(Parliamentary debate: The United States Government’s decision to halt aid to South Africa and its response)
South Africa’s government should act in the best interest of ordinary South African citizens when it comes to its relations and trade ties with America. It would be unwise, to say the least, to further alienate America.
The United States Agency for International Development (USAid) last month suspended all financial assistance to Pepfar-funded HIV/AIDS programmes in South Africa, while the AGOA agreement also hangs in the balance.
Since Pepfar was established in 2003, America donated more than eight billion dollars to South Africa to help fight HIV/AIDS, making a huge difference in countless people’s lives. Around 439 million dollars (around R7,9 billion) was earmarked for this year. But now it is off the table.
In the greater scheme of things, Pepfar plays a fairly insignificant role in South Africa and America’s relations and trade.
America is South Africa’s second biggest trade partner. Trade between these two countries amounts to around 21 billion dollars (R378 billion) annually. This includes trade facilitated by the AGOA agreement, which is extremely beneficial to South Africa, amounting to 3,6 billion dollars or almost R65 billion.
If something were to go wrong with this partnership, ordinary workers will bear the brunt. From farm workers to factory workers in the vehicle manufacturing sector and more.
These people will lose their jobs and only income, and South Africa cannot afford greater unemployment.
It is also not true that relations became strained only after Donald Trump took over as American president.
The American Congress had adopted a bill, which was supported by Democrats and Republicans alike, to reconsider America’s trade ties with South Africa under the Biden administration already.
The truth of the matter is that South Africa opted to strengthen its ties with all the countries that America views as hostile, such as Russia, China, Iran and North Korea, at the expense of its ties with the USA.
South Africa should, instead, look to India’s head of state, Shri Modi, for guidance.
India is a senior partner in BRICS, but it realises the importance of maintaining secure ties with America. Shortly after President Trump’s election, Modi visited him and entered into a significant trade agreement with America, which will greatly benefit India.
He put his country first and did what is best for the people of India. Choosing sides in the global game is unwise.
