Parliament, Wednesday, 4 November 2026 – The Chairperson of the Portfolio Committee on International Relations and Cooperation, Mr Supra Mahumapelo, has noted the United States’ (US) announcement of its intention to withdraw South Africa’s benefits under the African Growth and Opportunity Act (AGOA) as a concerning development for trade, employment and bilateral relations.
The withdrawal, announced on 2 November 2026, is expected to take effect on 1 January 2027. The notice period leaves room for continued engagement. AGOA gives qualifying goods from eligible African countries preferential, generally duty-free access to the US market. Losing these benefits would not prohibit South African exports. Qualifying goods could instead attract ordinary import duties alongside other applicable tariffs, with the additional cost differing by product.
Mr Mahumapelo said the most immediate risk is to workers, businesses and communities linked to affected export industries. Where additional duties make South African products less competitive, exporters could face reduced orders, pressure on profit margins and delayed investment, which could mean fewer shifts, reduced seasonal employment or job losses. Smaller suppliers, transport operators and packhouses could also feel the effects.
Citrus-producing communities in the Western Cape and Northern Cape are of particular concern. Industry representatives have warned that lost preferences could threaten jobs and that redirecting produce to other markets is not straightforward. Other exporters require product-specific assessments. Mr Mahumapelo cautioned that no reliable nationwide job-loss total can yet be stated, and potential exposure must not be presented as confirmed retrenchments.
For households, the main concern is the security of jobs and incomes rather than an automatic increase in the price of goods sold in South Africa. US import duties apply to goods entering the US, and any wider effect on domestic prices or the exchange rate would be indirect and uncertain. Families in export-dependent communities could nevertheless face substantial pressure if earnings fall.
The national impact must be kept in perspective without minimising concentrated local harm. According to the Department of Trade, Industry and Competition, AGOA exports accounted for approximately 10% of South Africa’s exports to the US in 2025 and about 1% of its total global exports. These figures describe trade exposure, not a forecast of lost production or employment, and the broader bilateral trading relationship would continue.
The proposed withdrawal adds pressure to SA–US relations and could weaken confidence in the predictability of their economic partnership. However, withdrawal of a trade preference is not the same as ending diplomatic relations, imposing a trade embargo or terminating other areas of cooperation.
A measured response should prioritise direct diplomatic and technical engagement, clear communication and practical solutions consistent with South Africa’s constitutional responsibilities and international obligations. Maintaining an independent foreign policy and pursuing a constructive economic relationship need not be mutually exclusive.
This development reinforces the importance of diversifying export markets, deepening regional trade and strengthening relationships with a broad range of partners. Diversification should complement, not replace, efforts to sustain US trade and investment, and new markets cannot necessarily absorb affected exports immediately. Yet South African producers have a record of adapting to changing conditions, and the African Continental Free Trade Area (AfCFTA) offers a growing opportunity to expand intra-African trade, build regional value chains and reach a market of more than a billion people.
Realising these opportunities will require partnership between government, industry and labour, including helping exporters meet new market standards, improving logistics and port efficiency, and providing market intelligence and trade-promotion support, with particular attention to small and emerging businesses. These efforts will take time and cannot replace the US market, but they can strengthen the foundation for sustainable growth.
South Africa remains committed to constructive dialogue with the US during the notice period, while working with partners at home and abroad to open new doors. By combining continued engagement with a push into new markets, South Africa can protect jobs, support affected communities and emerge more diversified and resilient.
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE PORTFOLIO COMMITTEE ON INTERNATIONAL RELATIONS AND COOPERATION, MR SUPRA MAHUMAPELO.
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