Ramaphosa Warns South Africa to Prepare for Possible Loss of US-Africa Trade Deal

President Cyril Ramaphosa has warned that South Africa should prepare for the possibility of being removed from the United States’ duty-free trade programme for Africa as relations between the two countries remain strained.

The African Growth and Opportunity Act (AGOA), which gives 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 continued eligibility has come under scrutiny amid growing tensions with Washington.

“Congress has decided that we should be kept in AGOA. What now remains is the executive,” Ramaphosa said, referring to the need for US President Donald Trump’s signature after congressional approval.

He added that South Africa would not be the first or last country to face possible exclusion. “If we ever have a choice, we are not the first and only country to be taken out of AGOA. And I believe we will not be the last.”

Ties between Pretoria and Washington have deteriorated since Trump took office, with the US cutting aid, expelling South Africa’s ambassador, and criticising the country over disputed claims involving race and land issues.

The US president reviews AGOA eligibility annually. Any removal requires 60 days’ notice. For an exclusion to take effect on 1 January, it must be announced by 2 November.

Ramaphosa said South Africa would look for alternative markets to reduce the impact if it were removed from the programme. While he urged people not to panic, he acknowledged that the consequences would be “devastating.”

Cars are South Africa’s second-biggest export earner to the United States after precious metals. In 2025, the automobile employers’ organisation Naamsa said 86,000 jobs were directly tied to AGOA at car manufacturers, rising to 125,000 when including sub-contractors.

https://iol.co.za/business/2026-10-20-ramaphosa-warns-south-africa-to-prepare-for-loss-of-us-africa-trade-deal/

IOL – Ramaphosa warns South Africa to prepare for loss of US-Africa trade deal (AFP)

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