Ramaphosa Tells South Africa to Prepare for Loss of US-Africa Trade Deal
Ramaphosa said talks with Washington continue as South Africa looks for alternative markets and a China trade deal could soften the blow.
- On Monday, South African President Cyril Ramaphosa said the country must "prepare" for potential exclusion from the United States' African Growth and Opportunity Act , as relations between Washington and Pretoria continue to fray.
- The administration of President Donald Trump has criticized South Africa over disputed claims of "white genocide" and imposed visa restrictions on South Africans who allegedly promote "race-based discrimination, incite violence, or enable land confiscation without compensation in South Africa."
- According to Ramaphosa, losing AGOA benefits would be "devastating" for South African jobs, as trade union Solidarity estimates roughly 250,000 positions rely directly on AGOA preferences out of 500,000 U.S.-trade-dependent roles.
- To mitigate potential losses, President Ramaphosa and Deputy President Paul Mashatile are exploring alternative markets, including a February agreement with China providing duty-free access across 100 percent of tariff lines through April 30, 2028.
- The United States government typically announces country-level changes by late October or early November during the annual eligibility review, and any removal requires 60 days' notice to Congress before taking effect.
21 Articles
21 Articles
South Africa eyes China and India’s 2.8 billion consumers as relations with the U.S. deteriorate
President Cyril Ramaphosa has warned that South Africa is preparing for the possibility of losing access to the United States’ African Growth and Opportunity Act (AGOA). Business Insider Africa recently reported on the warning as Pretoria seeks to deepen economic ties with major Asian partners, particularly China and India, to cushion its economy against rising diplomatic tensions with Washington.
South Africa: Ramaphosa warns of devastating impact if US trade deal is lost
South African vehicles benefit from duty-free access to the US, and industry estimates indicate around 86-thousand jobs at car manufacturers are directly linked to the agreement, rising to 125-thousand when subcontractors are included.
Ramaphosa tells South Africa to prepare for loss of US-Africa trade deal
The African Growth and Opportunity Act (AGOA), which grants eligible sub-Saharan African countries preferential access to the US market, has been renewed until the end of 2028. South Africa is the scheme's largest beneficiary but its eligibility has come under scrutiny as Washington steps up criticism of Pretoria, including false allegations of discrimination against white Afrikaners that South Africa rejects. "Congress has decided that we shoul…
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