AGOA and Feet Dragging

Procrastination is the thief of time, but for South Africa, procrastination is the thief of invaluable trade concessions with the US under the African Growth and Opportunity Act (AGOA). In a recent press briefing, Trade and Industry Minister Davies expressed surprise to the announcement that the US will suspend AGOA benefits for South African agricultural products to the US. The suspension takes effect within 60 days unless issues relating to US imports of meat and poultry are resolved. It is no secret that Davies and his trade envoy have been dragging their feet in concluding an agreement with their US counterparts. US patience has run its course for South Africa, and in American parlance, Davies must either fish or cut bait. As it is, his role has been less than stellar. On its face, resolving the issues under AGOA should not have been a problem. However, there are geo-political issues at stake - issues such as the Security Bill awaiting President Zuma's signature, and South Africa's bedfellow relationship with China and Russia. Synergistically, South Africa has painted itself into a corner, and, in fact, is its own worst enemy. To put it bluntly: South Africa, in American parlance, is between a rock and a hard place. This late in the day, there is no realistic option but to accept the US conditions. There are those who contend the US is bullying South Africa to accept its conditions. This is not so, as AGOA is a trade concession regime that redounds to the benefit of South Africa, and other qualifying African countries. To all intents and purposes it is a magnanimous gift from the US, and South Africa would do well not to look a gift horse in the mouth.