South Africa is one step closer to being kicked out of Agoa and breaking trade ties with America due to expropriation without compensation
23 August 2018
The FF Plus’s warning that South Africa’s membership to the Agoa group of countries that receive trade benefits from America may be suspended due to expropriation without compensation is one step closer to becoming a reality.
The influential international think tank Cato Institute requested President Donald Trump from America to reconsider South Africa's membership in view of expropriation without compensation and its effect on minorities.
In terms of the requisites in the Agoa legislation, expropriation without compensation is not allowed.
With the launch of its Fight Back SA campaign against expropriation without compensation, the FF Plus warned that South Africa may lose its membership and the benefits related to Agoa.
There is also a possibility that America may use existing regulations pertaining to protecting the country’s interests to immediately implement sanctions against individual members of the South African government, or worse still, to implement countrywide economic sanctions against South African if America should feel that American assets are at risk.
The new Protection of Investment Act only makes provision for the protection of foreign investors in accordance with Section 25 of the Constitution.
That is the exact same Section that the ANC wants to test in court as the party believes that it already makes provision for expropriation without compensation on the one hand, while on the other hand, the ANC wants to amend the Section to make it unequivocally clear that expropriation without compensation is possible.
The result is that foreign investors from America will be at risk of losing all their assets without compensation in the near future. If President Trump should decide to turn his attention to South Africa, the ANC will have extensive problems on their hands that may destroy our economy.
Issued by Anton Alberts, FF Plus chairperson, 23 August 2018