The ANC has condemned the United States' decision to sign an executive order halting aid to SA, citing it as a direct assault on the country's sovereignty and territorial integrity.
The US decision, signed by President Donald Trump on Friday, has sparked widespread outrage in the country, with the ANC labelling it as a "gross interference" in the country's internal affairs.
"This action is a direct assault on our sovereignty and territorial integrity, and an affront to the fundamental principles of international law," said ANC spokesperson, Mahlengi Bhengu-Motsiri.
She also took a swipe at AfriForum, accusing the organisation of driving a wedge among South Africans.
“AfriForum and other counter revolutionary parties visited the US with the aim of driving their regressive rhetoric aimed at racially dividing South Africans to avoid the real issues of ensuring that all who live on our land benefit from it.
“Today, the same AfriForum is blaming the ANC like typical race driven right-wing minded forces who never take responsibility for their ill-fated actions…. The actions of counter revolutionaries are an attempt at erasing all the hard work that will ultimately benefit all South Africans, regardless of race, colour, or creed,” Bhengu-Motsiri added.
The executive order has far-reaching implications for South Africa, including the potential loss of the African Growth and Opportunity Act (AGOA), which provides tariff-free access to the US market for certain South African products.
AGOA has been a vital component of South Africa's economy, with the country exporting over $4 billion worth of goods to the US under the agreement in 2020.
In the previous US administration led by Joe Biden, South Africa’s participation in AGOA appeared to be ongoing.
However, since Trump and the Republicans came into power, economists have warned that Trump could punish the country for supporting Palestine and SA’s close proximity to China and Russia among others.
The AGOA agreement was approved in the year 2000 but requires periodic renewal and extension by the US Congress.
It allows 35 eligible African countries to be exempt from taxes on their exports to the US.
The latest and longest extension of ten years expires at the end September 2025.
Economist Dale McKinley said that the cost of sanctioning SA out of AGOA would be disastrous for the country, however he said that Trump is likely to use it as bargaining tool to get what he wants from South Africa.
“I think you’re going to see in the period up to the renewal period in September, increasing pressure from the Trump administration for SA to change its diplomatic stance on Palestine,” McKinley said.
AgriSA CEO, Johann Kotzé said farmers were anxious at the possibility of being booted out of AGOA.
"The potential loss of AGOA would be devastating for our economy, particularly for the agricultural and automotive sectors, which rely heavily on exports to the US.” Kotzé said.
The ANC has further called on the government to take a strong stance against the US decision, and to explore alternative markets and partnerships.
"We will not be bullied or intimidated by the US or any other country. We will continue to assert our sovereignty and independence, and to pursue our own economic development path," said Bhengu-Motsiri.
Meanwhile, the South African government has dispatched envoys to Washington to negotiate with the US government, and to try to find a resolution to the crisis.