Leadership of the ANC now under threat of sanctions from the American government
The US administration has indicated that it may sanction leaders from South Africa’s majority government party, the African National Congress (ANC) as of a general revue of relations between the two countries which could also include harsh tariff increases for South African products exported to the US.
This would also mean the end of South Africa’s participation in AGOA, the American Growth and Opportunities Act which benefits exports from Africa to the US. Under the terms of this Act, South African citrus growers have built up a significant market in the US over the past 20 years, while table grape and stonefruit growers have also benefited.
The South African fresh produce export industry has been awaiting the final US decision on new 30 per cent tariffs threatened by Trump for some time. As the 1 August deadline looms, it is causing major concern about the future for fresh produce exports to the US.
The citrus, table grape and stonefruit sectors, which all have significant plans to expand their presence in the US, will be severely affected.
The latest development is the passing of a new Bill in the US House of Representatives Foreign Affairs Committee on the relationship between the US and South Africa.
The Bill requires a full review of the bilateral relationship between the US and South Africa and the identification of South African government officials and ANC (African National Congress) leaders eligible for the imposition of sanctions, and for other purposes.
It has emerged, as previously suspected, that the discord between the US and South Africa is mostly based on South Africa’s foreign policy.
The Bill, which will now pass through the House of Representatives before going to the Senate, states: “The South African Government has a history of siding with malign actors, including Hamas, a US designated Foreign Terrorist Organisation and a proxy of the Iranian regime, and continues to pursue closer ties with the People’s Republic of China (PRC) and the Russian Federation”.
It is also known that the US government is unhappy with South Africa’s involvement in Brics, a new trading block of India, China, Russia, Brazil and South Africa, which has been increasing its memberships in recent years.
South African sources said they had been expecting the new US action for some time. At the same time fresh produce sources pointed out that they are playing a crucial role in the rural economy and are large employers which benefits the poorer communities.
