Key points
- The Africa Growth and Opportunity Act (AGOA) coupled with the Generalised System of Preferences (GSP) are at risk.
- SA’s relations with the US have soured, and so have the consequences of SA’s geopolitical positions on matters relating to BRICs+.
- Palestine and Russia run against US foreign policy.
- The loss of AGOA is a loss for the country, but when fully analysed, the loss may be less significant than some media reports suggest.
Baseline view:
The loss of AGOA is more of a political statement than a factor derailing either SA trade or the ZAR’s performance over the medium to longer term. It will, however, force SA to rethink its policies and trade relations with key trading partners.
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