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Ramaphosa says South Africa must prepare for possible loss of US trade benefits

South Africa’s president warned that exclusion from the AGOA programme could devastate jobs, while talks with US officials continue.

Cyril Ramaphosa and Michel Temer pose together in Johannesburg.
File photograph of South African President Cyril Ramaphosa and Brazilian President Michel Temer in Johannesburg, South Africa, in 2018. Cyril Ramaphosa e Michel Temer — Cesar Itiberê/PR (resized and converted to WebP). CC BY 2.0.Image sourceImage licence: CC BY 2.0
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South African President Cyril Ramaphosa said on October 19 that the country must prepare for possible exclusion from a US duty-free trade programme, a change he warned could devastate jobs. Reuters reported his remarks from Johannesburg as relations between the two governments have soured. Ramaphosa said South Africa’s place in the programme remains uncertain and talks with US counterparts are continuing.

What AGOA means for South African exports

The African Growth and Opportunity Act, known as AGOA, gives eligible African countries duty-free access to the US market for thousands of products. South Africa has benefited from the programme for years, Reuters reported. The Office of the United States Trade Representative says South Africa is eligible for AGOA this year and qualifies for its textile and apparel benefits.

That access matters to South African exporters selling qualifying goods into the US market. Ramaphosa said the potential effect of losing it on employment would be ‘devastating’. He gave no job-loss estimate in the account reported by Reuters. His warning concerns a possible change to trade access; Reuters did not report a US decision to exclude South Africa.

Why South Africa’s eligibility is in question

Some US officials have suggested South Africa should be excluded, Reuters reported. The report did not identify those officials. President Donald Trump has claimed that white people face persecution in South Africa; the South African government says that claim is a falsehood spread by fringe groups. Reuters described the Trump administration as having cracked down on South Africa over the issue.

Ramaphosa said it remained to be seen whether South Africa would stay in AGOA. ‘I need, as president, to prepare us if it ever happens,’ he said, according to Reuters. He said he and Deputy President Paul Mashatile had travelled to explore alternative markets, putting that effort alongside the government’s discussions with US counterparts.

Ramaphosa cited a recent trade agreement with China as a positive step in that search. Reuters reported that China introduced a zero-tariff scheme for qualifying South African goods in May. The report did not specify the year of that May measure. Any alternative market would matter to exporters facing a potential change in US access, but Ramaphosa did not announce an AGOA outcome.

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