Economy

SA farmers face uncertain future as AGOA renewal hangs in the balance

Date: May 19, 2025

South African (SA) farmers exporting to the United States (US) could face serious financial setbacks if the African Growth and Opportunity Act (AGOA) is not renewed, warns Agri Western Cape.

The caution comes as President Cyril Ramaphosa prepares to lead a high-level delegation to Washington, DC, where trade and tariff agreements will feature prominently in talks with US officials.

AGOA, which provides eligible African countries with preferential access to US markets, has long supported SA's agricultural exports, particularly citrus and wine. However, this stability was shaken earlier this year when US President Donald Trump raised tariffs unilaterally, causing concern among local producers.

Jannie Strydom, Chief Executive Officer of Agri Western Cape, said the agreement is vital to the sector’s success. “Roughly 75% of agricultural goods we export to the US fall under the AGOA framework. It’s been a major advantage for the industry,” he explained.

He remains doubtful about the agreement’s future. “Considering current global trade dynamics, I don’t believe AGOA will be renewed. If that’s the case, we’ll need to fall back on a Plan B,” Strydom added.

The outcome of the Ramaphosa’s US visit is expected to play a pivotal role in shaping the direction of SA’s agricultural trade in the coming months.

--ChannelAfrica--

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