S Africa confident of U.S. trade status despite unease over foreign policy

By Wendell Roelf and Nellie Peyton

CAPE TOWN (Reuters) - South Africa's trade minister said on Tuesday he is confident his country will maintain preferential trade status with the U.S. despite concerns in Washington over its foreign policy including a strong pro-Palestinian stance.

Parks Tau was in Washington last week to lobby for renewal of the U.S. African Growth and Opportunity Act (AGOA) and South Africa's continued participation in the programme, which provides duty-free access to the U.S.

South Africa has come under fire by some U.S. lawmakers for its relationship with Russia and its criticism of Israel in the Gaza conflict. It could lose eligibility for AGOA if it were determined to be undermining U.S. foreign policy interests.

"I am confident that AGOA will continue and that South Africa will stay in AGOA," Tau told a press briefing.

"We will keep a close eye on the process and will continue to lobby," he said, adding that further engagements were needed even though they had received a "relatively warm reception".

U.S. trade officials said on Monday that they had positive discussions with the South African delegation.

"I think it was clear that our partners in South Africa have heard the concerns that were raised and there has been close engagement on multiple levels," said the U.S. State Department's Deputy Assistant Secretary for African Affairs Joy Basu.

AGOA is due to expire next year and President Joe Biden supports its renewal, but the U.S. election in November and possibility of a Donald Trump presidency introduces uncertainty.

Tau said that ideally the legislation would be renewed before the vote though U.S. officials have said that is unlikely. An annual review of each country's eligibility is underway.

Separately, the U.S. House of Representatives last month voted in favour of a bill that would require a full review of the U.S. relationship with South Africa, citing concerns about ties to Russia and China and accusing it of supporting Palestinian militant group Hamas.

The bill would still need to pass the Senate and be signed by the president to become law.

South Africa says that supporting Palestinians does not equate to supporting Hamas.

Western nations are also unhappy with South Africa for failing to condemn Russia's invasion of Ukraine. It has sought to position itself as a neutral mediator.

(Reporting by Wendell Roelf and Nellie Peyton; Editing by Andrew Cawthorne)