By Daanyaal Matthews
The increased tensions between the United States and South Africa have raised queries on the future of the Southern African states participation in the African Growth and Opportunities Agreement.
The AGOA agreement serves as an important economic lifeline for the Republic, representing an enormous part of South Africa’s exports, with President Cyril Ramaphosa championing it as beneficial for economic activity and job creation.
Tensions have been fermenting between the United States and South Africa, with President of the United States Donald Trump chastising South Africa for alleged human rights violations and rescinding USAID to the Republic, cutting off vital clinical research, thus hindering the fight against viruses like HIV and the activities of non-profit organizations.
For Dr. Lumkile Mondi, political economist, it should be of utmost importance for the Republic to re-establish or even better relations with the United States, as it is beneficial for all parties, especially with AGOA in mind.
“We need to strengthen relations with all parties, including the USA. Remember that AGOA is a very important document for us, given that it contributes 1% to our Gross Domestic Product, particularly for the automotive sector; it is very critical,” argued Mondi.
However, strengthening relations between the United States and the Republic seems to be an uphill battle, as United States officials routinely obscure opportunities to meet with their South African sovereign counterparts. This was most notable by the absence of Secretary of State Mark Rubio and Secretary of Finance Scott Bessant from G20 planning meetings.
Mondi contended that while these challenges exist, the Republic should remain firm in diplomatic action.
“I think we should not bow down to those levels. I think we should use the extended multi-channels and go back to the Trump administration and present a new candidate that will replace Ebrahim Rasool, and that candidate’s mandate is really to work harder in showing the Americans that we all are on the same side where trade is concerned,” stressed the political economist.
Listen to the full interview here:
