in Congress to speed up their passage.
It was first introduced as a standalone bill in early February by Republican representative John James. At the time, Department of International Relations and Cooperation spokesperson Clayson Monyela predicted it would fail.
-NEWS24
The vote took place last month on the same day South Africans went to the polls to elect a new government and came amid strained relations over South Africa's stance on Israel and ties with Russia, China, and Iran.
The legislation, which passed the lower chamber of Congress by a vote of 272 to 144 as an amendment to another bill, is not yet law. It still needs to pass the Senate and be signed into law by the White House.
Impact trade
Neil Diamond, president of the SA Chamber of Commerce in the US, said the legislation would "significantly impact South Africa's trade with the US" were it implemented.
The legislation obliges the US president to "fully" review America's bilateral relationship with SA and publicly release a report on whether the country has engaged in activities that "undermine US national security or foreign policy interests."
It also requires a third report on the extent of SA's defence cooperation with Iran, China, and Russia.
Diamond said a review of the bilateral relationship between the US and SA may endanger SA's place in the African Growth and Opportunity Act (AGOA).
AGOA is a trade pact that grants SA and 30 other African countries duty-free access to the US for thousands of goods.
SA is the largest US trade partner in Africa and the largest beneficiary of AGOA. In 2022, it exported goods worth around R65 billion to the world's biggest consumer market.
"Any negative outcomes from this review could jeopardise these benefits, potentially leading to increased tariffs and reduced market access for South African exports," said Diamond.
Bilateral relations
Busisiwe Mavuso, CEO of Business Leadership South Africa (BLSA), said the lobby group was tracking the legislation, which could have "significant repercussions on South Africa's trade with the United States."
"Our members are keenly aware of the implications such legislation could have on bilateral relations," she added.
Mavuso said the BLSA still remained optimistic about the future of SA-US relations. If the two countries worked in a "constructive manner to prevent misunderstandings" with more diplomatic engagements, the relationship could still thrive.
The measure to review the US's relationship with South Africa was quietly passed as an amendment to an unrelated defence bill on 14 June. US law allows for amendments to be added to unrelated bills in Congress to speed up their passage.
It was first introduced as a standalone bill in early February by Republican representative John James. At the time, Department of International Relations and Cooperation spokesperson Clayson Monyela predicted it would fail.
-NEWS24
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