Presidency: SA's future with AGOA uncertain after Trump imposed tariffs

JOHANNESBURG - The Presidency has admitted that the country’s future within the African Growth and Opportunity Act (AGOA) is uncertain after the United States (US) imposed 30% tariffs on South African exports.

AGOA provides eligible sub-Saharan African countries with duty-free access to the US market.

On Wednesday night, American President Donald Trump announced sweeping global tariffs, with South Africa earmarked as one of the hardest hit countries.

In response, Pretoria said there was a need for urgent bilateral talks between the Union Buildings and Washington.

Presidency spokesperson Vincent Magwenya said African countries may need to prepare for the worst.

“The entire trade arrangement may be scrapped altogether. It now seems more likely that AGOA in its entirety may be scrapped. If you look at the tariffs imposed on other African countries, some with really small economies who will have had no impact in terms of how the US views the impact of tariffs. So the assumption there is to safely work around the fact that we will not see AGOA continuing.”

NEED TO ENHANCE TRADE BETWEEN AFRICAN COUNTRIES HIGHLIGHTED

The Department of Trade and Industry has highlighted the need to enhance trade between African countries following the US’s new global tariff on imports.

Several African countries are also affected by the import taxes, including Lesotho, Nigeria, Botswana, and Madagascar.

Department of Trade and Industry spokesperson Yamkela Fanisi said it is about time African countries begin relying on each other.

“This also calls for us to look into the African trade agreement so that we can take advantage of regional trade among African countries. However, we are still engaging the US using the existing diplomatic framework.”

The South African government is in the process of drafting a new trade proposal to the US after Trump's decision to impose a 30% tariff on Pretoria.

Magwenya says South Africa wants to continue exporting to the US without facing a hefty fee.

“We have to now accelerate the work that is already underway with respect to formulating a new trade proposal. One that will be mutually beneficial, and one that will still ensure that South African goods remain price competitive in that market, and are not exposed to adverse tariffs that will have a negative and knock-on effect on some of our sectors and the economy.”

ALSO READ: