Ramaphosa urges South Africa to prepare for possible loss of US trade benefits
Congress has renewed the African Growth and Opportunity Act through the end of 2028, but South Africa’s eligibility is under scrutiny in Washington.
South African President Cyril Ramaphosa has called for preparations in case the country loses preferential trade access to the United States, warning of severe consequences while urging the public to remain calm.
He said South Africa should pursue other markets to soften the impact of possible exclusion from the African Growth and Opportunity Act, known as AGOA. The warning comes amid worsening relations between South Africa and the US.
The program gives eligible African countries duty-free entry to the US for certain goods. South Africa benefits more than any other participant, but Washington is scrutinizing its eligibility. Congress has approved renewal until the end of 2028; President Donald Trump’s signature remains pending.
For vehicle manufacturers, industry estimates link around 86-thousand jobs directly to the agreement, or 125-thousand including subcontractors. South African vehicles currently enter the US duty-free under the program. Exclusion beginning January first would require an announcement by November second.
