Ramaphosa Warns South Africa Could Lose US Trade Benefits as Job Concerns Grow

South African President Cyril Ramaphosa has warned that the country must prepare for the possibility of losing important trade benefits from the United States, raising fresh concerns about the future of exporters, businesses and jobs.

According to Reuters on Monday, October 19, 2026, Ramaphosa said South Africa could be excluded from the African Growth and Opportunity Act (AGOA), a programme that gives eligible African countries preferential, duty-free access to the American market for thousands of products.

The president stressed that his government was preparing for the possibility even as discussions with US officials continued.

“I need, as president, to prepare us if it ever happens,” Ramaphosa said.

South Africa has benefited from AGOA for years, using the arrangement to export goods to the United States without certain import duties.

The programme is particularly important to industries that depend on international customers, including vehicle manufacturing, automotive components and agriculture.

If South Africa loses its preferential access, exporters could face higher costs when selling goods in the American market. That could make some products less competitive and put pressure on businesses that rely on US customers.

Ramaphosa warned that the consequences for employment could be “devastating”, underlining the potential seriousness of the situation.

However, the warning does not mean South Africa has already been removed from the programme. Its future participation remains uncertain, with discussions between Pretoria and Washington continuing.

Relations between South Africa and the United States have deteriorated amid disagreements over domestic policies and foreign affairs.

US President Donald Trump’s administration has criticised South Africa over several issues, including its domestic policies and the government’s international positions. Pretoria has rejected accusations that it persecutes white South Africans.

Some US officials have also suggested that South Africa should be excluded from AGOA, adding to uncertainty over the country’s trade relationship with Washington.

The dispute matters because access to the American market can influence the costs, competitiveness and future expansion plans of South African businesses.

Ramaphosa said his administration was exploring alternative markets to reduce the country’s dependence on the United States.

He pointed to opportunities in China and said he and Deputy President Paul Mashatile had been travelling internationally to develop additional trade relationships.

China introduced a zero-tariff scheme for qualifying South African goods in May 2026, offering one potential avenue for expanding exports.

Nevertheless, finding alternative customers and replacing established export relationships may take time. The extent of any economic impact would depend on which products were affected, the terms of future trade arrangements and how quickly businesses could adapt.

Source: https://x.com/SundayWorldZA/status/2112486965232734718

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