President Cyril Ramaphosa says South Africa must prepare for the possibility of losing access to a key United States trade programme, warning that the impact on jobs could be severe.
According to BusinessTech, Ramaphosa said on Monday that government could not assume South Africa would remain part of the African Growth and Opportunity Act (AGOA).
The programme gives eligible sub-Saharan African countries duty-free access to the US market for thousands of products.
South Africa Still Eligible for AGOA
The Office of the United States Trade Representative currently lists South Africa as eligible for AGOA, including its textile and apparel benefits.
However, BusinessTech reports that Ramaphosa said South Africa’s future participation remained uncertain and government was continuing discussions with US counterparts.
“I need, as president, to prepare us if it ever happens,” Ramaphosa said, referring to possible exclusion from the programme.
He warned that the effect on South African jobs could be “devastating”.
Government Looks for New Markets
Ramaphosa said he and Deputy President Paul Mashatile have been travelling internationally as government works to expand alternative markets for South African products.
He pointed to improved trade access with China as one example of efforts to diversify the country’s export destinations, according to BusinessTech.
The strategy comes as trade relations between Pretoria and Washington face growing uncertainty.
In an earlier official address during a South Africa-US trade and investment dialogue, Ramaphosa acknowledged challenges in the relationship and said new US tariffs had already created uncertainty for exporters and disrupted supply chains.
Trade Relationship Remains Important
Despite the tension, Ramaphosa has maintained that South Africa wants to resolve trade disputes through engagement.
The Presidency previously said the country wanted to sustain and expand trade with the US while protecting the competitiveness of South African companies.
For now, South Africa remains an AGOA beneficiary, according to the US Trade Representative.
But Ramaphosa’s warning signals that government is preparing for the economic consequences should that access change.