South Africa hit with new disaster from the United States

A US accord that grants more than 1,800 products from 32 African nations duty-free access to the world’s biggest market expired Tuesday night, halting a decades-old program aimed at promoting development and democracy on the continent. 

While President Donald Trump’s administration supports extending the non-reciprocal African Growth and Opportunity Act, that can only be done by an act of Congress.

That didn’t happen before the midnight deadline, Washington time. And it’s unclear when such action may come. US lawmakers have been primarily focused on the ongoing government funding standoff, which triggered a shutdown Wednesday without an agreement in place. 

It’s also unclear how any new legislation to resuscitate the Clinton-era pact would address Trump’s reciprocal tariffs that took effect Aug. 7, including levies ranging from 10% to 30% on imports from Africa.

The tariffs superseded the duty free pact when imposed, straining businesses reliant on exports to the US. 

AGOA has been an important trade stimulant since its implementation in 2000. To qualify, countries couldn’t engage in activities purported to undermine US national security or foreign-policy interests, engage in gross violations of internationally recognized human rights or provide support for acts of terror.  

South Africa’s president, Cyril Ramaphosa, last month appealed for an extension, a call echoed by Lesotho’s trade minister and other officials.  

Without the trade pact in place, there’s likely to be a “major drop” in apparel and other goods imports from countries including Kenya, Tanzania, Cape Verde, Lesotho and Eswatini, research by the International Trade Centre in Geneva shows.

South Africa — the continent’s largest economy — faces a 17% decline in shipments, with losses concentrated in metals, vehicles and chemicals, the ITC said in an analysis sent by email on 25 September. 

The United Nations Conference on Trade and Development said the pact had been mutually beneficial, boosting African nations’ competitiveness and ensuring US firms enjoyed greater choice and lower prices.

While shipments to the US under AGOA accounted for only a small fraction of its overall imports, they represented a substantial share of exports from eligible countries, it added.