U.S. Lawmakers Urge President Trump to Revoke South Africa’s AGOA Benefits Amid Human Rights Concerns

February 18, 2025

Introduction

In a significant development, four U.S. congressional representatives have formally requested President Donald Trump to revoke South Africa’s trade benefits under the African Growth and Opportunity Act (AGOA). The lawmakers cite concerns over alleged human rights violations, the country’s alignment with China, and perceived hostility toward Israel as primary reasons for this action.

The Congressional Letter

Representatives Andrew Ogles, Tom Tiffany, Joe Wilson, and Don Bacon have signed a letter urging the President to take decisive action against South Africa. The letter accuses the South African government of corruption, controversial land expropriation policies, and support for organizations linked to Hamas. It also criticizes South Africa’s involvement in the International Court of Justice (ICJ) case against Israel and alleges diplomatic pressure on Taiwan to close its office in Pretoria. The lawmakers argue that these actions violate AGOA’s eligibility criteria and call for a reassessment of diplomatic ties unless South Africa alters its current stance.

Economic Implications of Revoking AGOA Benefits

AGOA, established in 2000, offers sub-Saharan African countries duty-free access to the U.S. market for thousands of products. South Africa has been a significant beneficiary, with exports to the U.S. under AGOA amounting to approximately $3 billion in 2023. Key sectors benefiting include the automotive industry, agriculture, and manufacturing.

Revoking AGOA benefits could have profound economic consequences for South Africa:

• Trade Disruptions: Industries such as automotive manufacturing, which exports about 60,000 vehicles annually to the U.S., could face increased tariffs, making their products less competitive.
• Job Losses: Sectors heavily reliant on U.S. trade, including agriculture and textiles, might experience significant job cuts due to decreased demand.
• Investor Confidence: The uncertainty surrounding trade agreements could deter foreign investment, affecting economic growth and stability.

However, some analyses suggest that the overall impact on South Africa’s GDP might be limited. A study by the Brookings Institution indicates that the loss of AGOA benefits could lead to a GDP decline of just 0.06%. This unexpectedly small effect is attributed to the relatively low average tariffs on South African exports to the U.S. and the composition of South Africa’s export basket. For instance, average non-preferential tariffs remain below 5% for most products, meaning exports to the U.S. without AGOA will not be significantly more expensive. The most affected sector would be transport equipment, with a projected 0.6% contraction in output.

Geopolitical Ramifications

The lawmakers’ concerns also highlight South Africa’s foreign policy decisions:

• Alignment with China and Russia: South Africa’s strengthening ties with BRICS nations, particularly China and Russia, have raised eyebrows in Western capitals. Joint military exercises and economic partnerships are viewed by some U.S. policymakers as contrary to American interests.
• Stance on Israel: South Africa’s active role in the ICJ case accusing Israel of genocide has strained relations with pro-Israel U.S. lawmakers. The country’s historical support for Palestinian self-determination continues to be a point of contention.
• Diplomatic Relations: The alleged pressure on Taiwan to close its Pretoria office aligns with China’s One-China policy, further complicating South Africa’s relations with the U.S.

South Africa’s Response

South African officials have expressed a desire to engage in dialogue with the U.S. Foreign Minister Ronald Lamola stated that attempts to discuss the executive order cutting off U.S. aid have not received a response. Despite these challenges, South Africa remains committed to its foreign policy principles and continues to seek constructive engagement.

Conclusion

The call by U.S. lawmakers to revoke South Africa’s AGOA benefits underscores escalating tensions between the two nations. While the economic impact of such a revocation may be less severe than initially anticipated, the broader geopolitical implications could reshape South Africa’s international alliances and trade relationships. As the situation develops, both countries will need to navigate these complex issues to maintain a mutually beneficial relationship.