South African farmers brace for impact as AGOA renewal faces uncertainty
As tensions continue to rise between South Africa and the US, farmers in the Western Cape who export to the US have warned that they will be hit
Image: Armand Hough/Independent Media
As tensions continue to rise between South Africa and the US, farmers who export to the US have warned that they will be hit hard if the African Growth and Opportunity Act (AGOA) agreement is not renewed.
Last month, Trump imposed "reciprocal" tariffs on several countries he accused of ripping off the US, including South Africa, which saw a 31% levy slapped on goods imported from the country.
However, the US president later backtracked, pausing the implementation of the tariffs for three months. Trump has also, without evidence, claimed that there is genocide in South Africa against white farmers and recently welcomed 59 Afrikaners to the US under a new refugee program.
These deteriorating ties have raised concerns that South Africa could be removed from AGOA, a trade agreement that grants preferential access to US markets. Economists and political analysts have urged the country to diversify its trading partners to mitigate the risks of further economic fallout.
This week, President Cyril Ramaphosa arrived in Washington, for an official working visit to meet with Trump in a bid to mend relations and strengthen trade ties between the two countries.
CEO of Agri Western Cape, Jannie Strydom, said that given the current global geopolitical situation, he does not believe the AGOA agreement will be renewed.
“75% of all agricultural products exported to the United States are covered under the AGOA agreement, so it’s a huge benefit for the agricultural sector in terms of our opinion regarding the renewal of the AGOA agreement," Strydom said to the SABC.
"I am personally of the opinion that given what’s going on in the global trade market, I am of the opinion that I don’t think that it would be renewed, we will have to have a Plan B,” Strydom said.
mthobisi.nozulela@iol.co.za
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