By Lehlohonolo Lehana.
The U.S. House of Representatives passed a bill on Monday that would renew the preferential trade program for African countries through 2028.
The House approved the extension for the African Growth and Opportunity Act (AGOA), first enacted in 2000 to provide duty-free access to the U.S. market for eligible Sub-Saharan countries and products, by a vote of 340 to 54, the House Press Gallery said in a posting on the social media website X.
The legislation now moves to the Senate for further consideration, where the fate of South Africa’s participation remains uncertain amid ongoing trade and diplomatic tensions with Washington.
Some members of Congress want South Africa to be excluded from the renewal of Agoa, and the US trade representative, Jamieson Greer, told the US Senate last month that the Trump administration was ready to consider that. It is, however, possible that the Bill could be passed with no country excluded and that South Africa would then later face an “out of cycle” review of its participation.
The development comes after Iran has withdrawn from the joint naval exercise about to start in False Bay. The Iranian Navy sent three warships to False Bay last week, but it is understood that they will not participate in the naval drills.
Fullview understands Pretoria urged Iran to withdraw from the exercise to avoid antagonising the US in particular, at a sensitive time when the Iranian government is violently suppressing protests at home, and the US House of Representatives is scheduled this week to debate a three-year renewal of the Agoa.
The legislation, which gives eligible African countries duty-free access to the US market for most of their exports, lapsed in September, but Congress has decided to revive it. It has been particularly useful for SA over the last 25 years, but there are concerns that SA might be excluded, in part because of its friendly relations with Iran, China and Russia.