Donald Trump, America's 45th president, is seemingly on a warpath to eliminate trade agreements with the rest of the world. Within a few days of his inauguration he withdrew the US from the Trans-Pacific trade partnership with Asia, and signed an Executive Order to renegotiate the NAFTA treaty between the US, Canada and Mexico.
Trump believes that existing trade deals have destroyed America's manufacturing base and contributed to the loss of American jobs. In his words: "It's going to be America first" inasmuch as charity begins at home and not abroad.
US foreign aid in its various forms is anathema to Trump, particularly when such aid has no nexus to America's national interest. This is true with respect to the Africa Growth and Opportunity Act (Agoa), allowing South Africa duty-free access for a variety of its products to the US market. Agoa generates billions for the economy and thousands of jobs.
Whether Agoa will be added to the list of eliminated trade deals is too early to tell. It is not, as yet, on Trump's radar, but will be a priority if Gwede Mantashe and others in Luthuli House persist in disparaging the US. Trump is by nature vindictive - he will not tolerate such ignorant and stereotypical US bashing. The end result: South Africa's economy will pay a hefty price if Agoa benefits are withdrawn.
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