SA will survive Agoa

ECONOMIST: SHORT-TERM PROBLEMS IF US CUTS OFF DUTY-FREE ACCESS

- Itumeleng Mafisa

The African Growth and Opportunity Act (Agoa) is an important pathway to US markets and there will be short-term problems if South Africa is excluded, an economist says. Makwe Masilela was responding to letters from four Republican members of Congress to US President Donald Trump, compelling him to exclude South Africa from Agoa. The Republicans described the South African government as an "ethnonationalist gangster regime" working against the global interests of the US.

"We would also suggest that you consider suspending diplomatic ties unless that government is prepared to engage constructively with our own."

This is despite International Relations and Cooperation Minister Ronald Lamola saying the Trump administration had not responded to the government's attempts to engage with it.

Agoa allows access to the US markets and affords eligible sub-Saharan African countries duty-free access to most exports in return for prioritising free markets and the rule of law.

Speaking to The Citizen yesterday, Masilela said if a decision was reached not to renew Agoa, South Africa would survive.