Alarm over new US trade threat

A SA business lobby in the US has raised the alarm after the US House voted to pass legislation requiring a ‘full review’ of Washington's bilateral ties with Pretoria. As previously reported in Legalbrief Today, the vote took place last month on the same day South Africans went to the polls to elect a new government and came amid strained relations over SA's stance on Israel and ties with Russia, China, and Iran. The legislation, which passed the lower chamber of Congress by a vote of 272 to 144 as an amendment to another Bill, is not yet law. It still needs to pass the Senate and be signed into law by the White House. Fin24 reports that Neil Diamond, president of the SA Chamber of Commerce in the US, said the legislation would ‘significantly impact SA's trade with the US’ if it is implemented. ‘The nature of the (legislation), which calls for a full review of the US's bilateral relations with SA, introduces a level of uncertainty that could affect various sectors. Our primary concern revolves around the potential implications for trade and investment flows between the two nations, which have historically benefitted from a stable and predictable bilateral agreement and relationship,’ he said. The legislation obliges the US President to ‘fully’ review America's bilateral relationship with SA and publicly release a report on whether the country has engaged in activities that ‘undermine US national security or foreign policy interests’.