Agoa deal turns to lemon as SA exclusion sparks job fears

The United States’ exclusion of South Africa from the African Growth and Opportunity Act (Agoa) trade programme as of 1 January is a big blow that could have been avoided, many prominent people say.

Freedom Front Plus leader Corné Mulder said: “For SA, the consequences are enormous and extensive. It will result in substantial job losses.

Consequences are enormous – FF Plus leader

“The general economy and sectors such as agriculture and vehicle manufacturing, will be dealt a severe blow.”

Mulder said President Cyril Ramaphosa and Minister of International Relations Ronald Lamola were to blame.

“Billions of rands in annual export revenue, particularly from the automotive and agricultural sectors, will be lost as a result of US import tariffs that did not apply under Agoa.

“According to industry analysts, this jeopardises between 125 000 jobs directly and more than 500 000 jobs indirectly.”

AgriSA CEO Johann Kotze called for continued diplomatic engagement, clear information for exporters and practical measures to preserve agricultural competitiveness.

Trade will continue, but competitive conditions may change. SA agricultural exports to the US totalled $504 million (about R8.3 billion) in 2025, down 3% from the previous year.

Agoa exclusion jeopardises 125 000 jobs directly

Motor Industry Staff Association CEO of Operations Martlé Keyter said SA vehicles will still be sold in the American market subject to standard US tariffs.

For the motor industry, the most severe blow was dealt in August, when Automotive Business Council Naamsa pointed out that the 25% Section 232 tariff on vehicles and automotive components, imposed in 2025, had effectively erased the benefits of Agoa.

As a result, South African vehicle exports to the US plunged 83.2%.

According to Wandile Sihlobo, Ramaphosa’s envoy on agriculture, this will add a tariff of 3.4%. Products that currently attract duties of 12.5% could face tariffs of up to 15.9%.

AfriForum deputy CEO Werner Human said the SA government’s foreign policy and the signing of the Expropriation Act on 23 January, 2025, contributed directly to this development.