John Steenhuisen warns of AGOA uncertainty, urges diversification of export markets
South Africa's Minister of Trade, Industry and Competition, Parks Tau, US Trade Representative Jamieson Greer, and Minister of Agriculture John Steenhuisen after discussions on trade matters between South Africa and the United States.
Image: John Steenhuisen / X
THE future of South Africa’s trade benefits under the African Growth and Opportunity Act (AGOA) remains uncertain, Minister of Agriculture John Steenhuisen has cautioned, saying the government is “hoping for the best but preparing for the worst.”
This comes despite President Cyril Ramaphosa’s recent diplomatic efforts, including a high-level meeting with US President Donald Trump last week, where a South African delegation, which included Steenhuisen, sought to ease tensions and strengthen trade ties between the two countries.
"Minister Parks Tau had already put on the table what I think is a very serious trade deal, and I think it showed that South Africa is a serious country with a serious offer," Steenhuisen said.
He noted that while discussions on AGOA were held, it was made clear that the agreement was ultimately “a creature of Congress”, meaning its renewal and terms lie in the hands of US lawmakers.
"When we approached the subject of AGOA it was made very clear that is a creature of Congress and that we would have to engage with Congress, my personal view is that AGOA may still be on the boil but it is going to be different from the AGOA we know from the past," he told broadcaster Newzroom Afrika.
Under the AGOA, South Africa has enjoyed duty-free access to the US market for a diverse range of products, including vehicles, citrus fruits, and textiles.
This preferential trade status has been instrumental in boosting key sectors such as agriculture and manufacturing, contributing to economic growth and job creation.
As tensions continue to rise between South Africa and the US, farmers who export to the US have warned that they will be hit hard if the AGOA agreement is not renewed.
"I think that is very clear from some of the tariff negotiations that are taking place between the two countries. It's very clear that this blanket tariff-free access will probably be a feature of the past, but we remain to see what will happen with Congress.
"I've adopted the view that we will hope for the best but prepare for the worst," Steenhuisen added.