West or Russia? Why not both? Patel tells parliament SA can deepen all trade ties

Minister of trade, industry and competition Ebrahim Patel told parliament that the government was working to strengthen every economically beneficial tie South Africa had with Western countries as well as the Global South as tensions over South Africa’s relationship with Russia continue to simmer. 

Patel was replying orally to questions in a National Assembly plenary on Wednesday afternoon. The plenary comes as South Africa’s government comes under increasing scrutiny for continuing to have ties with Russia despite the country’s continued military campaign in Ukraine. 

The war has prompted the International Criminal Court (ICC) to issue a warrant for the arrest of Russian President Vladimir Putin for war crimes, which puts South Africa — a signatory to the court’s Rome Statutes — in the unenviable position of arresting him should he come to South Africa for the Brics summit in August.

DA MP Dean Macpherson asked Patel what steps he had taken to secure an extension for the Republic of the African Growth and Opportunity Act, a law of the US Congress that allows preferential conditions for African imports. The agreement will expire in 2025, with many concerned that if it is renewed, South Africa will be excluded.  

Patel said the government’s most important focus was developing the African Continental Free Trade Agreement (AfCFTA) as the basis for future trade for South Africa. 

He said at a recent meeting of African trade ministers in Kenya, South Africa, Eswatini, Lesotho, Namibia and Botswana made a trade offer that was accepted and will allow products from these countries to get increased access to AfCFTA partner countries in future. 

“We are a member of the World Trade Organisation which provides guaranteed access to global markets around the world based on what is called the most favoured nation principle. In addition to this, we have preferential access to a number of markets on either negotiated terms or by the unilateral decision of the other trading partner country,” said Patel.

Patel said he met with his US counterpart four times in June, September, December and January. He also went to Washington DC to meet government officials where he put forward a motivation for the extension of AGOA and a refinement of its terms on behalf of all participating African states. 

“It’s due to expire in 2025, it’s been renewed previously and we are working closely with a number of other African countries to have it renewed and extended again. As part of this effort we have engaged on three fronts, first with members of the US administration, second with members of the US Congress and third with members of the US business community,” Patel said. 

He said most of South Africa’s exports to the US were covered by World Trade Organisation rules, accounting for just more than 80% of all our exports in 2021. He added that AGOA and the generalised system of preferences account for just under 18% of our exports to the US.

South Africa’s single and overriding objective, and it defines our national interest, is the creation of jobs in South Africa and opportunities for small business. And so, as we navigate all of the turbulence in global politics, we will keep an eye on how to advance South African interests.

—  Ebrahim Patel, minister of trade, industry and competition 

Macpherson asked the minister if he and President Cyril Ramaphosa took responsibility for the fallout stemming from the perception that South Africa is siding with Russia. He also asked if the minister and the president will now put South Africa’s interests ahead of Russia’s. 

“South Africa’s single and overriding objective, and it defines our national interest, is the creation of jobs in South Africa and opportunities for small business. And so, as we navigate all of the turbulence in global politics, we will keep an eye on how to advance South African interests,” Patel replied. 

National Freedom Party MP Ahmed Munzoor Shaik Emam asked how the department is working to strengthen relations with Brics to soften the impact of US efforts to “bully and restrict” other countries. 

“We are doing everything possible to deepen our trade relations with Brics countries, China in particular. India’s growth rates are very high and these can act as important markets for South African goods. 

“But given the size of our unemployment problem and the need to grow our economy, we do that, not as an alternative to strengthening relations with the US and EU. We are doing both. And most importantly, we are putting a lot of effort into strengthening relations with the rest of the African continent,” said Patel. 

Patel said broadening the consumer base for South African exports was high on the government’s agenda. He said R1.7bn worth of citrus fruit is sold to the US and South Africa was looking for new markets for products like these. 

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