South Africa’s exclusion from the African Growth and Opportunity Act (AGOA) is expected to affect some industries and jobs, but trade experts say it will not bring an end to the country’s trade with the United States.
AGOA has provided duty-free access to the US market for several African products, including agricultural goods, manufactured items and vehicles. However, only about 10 per cent of South Africa’s exports to the US currently benefit from the programme, accounting for roughly one per cent of its total exports worldwide.
The Congress of South African Trade Unions (Cosatu) estimates that between 3,000 and 10,000 jobs in agriculture and manufacturing could be at risk.
Union representative Matthew Parks said the decision would not cause a major economic collapse but warned that workers, farmers and businesses in smaller communities could face serious difficulties.
He said Cosatu was engaging the government to use the next 60 days to negotiate with Washington and seek an alternative trade arrangement.
President Cyril Ramaphosa described the exclusion as a setback, while noting that it could create an opportunity to pursue a formal bilateral trade agreement with the United States.
Trade and Industry Minister Parks Tau also said the decision did not signal the end of trade between the two countries. Pretoria has 60 days to appeal the move.
However, former diplomat and international relations expert Dr Kingsley Makhubela questioned whether an appeal would be worthwhile, arguing that South Africa should focus on finding new trading partners.
He described the exclusion as a political decision by the Trump administration rather than a trade-related one.
South Africa had been preparing for the possibility of losing AGOA benefits amid strained relations with Washington over several domestic and international policy disagreements.
The exclusion is scheduled to take effect on 1 January 2027.
African Updates
