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SA, US seek to bury Lady R hatchet in call between national security advisors as AGOA talks near

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SA, US seek to bury Lady R hatchet in call between national security advisors as AGOA talks near

US President Joe Biden
Photo by Reuters
US President Joe Biden

3rd October 2023

By: News24Wire

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A call between President Cyril Ramaphosa and United States President Joe Biden's respective national security advisors eased tensions that could save the multibillion-dollar trade agreement between both countries, a US foreign policy expert said.

Professor John Stremlau said it was the "correct decision" by the US government to put aside diplomatic angst that has dominated relations over the past year due to South Africa's "non-aligned" position on the Russia-Ukraine war ahead of November's African Growth and Opportunity Act (Agoa) summit in South Africa. 

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Stremlau was reacting to Monday's call between Ramaphosa's national security advisor, Sydney Mufamadi, and his US counterpart, Jake Sullivan, where the senior officials "reaffirmed the strong partnership between South Africa and the United States, and recommitted to advance shared priorities including trade and investment, infrastructure, health, and climate". 

Agoa is a law enacted in 2000 by the US Congress – that country's legislature equivalent to South Africa's Parliament – granting duty-free access to its market for African exports. South Africa exported about $16.2-billion of its goods to the US in 2022. 

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South Africa's participation in Agoa, which expires in 2025, came under fire in May when US ambassador to South Africa, Reuben Brigety, accused South Africa of providing arms to Russia for its continued invasion of Ukraine that began in February 2022. The weapons, Brigety asserted, were loaded on Lady R – a sanctioned Russian ship that docked in the Western Cape in December last year.

The diplomatic row – which saw the rand crash after Washington said Pretoria had broken its non-aligned stance – tapered off last month when Ramaphosa announced that an investigative panel chaired by Judge Phineas Mojapelo found no evidence that South Africa had sold arms to Russia. 

Stremlau said it was important for Sullivan to be honest with South Africa about the "pressure" the Biden administration faced from the US Congress about the Lady R debacle, which could have jeopardised economic and political relations between the countries. 

On Monday, the US government said that Sullivan "appreciated the seriousness with which President Ramaphosa had addressed the concerns about the Lady R's activities last year". The White House thanked South Africa for hosting this year's Agoa summit, saying it underscored "the importance of this landmark legislation for US relations with the region".

Stremlau said Agoa was essential to South Africa and the US, saying it was "a good move" for the countries to mend the uneasiness of the past year.

"What is important is that Jake Sullivan speaks frankly about the pressure the administration is under from Congress, which has been signalling [its] displeasure about South Africa's foreign policy," Stremlau contended.

He added: "It seems to be the [Biden] administration's … correct decision to consider the Ukrainian issue as a side one and not central to the Agoa co-operation that exists between the two economies, which is good for both economies. I think that is all for the good, and I don't expect that there will be any changes [to Agoa]."

The professor warned, however, that Agoa's renewal was "a Congressional decision", not a trade agreement, which had to be borne in mind by all involved. 

"Therefore, I feel very strongly about the importance of having Mufamadi – who is held in high regard [in the US] – and Sullivan talking. So, that's good," Stremlau added. 

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