Ramaphosa warns South Africa to prepare for potential loss of US trade deal

South African President Cyril Ramaphosa said on Monday that the country must prepare for its potential exclusion from the United States’ duty-free trade initiative, AGOA, as relations between Washington and Pretoria continue to deteriorate.

The African Growth and Opportunity Act gives eligible sub-Saharan African countries duty-free access to the US market for thousands of products, and has been renewed until the end of 2028. South Africa is the scheme’s largest beneficiary, but its eligibility has come under scrutiny amid mounting criticism from Washington.

“I need, as president, to prepare us if it ever happens,” Ramaphosa said, adding that the impact on jobs would be “devastating”. He said he and Deputy President Paul Mashatile have been travelling the world to explore alternative markets, and cited China’s zero-tariff scheme for qualifying South African goods, introduced in May, as a positive step.

The president noted that Congress has decided South Africa should remain in AGOA, leaving the matter with the executive: “What now remains is the executive,” he said, referring to the need for President Donald Trump’s signature.

The Trump administration has cracked down on South Africa over claims of persecution of white people, which the South African government says is a falsehood spread by fringe groups. Washington has cut aid, expelled South Africa’s ambassador, and imposed visa restrictions on South Africans.

[Sources: Reuters, CNBC Africa, Punch/AFP]