South Africa finds itself in a tight spot with United States President Donald J. Trump. Trump has passed a controversial executive order last week titled “Egregious Actions of the Republic of South Africa”. The order referred to the Land Expropriation Act signed by President Cyril Ramaphosa over two weeks ago. Trump’s Executive Order calls the Act a “shocking disregard of its citizen’s rights”. The order went on to say that South Africa had taken aggressive positions towards Washington and its allies. Pretoria may find itself in dire straits with the accusations levelled against it. Trump should clarify what aggressive positions the government of Ramaphosa had taken against the United States and its allies.
If Trump is referring to the Israelis whose Prime Minister; Benyamin Netanyahu he met last week when he talks about the US and its allies, then we know the truth of the matter. Trump is wielding collective punishment and blackmail against South Africa for taking the Tel Aviv (Israeli) leadership to the International Court of Justice (ICJ) in the Hague, in the Netherlands.
It includes accusing Israel, not Hamas, of genocide in the International Court of Justice and reinvigorating its relations with Iran to develop commercial, military, and nuclear arrangements. Another problematic area is South Africa’s close relationship with Russia and the country’s joint military exercises with Russia and China. Many influential United States politicians argue that South Africa has aligned itself with Russia, Iran, and Palestine in opposition to the United States’ interests. One of the biggest risks to South Africa is losing its participation in the African Growth and Opportunity Act (AGOA). AGOA provides participating countries, including South Africa, with trade preferences for quota and duty-free entry into the United States for certain goods.
Trump’s accusations against Ramaphosa in the Executive Order appear misinformed. Although Pretoria enjoys good relations with Tehran but if they were building nuclear weapons such as bombs rather than pursuing nuclear energy for peaceful means the Ramaphosa administration would not stand by Tehran. Another issue as regards to Trump is the relations South Africa has with other BRICS centres of power such as Moscow and Beijing. South Africa should be seen as a bridge connecting nations together from the powerful to the powerless. Trump tends to believe he can run the United States like one of his corporations rather that a country. Trump is not just a businessman he is also an expert manipulator who is holding Pretoria and the South African economic landscape to ransom. Trump is unable to recognize the strategic foothold the country occupies between Africa, Asia and the Americas.
Although Ramaphosa needs to reconcile with his wayward American counterpart, he needs to be firm and state South Africa cannot be silenced or bullied when it stands against injustice. The Indictment against Israel in the ICJ also includes Hamas and Trump knows this.
Like many developing countries, South Africa’s economy is based primarily on exports, and the country has been importing and exporting products ranging from natural resources to agricultural products, becoming more and more integrated with some of the world’s most powerful economies over the past 30 years. The top trading countries with South Africa are listed below, based on data from the World Trade Organisation, the UN Conference on Trade & Development, and the International Trade Centre. As of 2023, South Africa’s overall exports to the world amounted to R2 trillion, and China (R230.3 billion) was the largest market with a share of 11%. US (R155.5 bn) was the second-largest market with a share of 8%, followed by Germany (R144.2 bn) (7%), Mozambique (R114bn) (6%), Japan (R106bn) (5%), UK (R97bn) (5%), India (R93bn) (5%), Netherlands (R79.3bn) (4%), Botswana (R77.3bn) (4%) and Belgium (R68.7bn) (3%).
South Africa is on a tight rope when it comes to satisfying its trade partners. The trade in exports it does with the US is about R 157 billion and in imports R120 billion. The trade surplus between the two countries stands at R36 billion. Although America may be South Africa’s largest trading partner, Washington should not be permitted to blackmail Pretoria over its economic relations. However South Africa desperately needs to grow its job market. To do so it needs the influence and inclusion given by AGOA. What Trump is doing could dangerously cost the South African economy in high tariffs and lead to a decline in supply and demand. Trump is not a skilful politician but he is a sharp business man who knows how to make money and strike bargains. Ramaphosa being a sharp businessman himself needs to strike a comprise with the US President.
It will not be an easy task with both South African and possibly Palestinian livelihoods at risk. Trump is more of a con artist than an honest broker.
Article written by:
Yacoob Cassim
Journalist at Radio Al Ansaar
