Uncertainty looms as AGOA trade deal end looms
Thousands of jobs across the entire African continent, including South Africa, are at risk as the African Growth and Opportunity Act (AGOA) is set to expire on Tuesday
Image: Jim Watson / AFP
Thousands of jobs across the entire African continent, including South Africa, are at risk as the African Growth and Opportunity Act (AGOA) is set to expire on Tuesday.
This is despite President Cyril Ramaphosa's best attempts to negotiate a renewal of the trade pact, which has been vital for African exports to the United States over the past two decades.
According to reports, the Trump administration has expressed support for a one-year extension of the programme. However, no official confirmation has yet been issued by the US government.
AGOA is a US trade programme that provides duty-free access to the American market for over 6,000 products from more than 30 eligible sub-Saharan African countries.
IOL previously reported that President Cyril Ramaphosa has urged the United States to renew the African Growth and Opportunity Act (AGOA), warning that its expiration later this month would seriously damage South Africa’s economy.
"For this reason, I appeal for your support in advocating for its renewal. Predictable, preferential access to the US market is vital not only to South Africa but to American companies who depend on reliable imports," Ramaphosa said.
"We do not take this relationship for granted. We value the trust that American companies place in South Africa, and we are committed to ensuring that this partnership continues to grow. The reality is that tariffs do not only affect one side. They ripple across industries and communities in both our countries."
Minister of Agriculture John Steenhuisen has previously cautioned, saying the government is “hoping for the best but preparing for the worst" when it comes to the renewal of AGOA.
"When we approached the subject of AGOA, it was made very clear that it is a creature of Congress and that we would have to engage with Congress. My personal view is that AGOA may still be on the boil, but it is going to be different from the AGOA we know from the past."
Finance Minister Enoch Godongwana has also warned that South Africa stands to lose around 100,000 jobs due to US tariffs if a trade deal is not renewed.
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mthobisi.nozulela@iol.co.za