Trump wants to protect South African white farmers, but they endanger trade privileges

Trump wants to protect South African white farmers, but they endanger trade privileges

cnn - A controversial law enables the government of South Africa to carry out land expenses - in some cases without compensation - has angered the United States. This led to the cuts of help from Washington and outbreaks of President Donald Trump. Many fear that relationships between the two countries could now be affected, which leads to the risk that South Africa loses some of its trade privileges with the USA

trade privileges under pressure

South Africa is the greatest favorable of African Growth and Opportunities Act (AGOA), a trade agreement in the United States, the legitimate Sub-Sahara-Africa nations grants duty-free access to the US markets. Some US legislators want to withdraw these advantages this year if AGOA is checked.

What annoys the USA?

South Africa adopted in January the Expropropriation law, which is aimed at To overcome apartheid, which created great inequalities in land ownership between the majority of the blacks and the minority of the whites. Under the apartheid, non-white South Africans were violently robbed of their country in order to allow the whites. Today, almost three decades after the official end of racial segregation, black South Africans who make up more than 80 % of the 63 million inhabitants have only around 4 % of the private country.

The government of South Africa authorizes the law of expropriating and redistribating it - in some cases without the obligation to pay compensation - if the expropriation as . President Cyril Ramaphosa expressed that legislation would "secure public access to land in a fair and fair manner". However, the white house disagrees.

Trump and his billion -dollar consultant Elon Musk, born in South Africa, believe that land reform policy discriminates against white South African. As a result, sanctions were imposed. Musk asked in a post by ramaphosa on x, why the country "open racist ownership law" have.

In a decree , which was issued on February 7, Trump All help for South Africa on and accused the country of serious human rights violations. He also expressed his criticism of South Africa's attitude in the conflict between Israel and Gaza, saying that the country was lowering the national interests of the United States.

consequences of the AGOA deprivation

If South Africa is excluded from Agoa, this could have serious consequences for the country's agriculture, since exports are partially boosted by agriculture and in 2021 10 % of the total export revenue. According to the National Agricultural Marketing Council (NAMC), South Africa is the largest agricultural exporter under Agoa. A report by the U.S. Ministry of Agriculture states that two thirds of South Africa's agricultural exports to the USA will be carried out duty-free under AGOA

Alternative markets

Outside of America, which made up 6 % of South Africa's agricultural exports in 2024, the African continent is the main market for the country's agricultural products. Nevertheless, Wandile Sihlobo, chief economist of the Gesinschairs, emphasizes the importance of the US market. "Exports to the USA focus on specific industries, mainly nuts, citrus fruits, wines, grapes and fruit juices," he said. "This means that the risks associated with this market are not disproportionate, but they represent challenges for specific industries."

The future of relationships with the USA

President Ramaphosa announced his willingness to close a “deal” with the United States on Thursday in order to repair the increasingly tense relationships. He explained: "We want to travel to the United States to complete a deal" and added that the agreement should include commercial, diplomatic and political issues.

ramaphosa emphasized that it was not advisable to react too quickly due to Trump's decree and plan to first analyze the situation.