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US fury escalates at SA-Russia link
South Africa may be booted out of trade deal and face sanctions, according to analysts.
Russian President Vladimir Putin greets South African President Cyril Ramaphosa during the official welcoming ceremony for the heads of state and government of states participating in the 2019 Russia-Africa Summit in Sochi on October 23, 2019. (Photo by Sergei Chirikov / POOL / AFP)
US pressure is mounting on South Africa over its relations with Russia – the latest sparked by a letter from bipartisan American lawmakers calling on the Joe Biden administration to consider moving this year’s African Growth and Opportunity Act (Agoa) forum to another country.
This is likely to raise the stakes, sending markets into a jittery state, according to an expert.
The latest salvo by a group of legislators, representing Democrats and Republicans, has come as the clearest indication that SA is set to face the wrath of the US government – being kicked out of the lucrative, multibillion-rand preferential Agoa trade deal and possible economic sanctions – due to friendly relations with Russia, a Brics (Brazil, Russia, India, China and South Africa) partner.
‘Serious concerns’
In a letter signed by four senior congressmen Christopher A Coons, James E Risch, Gregory W Meeks and Michael T McCaul, the lawmakers described Agoa as “the cornerstone of the United States’ economic relationship with sub-Saharan Africa, enabling deeper commercial ties and strengthening US relationship with the region”.
“We wish to express serious concerns with current plans to host this year’s Agoa forum in South Africa.
“South Africa’s government has formally taken a neutral stance on Russia’s unlawful invasion of Ukraine, but has deepened its military relationship with Russia over the year. Last year, a Russian cargo vessel subject to US sanctions, docked in South Africa’s largest naval port.
“And intelligence suggests that the South African government used this opportunity to covertly supply Russia with arms and ammunition that could be used in its illegal war in Ukraine,” said the congressmen in a letter to US Secretary of State Anthony Blinken, ambassador Katherine C Tai and National Security Advisor Jacob J Sullivan.
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Commenting on the latest US diplomatic fallout, department of international relations and cooperation spokesperson Clayson Monyela said: “This letter by the four US Congress members to Secretary Blinken is noted. There is no decision by the state department or the White House to move the Agoa forum from SA.
“President Cyril Ramaphosa’s special envoys recently visited the US to explain South Africa’s active non-aligned position on the Russia-Ukraine conflict to key stakeholders and decision-makers. Our diplomats in Washington continue to engage on these matters.
“President Ramaphosa is leading an African peace mission in the coming days to Russia and Ukraine. South Africa enjoys the support of the US government, the Africa Group & Business in hosting the Agoa forum, which is planned for November.
“Relations between South Africa and the United States is mutually beneficial, even in the context of Agoa.”
‘Jittery state’
Commenting on the geopolitical developments, senior research associate with the Institute for Global Dialogue Sanusha Naidu said: “This heightens the perception and pressure on South Africa to come out more in a coherent and cohesive way by not just using rhetoric on its positioning on the conflict on war in Ukraine.
“It also raises the stakes and sends markets into a jittery state that there is another area that South Africa has to navigate – firefighting.
“Markets become fickle and are built on perception and reaction on what our leaders do and messages they send out. This will have an impact, not just in being removed from the Agoa forum, but the structural impact that will happen.
“The question that should be asked is how much geopolitical issues are entrenched into the kind of partisanship you see happening, where you have countries utilising trade to push countries into taking decisions.
“It seems the notion that everyone is equal in the international order has now unravelled in the matter of relations between SA and Russia, representing challenges in international order projection”.
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