SOUTH AFRICA MAY LOSE US DUTY-FREE TRADE ACCESS, RAMAPHOSA WARNS

South African President Cyril Ramaphosa has urged the country to prepare for the possibility of losing its preferential access to the United States market under the African Growth and Opportunity Act (AGOA), amid worsening diplomatic relations between the two countries.

AGOA, which provides eligible sub-Saharan African countries with duty-free access to the US market for certain products, has been renewed until the end of 2028.

South Africa is the programme’s largest beneficiary, but its continued eligibility is facing scrutiny as Washington intensifies criticism of Pretoria, including allegations of discrimination against white Afrikaners, which the South African government has rejected.

“Congress has decided that we should be kept in AGOA. What now remains is the executive,” Ramaphosa said, referring to the need for US President Donald Trump to sign the legislation following its approval by Congress.

Speaking in response to a question from an AFP journalist during a briefing, Ramaphosa said South Africa should prepare for the possibility of exclusion, noting that it would not be the first or last country to lose access to the programme.

Relations between Pretoria and Washington have deteriorated since Trump assumed office, with the US cutting aid, expelling South Africa’s ambassador and confronting Ramaphosa in the Oval Office over allegations of a “white genocide”, claims that have been widely disputed.

In mid-September, Washington also announced visa restrictions targeting South Africans accused of promoting racial discrimination, inciting violence or enabling land confiscation without compensation. These issues remain points of contention between the two governments.

Last year, the United States introduced a programme to resettle white Afrikaners who claim to face persecution and violent crime in South Africa.

By September 30, the US had admitted 16,287 South Africans under the programme over the preceding year. They were the only group granted refugee status by Washington during that period, apart from five Afghans.

The US president reviews countries’ eligibility for AGOA annually. Any decision to remove a country requires 60 days’ notice to Congress and the country concerned. For an exclusion to take effect on January 1, it must be announced by November 2.

In October 2023, former US President Joe Biden declared the Central African Republic, Gabon, Niger and Uganda ineligible for the programme, with their exclusions taking effect on January 1, 2024.

Ramaphosa said South Africa would seek alternative export markets to reduce the impact of any potential exclusion, while cautioning citizens against viewing such a move as the end of the world.

However, he acknowledged that the economic consequences could be severe.

Under AGOA, South African automobiles benefit from exemptions from US customs duties. After precious metals, vehicles are the country’s second-largest export earner in the American market, according to South African tax authorities.

In 2025, the automobile employers’ organisation Naamsa estimated that 86,000 jobs at vehicle manufacturers were directly linked to the agreement, rising to 125,000 when subcontractors were included.