US govt urged not to let AGOA summit take place in SA

JOHANNESBURG - A group of four US Democrats and Republicans want their government to move the AGOA summit from South Africa.

They've submitted their demands to Secretary of State Antony Blinken.

The African Growth and Opportunity Act gives duty-free access to 25 percent of SA exports to the US.

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The legislators accused South Africa of deepening its military relationship with Russia.

The group includes National Security Advisor Jacob Sullivan and Trade Representative Katherine Tai.

They question if a country in danger of losing AGOA benefits should have the privilege of hosting the forum.

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Ndivhuho Netshitenzhe from Stanlib says this would have dire financial consequences.

"Even if no sanctions are imposed on South Africa, the trade impact alone will affect manufacturing, the mining and agricultural sector.

"This would hurt revenues for those companies, and would impact unemployment cause they might have to lay off people if they don't have the same competitive advantage in the US," she said.

"And overall, this will impact economic growth and the income of consumers around the country."