US-Africa Trade Summit concludes in Johannesburg
The US-sub-Saharan Africa Trade and Economic Cooperation Forum concludes in Johannesburg today.
South Africa hosted the summit despite an earlier call by US lawmakers for the event to be moved due to South Africa’s non-aligned position on the Russia-Ukraine war.
Discussions at the forum focused on the future of the African Growth and Opportunity Act (AGOA), Washington’s flagship trade program for the continent that grants tariff-free access to the US market. African countries want to extend the program, which is set to expire in September 2025. South Africa is among the beneficiaries of the program, exporting nearly $1 billion of goods to the US this year. However, frustrations tied to South Africa hosting joint naval operations with both China and Russia may pose a threat to South Africa’s participation in the program.
Despite the risk of Washington revoking Pretoria’s trade benefits under the AGOA, it’s unlikely that South Africa will condemn Russia. In the near future, however, South Africa will have to balance its relations with China and Russia as well as the United States which is its second most significant destination for exports. Losing preferential trade benefits would create a major shock to South Africa’s economy and disrupt growth in the medium term, but this would also provide China with an opportunity to strengthen economic ties with South Africa.
