South African President Cyril Ramaphosa has urged the country to prepare for possible exclusion from a United States trade programme, warning that the loss of preferential market access could have devastating consequences for the economy and thousands of jobs.
Ramaphosa’s warning comes amid deteriorating relations between Pretoria and Washington, as South Africa’s eligibility for the African Growth and Opportunity Act (AGOA) faces scrutiny from the U.S. government.
AGOA allows eligible African countries to export certain goods to the United States duty-free. The programme has been renewed by the U.S. Congress until the end of 2028, but the extension awaits the signature of President Donald Trump.
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South Africa is the programme’s largest beneficiary and stands to face significant economic consequences if it loses access to the trade arrangement.
Ramaphosa has urged the government and businesses to explore alternative export markets to cushion the potential impact, while advising South Africans not to panic.
The automotive industry is among the sectors most exposed to the possible withdrawal of trade benefits, as South African vehicles currently enjoy duty-free access to the U.S. market.
Industry estimates indicate that about 86,000 jobs at vehicle manufacturers are directly linked to the agreement, with the figure rising to 125,000 when subcontractors are included.
Any exclusion scheduled to take effect from January 1 would have to be announced by November 2, adding urgency to efforts to safeguard South Africa’s access to the American market.
Africanews
