COSATU Calls for Government Action After South Africa’s AGOA Removal

The Congress of South African Trade Unions (COSATU) is urging the government to intervene after South Africa was officially removed from the United States’ African Growth and Opportunity Act (AGOA) trade programme, effective January.

The federation warned that the change could increase costs for South African exporters selling goods to the US.

Trade between the two countries is expected to continue, but South Africa will no longer receive the duty-free access provided under AGOA.

COSATU is calling for urgent action to limit the impact on local businesses and workers exposed to the change. The federation has not, in the information provided, outlined specific measures it wants government to adopt.

AGOA provides eligible African countries with preferential access to the US market for a range of products. Without that access, South African goods may face additional duties, potentially making them more expensive or less competitive for US buyers.

The effects are likely to vary across industries, depending on what goods are exported and the applicable tariffs.

Exporters may need to absorb the added costs, pass them on to customers, or seek new markets. Any of those responses could put pressure on companies and jobs if sales decline.

COSATU said trade would not stop when South Africa’s participation ends, but exporters would lose the programme’s duty-free benefits.

The federation’s appeal places the focus on how government plans to respond and whether alternative arrangements can reduce the burden on affected sectors.

The change comes as businesses and workers face uncertainty about the terms under which South African goods will enter the US market from January.

COSATU’s call for intervention highlights concerns about the potential consequences for exporters and employment.

The government’s response may be important in helping businesses prepare for the new trade conditions, including by providing guidance on tariffs, supporting affected industries or pursuing negotiations with US authorities.

The impact will depend on the goods concerned and the duties applied once AGOA preferences no longer cover South African products.

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